I 

108TH CONGRESS 

1ST SESSION H. R. 1742

To amend the Internal Revenue Code of 1986 with respect to the eligibility 

of veterans for mortgage bond financing, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 10, 2003

Mr. KLECZKA (for himself, Mr. HERGER, Mr. BACA, Ms. BALDWIN, Mr. CALVERT, Mrs. CAPITO, Mrs. DAVIS of California, Mr. DEFAZIO, Mr. 

DOGGETT, Mr. DOOLITTLE, Mr. EVANS, Mr. FARR, Mr. FROST, Mr. 

GREEN of Texas, Mr. GREEN of Wisconsin, Mr. LAMPSON, Mr. LANTOS, 

Mr. LEWIS of California, Mr. MATSUI, Ms. MILLENDER-MCDONALD, 

Mrs. NAPOLITANO, Mr. OBEY, Mr. PAUL, Mr. PETRI, Mr. POMBO, Mr. 

RAHALL, Mr. RODRIGUEZ, Mr. SANDLIN, Mr. SCHIFF, Mr. SENSENBRENNER, Mr. SESSIONS, Mr. THOMPSON of California, Mr. TURNER of 

Texas, Ms. WATERS, Ms. WATSON, Mr. WAXMAN, Ms. WOOLSEY, and 

Mr. WU) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 with respect 

to the eligibility of veterans for mortgage bond financing, 

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. ALL VETERANS ELIGIBLE FOR STATE HOME 

2 LOAN PROGRAMS FUNDED BY QUALIFIED 

3 VETERANS’ MORTGAGE BONDS. 

4 (a) IN GENERAL.—Section 143(l)(4) of the Internal 

5 Revenue Code of 1986 (defining qualified veteran) is 

6 amended—

7 (1) by striking ‘‘at some time before January 1, 

8 1977’’ in subparagraph (A), and 

9 (2) by striking subparagraph (B) and inserting 

10 the following: 

11 ‘‘(B) who applied for the financing before 

12 the date 30 years after the last on which such 

13 veteran left active service.’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to financing provided and mort16 gage credit certificates issued after June 30, 2003. 

17 SEC. 2. REVISION OF STATE VETERANS LIMIT. 

18 (a) IN GENERAL.—Subparagraph (B) of section 

19 143(l)(3) of the Internal Revenue Code of 1986 (relating 

20 to volume limitation) is amended to read as follows: 

21 ‘‘(B) STATE VETERANS LIMIT.—A State 

22 veterans limit for any calendar year is the 

23 amount equal to—

24 ‘‘(i) $425,000,000 for the State of 

25 Texas, 
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1 ‘‘(ii) $537,000,000 for the State of 

2 California, 

3 ‘‘(iii) $200,000,000 for the State of 

4 Oregon, 

5 ‘‘(iv) $200,000,000 for the State of 

6 Wisconsin, and 

7 ‘‘(v) $200,000,000 for the State of 

8 Alaska.’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall apply to bonds issued after December 

11 31, 2003. 

12 SEC. 3. ELECTIVE CARRYFORWARD OF UNUSED LIMITA13 TION. 

14 (a) IN GENERAL.—Section 143(l)(3) of the Internal 

15 Revenue Code of 1986 (relating to volume limitation) is 

16 amended by adding at the end the following: 

17 ‘‘(D) ELECTIVE CARRYFORWARD OF UN18 USED LIMITATION.—

19 ‘‘(i) IN GENERAL.—If—

20 ‘‘(I) a State veterans limit for 

21 any calendar year after 2002, exceeds 

22 ‘‘(II) the aggregate amount of 

23 qualified veterans’ mortgage bonds 

24 issued by such State, 
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1 such State may irrevocably elect to treat 

2 such excess as a carryforward for qualified 

3 veterans’ mortgage bonds. 

4 ‘‘(ii) USE OF CARRYFORWARD.—

5 ‘‘(I) IN GENERAL.—If a State 

6 elects a carryforward under clause (i), 

7 qualified veterans’ mortgage bonds 

8 issued during the 3 calendar years fol9 lowing the calendar year in which the 

10 carryforward arose shall not be taken 

11 into account under subparagraph (A) 

12 to the extent the amount of such 

13 bonds does not exceed the amount of 

14 the carryforward so elected. 

15 ‘‘(II) ORDER IN WHICH

16 CARRYFORWARD USED.—

17 Carryforwards elected shall be used in 

18 the order of the calendar years in 

19 which such carryforwards arose.’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to bonds issued and carryforward 

22 elections made after December 31, 2003.

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