1458
‘‘(c) QUALIFIED PROPRIETORSHIP.—For purposes of
this section, the term ‘qualified proprietorship’ means,
with respect to any taxable year, any qualified business
carried on by an individual as a proprietorship if for such
year—
‘‘(1) at least 80 percent of the total gross in-
come of such individual from such business is de-
rived from the active conduct of such business in an
empowerment zone,
‘‘(2) substantially all of the use of the tangible
property of such individual in such business (wheth-
er owned or leased) is within an empowerment zone,
‘‘(3) substantially all of the intangible property
of such business is used in, and exclusively related
to, the active conduct of such business,
‘‘(4) substantially all of the services performed
for such individual in such business by employees of
such business are performed in an empowerment
zone,
‘‘(5) at least 35 percent of such employees are
residents of an empowerment zone,
‘‘(6) less than 5 percent of the average of the
aggregate unadjusted bases of the property of such
individual which is used in such business is attrib-
utable 
to 
collectibles 
(as 
defined 
in 
section
1459
408(m)(2)) other than collectibles that are held pri-
marily for sale to customers in the ordinary course
of such business, and
‘‘(7) less than 5 percent of the average of the
aggregate unadjusted bases of the property of such
individual which is used in such business is attrib-
utable to nonqualified financial property.
For purposes of this subsection, the term ‘employee’ in-
cludes the proprietor.
‘‘(d) QUALIFIED BUSINESS.—For purposes of this
section—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘qualified business’
means any trade or business.
‘‘(2) R ENTAL OF REAL PROPERTY.—The rental
to 
others 
of 
real 
property 
located 
in 
an
empowerment zone shall be treated as a qualified
business if and only if—
‘‘(A) the property is not residential rental
property (as defined in section 168(e)(2)), and
‘‘(B) at least 50 percent of the gross rental
income from the real property is from enter-
prise zone businesses.
‘‘(3) RENTAL OF TANGIBLE PERSONAL PROP-
ERTY.—The rental to others of tangible personal
1460
property shall be treated as a qualified business if
and only if substantially all of the rental of such
property is by enterprise zone businesses or by resi-
dents of an empowerment zone.
‘‘(4) TREATMENT OF BUSINESS HOLDING IN-
TANGIBLES.—The term ‘qualified business’ shall not
include any trade or business consisting predomi-
nantly of the development or holding of intangibles
for sale or license.
‘‘(5) CERTAIN
BUSINESSES
EXCLUDED.—The
term ‘qualified business’ shall not include—
‘‘(A) any trade or business consisting of
the operation of any facility described in section
144(c)(6)(B), and
‘‘(B) any trade or business the principal
activity of which is farming (within the meaning
of subparagraphs (A) or (B) of section
2032A(e)(5)), but only if, as of the close of the
preceding taxable year, the sum of—
‘‘(i) the aggregate unadjusted bases
(or, if greater, the fair market value) of
the assets owned by the taxpayer which are
used in such a trade or business, and
1461
‘‘(ii) the aggregate value of assets
leased by the taxpayer which are used in
such a trade or business,
exceeds $500,000.
For purposes of subparagraph (B), rules similar to
the rules of section 1397(b) shall apply.
‘‘(e) NONQUALIFIED FINANCIAL PROPERTY.—For
purposes of this section, the term ‘nonqualified financial
property’ means debt, stock, partnership interests, op-
tions, futures contracts, forward contracts, warrants, no-
tional principal contracts, annuities, and other similar
property specified in regulations; except that such term
shall not include—
‘‘(1) reasonable amounts of working capital
held in cash, cash equivalents, or debt instruments
with a term of 18 months or less, or
‘‘(2) debt instruments described in section
1221(4).
‘‘PART IV—REGULATIONS
‘‘Sec. 1397E. Regulations.
‘‘SEC. 1397E. REGULATIONS.
‘‘The Secretary shall prescribe such regulations as
may be necessary or appropriate to carry out the purposes
of parts II and III, including—
1462
‘‘(1) regulations limiting the benefit of parts II
and III in circumstances where such benefits, in
combination with benefits provided under other Fed-
eral programs, would result in an activity being 100
percent or more subsidized by the Federal Govern-
ment,
‘‘(2) regulations preventing abuse of the provi-
sions of parts II and III, and
‘‘(3) regulations dealing with inadvertent fail-
ures of entities to be enterprise zone businesses.’’
