I 

108TH CONGRESS 

1ST SESSION H. R. 2571

To provide for the financing of high-speed rail infrastructure, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2003

Mr. YOUNG of Alaska (for himself, Mr. OBERSTAR, Mr. QUINN, and Ms. 

CORRINE BROWN of Florida) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL

To provide for the financing of high-speed rail infrastructure, 

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,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Rail Infrastructure De5 velopment and Expansion Act for the 21st Century’’. 
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1 SEC. 2. HIGH-SPEED INTERCITY RAIL FACILITY BONDS. 

2 (a) AMENDMENT.—Chapter 261 of title 49, United 

3 States Code, is amended by adding at the end the fol4 lowing new section: 

5 ‘‘§ 26106. High-speed rail infrastructure bonds 

6 ‘‘(a) DESIGNATION.—The Secretary may designate 

7 bonds for purposes of subsection (f) or section 54 of the 

8 Internal Revenue Code of 1986 if—

9 ‘‘(1) the bonds are to be issued by—

10 ‘‘(A) a State, if the entire railroad pas11 senger transportation corridor containing the 

12 infrastructure project to be financed is within 

13 the State; 

14 ‘‘(B) 1 or more of the States that have en15 tered into an agreement or an interstate com16 pact consented to by Congress under section 

17 410(a) of Public Law 105–134 (49 U.S.C 

18 24101 nt); or 

19 ‘‘(C) an agreement or an interstate com20 pact described in subparagraph (B); 

21 ‘‘(2) the bonds are for the purpose of financ22 ing—

23 ‘‘(A) projects that make a substantial con24 tribution to providing the infrastructure and 

25 equipment required to complete a high-speed 

26 rail transportation corridor (including projects 
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1 for the acquisition, financing, or refinancing of 

2 equipment and other capital improvements, in3 cluding the introduction of new high-speed tech4 nologies such as magnetic levitation systems, 

5 track or signal improvements, the elimination of 

6 grade crossings, development of intermodal fa7 cilities, improvement of train speeds or safety, 

8 or both, and station rehabilitation or construc9 tion), but only if the Secretary determines that 

10 the projects are part of a viable and comprehen11 sive high-speed rail transportation corridor de12 sign for intercity passenger service, including a 

13 design for minimally operable segments of a 

14 corridor designated under section 104(d)(2) of 

15 title 23, United States Code; or 

16 ‘‘(B) projects for the Alaska Railroad; 

17 ‘‘(3) for a railroad passenger transportation 

18 corridor design that includes the use of rights-of-way 

19 owned by a freight railroad, a written agreement ex20 ists between the applicant and the freight railroad 

21 regarding such use and ownership, including com22 pensation for such use and assurances regarding the 

23 adequacy of infrastructure capacity to accommodate 

24 both existing and future freight and passenger oper25 ations, and including an assurance by the freight 
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1 railroad that collective bargaining agreements with 

2 the freight railroad’s employees (including terms 

3 regulating the contracting of work) shall remain in 

4 full force and effect according to their terms for 

5 work performed by the freight railroad on such rail6 road passenger transportation corridor; 

7 ‘‘(4) the corridor design eliminates existing rail8 way-highway grade crossings that the Secretary de9 termines would impede high-speed rail operations; 

10 ‘‘(5) the applicant agrees to comply with—

11 ‘‘(A) the standards of section 24312, as in 

12 effect on September 1, 2002, with respect to 

13 the project in the same manner that the Na14 tional Railroad Passenger Corporation is re15 quired to comply with such standards for con16 struction work financed under an agreement 

17 made under section 24308(a); and 

18 ‘‘(B) the protective arrangements estab19 lished under section 504 of the Railroad Revi20 talization and Regulatory Reform Act of 1976 

21 (45 U.S.C. 836) with respect to employees af22 fected by actions taken in connection with the 

23 project to be financed by the bond; and 

24 ‘‘(6) the applicant agrees not to pay the prin25 cipal or interest on the bonds using funds derived di-
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1 rectly or indirectly from the Highway Trust Fund, 

2 except as permitted by law as of the date of the en3 actment of this section. 

4 ‘‘(b) BOND AMOUNT LIMITATION.—

5 ‘‘(1) IN GENERAL.—The amount of bonds des6 ignated under this section may not exceed—

7 ‘‘(A) in the case of subsection (f) bonds, 

8 $1,200,000,000 for each of the fiscal years 

9 2004 through 2013; and 

10 ‘‘(B) in the case of section 54 bonds, 

11 $1,200,000,000 for each of the fiscal years 

12 2004 through 2013. 

