I 

111TH CONGRESS 

1ST SESSION H. R. 4243 

To permit the issuance of tax-exempt bonds for air and water pollution 

control facilities. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 8, 2009 

Ms. LINDA T. SA ́NCHEZ of California (for herself and Mr. BRADY of Texas) 

introduced the following bill; which was referred to the Committee on 

Ways and Means 

A BILL 

To permit the issuance of tax-exempt bonds for air and 

water pollution control 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Clean Air and Water 

5 Investment Act of 2009’’. 

6 SEC. 2. TAX-EXEMPT BONDS FOR AIR AND WATER POLLU7 TION CONTROL FACILITIES. 

8 (a) IN GENERAL.—Subsection (a) of section 142 of 

9 the Internal Revenue Code of 1986 (defining exempt facil10 ity bonds) is amended by striking ‘‘or’’ at the end of paraVerDate Nov 24 2008 06:12 Dec 09, 2009 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4243.IH H4243

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1 graph (14), by striking the period at the end of paragraph 

2 (15) and inserting ‘‘, or’’, and by adding at the end the 

3 following new paragraph: 

4 ‘‘(16) air or water pollution control facilities.’’. 

5 (b) AIR OR WATER POLLUTION CONTROL FACILI6 TIES.—Section 142 of such Code is amended by adding 

7 at the end the following new subsection: 

8 ‘‘(n) AIR OR WATER POLLUTION CONTROL FACILI9 TIES.— 

10 ‘‘(1) IN GENERAL.—For purposes of subsection 

11 (a)(16), the term ‘air or water pollution control fa12 cilities’ means any property— 

13 ‘‘(A) to be used, in whole or in part, to 

14 abate or control water or atmospheric pollution 

15 or contamination by removing, altering, dis16 posing, or storing pollutants, contaminants, 

17 wastes, or heat, 

18 ‘‘(B) which is either— 

19 ‘‘(i) of a character subject to the al20 lowance for depreciation under section 167, 

21 or 

22 ‘‘(ii) land, and 

23 ‘‘(C) with respect to which either— 

24 ‘‘(i) a Federal, State, or local agency 

25 exercising jurisdiction has certified that 


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1 the property, as designed, is in furtherance 

2 of the purpose of abating or controlling at3 mospheric pollutants or contaminants, or 

4 water pollution, as the case may be, or 

5 ‘‘(ii) the property is designed to meet 

6 or exceed applicable Federal, State, and 

7 local requirements for the control of at8 mospheric pollutants or contaminants, or 

9 water pollution, as the case may be, in ef10 fect at the time the obligations, the pro11 ceeds of which are to be used to provide 

12 such facilities, are issued. 

13 ‘‘(2) CERTAIN OTHER PROPERTY.—In the case 

14 of property to be used to control water pollution, a 

15 water pollution control facility includes the necessary 

16 intercepting sewers, pumping, power, and other 

17 equipment, and their appurtenances. 

18 ‘‘(3) COSTS TAKEN INTO ACCOUNT.— 

19 ‘‘(A) PROPERTY WITH NO SIGNIFICANT

20 PURPOSE OTHER THAN POLLUTION CONTROL.— 

21 In the case of property which is designed for no 

22 significant purpose other than the control of 

23 pollution, the total expenditure for such prop24 erty shall be taken into account for purposes of 

25 this subsection. 


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1 ‘‘(B) INCREMENTAL COST WHERE SIGNIFI2 CANT PURPOSE OTHER THAN POLLUTION CON3 TROL.—In the case of property to be placed in 

4 service for the purpose of controlling pollution 

5 and for a significant purpose other than con6 trolling pollution, only the incremental cost of 

7 such property shall be taken into account for 

8 purposes of this subsection. For purposes of the 

9 preceding sentence, the term ‘incremental cost’ 

10 means the excess of the total cost of such prop11 erty over the portion of such cost expended for 

12 a purpose other than the control of pollution. 

13 ‘‘(C) SIGNIFICANT PURPOSE.—For pur14 poses of this paragraph, an expenditure has a 

15 significant purpose other than the control of 

16 pollution if such expenditure results in an in17 crease in production or capacity, or in a mate18 rial extension of the useful life, of a manufac19 turing or production facility or a part thereof.’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to bonds issued after December 

22 31, 2008. 

Æ 


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