(b) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 1 is amended by inserting after the
item relating to subchapter T the following new item:
‘‘Subchapter U. Designation and treatment of empowerment
zones and enterprise communities.’’
SEC. 14302. EXPANSION OF TARGETED JOBS CREDIT.
(a) 
ALLOWANCE
OF
CREDIT
FOR
HIRING
EMPOWERMENT ZONE RESIDENT.—Paragraph (1) of sec-
tion 51(d) (defining members of targeted groups) is
amended by striking ‘‘or’’ at the end of subparagraph (I),
by striking the period at the end of subparagraph (J) and
inserting ‘‘, or’’, and by adding at the end the following
new subparagraph:
‘‘(K) 
an 
economically 
disadvantaged
empowerment zone resident.’’
1464
(1) Subsection (b) of section 38 (relating to
current year business credit) is amended by striking
‘‘plus’’ at the end of paragraph (7), by striking the
period at the end of paragraph (8) and inserting a
comma, and by adding at the end the following new
paragraphs:
‘‘(9) the empowerment zone employment credit
determined under section 1396(a), plus
‘‘(10) the zone resident empowerment savings
credit determined under section 1397A.’’
(2) Subsection (d) of section 39 is amended by
adding at the end the following new paragraph:
‘‘(4) E NTERPRISE ZONE CREDITS.—No portion
of the unused business credit which is attributable to
the credit determined under section 1396 (relating
to empowerment zone employment credit) or section
1397A (relating to zone resident empowerment sav-
ings credit) may be carried to any taxable year end-
ing before January 1, 1994.’’
(b) DENIAL OF DEDUCTION FOR PORTION OF WAGES
EQUAL
TO
EMPOWERMENT
ZONE
EMPLOYMENT
CREDIT.—
(1) Subsection (a) of section 280C (relating to
rule for targeted jobs credit) is amended—
1465
(A) by striking ‘‘the amount of the credit
determined for the taxable year under section
51(a)’’ and inserting ‘‘the sum of the credits
determined for the taxable year under sections
51(a) and 1396(a)’’, and
(B) 
by 
striking 
‘‘TARGETED
JOBS
CREDIT’’ in the subsection heading and insert-
ing ‘‘EMPLOYMENT CREDITS’’.
(2) Subsection (c) of section 196 (relating to
deduction for certain unused business credits) is
amended by striking ‘‘and’’ at the end of paragraph
(4), by striking the period at the end of paragraph
(5) and inserting ‘‘, and’’, and by adding at the end
the following new paragraph:
‘‘(6) the empowerment zone employment credit
determined under section 1396(a).’’
(c) EMPLOYMENT AND SAVINGS CREDITS MAY OFF-
SET 25 PERCENT OF MINIMUM TAX.—
(1) IN GENERAL.—Section 38(c) (relating to
limitation based on amount of tax) is amended by
redesignating paragraph (2) as paragraph (3) and
by inserting after paragraph (1) the following new
paragraph:
‘‘(2) E MPOWERMENT ZONE CREDITS MAY OFF-
SET 25 PERCENT OF MINIMUM TAX.—
1466
‘‘(A) IN
GENERAL.—In the case of the
empowerment zone credits—
‘‘(i) this section and section 39 shall
be applied separately with respect to such
credits, and
‘‘(ii) for purposes of applying para-
graph (1) to such credits—
‘‘(I) 75 percent of the tentative
minimum tax shall be substituted for
the tentative minimum tax under sub-
paragraph (A) thereof, and
‘‘(II) the limitation under para-
graph (1) (as modified by subclause
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the
taxable 
year 
(other 
than 
the
empowerment zone credits).
‘‘(B) EMPOWERMENT
ZONE
CREDITS.—
For purposes of this paragraph, the term
‘empowerment zone credits’ means the portion
of the credit under subsection (a) which is at-
tributable to the credits determined under sec-
tion 1396 (relating to empowerment zone em-
ployment credit) and section 1397A (relating to
zone resident empowerment savings credit).’’
1467
(d) C HANGES RELATING TO EMPOWERMENT ZONE
RESIDENT EMPOWERMENT SAVINGS CREDIT.—
(1) DISALLOWANCE
OF
DEDUCTION.—Section
404 (relating to deduction for certain employer con-
tributions) is amended by adding at the end the fol-
lowing new subsection:
‘‘(m) COORDINATION WITH EMPOWERMENT ZONE
CREDIT.—No deduction shall be allowed under this sec-
tion for any qualified employer contribution taken into ac-
count in computing the credit determined under section
1397A.’’