13 ‘‘(2) CARRYOVER OF UNUSED LIMITATION.—If 

14 for any fiscal year the limitation amount under sub15 paragraph (A) or (B) of paragraph (1) exceeds—

16 ‘‘(A) with respect to subparagraph (A) of 

17 paragraph (1), the amount of subsection (f) 

18 bonds issued during such year; or 

19 ‘‘(B) with respect to subparagraph (B) of 

20 paragraph (1), the amount of section 54 bonds 

21 issued during such year, 

22 the limitation amount under subparagraph (A) or 

23 (B) of paragraph (1), as the case may be, for the 

24 following fiscal year (through fiscal year 2017) shall 

25 be increased by the amount of such excess.
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1 ‘‘(c) PREFERENCE.—The Secretary shall give pref2 erence to the designation under this section of bonds for 

3 projects—

4 ‘‘(1) to be funded through a combination of 

5 subsection (f) bonds and section 54 bonds; 

6 ‘‘(2) which propose to link rail passenger serv7 ice with other modes of transportation; 

8 ‘‘(3) expected to have a significant impact on 

9 air traffic congestion; 

10 ‘‘(4) expected to also improve commuter rail op11 erations; 

12 ‘‘(5) where all environmental work has already 

13 been completed and the project is ready to com14 mence; or 

15 ‘‘(6) that have received financial commitments 

16 and other support of State and local governments. 

17 ‘‘(d) TIMELY DISPOSITION OF APPLICATION.—The 

18 Secretary shall grant or deny a requested designation 

19 within 9 months after receipt of an application. 

20 ‘‘(e) ANNUAL REPORTS.—

21 ‘‘(1) FROM ISSUER OF BONDS.—The issuer of 

22 bonds designated under subsection (a) shall report 

23 annually to the Secretary regarding the terms of 

24 outstanding designated bonds and the progress made 

25 with respect to the project financed by the bonds. 
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1 ‘‘(2) FROM SECRETARY.—The Secretary, in 

2 consultation with the Secretary of the Treasury, 

3 shall transmit to the Congress an annual report 

4 which includes—

5 ‘‘(A) reports received under paragraph (1); 

6 and 

7 ‘‘(B) an assessment of the progress made 

8 toward completion of high-speed rail transpor9 tation corridors resulting from projects financed 

10 by bonds designated under subsection (a). 

11 ‘‘(f) TAX TREATMENT OF SUBSECTION (f) BONDS.—

12 ‘‘(1) EXCLUSION FROM GROSS INCOME.—The 

13 interest on a bond designated by the Secretary 

14 under subsection (a) for purposes of this subsection 

15 shall be excluded from gross income under section 

16 103 of the Internal Revenue Code of 1986, notwith17 standing section 149(c) of such Code. 

18 ‘‘(2) EXEMPTION FROM VOLUME CAP.—For 

19 purposes of section 146 of such Code, a bond des20 ignated by the Secretary under subsection (a) for 

21 purposes of this subsection shall be considered to be 

22 exempt from the volume cap of the issuing authority 

23 in the same manner as bonds listed in subsection (g) 

24 of such section 146. 
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1 ‘‘(g) REFINANCING RULES.—Bonds designated by 

2 the Secretary under subsection (a) may be issued for refi3 nancing projects only if the indebtedness being refinanced 

4 (including any obligation directly or indirectly refinanced 

5 by such indebtedness) was originally incurred by the 

6 issuer—

7 ‘‘(1) after the date of the enactment of this sec8 tion; 

9 ‘‘(2) for a term of not more than 3 years; 

10 ‘‘(3) to finance projects described in subsection 

11 (a)(2); and 

12 ‘‘(4) in anticipation of being refinanced with 

13 proceeds of a bond designated under subsection (a). 

14 ‘‘(h) PROVISIONS REGARDING HIGH-SPEED RAIL

15 SERVICE.—

16 ‘‘(1) STATUS AS EMPLOYER OR CARRIER.—Any 

17 entity providing railroad transportation (within the 

18 meaning of section 20102) that begins operations 

19 after the date of enactment of this section and that 

20 uses property acquired pursuant to this section (ex21 cept as provided in subsection (a)(2)(B)), shall be 

22 considered an employer for purposes of the Railroad 

23 Retirement Act of 1974 (45 U.S.C. 231 et seq.) and 

24 considered a carrier for purposes of the Railway 

25 Labor Act (45 U.S.C. 151 et seq.).
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1 ‘‘(2) COLLECTIVE BARGAINING AGREEMENT.—

2 Any entity providing high-speed intercity passenger 

3 railroad transportation (within the meaning of sec4 tion 20102) that begins operations after the date of 

5 enactment of this section on a project funded in 

6 whole or in part by bonds designated under sub7 section (a), and replaces intercity rail passenger 

