I 

108TH CONGRESS 

1ST SESSION H. R. 419

To amend the Internal Revenue Code of 1986 to allow a credit against 

income tax to holders of bonds issued to finance land and water reclamation of abandoned mine land areas. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 28, 2003

Mr. KANJORSKI (for himself, Mr. NEY, Mrs. CUBIN, Mr. HOLDEN, Mr. SHERWOOD, Mr. MURTHA, Mr. GREENWOOD, Mrs. CAPITO, Ms. KAPTUR, and 

Mr. UDALL of Colorado) 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 allow a 

credit against income tax to holders of bonds issued 

to finance land and water reclamation of abandoned mine 

land areas.

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 ‘‘Abandoned Mine Land 

5 Area Redevelopment Act of 2003’’. 
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1 SEC. 2. CREDIT TO HOLDERS OF QUALIFIED ABANDONED 

2 MINE LAND AREA REDEVELOPMENT BONDS. 

3 (a) IN GENERAL.—Subpart B of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 is amended by adding at the end the following new 

6 section: 

7 ‘‘SEC. 30B. CREDIT TO HOLDERS OF QUALIFIED ABAN8 DONED MINE LAND AREA REDEVELOPMENT 

9 BONDS. 

10 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax11 payer who holds a qualified abandoned mine land area re12 development bond on a credit allowance date of such bond 

13 which occurs during the taxable year, there shall be al14 lowed as a credit against the tax imposed by this chapter 

15 for such taxable year an amount equal to the sum of the 

16 credits determined under subsection (b) with respect to 

17 credit allowance dates during such year on which the tax18 payer holds such bond. 

19 ‘‘(b) AMOUNT OF CREDIT.—

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

21 determined under this subsection with respect to any 

22 credit allowance date for a qualified abandoned mine 

23 land area redevelopment bond is 25 percent of the 

24 annual credit determined with respect to such bond. 

25 ‘‘(2) ANNUAL CREDIT.—The annual credit de26 termined with respect to any qualified abandoned 
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1 mine land area redevelopment bond is the product 

2 of—

3 ‘‘(A) the applicable credit rate, multiplied 

4 by 

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

6 bond. 

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

8 of paragraph (1), the applicable credit rate with re9 spect to an issue is the rate equal to an average 

10 market yield (as of the day before the date of 

11 issuance of the issue) on outstanding long-term cor12 porate debt obligations (determined under regula13 tions prescribed by the Secretary). 

14 ‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE15 DEMPTION.—In the case of a bond which is issued 

16 during the 3-month period ending on a credit allow17 ance date, the amount of the credit determined 

18 under this subsection with respect to such credit al19 lowance date shall be a ratable portion of the credit 

20 otherwise determined based on the portion of the 3-

21 month period during which the bond is outstanding. 

22 A similar rule shall apply when the bond is re23 deemed. 

24 ‘‘(c) QUALIFIED ABANDONED MINE LAND AREA RE25 DEVELOPMENT BOND.—For purposes of this section—
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1 ‘‘(1) IN GENERAL.—The term ‘qualified aban2 doned mine land area redevelopment bond’ means 

3 any bond issued as part of an issue if—

4 ‘‘(A) the issuer is an approved special pur5 pose entity, 

6 ‘‘(B) all of the net proceeds of the issue 

7 are deposited into either—

8 ‘‘(i) an approved segregated program 

9 fund, or 

10 ‘‘(ii) a sinking fund for payment of 

11 principal on the bonds at maturity, 

12 ‘‘(C) the issuer designates such bond for 

13 purposes of this section, and 

14 ‘‘(D) the term of each bond which is part 

15 of such issue does not exceed 30 years. 

Not more than 1 16 ⁄6 of the net proceeds of an issue 

17 may be deposited into a sinking fund referred to in 

18 subparagraph (B)(ii). 

19 ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES20 IGNATED.—The maximum aggregate face amount of 

21 bonds designated by an approved special purpose en22 tity shall not exceed the portion of the national vol23 ume cap allocated to that entity by the Adminis24 trator of the Environmental Protection Agency.
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1 ‘‘(3) NATIONAL VOLUME CAP.—The national 

2 volume cap is $20,000,000,000. The Administrator 

3 of the Environmental Protection Agency shall allo4 cate such amount among the approved special pur5 pose entities, except that not less than 

6 $2,000,000,000 of such amount shall be allocated to 

7 an entity whose comprehensive plan only covers 

8 abandoned mine land areas containing anthracite 

9 coal. 