(2) PENALTY-FREE DISTRIBUTIONS.—
(A) I N GENERAL.—Paragraph (2) of sec-
tion 72(t) (relating to exceptions to 10-percent
additional tax on early distributions from quali-
fied retirement plans) is amended by adding at
the end thereof the following new subpara-
graph:
‘‘(D) 
DISTRIBUTIONS
FROM
CERTAIN
PLANS FOR FIRST HOME PURCHASES OR EDU-
CATIONAL EXPENSES.—
‘‘(i) IN
GENERAL.—Distributions to
an individual from a qualified retirement
plan—
1468
‘‘(I) which are qualified first-time
homebuyer distributions (as defined in
paragraph (6)),
‘‘(II) to the extent such distribu-
tions do not exceed the qualified high-
er education expenses (as defined in
paragraph (7)) of the taxpayer for the
taxable year, or
‘‘(III) to the extent such distribu-
tions do not exceed an amount equal
to the aggregate investment made by
the taxpayer during the taxable year
in any enterprise zone business (as
defined in section 1397D) that meets
the ownership requirements of section
1397C(b).
‘‘(ii) LIMITATION.—Clause (i) shall
not apply to the extent that the aggregate
amount of the distributions described in
clause (i) is greater than the excess of—
‘‘(I) the qualified savings con-
tributions (as defined in section
1397A(b)) of the taxpayer, and any
earnings thereon, over
1469
‘‘(II) the aggregate amounts to
which clause (i) and the last sentence
of paragraph (3)(A) applied for pre-
ceding taxable years.’’
(B) 
DEFINITIONS.—Section 
72(t) 
is
amended by adding at the end thereof the fol-
lowing new paragraphs:
‘‘(6) Q UALIFIED FIRST-TIME HOMEBUYER DIS-
TRIBUTIONS.—For 
purposes 
of 
paragraph
(2)(D)(i)(I)—
‘‘(A) IN
GENERAL.—The term ‘qualified
first-time homebuyer distribution’ means any
payment or distribution received by an individ-
ual to the extent such payment or distribution
is used by the individual before the close of the
60th day after the day on which such payment
or distribution is received to pay qualified ac-
quisition costs with respect to a principal resi-
dence of a first-time homebuyer who is such in-
dividual or the spouse of such individual.
‘‘(B) QUALIFIED
ACQUISITION
COSTS.—
For purposes of this paragraph, the term
‘qualified acquisition costs’ means the costs of
acquiring, constructing, or reconstructing a res-
idence. Such term includes any usual or reason-
1470
able settlement, financing, or other closing
costs.
‘‘(C) FIRST-TIME
HOMEBUYER; 
OTHER
DEFINITIONS.—For purposes of this para-
graph—
‘‘(i) FIRST-TIME
HOMEBUYER.—The
term ‘first-time homebuyer’ means any in-
dividual if—
‘‘(I) such individual (and if mar-
ried, such individual’s spouse) had no
present ownership interest in a prin-
cipal residence during the 3-year pe-
riod ending on the date of acquisition
of the principal residence to which
this paragraph applies, and
‘‘(II) subsection (a)(6), (h), or
(k) of section 1034 did not suspend
the running of any period of time
specified in section 1034 with respect
to such individual on the day before
the date the distribution is applied
pursuant to subparagraph (A)(ii).
‘‘(ii) 
PRINCIPAL
RESIDENCE.—The
term ‘principal residence’ has the same
meaning as when used in section 1034.
1471
‘‘(iii) DATE
OF
ACQUISITION.—The
term ‘date of acquisition’ means the date—
‘‘(I) on which a binding contract
to acquire the principal residence to
which subparagraph (A) applies is en-
tered into, or
‘‘(II) on which construction or re-
construction of such a principal resi-
dence is commenced.
‘‘(D) SPECIAL RULE WHERE DELAY IN AC-
QUISITION.—If any distribution from any quali-
fied retirement plan fails to meet the require-
ments of subparagraph (A) solely by reason of
a delay or cancellation of the purchase or con-
struction of the residence, the amount of the
distribution may be recontributed to the plan
from which it was distributed within 120 days
after the date of such distribution.