8 service that was provided by another entity as of the 

9 date of enactment of this section, shall enter into an 

10 agreement with the authorized bargaining agent or 

11 agents for employees of the predecessor provider 

12 that—

13 ‘‘(A) gives each employee of the prede14 cessor provider priority in hiring according to 

15 the employee’s seniority on the predecessor pro16 vider for each position with the replacing entity 

17 that is in the employee’s craft or class and is 

18 available within three years after the termi19 nation of the service being replaced; 

20 ‘‘(B) establishes a procedure for notifying 

21 such an employee of such positions; 

22 ‘‘(C) establishes a procedure for such an 

23 employee to apply for such positions; and 

24 ‘‘(D) establishes rates of pay, rules, and 

25 working conditions. 
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1 ‘‘(3) IMMEDIATE REPLACEMENT OF EXISTING

2 RAIL PASSENGER SERVICE.—

3 (A) NEGOTIATIONS.—If the replacement of 

4 preexisting intercity rail passenger service oc5 curs concurrent with or within a reasonable 

6 amount of time before the commencement of 

7 the replacing entity’s high-speed rail passenger 

8 service, the replacing entity shall give written 

9 notice of its plan to replace existing rail pas10 senger service to the authorized collective bar11 gaining agent or agents for the employees of 

12 the predecessor provider at least 90 days prior 

13 to the date it plans to commence service. With14 in 5 days after the date of receipt of such writ15 ten notice, negotiations between the replacing 

16 entity and the collective bargaining agent or 

17 agents for the employees of the predecessor pro18 vider shall commence for the purpose of reach19 ing agreement with respect to all matters set 

20 forth in paragraph (2)(A)–(D). The negotia21 tions shall continue for 30 days or until an 

22 agreement is reached, whichever is sooner. If at 

23 the end of 30 days the parties have not entered 

24 into an agreement with respect to all such mat25 ters, the unresolved issues shall be submitted
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1 for arbitration in accordance with the procedure 

2 set forth in subparagraph (B). 

3 ‘‘(B) ARBITRATION.—If an agreement has 

4 not been entered into with respect to all mat5 ters set forth in paragraph (2)(A)–(D) as pro6 vided in subparagraph (A) of this paragraph, 

7 the parties shall select an arbitrator. If the par8 ties are unable to agree upon the selection of 

9 such arbitrator within 5 days, either or both 

10 parties shall notify the National Mediation 

11 Board, which shall provide a list of seven arbi12 trators with experience in arbitrating rail labor 

13 protection disputes. Within 5 days after such 

14 notification, the parties shall alternately strike 

15 names from the list until only one name re16 mains, and that person shall serve as the neu17 tral arbitrator. Within 45 days after selection of 

18 the arbitrator, the arbitrator shall conduct a 

19 hearing on the dispute and shall render a deci20 sion with respect to the unresolved issues set 

21 forth in paragraph (2)(A)–(D). This decision 

22 shall be final, binding, and conclusive upon the 

23 parties. The salary and expenses of the arbi24 trator shall be borne equally by the parties; all 
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1 other expenses shall be paid by the party incur2 ring them. 

3 ‘‘(C) SERVICE COMMENCEMENT.—A re4 placing entity under this paragraph shall com5 mence service only after an agreement is en6 tered into with respect to the matters set forth 

7 in paragraph (2)(A)–(D) or the decision of the 

8 arbitrator has been rendered. 

9 ‘‘(4) SUBSEQUENT REPLACEMENT OF EXISTING

10 RAIL PASSENGER SERVICE.—If the replacement of 

11 existing rail passenger service takes place within 3 

12 years after the replacing entity commences high13 speed rail passenger service, the replacing entity and 

14 the collective bargaining agent or agents for the em15 ployees of the predecessor provider shall enter into 

16 an agreement with respect to the matters set forth 

17 in paragraph (2)(A)–(D). If the parties have not en18 tered into an agreement with respect to all such 

19 matters within 60 days after the date on which the 

20 replacing entity replaces the predecessor provider, 

21 the parties shall select an arbitrator using the proce22 dures set forth in paragraph (3)(B), who shall, with23 in 20 days after the commencement of the arbitra24 tion, conduct a hearing and decide all unresolved 
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1 issues. This decision shall be final, binding, and con2 clusive upon the parties. 

3 ‘‘(i) ISSUANCE OF REGULATIONS.—Not later than 6 

4 months after the date of the enactment of this section, 

5 the Secretary shall issue regulations for carrying out this 

6 section. 

