I

105TH CONGRESS

1ST SESSION H. R. 840

To amend the Internal Revenue Code of 1986 to disregard certain amounts

of capital expenditures in applying $10,000,000 limit on such issues,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 26, 1997

Mr. ENGLISH of Pennsylvania (for himself, Mr. CALVERT, Mr. FOX of Pennsylvania, Mr. HOLDEN, Mr. FROST, Mr. MASCARA, and Mr. FATTAH) introduced the following bill; which was referred to the Committee on Ways

and Means

A BILL

To amend the Internal Revenue Code of 1986 to disregard

certain amounts of capital expenditures in applying

$10,000,000 limit on such issues, 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. $10,000,000 OF CAPITAL EXPENDITURES DIS4 REGARDED IN APPLYING $10,000,000 LIMITA5 TION ON FACE AMOUNT OF QUALIFIED

6 SMALL ISSUE BONDS.

7 (a) IN GENERAL.—Subparagraph (A) of section

8 144(a)(4) of the Internal Revenue Code of 1986 (relating
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1 to $10,000,000 limit in certain cases) is amended by add2 ing at the end the following new flush sentence:

3 ‘‘Capital expenditures which would (but for this

4 sentence) be taken into account under clause

5 (ii) shall be taken into account only to the ex6 tent such expenditures exceed $10,000,000.’’

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

8 subsection (a) shall apply to—

9 (1) obligations issued after the date of the en10 actment of this Act, and

11 (2) capital expenditures made after such date

12 with respect to obligations issued on or before such

13 date.

14 SEC. 2. LIMITATION ON LAND ACQUISITION NOT TO APPLY

15 TO QUALIFIED SMALL ISSUE BONDS.

16 (a) IN GENERAL.—Subsection (c) of section 147 of

17 the Internal Revenue Code of 1986 (relating to limitation

18 on use for land acquisition) is amended by adding at the

19 end the following new paragraph:

20 ‘‘(4) EXCEPTION FOR QUALIFIED SMALL ISSUE

21 BONDS.—Paragraph (1)(A) shall not apply to any

22 qualified small issue bond.’’

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

24 subsection (a) shall apply to obligations issued after the

25 date of the enactment of this Act.
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1 SEC. 3. REPEAL OF PERCENTAGE LIMITATION ON DI2 RECTLY RELATED AND ANCILLARY FACILI3 TIES WHICH MAY BE FINANCED BY QUALI4 FIED SMALL ISSUE BONDS.

5 (a) IN GENERAL.—The last sentence of section

6 144(a)(12)(C) of the Internal Revenue Code of 1986 (de7 fining manufacturing property) is amended by striking

8 ‘‘if—’’ and all that follows and inserting ‘‘if such facilities

9 are located on the same site as the manufacturing facil10 ity.’’

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

12 subsection (a) shall apply to obligations issued after the

13 date of the enactment of this Act.

14 SEC. 4. INCREASE IN VOLUME CAP ON PRIVATE ACTIVITY

15 BONDS.

16 (a) IN GENERAL.—Subsection (d) of section 146 of

17 the Internal Revenue Code of 1986 (relating to State ceil18 ing) is amended—

19 (1) by striking paragraph (2),

20 (2) by redesignating paragraphs (3) and (4) as

21 paragraphs (2) and (3), respectively, and

22 (3) by striking ‘‘$250,000,000’’ in para23 graph(1)(B) and inserting ‘‘$150,000,000’’.

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

25 subsection (a) shall apply to calendars years after 1996.

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