SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Abandoned Mine Land Area 
Redevelopment Act of 2001''.

SEC. 2. CREDIT TO HOLDERS OF QUALIFIED ABANDONED MINE LAND AREA 
              REDEVELOPMENT BONDS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30B. CREDIT TO HOLDERS OF QUALIFIED ABANDONED MINE LAND AREA 
              REDEVELOPMENT BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
qualified abandoned mine land area redevelopment bond on a credit 
allowance date of such bond which occurs during the taxable year, there 
shall be allowed as a credit against the tax imposed by this chapter 
for such taxable year an amount equal to the sum of the credits 
determined under subsection (b) with respect to credit allowance dates 
during such year on which the taxpayer holds such bond.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified abandoned mine land area redevelopment bond is 
        25 percent of the annual credit determined with respect to such 
        bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified abandoned mine land area redevelopment 
        bond is the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (1), the applicable credit rate with respect to an issue is the 
        rate equal to an average market yield (as of the day before the 
        date of issuance of the issue) on outstanding long-term 
        corporate debt obligations (determined under regulations 
        prescribed by the Secretary).
            ``(4) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this subsection with respect to such credit allowance 
        date shall be a ratable portion of the credit otherwise 
        determined based on the portion of the 3-month period during 
        which the bond is outstanding. A similar rule shall apply when 
        the bond is redeemed.
    ``(c) Qualified Abandoned Mine Land Area Redevelopment Bond.--For 
purposes of this section--
            ``(1) In general.--The term `qualified abandoned mine land 
        area redevelopment bond' means any bond issued as part of an 
        issue if--
                    ``(A) the issuer is an approved special purpose 
                entity,
                    ``(B) all of the net proceeds of the issue are 
                deposited into either--
                            ``(i) an approved segregated program fund, 
                        or
                            ``(ii) a sinking fund for payment of 
                        principal on the bonds at maturity,
                    ``(C) the issuer designates such bond for purposes 
                of this section, and
                    ``(D) the term of each bond which is part of such 
                issue does not exceed 30 years.
        Not more than \1/6\ of the net proceeds of an issue may be 
        deposited into a sinking fund referred to in subparagraph 
        (B)(ii).
            ``(2) Limitation on amount of bonds designated.--The 
        maximum aggregate face amount of bonds designated by an 
        approved special purpose entity shall not exceed the portion of 
        the national volume cap allocated to that entity by the 
        Administrator of the Environmental Protection Agency.
            ``(3) National volume cap.--The national volume cap is 
        $20,000,000,000. The Administrator of the Environmental 
        Protection Agency shall allocate such amount among the approved 
        special purpose entities, except that not less than 
        $2,000,000,000 of such amount shall be allocated to an entity 
        whose comprehensive plan only covers abandoned mine land areas 
        containing anthracite coal.
            ``(4) Approved special purpose entity.--The term `approved 
        special purpose entity' means a State or local governmental 
        entity, or an entity described in section 501(c) and exempt 
        from tax under section 501(a), if--
                    ``(A) such entity is established and operated 
                exclusively to carry out qualified purposes,
                    ``(B) such entity has a comprehensive plan to 
                restore and redevelop abandoned mine land areas, and
                    ``(C) such entity and plan are approved by the 
                Administrator of the Environmental Protection Agency.
            ``(5) Approved segregated program fund.--The term `approved 
        segregated program fund' means any segregated fund the amounts 
        in which may be used only for qualified purposes, but only if 
        such fund has safeguards approved by such Administrator to 
        assure that such amounts are only used for such purposes.
    ``(d) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under part 
                IV of subchapter A (other than this section and subpart 
                C thereof, relating to refundable credits).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) for any taxable year exceeds the 
        limitation imposed by paragraph (1) for such taxable year, the 
        excess shall be carried to the succeeding taxable year and 
        added to the amount allowable as a credit under subsection (a) 
        for such succeeding taxable year.
    ``(e) Other Definitions.--For purposes of this section--
            ``(1) Abandoned mine land areas.--The term `abandoned mine 
        land areas' means lands and water eligible pursuant to section 
        404 of the Surface Mining Control and Reclamation Act of 1977 
        (30 U.S.C. 1234) for expenditures from the Abandoned Mine 
        Reclamation Fund under title IV of such Act (30 U.S.C. 1231 et 
        seq.).
            ``(2) Qualified purpose.--The term `qualified purpose' 
        means, with respect to any qualified abandoned mine land area 
        redevelopment bond--
                    ``(A) the purchase, restoration, and redevelopment 
                of abandoned mine land areas,
                    ``(B) the cleanup of waterways and their 
                tributaries, both surface and subsurface, on abandoned 
                mine land areas from acid mine drainage and other 
                pollution,
                    ``(C) the provision of financial and technical 
                assistance for infrastructure construction and 
                upgrading water and sewer systems on abandoned mine 
                land areas,
                    ``(D) research and development relating to 
                abandoned mine land areas,
                    ``(E) other environmental and economic development 
                purposes relating to abandoned mine land areas, and
                    ``(F) such other purposes as are set forth in the 
                comprehensive plan prepared by the issuer and approved 
                by the Administrator of the Environmental Protection 
                Agency.
