II

104TH CONGRESS

1ST SESSION S. 912

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

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

IN THE SENATE OF THE UNITED STATES

JUNE 9 (legislative day, JUNE 5), 1995

Mr. KOHL 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 with respect

to the eligibility of veterans for mortgage revenue 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,

3 SECTION 1. ELIGIBILITY OF VETERANS FOR MORTGAGE

4 REVENUE BONDS DETERMINED BY STATES.

5 (a) IN GENERAL.—Paragraph (4) of section 143(l)

6 of the Internal Revenue Code of 1986 (defining qualified

7 veteran) is redesignated as paragraph (6) and amended

8 to read as follows:
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1 ‘‘(6) QUALIFIED VETERAN.—For purposes of

2 this subsection, the term ‘‘qualified veteran’’ means

3 any veteran—

4 ‘‘(A) who meets such requirements as may

5 be imposed by the State law pursuant to which

6 qualified veterans’ mortgage bonds are issued,

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

8 the date 30 years after the last date on which

9 such veteran left active service, and

10 ‘‘(C) in the case of financing provided by

11 the proceeds of bonds issued during the period

12 beginning July 19, 1984, and ending June 30,

13 1996, who served on active duty at some time

14 before January 1, 1977.

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

16 subsection (a) shall apply to bonds issued after the date

17 of the enactment of this Act.

18 SEC. 2. STATE CAP RESTRICTIONS.

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

20 Revenue Code of 1986 (relating to additional requirements

21 for qualified veterans’ mortgage bonds), as amended by

22 section 1(a), is amended by inserting after paragraph (3)

23 the following new paragraph:

24 ‘‘(4) SUBCAP RESTRICTION.—
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1 ‘‘(A) IN GENERAL.— An issue meets the

2 requirements of this paragraph only if the

3 amount of bonds issued pursuant thereto that

4 is to be used to provide financing to mortgagors

5 who have not served on active duty at some

6 time before January 1, 1977, when added to

7 the amount of the aggregate qualified veterans’

8 mortgage bonds previously issued by the State

9 during the calendar year that is to be so used,

10 does not exceed the subcap amount.

11 ‘‘(B) SUBCAP AMOUNT.—

12 ‘‘(i) IN GENERAL.—The subcap

13 amount for any calendar year is an

14 amount equal to the applicable percentage

15 of the State veterans limit for such year.

16 ‘‘(ii) APPLICABLE PERCENTAGE.—For

17 purposes of clause (i), the applicable per18 centage shall be determined under the fol19 lowing table:

Applicable

‘‘Calendar year: Percentage:

1996 ......................................................................................... 10

1997 ......................................................................................... 20

1998 ......................................................................................... 30

1999 ......................................................................................... 40

2000 and thereafter ................................................................. 50.’’

20 (b) RESTRICTION ON OVERALL STATE CAP.—Para21 graph (3)(B) of section 143(l) of such Code (relating to
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1 State veterans limit) is amended by adding at the end the

2 following flush sentence:

3 ‘‘But in no event shall the State veterans limit

4 exceed $340,000,000 for any calendar year

5 after 1996.’’

6 (c) CONFORMING AMENDMENT.—Paragraph (1) of

7 section 143(l) of such Code is amended by striking ‘‘and

8 (3)’’ and inserting ‘‘, (3), and (4)’’.

9 (d) EFFECTIVE DATE.—The amendments made

10 by this section shall apply to bonds issued after December

11 31, 1995.

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