10 ‘‘(4) APPROVED SPECIAL PURPOSE ENTITY.—

11 The term ‘approved special purpose entity’ means a 

12 State or local governmental entity, or an entity de13 scribed in section 501(c) and exempt from tax under 

14 section 501(a), if—

15 ‘‘(A) such entity is established and oper16 ated exclusively to carry out qualified purposes, 

17 ‘‘(B) such entity has a comprehensive plan 

18 to restore and redevelop abandoned mine land 

19 areas, and 

20 ‘‘(C) such entity and plan are approved by 

21 the Administrator of the Environmental Protec22 tion Agency. 

23 ‘‘(5) APPROVED SEGREGATED PROGRAM

24 FUND.—The term ‘approved segregated program 

25 fund’ means any segregated fund the amounts in 
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1 which may be used only for qualified purposes, but 

2 only if such fund has safeguards approved by such 

3 Administrator to assure that such amounts are only 

4 used for such purposes. 

5 ‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.—

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

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

8 the excess of—

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

10 (as defined in section 26(b)) plus the tax im11 posed by section 55, over

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

13 under part IV of subchapter A (other than this 

14 section and subpart C thereof, relating to re15 fundable credits). 

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

17 credit allowable under subsection (a) for any taxable 

18 year exceeds the limitation imposed by paragraph 

19 (1) for such taxable year, the excess shall be carried 

20 to the succeeding taxable year and added to the 

21 amount allowable as a credit under subsection (a) 

22 for such succeeding taxable year. 

23 ‘‘(e) OTHER DEFINITIONS.—For purposes of this 

24 section—
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1 ‘‘(1) ABANDONED MINE LAND AREAS.—The 

2 term ‘abandoned mine land areas’ means lands and 

3 water eligible pursuant to section 404 of the Surface 

4 Mining Control and Reclamation Act of 1977 (30 

5 U.S.C. 1234) for expenditures from the Abandoned 

6 Mine Reclamation Fund under title IV of such Act 

7 (30 U.S.C. 1231 et seq.). 

8 ‘‘(2) QUALIFIED PURPOSE.—The term ‘quali9 fied purpose’ means, with respect to any qualified 

10 abandoned mine land area redevelopment bond—

11 ‘‘(A) the purchase, restoration, and rede12 velopment of abandoned mine land areas, 

13 ‘‘(B) the cleanup of waterways and their 

14 tributaries, both surface and subsurface, on 

15 abandoned mine land areas from acid mine 

16 drainage and other pollution, 

17 ‘‘(C) the provision of financial and tech18 nical assistance for infrastructure construction 

19 and upgrading water and sewer systems on 

20 abandoned mine land areas, 

21 ‘‘(D) research and development relating to 

22 abandoned mine land areas, 

23 ‘‘(E) other environmental and economic de24 velopment purposes relating to abandoned mine 

25 land areas, and 
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1 ‘‘(F) such other purposes as are set forth 

2 in the comprehensive plan prepared by the 

3 issuer and approved by the Administrator of the 

4 Environmental Protection Agency. 

5 ‘‘(3) CREDIT ALLOWANCE DATE.—The term 

6 ‘credit allowance date’ means—

7 ‘‘(A) March 15, 

8 ‘‘(B) June 15, 

9 ‘‘(C) September 15, and 

10 ‘‘(D) December 15. 

11 Such term includes the last day on which the bond 

12 is outstanding. 

13 ‘‘(4) BOND.—The term ‘bond’ includes any ob14 ligation. 

15 ‘‘(f) CREDIT INCLUDED IN GROSS INCOME.—Gross 

16 income includes the amount of the credit allowed to the 

17 taxpayer under this section (determined without regard to 

18 subsection (d)) and the amount so included shall be treat19 ed as interest income. 