            ``(3) Credit allowance date.--The term `credit allowance 
        date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(4) Bond.--The term `bond' includes any obligation.
    ``(f) Credit Included in Gross Income.--Gross income includes the 
amount of the credit allowed to the taxpayer under this section 
(determined without regard to subsection (d)) and the amount so 
included shall be treated as interest income.
    ``(g) Bonds Held by Regulated Investment Companies.--If any 
qualified abandoned mine land area redevelopment bond is held by a 
regulated investment company, the credit determined under subsection 
(a) shall be allowed to shareholders of such company under procedures 
prescribed by the Secretary.
    ``(h) Credits May Be Stripped.--Under regulations prescribed by the 
Secretary--
            ``(1) In general.--There may be a separation (including at 
        issuance) of the ownership of a qualified abandoned mine land 
        area redevelopment bond and the entitlement to the credit under 
        this section with respect to such bond. In case of any such 
        separation, the credit under this section shall be allowed to 
        the person who on the credit allowance date holds the 
        instrument evidencing the entitlement to the credit and not to 
        the holder of the bond.
            ``(2) Certain rules to apply.--In the case of a separation 
        described in paragraph (1), the rules of section 1286 shall 
        apply to the qualified abandoned mine land area redevelopment 
        bond as if it were a stripped bond and to the credit under this 
        section as if it were a stripped coupon.
    ``(i) Treatment for Estimated Tax Purposes.--Solely for purposes of 
sections 6654 and 6655, the credit allowed by this section to a 
taxpayer by reason of holding a qualified abandoned mine land area 
redevelopment bond on a credit allowance date shall be treated as if it 
were a payment of estimated tax made by the taxpayer on such date.
    ``(j) Credit May Be Transferred.--Nothing in any law or rule of law 
shall be construed to limit the transferability of the credit allowed 
by this section through sale and repurchase agreements.
    ``(k) Reporting.--The issuer of qualified abandoned mine land area 
redevelopment bonds shall submit reports similar to the reports 
required under section 149(e).
    ``(l) Termination.--This section shall not apply to any bond issued 
more than 10 years after the date that the first qualified abandoned 
mine land area redevelopment bond is issued.''
    (b) Reporting.--Subsection (d) of section 6049 of such Code 
(relating to returns regarding payments of interest) is amended by 
adding at the end the following new paragraph:
            ``(8) Reporting of credit on qualified abandoned mine land 
        area redevelopment bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 30B(f) and such amounts 
                shall be treated as paid on the credit allowance date 
                (as defined in section 30B(e)(3)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A) of this 
                paragraph, subsection (b)(4) of this section shall be 
                applied without regard to subparagraphs (A), (H), (I), 
                (J), (K), and (L)(i).
                    ``(C) Regulatory authority.--The Secretary shall 
                prescribe such regulations as are necessary or 
                appropriate to carry out the purposes of this 
                paragraph, including regulations which require more 
                frequent or more detailed reporting.''
    (c) Conforming Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 30B. Credit to holders of 
                                        qualified abandoned mine land 
                                        area redevelopment bonds.''
    (d) Deadline for Regulations.--The Secretary of the Treasury shall 
prescribe the regulations required by section 6049(d)(8) of the 
Internal Revenue Code of 1986 (as added by this section) not later than 
120 days after the date of the enactment of this Act.
    (e) Approval of Bonds, Etc., by Administrator of the Environmental 
Protection Agency.--The Administrator of the Environmental Protection 
Agency shall act on any request for an approval required by section 30B 
of the Internal Revenue Code of 1986 (as added by this section) not 
later than 60 days after the date such request is submitted to such 
Administrator.
    (f) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2001.
Abandoned Mine Land Area Redevelopment Act of 2001 - Amends the Internal Revenue Code to allow a credit for holders of qualified abandoned mine land area redevelopment bonds, as specified. Sets forth rules and formulae concerning the annual credit (including limits and carryover), the applicable credit rate, bond issuance and redemption, the amount of bonds designated, and a national volume cap.Includes the credit in gross income, to be treated as interest income. Permits the the credit to be stripped (owner of bond different from person entitled to the credit). Treats the allowed credit as a payment of estimated tax. Permits the credit to be transferred. Limits the program to ten years from the issuance of the first qualified abandoned mine land area redevelopment bond.
To amend the Internal Revenue Code of 1986 to allow a credit against income tax to holders of bonds issued to finance land and water reclamation of abandoned mine land areas.