‘‘(7) QUALIFIED
HIGHER
EDUCATION
EX-
PENSES.—For 
purposes 
of 
paragraph
(2)(D)(ii)(II)—
‘‘(A) IN
GENERAL.—The term ‘qualified
higher education expenses’ means tuition, fees,
books, supplies, and equipment required for the
enrollment or attendance of—
1472
‘‘(i) the taxpayer,
‘‘(ii) the taxpayer’s spouse, or
‘‘(iii) the taxpayer’s child (as defined
in section 151(c)(3)) or grandchild,
at an eligible educational institution (as defined
in section 135(c)(3)).
‘‘(B) C OORDINATION WITH SAVINGS BOND
PROVISIONS.—The amount of qualified higher
education expenses for any taxable year shall be
reduced by any amount excludable from gross
income under section 135.’’
(C) CONFORMING AMENDMENTS.—
(i) Subparagraph (B) of section
72(t)(2) is amended by striking ‘‘or (C)’’
and inserting ‘‘, (C), or (D)’’.
(ii) Section 401(k)(2)(B)(i) is amend-
ed by striking ‘‘or’’ at the end of subclause
(III), by striking ‘‘and’’ at the end of
subclause (IV) and inserting ‘‘or’’, and by
inserting after subclause (IV) the following
new subclause:
‘‘(V) subject to the limitation of
section 72(t)(2)(D)(ii), the date on
which qualified first-time homebuyer
distributions (as defined in section
1473
72(t)(6)), distributions for qualified
higher education expenses (as defined
in section 72(t)(7)), or distributions
for investments described in section
72(t)(2)(D)(i)(III) are made, and’’.
(e) AMENDMENT OF TARGETED JOBS CREDIT.—
Subparagraph (A) of section 51(i)(1) is amended by in-
serting ‘‘, or, if the taxpayer is an entity other than a
corporation, to any individual who owns, directly or indi-
rectly, more than 50 percent of the capital and profits in-
terests in the entity,’’ after ‘‘of the corporation’’.
(f) CARRYOVERS.—Subsection (c) of section 381 (re-
lating to carryovers in certain corporate acquisitions) is
amended by adding at the end the following new para-
graph:
‘‘(26) ENTERPRISE
ZONE
PROVISIONS.—The
acquiring corporation shall take into account (to the
extent proper to carry out the purposes of this sec-
tion and subchapter U, and under such regulations
as may be prescribed by the Secretary) the items re-
quired to be taken into account for purposes of sub-
chapter U in respect of the distributor or transferor
corporation.’’
1474
SEC. 14304. EFFECTIVE DATE.
The amendments made by this part shall take effect
on the date of the enactment of this Act.
PART II—CREDIT FOR CONTRIBUTIONS TO CER-
TAIN COMMUNITY DEVELOPMENT CORPORA-
TIONS
SEC. 14311. CREDIT FOR CONTRIBUTIONS TO CERTAIN
COMMUNITY DEVELOPMENT CORPORATIONS.
(a) IN GENERAL.—For purposes of section 38 of the
Internal Revenue Code of 1986, the current year business
credit shall include the credit determined under this sec-
tion.
(b) DETERMINATION OF CREDIT.—The credit deter-
mined under this section for each taxable year in the credit
period with respect to any qualified CDC contribution
made by the taxpayer is an amount equal to 5 percent
of such contribution.
(c) C REDIT PERIOD.—For purposes of this section,
the credit period with respect to any qualified CDC con-
tribution is the period of 10 taxable years beginning with
the taxable year during which such contribution was made.
(d) QUALIFIED CDC CONTRIBUTION.—For purposes
of this section—
(1) I N GENERAL.—The term ‘‘qualified CDC
contribution’’ means any transfer of cash—
1475
(A) which is made to a selected community
development corporation during the 5-year pe-
riod beginning on the date such corporation was
selected for purposes of this section,
(B) the amount of which is available for
use by such corporation for at least 10 years,
(C) which is to be used by such corpora-
tion for qualified low-income assistance within
its operational area, and
(D) which is designated by such corpora-
tion for purposes of this section.
(2) L IMITATIONS ON AMOUNT DESIGNATED.—
The aggregate amount of contributions to a selected
community development corporation which may be
designated by such corporation shall not exceed
$4,000,000.
