II 

109TH CONGRESS 

1ST SESSION S. 104 

To amend the Internal Revenue Code of 1986 to provide tax-exempt financing 

of highway projects and rail-truck transfer facilities. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 24, 2005 

Mr. TALENT (for himself, Mr. WYDEN, Mr. COLEMAN, and Mr. CORZINE) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

tax-exempt financing of highway projects and rail-truck 

transfer facilities. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. TAX-EXEMPT FINANCING OF HIGHWAY 

4 PROJECTS AND RAIL-TRUCK TRANSFER FA5 CILITIES. 

6 (a) TREATMENT AS EXEMPT FACILITY BOND.—Sub7 section (a) of section 142 of the Internal Revenue Code 

8 of 1986 (relating to exempt facility bond) is amended by 

9 striking ‘‘or’’ at the end of paragraph (13), by striking 
2 

•S 104 IS

1 the period at the end of paragraph (14), and by adding 

2 at the end the following: 

3 ‘‘(15) qualified highway facilities, or 

4 ‘‘(16) qualified surface freight transfer facili5 ties.’’. 

6 (b) QUALIFIED HIGHWAY FACILITIES AND QUALI7 FIED SURFACE FREIGHT TRANSFER FACILITIES.—Sec8 tion 142 of the Internal Revenue Code of 1986 is amended 

9 by adding at the end the following: 

10 ‘‘(m) QUALIFIED HIGHWAY AND SURFACE FREIGHT

11 TRANSFER FACILITIES.— 

12 ‘‘(1) QUALIFIED HIGHWAY FACILITIES.—For 

13 purposes of subsection (a)(15), the term ‘qualified 

14 highway facilities’ means— 

15 ‘‘(A) any surface transportation project 

16 which receives Federal assistance under title 

17 23, United States Code (as in effect on the date 

18 of the enactment of this subsection), or 

19 ‘‘(B) any project for an international 

20 bridge or tunnel for which an international enti21 ty authorized under Federal or State law is re22 sponsible and which receives Federal assistance 

23 under such title 23. 

24 ‘‘(2) QUALIFIED SURFACE FREIGHT TRANSFER

25 FACILITIES.—For purposes of subsection (a)(16), 
3 

•S 104 IS

1 the term ‘qualified surface freight transfer facilities’ 

2 means facilities for the transfer of freight from 

3 truck to rail or rail to truck (including any tem4 porary storage facilities directly related to such 

5 transfers) which receives Federal assistance under 

6 either title 23 or title 49, United States Code (as in 

7 effect on the date of the enactment of this sub8 section). 

9 ‘‘(3) AGGREGATE FACE AMOUNT OF TAX-EX10 EMPT FINANCING FOR FACILITIES.— 

11 ‘‘(A) IN GENERAL.—An issue shall not be 

12 treated as an issue described in subsection 

13 (a)(15) or (a)(16) if the aggregate face amount 

14 of bonds issued by any State pursuant thereto 

15 (when added to the aggregate face amount of 

16 bonds previously so issued) exceeds 

17 $15,000,000,000. 

18 ‘‘(B) ALLOCATION BY SECRETARY OF

19 TRANSPORTATION.—The Secretary of Transpor20 tation shall allocate the amount described in 

21 subparagraph (A) among eligible projects de22 scribed in subsections (a)(15) and (a)(16) in 

23 such manner as the Secretary determines ap24 propriate.’’. 
4 

•S 104 IS

1 (c) EXEMPTION FROM GENERAL STATE VOLUME

2 CAPS.—Paragraph (3) of section 146(g) of the Internal 

3 Revenue Code of 1986 (relating to exception for certain 

4 bonds) is amended by striking ‘‘or (14)’’ and all that fol5 lows through the end of the paragraph and inserting 

6 ‘‘(14), (15), or (16) of section 142(a), and’’. 

7 (d) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to bonds issued after the date of 

9 the enactment of this Act. 

Æ