7 ‘‘(j) DEFINITIONS.—For purposes of this section—

8 ‘‘(1) SUBSECTION (f) BOND.—The term ‘sub9 section (f) bond’ means a bond designated by the 

10 Secretary under subsection (a) for purposes of sub11 section (f). 

12 ‘‘(2) SECTION 54 BOND.—The term ‘section 54 

13 bond’ means a bond designated by the Secretary 

14 under subsection (a) for purposes of section 54 of 

15 the Internal Revenue Code of 1986 (relating to cred16 it to holders of qualified high-speed rail infrastruc17 ture bonds).’’. 

18 (b) TABLE OF SECTIONS AMENDMENT.—The table of 

19 sections of chapter 261 of title 49, United States Code, 

20 is amended by adding after the item relating to section 

21 26105 the following new item:

‘‘26106. High-speed rail infrastructure bonds.’’.

22 SEC. 3. TAX CREDIT TO HOLDERS OF QUALIFIED HIGH23 SPEED RAIL INFRASTRUCTURE BONDS. 

24 (a) IN GENERAL.—Part IV of subchapter A of chap25 ter 1 of the Internal Revenue Code of 1986 (relating to 
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1 credits against tax) is amended by adding at the end the 

2 following new subpart: 

3 ‘‘Subpart H—Nonrefundable Credit for Holders of 

4 Qualified High-Speed Rail Infrastructure Bonds

‘‘Sec. 54. Credit to holders of qualified high-speed rail infrastructure bonds.

5 ‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED HIGH-SPEED 

6 RAIL INFRASTRUCTURE BONDS. 

7 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax8 payer who holds a qualified high-speed rail infrastructure 

9 bond on a credit allowance date of such bond which occurs 

10 during the taxable year, there shall be allowed as a credit 

11 against the tax imposed by this chapter for such taxable 

12 year an amount equal to the sum of the credits determined 

13 under subsection (b) with respect to credit allowance dates 

14 during such year on which the taxpayer holds such bond. 

15 ‘‘(b) AMOUNT OF CREDIT.—

16 ‘‘(1) IN GENERAL.—The amount of the credit 

17 determined under this subsection with respect to any 

18 credit allowance date for a qualified high-speed rail 

19 infrastructure bond is 25 percent of the annual cred20 it determined with respect to such bond. 

21 ‘‘(2) ANNUAL CREDIT.—The annual credit de22 termined with respect to any qualified high-speed 

23 rail infrastructure bond is the product of—
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1 ‘‘(A) the applicable credit rate, multiplied 

2 by 

3 ‘‘(B) the outstanding face amount of the 

4 bond. 

5 ‘‘(3) APPLICABLE CREDIT RATE.—For purposes 

6 of paragraph (2), the applicable credit rate with re7 spect to an issue is the rate equal to an average 

8 market yield (as of the day before the date of sale 

9 of the issue) on outstanding long-term corporate 

10 debt obligations (determined under regulations pre11 scribed by the Secretary). 

12 ‘‘(4) CREDIT ALLOWANCE DATE.—For purposes 

13 of this section, the term ‘credit allowance date’ 

14 means—

15 ‘‘(A) March 15, 

16 ‘‘(B) June 15, 

17 ‘‘(C) September 15, and 

18 ‘‘(D) December 15. 

19 Such term includes the last day on which the bond 

20 is outstanding. 

21 ‘‘(5) SPECIAL RULE FOR ISSUANCE AND RE22 DEMPTION.—In the case of a bond which is issued 

23 during the 3-month period ending on a credit allow24 ance date, the amount of the credit determined 

25 under this subsection with respect to such credit al-
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1 lowance date shall be a ratable portion of the credit 

2 otherwise determined based on the portion of the 3-

3 month period during which the bond is outstanding. 

4 A similar rule shall apply when the bond is re5 deemed. 

6 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—

7 ‘‘(1) IN GENERAL.—The credit allowed under 

8 subsection (a) for any taxable year shall not exceed 

9 the excess of—

10 ‘‘(A) the sum of the regular tax liability 

11 (as defined in section 26(b)) plus the tax im12 posed by section 55, over 

13 ‘‘(B) the sum of the credits allowable 

14 under this part (other than this subpart and 

15 subpart C). 

16 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

17 credit allowable under subsection (a) exceeds the 

18 limitation imposed by paragraph (1) for such taxable 

19 year, such excess shall be carried to the succeeding 

20 taxable year and added to the credit allowable under 

21 subsection (a) for such taxable year. 

22 ‘‘(d) CREDIT INCLUDED IN GROSS INCOME.—Gross 

23 income includes the amount of the credit allowed to the 

24 taxpayer under this section (determined without regard to 
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1 subsection (c)) and the amount so included shall be treat2 ed as interest income. 

