To amend the Internal Revenue Code of 1986 to modify the qualified small issue bond provisions.

June 16, 2005

Mr. ENGLISH of Pennsylvania 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 qualified small issue bond provisions.

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 `Bond Financing Renewal Act of 2005'.

SEC. 2. ACCELERATION OF EXPANSION OF QUALIFIED SMALL-ISSUE BOND PROGRAM.

Subparagraph (G) of section 144(a)(4) of the Internal Revenue Code of 1986 (relating to additional capital expenditures not taken into account) is amended by striking `2009' and inserting `2006'.

SEC. 3. ACQUISITION INTEREST EXPENSES OF FINANCIAL INSTITUTIONS FOR SMALL ISSUE BONDS MADE DEDUCTIBLE.

(a) In General- Clause (ii) of section 265(b)(3)(B) of the Internal Revenue Code of 1986 (relating to certain bonds not treated as private activity bonds) is amended by striking `or' at the end of subclause (I), by striking the period at the end of subclause (II) and inserting `, or', and by inserting after subclause (II) the following new subclause:

`(III) any obligation which is a qualified small issue bond described in section 144(a)(12)(B) if such obligation is part of an issue the aggregate authorized face amount of which is less than $2,000,000.'.

(b) Effective Date- The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act.

END