I
106TH CONGRESS
2D SESSION
H. R. 3579
To amend the Internal Revenue Code of 1986 to expand the incentives
for the environmental cleanup of certain contaminated industrial sites
designated as brownfields.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 7, 2000
Mr. ANDREWS 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 expand
the incentives for the environmental cleanup of certain
contaminated industrial sites designated as brownfields.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SEC. 1. CREDIT TO HOLDERS OF QUALIFIED BROWNFIELDS
CLEANUP BONDS.
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
section:
‘‘SEC. 
30B. 
CREDIT 
TO 
HOLDERS 
OF 
QUALIFIED
BROWNFIELDS CLEANUP BONDS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified brownfields cleanup bond on
a credit allowance date of such bond which occurs during
the taxable year, there shall be allowed as a credit against
the tax imposed by this chapter for such taxable year an
amount equal to the sum of the credits determined under
subsection (b) with respect to credit allowance dates dur-
ing such year on which the taxpayer holds such bond.
‘‘(b) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—The amount of the credit
determined under this subsection with respect to any
credit allowance date for a qualified brownfields
cleanup bond is 25 percent of the annual credit de-
termined with respect to such bond.
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified brownfields
cleanup bond is the product of—
‘‘(A) the applicable credit rate, multiplied
by
‘‘(B) the outstanding face amount of the
bond.
‘‘(3) APPLICABLE CREDIT RATE.—For purposes
of paragraph (1), the applicable credit rate with re-
spect to an issue is the rate equal to an average
market yield (as of the day before the date of
issuance of the issue) on outstanding long-term cor-
porate debt obligations (determined under regula-
tions prescribed by the Secretary).
‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE-
DEMPTION.—In the case of a bond which is issued
during the 3-month period ending on a credit allow-
ance date, the amount of the credit determined
under this subsection with respect to such credit al-
lowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-
month period during which the bond is outstanding.
A similar rule shall apply when the bond is re-
deemed.
‘‘(c) QUALIFIED BROWNFIELDS CLEANUP BOND.—
For purposes of this section—
‘‘(1) 
IN
GENERAL.—The 
term 
‘qualified
brownfields cleanup bond’ means any bond issued as
part of an issue if—
‘‘(A) 95 percent or more of the proceeds of
such issue are to be used for the abatement or
control of hazardous substances at a qualified
contaminated site,
‘‘(B) the bond is issued by a State or local
government within the jurisdiction of which
such site is located,
‘‘(C) the issuer designates such bond for
purposes of this section, and
‘‘(D) the term of each bond which is part
of such issue does not exceed 15 years.
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-
IGNATED.—The maximum aggregate face amount of
bonds issued during any calendar year which may be
designated under paragraph (1) by any issuer shall
not exceed the limitation amount allocated under
paragraph (3) for such calendar year to such issuer.
‘‘(3) NATIONAL
LIMITATION
ON
AMOUNT
OF
BONDS DESIGNATED.—There is a national qualified
brownfields cleanup bond limitation for each cal-
endar year. Such limitation is—
‘‘(A) $100,000,000 for 2001, and
‘‘(B) $150,000,000 for 2002.
‘‘(4) ALLOCATION
OF
LIMITATION
AMONG
STATES/SITES.—The limitation applicable under
paragraph (3) for any calendar year shall be allo-
cated among the States/qualified contaminated sites
by the Secretary of the Treasury.