3 ‘‘(e) QUALIFIED HIGH-SPEED RAIL INFRASTRUC4 TURE BOND.—For purposes of this part, the term ‘quali5 fied high-speed rail infrastructure bond’ means any bond 

6 issued as part of an issue if—

7 ‘‘(1) the issuer certifies that the Secretary of 

8 Transportation has designated the bond for purposes 

9 of this section under section 26106(a) of title 49, 

10 United States Code, as in effect on the date of the 

11 enactment of this section, 

12 ‘‘(2) 95 percent or more of the proceeds from 

13 the sale of such issue are to be used for expenditures 

14 incurred after the date of the enactment of this sec15 tion for any project described in section 26106(a)(2) 

16 of title 49, United States Code, 

17 ‘‘(3) the term of each bond which is part of 

18 such issue does not exceed 20 years, 

19 ‘‘(4) the payment of principal with respect to 

20 such bond is the obligation solely of the issuer, and 

21 ‘‘(5) the issue meets the requirements of sub22 section (f) (relating to arbitrage). 

23 ‘‘(f) SPECIAL RULES RELATING TO ARBITRAGE.—

24 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

25 an issue shall be treated as meeting the require-
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1 ments of this subsection if as of the date of 

2 issuance, the issuer reasonably expects—

3 ‘‘(A) to spend at least 95 percent of the 

4 proceeds from the sale of the issue for 1 or 

5 more qualified projects within the 3-year period 

6 beginning on such date, 

7 ‘‘(B) to incur a binding commitment with 

8 a third party to spend at least 10 percent of the 

9 proceeds from the sale of the issue, or to com10 mence construction, with respect to such 

11 projects within the 6-month period beginning on 

12 such date, and 

13 ‘‘(C) to proceed with due diligence to com14 plete such projects and to spend the proceeds 

15 from the sale of the issue. 

16 ‘‘(2) RULES REGARDING CONTINUING COMPLI17 ANCE AFTER 3-YEAR DETERMINATION.—If at least 

18 95 percent of the proceeds from the sale of the issue 

19 is not expended for 1 or more qualified projects 

20 within the 3-year period beginning on the date of 

21 issuance, but the requirements of paragraph (1) are 

22 otherwise met, an issue shall be treated as con23 tinuing to meet the requirements of this subsection 

24 if either—
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1 ‘‘(A) the issuer uses all unspent proceeds 

2 from the sale of the issue to redeem bonds of 

3 the issue within 90 days after the end of such 

4 3-year period, or 

5 ‘‘(B) the following requirements are met: 

6 ‘‘(i) The issuer spends at least 75 per7 cent of the proceeds from the sale of the 

8 issue for 1 or more qualified projects with9 in the 3-year period beginning on the date 

10 of issuance.

11 ‘‘(ii) Either— 

12 ‘‘(I) the issuer spends at least 95 

13 percent of the proceeds from the sale 

14 of the issue for 1 or more qualified 

15 projects within the 4-year period be16 ginning on the date of issuance, or 

17 ‘‘(II) the issuer pays to the Fed18 eral Government any earnings on the 

19 proceeds from the sale of the issue 

20 that accrue after the end of the 3-year 

21 period beginning on the date of 

22 issuance and uses all unspent pro23 ceeds from the sale of the issue to re24 deem bonds of the issue within 90 

25 days after the end of the 4-year pe-
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1 riod beginning on the date of 

2 issuance. 

3 ‘‘(g) RECAPTURE OF PORTION OF CREDIT WHERE

4 CESSATION OF COMPLIANCE.—

5 ‘‘(1) IN GENERAL.—If any bond which when 

6 issued purported to be a qualified high-speed rail in7 frastructure bond ceases to be such a qualified bond, 

8 the issuer shall pay to the United States (at the 

9 time required by the Secretary) an amount equal to 

10 the sum of—

11 ‘‘(A) the aggregate of the credits allowable 

12 under this section with respect to such bond 

13 (determined without regard to subsection (c)) 

14 for taxable years ending during the calendar 

15 year in which such cessation occurs and the 2 

16 preceding calendar years, and 

17 ‘‘(B) interest at the underpayment rate 

18 under section 6621 on the amount determined 

19 under subparagraph (A) for each calendar year 

20 for the period beginning on the first day of 

21 such calendar year. 

22 ‘‘(2) FAILURE TO PAY.—If the issuer fails to 

23 timely pay the amount required by paragraph (1) 

24 with respect to such bond, the tax imposed by this 

25 chapter on each holder of any such bond which is 
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1 part of such issue shall be increased (for the taxable 

2 year of the holder in which such cessation occurs) by 

3 the aggregate decrease in the credits allowed under 

4 this section to such holder for taxable years begin5 ning in such 3 calendar years which would have re6 sulted solely from denying any credit under this sec7 tion with respect to such issue for such taxable 

8 years. 

