To amend the Internal Revenue Code of 1986 to modify the unrelated business income limitation on investment in certain debt-financed properties.

February 12, 2003

Mr. RAMSTAD (for himself and Mr. POMEROY) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to modify the unrelated business income limitation on investment in certain debt-financed properties.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Small Business Investment Company Capital Access Act of 2003'.

SEC. 2. MODIFICATION OF UNRELATED BUSINESS INCOME LIMITATION ON INVESTMENT IN CERTAIN DEBT-FINANCED PROPERTIES.

(a) IN GENERAL- Section 514(c)(6) of the Internal Revenue Code of 1986 (relating to acquisition indebtedness) is amended--

(1) by striking `include an obligation' and inserting `include--

`(A) an obligation',

(2) by striking the period at the end and inserting `, or', and

(3) by adding at the end the following:

`(B) indebtedness incurred by a small business investment company licensed under the Small Business Investment Act of 1958 which is evidenced by a debenture--

`(i) issued by such company under section 303(a) of such Act, or

`(ii) held or guaranteed by the Small Business Administration.'.

(b) EFFECTIVE DATE- The amendments made by subsection (a) shall apply to acquisitions made on or after the date of the enactment of this Act.

END