20 ‘‘(g) BONDS HELD BY REGULATED INVESTMENT

21 COMPANIES.—If any qualified abandoned mine land area 

22 redevelopment bond is held by a regulated investment 

23 company, the credit determined under subsection (a) shall 

24 be allowed to shareholders of such company under proce25 dures prescribed by the Secretary.
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1 ‘‘(h) CREDITS MAY BE STRIPPED.—Under regula2 tions prescribed by the Secretary— 

3 ‘‘(1) IN GENERAL.—There may be a separation 

4 (including at issuance) of the ownership of a quali5 fied abandoned mine land area redevelopment bond 

6 and the entitlement to the credit under this section 

7 with respect to such bond. In case of any such sepa8 ration, the credit under this section shall be allowed 

9 to the person who on the credit allowance date holds 

10 the instrument evidencing the entitlement to the 

11 credit and not to the holder of the bond. 

12 ‘‘(2) CERTAIN RULES TO APPLY.—In the case 

13 of a separation described in paragraph (1), the rules 

14 of section 1286 shall apply to the qualified aban15 doned mine land area redevelopment bond as if it 

16 were a stripped bond and to the credit under this 

17 section as if it were a stripped coupon. 

18 ‘‘(i) TREATMENT FOR ESTIMATED TAX PURPOSES.—

19 Solely for purposes of sections 6654 and 6655, the credit 

20 allowed by this section to a taxpayer by reason of holding 

21 a qualified abandoned mine land area redevelopment bond 

22 on a credit allowance date shall be treated as if it were 

23 a payment of estimated tax made by the taxpayer on such 

24 date. 
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1 ‘‘(j) CREDIT MAY BE TRANSFERRED.—Nothing in 

2 any law or rule of law shall be construed to limit the trans3 ferability of the credit allowed by this section through sale 

4 and repurchase agreements. 

5 ‘‘(k) REPORTING.—The issuer of qualified abandoned 

6 mine land area redevelopment bonds shall submit reports 

7 similar to the reports required under section 149(e). 

8 ‘‘(l) TERMINATION.—This section shall not apply to 

9 any bond issued more than 10 years after the date that 

10 the first qualified abandoned mine land area redevelop11 ment bond is issued.’’

12 (b) REPORTING.—Subsection (d) of section 6049 of 

13 such Code (relating to returns regarding payments of in14 terest) is amended by adding at the end the following new 

15 paragraph: 

16 ‘‘(8) REPORTING OF CREDIT ON QUALIFIED

17 ABANDONED MINE LAND AREA REDEVELOPMENT

18 BONDS.—

19 ‘‘(A) IN GENERAL.—For purposes of sub20 section (a), the term ‘interest’ includes amounts 

21 includible in gross income under section 30B(f) 

22 and such amounts shall be treated as paid on 

23 the credit allowance date (as defined in section 

24 30B(e)(3)). 
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1 ‘‘(B) REPORTING TO CORPORATIONS, 

2 ETC.—Except as otherwise provided in regula3 tions, in the case of any interest described in 

4 subparagraph (A) of this paragraph, subsection 

5 (b)(4) of this section shall be applied without 

6 regard to subparagraphs (A), (H), (I), (J), (K), 

7 and (L)(i). 

8 ‘‘(C) REGULATORY AUTHORITY.—The Sec9 retary shall prescribe such regulations as are 

10 necessary or appropriate to carry out the pur11 poses of this paragraph, including regulations 

12 which require more frequent or more detailed 

13 reporting.’’

14 (c) CONFORMING AMENDMENT.—The table of sec15 tions for subpart B of part IV of subchapter A of chapter 

16 1 of such Code is amended by adding at the end the fol17 lowing new item:

‘‘Sec. 30B. Credit to holders of qualified abandoned mine land 

area redevelopment bonds.’’

18 (d) DEADLINE FOR REGULATIONS.—The Secretary 

19 of the Treasury shall prescribe the regulations required 

20 by section 6049(d)(8) of the Internal Revenue Code of 

21 1986 (as added by this section) not later than 120 days 

22 after the date of the enactment of this Act. 

23 (e) APPROVAL OF BONDS, ETC., BY ADMINISTRATOR

24 OF THE ENVIRONMENTAL PROTECTION AGENCY.—The 
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1 Administrator of the Environmental Protection Agency 

2 shall act on any request for an approval required by sec3 tion 30B of the Internal Revenue Code of 1986 (as added 

4 by this section) not later than 60 days after the date such 

5 request is submitted to such Administrator. 

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

7 this section shall apply to obligations issued after Decem8 ber 31, 2003.

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