9 ‘‘(3) SPECIAL RULES.—

10 ‘‘(A) TAX BENEFIT RULE.—The tax for 

11 the taxable year shall be increased under para12 graph (2) only with respect to credits allowed 

13 by reason of this section which were used to re14 duce tax liability. In the case of credits not so 

15 used to reduce tax liability, the carryforwards 

16 and carrybacks under section 39 shall be appro17 priately adjusted. 

18 ‘‘(B) NO CREDITS AGAINST TAX.—Any in19 crease in tax under paragraph (2) shall not be 

20 treated as a tax imposed by this chapter for 

21 purposes of determining—

22 ‘‘(i) the amount of any credit allow23 able under this part, or 

24 ‘‘(ii) the amount of the tax imposed 

25 by section 55. 
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1 ‘‘(h) OTHER DEFINITIONS AND SPECIAL RULES.—

2 For purposes of this section—

3 ‘‘(1) BOND.—The term ‘bond’ includes any ob4 ligation. 

5 ‘‘(2) QUALIFIED PROJECT.—The term ‘qualified 

6 project’ means any project described in section 

7 26106(a)(2) of title 49, United States Code. 

8 ‘‘(3) TREATMENT OF CHANGES IN USE.—For 

9 purposes of subsection (e)(2), the proceeds from the 

10 sale of an issue shall not be treated as used for a 

11 qualified project to the extent that the issuer takes 

12 any action within its control which causes such pro13 ceeds not to be used for a qualified project. The Sec14 retary shall prescribe regulations specifying remedial 

15 actions that may be taken (including conditions to 

16 taking such remedial actions) to prevent an action 

17 described in the preceding sentence from causing a 

18 bond to fail to be a qualified high-speed rail infra19 structure bond. 

20 ‘‘(4) PARTNERSHIP; S CORPORATION; AND

21 OTHER PASS-THRU ENTITIES.—Under regulations 

22 prescribed by the Secretary, in the case of a partner23 ship, trust, S corporation, or other pass-thru entity, 

24 rules similar to the rules of section 41(g) shall apply 
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1 with respect to the credit allowable under subsection 

2 (a). 

3 ‘‘(5) BONDS HELD BY REGULATED INVEST4 MENT COMPANIES.—If any qualified high-speed rail 

5 infrastructure bond is held by a regulated invest6 ment company, the credit determined under sub7 section (a) shall be allowed to shareholders of such 

8 company under procedures prescribed by the Sec9 retary. 

10 ‘‘(6) REPORTING.—Issuers of qualified high11 speed rail infrastructure bonds shall submit reports 

12 similar to the reports required under section 

13 149(e).’’. 

14 (b) AMENDMENTS TO OTHER CODE SECTIONS.—

15 (1) REPORTING.—Subsection (d) of section 

16 6049 of the Internal Revenue Code of 1986 (relating 

17 to returns regarding payments of interest) is amend18 ed by adding at the end the following new para19 graph: 

20 ‘‘(8) REPORTING OF CREDIT ON QUALIFIED

21 HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—

22 ‘‘(A) IN GENERAL.—For purposes of sub23 section (a), the term ‘interest’ includes amounts 

24 includible in gross income under section 54(d) 

25 and such amounts shall be treated as paid on
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1 the credit allowance date (as defined in section 

2 54(b)(4)). 

3 ‘‘(B) REPORTING TO CORPORATIONS, 

4 ETC.—Except as otherwise provided in regula5 tions, in the case of any interest described in 

6 subparagraph (A), subsection (b)(4) shall be 

7 applied without regard to subparagraphs (A), 

8 (H), (I), (J), (K), and (L)(i) of such subsection. 

9 ‘‘(C) REGULATORY AUTHORITY.—The Sec10 retary may prescribe such regulations as are 

11 necessary or appropriate to carry out the pur12 poses of this paragraph, including regulations 

13 which require more frequent or more detailed 

14 reporting.’’. 

15 (2) TREATMENT FOR ESTIMATED TAX PUR16 POSES.—

17 (A) INDIVIDUAL.—Section 6654 of such 

18 Code (relating to failure by individual to pay es19 timated income tax) is amended by redesig20 nating subsection (m) as subsection (n) and by 

21 inserting after subsection (l) the following new 

22 subsection: 

23 ‘‘(m) SPECIAL RULE FOR HOLDERS OF QUALIFIED

24 HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—For pur25 poses of this section, the credit allowed by section 54 to 
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1 a taxpayer by reason of holding a qualified high-speed rail 

2 infrastructure bond on a credit allowance date shall be 

3 treated as if it were a payment of estimated tax made by 

4 the taxpayer on such date.’’. 

