To provide for creation of a Counter-terrorism Trust Fund, to provide for the issuance of Freedom Bonds, to allow taxpayers to contribute income tax refunds and other amounts to support counter-terrorism efforts, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Terrorism Elimination Act of 2001''.

SEC. 2. COUNTER-TERRORISM TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to trust fund code) is amended by adding at the 
end the following new section:

``SEC. 9511. COUNTER-TERRORISM TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Counter-Terrorism 
Trust Fund', consisting of such amounts as may be appropriated or 
credited to the Counter-Terrorism Trust Fund as provided in this 
section or section 9602(b).
    ``(b) Transfer to Counter-Terrorism Trust Fund of Amounts 
Designated.--
            ``(1) In general.--There is hereby appropriated to the 
        Counter-Terrorism Trust Fund amounts equivalent to the amounts 
        designated under section 6097 and received in the Treasury.
            ``(2) Other contributions.--The Secretary shall prescribe 
        procedures under which persons may make contributions to the 
        Counter-Terrorism Trust Fund other than as provided in section 
        6097.
    ``(c) Expenditures From Trust Fund.--
            ``(1) In general.--Amounts in the Counter-Terrorism Trust 
        Fund shall be available, as provided in appropriation Acts, for 
        purposes of making expenditures for counter-terrorism efforts 
        by the United States.
            ``(2) Administrative expenses.--Amounts in the Counter-
        Terrorism Trust Fund shall be available to pay the 
        administrative expenses of the Department of the Treasury 
        directly allocable to--
                    ``(A) modifying the income tax return forms to 
                carry out section 6097,
                    ``(B) carrying out this chapter with respect to 
                such Fund, and
                    ``(C) processing amounts received under section 
                6097 and transferring such amounts to such Fund.''
    (b) Clerical Amendment.--The table of sections for such subchapter 
A is amended by adding at the end the following new item:

                              ``Sec. 9511. Counter-Terrorism Trust 
                                        Fund.''

SEC. 3. AUTHORIZATION FOR THE ISSUANCE OF FREEDOM BONDS.

    Section 3102 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(f) Issuance of Freedom Bonds.--
            ``(1) In general.--The Secretary may issue bonds under this 
        section, to be known as `Freedom Bonds', in response to the 
        acts of terrorism perpetrated against the United States on 
        September 11, 2001.
            ``(2) Use of proceeds.--Proceeds from the issuance of 
        Freedom Bonds shall be used to raise funds to assist in 
        recovery operations following the terrorist acts referred to in 
        paragraph (1) and for efforts to combat terrorism.
            ``(3) Form.--The bonds authorized by paragraph (1) shall be 
        in such form and denominations, and shall be subject to such 
        terms and conditions of issue, conversion, redemption, 
        maturation, payment, and rate of interest as the Secretary may 
        prescribe.''.

SEC. 4. DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR COUNTER-
              TERRORISM EFFORTS.

    (a) In General.--Subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

 ``PART IX--DESIGNATION OF OVERPAYMENTS AND CONTRIBUTIONS FOR COUNTER-
                           TERRORISM EFFORTS

                              ``Sec. 6097. Designation.

``SEC. 6097. DESIGNATION.

    ``(a) In General.--With respect to each taxpayer's return for the 
taxable year of the tax imposed by chapter 1, such taxpayer may 
designate that--
            ``(1) a specified portion (but not less than $1) of any 
        overpayment of tax for such taxable year, and
            ``(2) any cash contribution which the taxpayer includes 
        with such return,
shall be deposited into the Counter-Terrorism Trust Fund.
    ``(b) Manner and Time of Designation.--A designation under 
subsection (a) may be made with respect to any taxable year only at the 
time of filing the return of the tax imposed by chapter 1 for such 
taxable year. Such designation shall be made in such manner as the 
Secretary prescribes by regulations except that such designation shall 
be made either on the first page of the return or on the page bearing 
the taxpayer's signature.
    ``(c) Overpayments Treated as Refunded.--For purposes of this 
title, any portion of an overpayment of tax designated under subsection 
(a) shall be treated as being refunded to the taxpayer as of the last 
date prescribed for filing the return of tax imposed by chapter 1 
(determined without regard to extensions) or, if later, the date the 
return is filed.''
    (b) Clerical Amendment.--The table of parts for subchapter A of 
chapter 61 of such Code is amended by adding at the end thereof the 
following new item:

                              ``Part IX. Designation of overpayments 
                                        and contributions for counter-
                                        terrorism efforts.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 5. VISA APPLICATION SURCHARGE FOR COUNTER-TERRORISM.

    (a) In General.--Notwithstanding any other provision of law, in 
addition to such other fees as are authorized to be charged for the 
consideration or processing of an application for an immigrant or 
nonimmigrant visa under the Immigration and Nationality Act, the 
Attorney General shall impose an additional 15 percent surcharge.
    (b) Deposit of Surcharge Into the Counter-Terrorism Trust Fund.--
Amounts collected pursuant to the surcharge under subsection (a) shall 
be held in a separate account and transferred to the Counter-Terrorism 
Trust Fund established under section 9511 of the Internal Revenue Code 
of 1986.

Summary: Terrorism Elimination Act of 2001 - Amends the Internal Revenue Code to establish in the US Treasury the Counter-Terrorism Trust Fund. Provides that amounts in the Counter-Terrorism Trust Fund shall be available, as provided in appropriation Acts, for purposes of making expenditures for counter-terrorism efforts by the United States. Authorizes the issuance of bonds to be known as Freedom Bonds, in response to the acts of terrorism perpetrated against the United States on September 11, 2001. Requires proceeds from the issuance of Freedom Bonds to be used to raise funds to assist in recovery operations following such terrorist acts and for efforts to combat terrorism. Permits a taxpayer to designate that a specified portion of any tax overpayment and any cash contribution which the taxpayer includes with such return be deposited into the Counter-Terrorism Trust Fund. Requires, in addition to other fees authorized to be charged for the consideration or processing of an application for an immigrant or nonimmigrant visa under the Immigration and Nationality Act, the Attorney General to impose an additional 15 percent surcharge. Requires amounts collected pursuant to such surcharge to be held in a separate account and transferred to the Counter-Terrorism Trust Fund.