(e) SELECTED COMMUNITY DEVELOPMENT COR-
PORATIONS.—
(1) IN GENERAL.—For purposes of this section,
the term ‘‘selected community development corpora-
tion’’ means any corporation—
(A) which is described in section 501(c)(3)
of such Code and exempt from tax under sec-
tion 501(a) of such Code,
1476
(B) the principal purposes of which include
promoting employment of, and business oppor-
tunities for, low-income individuals who are
residents of the operational area, and
(C) which is selected by the Secretary of
Housing and Urban Development for purposes
of this section.
(2) ONLY
CORPORATIONS
MAY
BE
SE-
LECTED.—
(A) IN GENERAL.—The Secretary of Hous-
ing and Urban Development may select 10 cor-
porations for purposes of this section, subject to
the availability of eligible corporations. Such se-
lections may be made only before July 1, 1994.
At least 4 of the operational areas of the cor-
porations selected must be rural areas (as de-
fined by section 1393(a)(3) of such Code).
(B) P RIORITY OF DESIGNATIONS.—In se-
lecting corporations for purposes of this section,
such Secretary shall give priority to corpora-
tions with a demonstrated record of perform-
ance in administering community development
programs which target at least 75 percent of
the jobs emanating from their investment funds
to low income or unemployed individuals.
1477
(3) O PERATIONAL AREAS MUST HAVE CERTAIN
CHARACTERISTICS.—A corporation may be selected
for purposes of this section only if its operational
area meets the following criteria:
(A) The area meets the size requirements
under section 1392(a)(3).
(B) The unemployment rate (as deter-
mined by the appropriate available data) is not
less than the national unemployment rate.
(C) The median family income of residents
of such area does not exceed 80 percent of the
median gross income of residents of the juris-
diction of the local government which includes
such area.
(f) QUALIFIED LOW-INCOME ASSISTANCE.—For pur-
poses of this section, the term ‘‘qualified low-income as-
sistance’’ means assistance—
(1) which is designed to provide employment of,
and business opportunities for, low-income individ-
uals who are residents of the operational area of the
community development corporation, and
(2) which is approved by the Secretary of Hous-
ing and Urban Development.
1478
Subtitle D—Other Provisions
PART I—DISCLOSURE PROVISIONS
SEC. 14401. DISCLOSURE OF RETURN INFORMATION FOR
ADMINISTRATION OF CERTAIN VETERANS
PROGRAMS.
(a) G ENERAL RULE.—Subparagraph (D) of section
6103(l)(7) (relating to disclosure of return information to
Federal, State, and local agencies administering certain
programs) is amended by striking ‘‘September 30, 1997’’
in the second sentence following clause (viii) and inserting
‘‘September 30, 1998’’.
(b) E FFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the date of the enact-
ment of this Act.
SEC. 14402. DISCLOSURE OF RETURN INFORMATION TO
CARRY OUT INCOME CONTINGENT REPAY-
MENT OF STUDENT LOANS.
(a) GENERAL RULE.—Subsection (l) of section 6103
(relating to confidentiality and disclosure of returns and
return information) is amended by adding at the end
thereof the following new paragraph:
‘‘(13) DISCLOSURE OF RETURN INFORMATION
TO CARRY OUT INCOME CONTINGENT REPAYMENT
OF STUDENT LOANS.—
1479
‘‘(A) IN GENERAL.—The Secretary may,
upon written request from the Secretary of
Education, disclose to officers and employees of
the Department of Education return informa-
tion with respect to a taxpayer who has received
an applicable student loan and whose loan re-
payment amounts are based in whole or in part
on the taxpayer’s income. Such return informa-
tion shall be limited to—
‘‘(i) taxpayer identity information
with respect to such taxpayer,
‘‘(ii) the filing status of such tax-
payer, and
‘‘(iii) the adjusted gross income of
such taxpayer.
‘‘(B) R ESTRICTION ON USE OF DISCLOSED
INFORMATION.—Return information disclosed
under subparagraph (A) may be used by offi-
cers and employees of the Department of Edu-
cation only for the purposes of, and to the ex-
tent necessary in, establishing the appropriate
income contingent repayment amount for an
applicable student loan.