5 (B) CORPORATE.—Section 6655 of such 

6 Code (relating to failure by corporation to pay 

7 estimated income tax) is amended by adding at 

8 the end of subsection (g) the following new 

9 paragraph: 

10 ‘‘(5) SPECIAL RULE FOR HOLDERS OF QUALI11 FIED HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—

12 For purposes of this section, the credit allowed by 

13 section 54 to a taxpayer by reason of holding a 

14 qualified high-speed rail infrastructure bond on a 

15 credit allowance date shall be treated as if it were 

16 a payment of estimated tax made by the taxpayer on 

17 such date.’’. 

18 (c) CLERICAL AMENDMENTS.—

19 (1) The table of subparts for part IV of sub20 chapter A of chapter 1 is amended by adding at the 

21 end the following new item:

‘‘Subpart H. Nonrefundable Credit for Holders of Qualified Amtrak Bonds.’’.

22 (2) Section 6401(b)(1) is amended by striking 

23 ‘‘and G’’ and inserting ‘‘G, and H’’. 
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1 (d) ISSUANCE OF REGULATIONS.—Not later than 6 

2 months after the date of the enactment of this section, 

3 the Secretary of the Treasury shall issue regulations for 

4 carrying out this section and the amendments made by 

5 this section. 

6 (e) HIGH-SPEED INTERCITY RAIL FACILITIES.—

7 (1) REQUIREMENT TO MEET TITLE 49 RE8 QUIREMENTS.—Section 142(i) of the Internal Rev9 enue Code of 1986 is amended by adding at the end 

10 the following new paragraph: 

11 ‘‘(4) ADDITIONAL REQUIREMENTS.—A bond 

12 issued as part of an issue described in subsection 

13 (a)(11) shall not be considered an exempt facility 

14 bond unless the requirements of paragraphs (1) 

15 through (6) of section 26106(a) of title 49, United 

16 States Code, are met.’’. 

17 (2) REVISION OF SPEED REQUIREMENT.—Sec18 tion 142(i)(1) of such Code is amended by striking 

19 ‘‘150 miles per hour’’ and inserting ‘‘110 miles per 

20 hour’’. 

21 (f) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to obligations issued after the date 

23 of enactment of this Act. 

24 SEC. 4. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT. 

25 (a) CORRIDOR DEVELOPMENT.—
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1 (1) AMENDMENTS.—Section 26101 of title 49, 

2 United States Code, is amended—

3 (A) in the section heading, by striking 

4 ‘‘planning’’ and inserting ‘‘development’’; 

5 (B) in the heading of subsection (a), by 

6 striking ‘‘PLANNING’’ and inserting ‘‘DEVELOP7 MENT’’;

8 (C) by striking ‘‘corridor planning’’ each 

9 place it appears and inserting ‘‘corridor devel10 opment’’; 

11 (D) in subsection (b)(1)—

12 (i) by inserting ‘‘, or if it is an activity 

13 described in subparagraph (M)’’ after 

14 ‘‘high-speed rail improvements’’; 

15 (ii) by striking ‘‘and’’ at the end of 

16 subparagraph (K); 

17 (iii) by striking the period at the end 

18 of subparagraph (L) and inserting ‘‘; and’’; 

19 and 

20 (iv) by adding at the end the following 

21 new subparagraph: 

22 ‘‘(M) the acquisition of locomotives, rolling 

23 stock, track, and signal equipment.’’; and

24 (E) in subsection (c)(2), by striking ‘‘plan25 ning’’ and inserting ‘‘development’’. 
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1 (2) CONFORMING AMENDMENT.—The item re2 lating to section 26101 in the table of sections of 

3 chapter 261 of title 49, United States Code, is 

4 amended by striking ‘‘planning’’ and inserting ‘‘de5 velopment’’. 

6 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

7 26104 of title 49, United States Code, is amended to read 

8 as follows: 

9 ‘‘§ 26104. Authorization of appropriations 

10 ‘‘(a) FISCAL YEARS 2004 THROUGH 2011.—There 

11 are authorized to be appropriated to the Secretary—

12 ‘‘(1) $70,000,000 for carrying out section 

13 26101; and 

14 ‘‘(2) $30,000,000 for carrying out section 

15 26102, 

16 for each of the fiscal years 2004 through 2011. 

17 ‘‘(b) FUNDS TO REMAIN AVAILABLE.—Funds made 

18 available under this section shall remain available until ex19 pended.’’. 

