I
106TH CONGRESS
2D SESSION
H. R. 4314
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 reclama-
tion for the anthracite region of Pennsylvania, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 13, 2000
Mr. KANJORSKI (for himself, Mr. GEKAS, Mr. HOLDEN, and Mr. SHERWOOD)
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 for the anthracite
region of Pennsylvania, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Anthracite Region Re-
development Act of 2000’’.
SEC. 2. CREDIT TO HOLDERS OF QUALIFIED ANTHRACITE
REGION REDEVELOPMENT 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 ANTHRA-
CITE REGION REDEVELOPMENT BONDS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified anthracite region redevelop-
ment 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 al-
lowance dates during 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 anthracite re-
gion redevelopment bond is 25 percent of the annual
credit determined with respect to such bond.
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified anthracite re-
gion redevelopment 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 ANTHRACITE REGION REDEVELOP-
MENT BOND.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified anthra-
cite region redevelopment bond’ means any bond
issued as part of an issue if—
‘‘(A) the issuer is an approved special pur-
pose entity,
‘‘(B) all of the net proceeds of the issue
are deposited into either—
‘‘(i) an approved segregated program
fund, or
‘‘(ii) a sinking fund for payment of
principal on the bonds at maturity,
‘‘(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 30 years.
Not more than 1⁄6 of the net proceeds of an issue
may be deposited into a sinking fund referred to in
subparagraph (B)(ii).
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-
IGNATED.—The maximum aggregate face amount of
bonds which may be designated under paragraph (1)
shall not exceed $1,200,000,000.
‘‘(3) APPROVED SPECIAL PURPOSE ENTITY.—
The term ‘approved special purpose entity’ means a
State or local governmental entity, or an entity de-
scribed in section 501(c) and exempt from tax under
section 501(a), if—
‘‘(A) such entity is established and oper-
ated exclusively to carry out qualified purposes,
‘‘(B) such entity has a comprehensive plan
to restore and redevelop abandoned mine land
in the Anthracite Region, and
‘‘(C) such entity and plan are approved by
the Administrator of the Environmental Protec-
tion Agency.
‘‘(4) 
APPROVED
SEGREGATED
PROGRAM
FUND.—The term ‘approved segregated program
fund’ means any segregated fund the amounts in
which may be used only for qualified purposes, but
only if such fund has safeguards approved by such
Administrator to assure that such amounts are only
used for such purposes.
‘‘(d) LIMITATION BASED ON AMOUNT OF TAX.—
‘‘(1) IN GENERAL.—The credit allowed under
subsection (a) for any taxable year shall not exceed
the excess of—
‘‘(A) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax im-
posed by section 55, over
‘‘(B) the sum of the credits allowable
under part IV of subchapter A (other than this
section and subpart C thereof, relating to re-
fundable credits).
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the
credit allowable under subsection (a) exceeds the
limitation imposed by paragraph (1) for such taxable
year, such excess shall be carried to the succeeding
taxable year and added to the credit allowable under
subsection (a) for such taxable year.
‘‘(e) OTHER DEFINITIONS.—For purposes of this
section—
‘‘(1) ANTHRACITE REGION.—The term ‘Anthra-
cite Region’ means the area in the State of Pennsyl-
vania comprised of the following counties: Luzerne,
Lackawanna, Susquehanna, Wayne, Wyoming, Sul-
livan, Columbia, Carbon, Schuylkill, Northumber-
land, Lebanon, and Dauphin.
‘‘(2) QUALIFIED PURPOSE.—The term ‘quali-
fied purpose’ means, with respect to any qualified
anthracite region redevelopment bond—
‘‘(A) the purchase, restoration, and rede-
velopment of abandoned mine land and other
real, personal, and mixed property in the An-
thracite Region in Pennsylvania,
‘‘(B) the cleanup of waterways and their
tributaries, both surface and subsurface in such
region from acid mine drainage and other pollu-
tion,
‘‘(C) the provision of financial and tech-
nical assistance for infrastructure construction
and upgrading water and sewer systems in such
region,
‘‘(D) research and development,
‘‘(E) other environmental and economic de-
velopment purposes in such region, and
‘‘(F) such other purposes as are set forth
in the comprehensive plan prepared by the
issuer and approved by the Administrator of the
Environmental Protection Agency.
‘‘(3) CREDIT
ALLOWANCE
DATE.—The term
‘credit allowance date’ means—
‘‘(A) March 15,
‘‘(B) June 15,
‘‘(C) September 15, and
‘‘(D) December 15.
Such term includes the last day on which the bond
is outstanding.
‘‘(4) BOND.—The term ‘bond’ includes any ob-
ligation.
‘‘(f) CREDIT INCLUDED IN GROSS INCOME.—Gross
income includes the amount of the credit allowed to the
taxpayer under this section (determined without regard to
subsection (d)) and the amount so included shall be treat-
ed as interest income.
‘‘(g) BONDS HELD
BY REGULATED INVESTMENT
COMPANIES.—If any qualified anthracite region redevelop-
ment bond is held by a regulated investment company, the
credit determined under subsection (a) shall be allowed to
shareholders of such company under procedures pre-
scribed by the Secretary.
‘‘(h) CREDITS MAY BE STRIPPED.—Under regula-
tions prescribed by the Secretary—
‘‘(1) IN GENERAL.—There may be a separation
(including at issuance) of the ownership of a quali-
fied anthracite region redevelopment bond and the
entitlement to the credit under this section with re-
spect to such bond. In case of any such separation,
the credit under this section shall be allowed to the
person who on the credit allowance date holds the
instrument evidencing the entitlement to the credit
and not to the holder of the bond.
‘‘(2) CERTAIN RULES TO APPLY.—In the case
of a separation described in paragraph (1), the rules
of section 1286 shall apply to the qualified anthra-