20 SEC. 5. REHABILITATION AND IMPROVEMENT FINANCING. 

21 (a) DEFINITIONS.—Section 102(7) of the Railroad 

22 Revitalization and Regulatory Reform Act of 1976 (45 

23 U.S.C. 802(7)) is amended to read as follows: 
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1 ‘‘(7) ‘railroad’ has the meaning given that term 

2 in section 20102 of title 49, United States Code; 

3 and’’. 

4 (b) GENERAL AUTHORITY.—Section 502(a) of the 

5 Railroad Revitalization and Regulatory Reform Act of 

6 1976 (45 U.S.C. 822(a)) is amended by striking ‘‘Sec7 retary may provide direct loans and loan guarantees to 

8 State and local governments,’’ and inserting ‘‘Secretary 

9 shall provide direct loans and loan guarantees to State and 

10 local governments, agreements or interstate compacts con11 sented to by Congress under section 410(a) of Public Law 

12 105–134 (49 U.S.C 24101 nt),’’. 

13 (c) EXTENT OF AUTHORITY.—Section 502(d) of the 

14 Railroad Revitalization and Regulatory Reform Act of 

15 1976 (45 U.S.C. 822(d)) is amended—

16 (1) by striking ‘‘$3,500,000,000’’ and inserting 

17 ‘‘$35,000,000,000’’; 

18 (2) by striking ‘‘$1,000,000,000’’ and inserting 

19 ‘‘$7,000,000,000’’; and 

20 (3) by adding at the end the following new sen21 tence: ‘‘The Secretary shall not establish any limit 

22 on the proportion of the unused amount authorized 

23 under this subsection that may be used for 1 loan 

24 or loan guarantee.’’. 
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1 (d) COHORTS OF LOANS.—Section 502(f) of the Rail2 road Revitalization and Regulatory Reform Act of 1976 

3 (45 U.S.C. 822(f)) is amended—

4 (1) in paragraph (2)—

5 (A) by striking ‘‘and’’ at the end of sub6 paragraph (D); 

7 (B) by redesignating subparagraph (E) as 

8 subparagraph (F); and 

9 (C) by adding after subparagraph (D) the 

10 following new subparagraph: 

11 ‘‘(E) the size and characteristics of the co12 hort of which the loan or loan guarantee is a 

13 member; and’’; and 

14 (2) by adding at the end of paragraph (4) the 

15 following: ‘‘A cohort may include loans and loan 

16 guarantees. The Secretary shall not establish any 

17 limit on the proportion of a cohort that may be used 

18 for 1 loan or loan guarantee.’’. 

19 (e) CONDITIONS OF ASSISTANCE.—Section 502 of the 

20 Railroad Revitalization and Regulatory Reform Act of 

21 1976 (45 U.S.C. 822) is amended—

22 (1) in subsection (f)(2)(A), by inserting ‘‘, if 

23 any’’ after ‘‘collateral offered’’; and 

24 (2) by adding at the end of subsection (h) the 

25 following: 
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1 ‘‘The Secretary shall not require an applicant for a direct 

2 loan or loan guarantee under this section to provide collat3 eral. The Secretary shall not require that an applicant for 

4 a direct loan or loan guarantee under this section have 

5 previously sought the financial assistance requested from 

6 another source. The Secretary shall require recipients of 

7 direct loans or loan guarantees under this section to apply 

8 the standards of section 26106(a)(5) of title 49, United 

9 States Code, to their projects.’’. 

10 (f) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—

11 Section 502 of the Railroad Revitalization and Regulatory 

12 Reform Act of 1976 (45 U.S.C. 822) is amended by add13 ing at the end the following new subsection: 

14 ‘‘(i) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—

15 Not later than 90 days after receiving a complete applica16 tion for a direct loan or loan guarantee under this section, 

17 the Secretary shall approve or disapprove the applica18 tion.’’. 

19 (g) FEES AND CHARGES.—Section 503 of the Rail20 road Revitalization and Regulatory Reform Act of 1976 

21 (45 U.S.C. 823) is amended by adding at the end the fol22 lowing new subsection: 

23 ‘‘(l) FEES AND CHARGES.—Except as provided in 

24 this title, the Secretary may not assess any fees, including 
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1 user fees, or charges in connection with a direct loan or 

2 loan guarantee provided under section 502.’’. 

3 (h) SUBSTANTIVE CRITERIA AND STANDARDS.—Not 

4 later than 30 days after the date of the enactment of this 

5 Act, the Secretary of Transportation shall publish in the 

6 Federal Register and post on the Department of Trans7 portation web site the substantive criteria and standards 

8 used by the Secretary to determine whether to approve 

9 or disapprove applications submitted under section 502 of 

10 the Railroad Revitalization and Regulatory Reform Act of 

11 1976 (45 U.S.C. 822).

Æ