1480
‘‘(C) APPLICABLE
STUDENT
LOAN.—For
purposes of this paragraph, the term ‘applicable
student loan’ means—
‘‘(i) any loan made under the program
authorized under part D of title IV of the
Higher Education Act of 1965, and
‘‘(ii) any loan made under part B or
E of title IV of the Higher Education Act
of 1965 which is in default and has been
assigned to the Department of Education.
‘‘(D) 
TERMINATION.—This 
paragraph
shall not apply to any request made after Sep-
tember 30, 1998.’’
(b) CONFORMING AMENDMENTS.—
(1) So much of paragraph (4) of section
6103(m) as precedes subparagraph (B) thereof is
amended to read as follows:
‘‘(4) INDIVIDUALS WHO OWE AN OVERPAYMENT
OF
FEDERAL
PELL
GRANTS
OR
WHO
HAVE
DE-
FAULTED ON STUDENT LOANS ADMINISTERED BY
THE DEPARTMENT OF EDUCATION.—
‘‘(A) I N GENERAL.—Upon written request
by the Secretary of Education, the Secretary
may disclose the mailing address of any tax-
payer—
1481
‘‘(i) who owes an overpayment of a
grant awarded to such taxpayer under sub-
part 1 of part A of title IV of the Higher
Education Act of 1965, or
‘‘(ii) who has defaulted on a loan—
‘‘(I) made under part B, D, or E
of title IV of the Higher Education
Act of 1965, or
‘‘(II) made pursuant to section
3(a)(1) of the Migration and Refugee
Assistance Act of 1962 to a student
at an institution of higher education,
for use only by officers, employees, or agents of
the Department of Education for purposes of
locating such taxpayer for purposes of collecting
such overpayment or loan .’’
(2) Subparagraph (B) of section 6103(m)(4) is
amended—
(A) in clause (i), by striking ‘‘under part
B’’ and inserting ‘‘under part B or D’’; and
(B) in clause (ii), by striking ‘‘under part
E’’ and inserting ‘‘under subpart 1 of part A,
or part D or E,’’;
(3) Section 6103(p) is amended—
1482
(A) in paragraph (3)(A), by striking ‘‘(11),
or (12), (m)’’ and inserting ‘‘(11), (12), or
(13), (m)’’;
(B) in paragraph (4)—
(i) in the matter preceding subpara-
graph (A), by striking out ‘‘(10), or (11),’’
and inserting ‘‘(10), (11), or (13),’’, and
(ii) in subparagraph (F)(ii), by strik-
ing ‘‘(11), or (12),’’ and inserting ‘‘(11),
(12), or (13),’’.
(c) E FFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
(d) S TUDY OF INTERNAL REVENUE SERVICE COL-
LECTION OF STUDENT LOANS.—
(1) GENERAL
RULE.—The Secretary of the
Treasury, in consultation with the Secretary of Edu-
cation, shall conduct a study of the feasibility of im-
plementing a system for the repayment of Federal
student loans through wage withholding or other
means involving the Internal Revenue Service. Such
study shall include an examination of—
(A) whether the Internal Revenue Service
could implement such a system within its cur-
rent resources and without adversely affecting
1483
the ability of the Internal Revenue Service to
collect tax revenues,
(B) the cumulative impact on voluntary
compliance with the tax system of increased dis-
closure of tax return information and increased
Internal Revenue Service involvement in nontax
collection activities,
(C) the anticipated effect on the manage-
ment of Federal student loan collections and on
borrower repayment of such loans, and
(D) the ability of the Internal Revenue
Service to effectively service student loans.
(2) RECOMMENDATIONS.—Not later than the
date 6 months after the date of the enactment of
this Act, the Secretary of the Treasury shall submit
to the Congress a report on the study conducted
under paragraph (1) (together with such legislative
recommendations as such Secretary may deem advis-
able).
SEC. 14403. USE OF RETURN INFORMATION FOR INCOME
VERIFICATION UNDER CERTAIN HOUSING AS-
SISTANCE PROGRAMS.
(a) IN GENERAL.—Subparagraph (D) of section
6103(l)(7) (relating to the disclosure of return information
1484
to Federal, State, and local agencies administering certain
programs) is amended—
(1) in clause (vii), by striking ‘‘and’’ at the end;
(2) in clause (viii), by striking the period at the
end and inserting ‘‘; and’’;
(3) by inserting after clause (viii) the following
new clause:
‘‘(ix) any housing assistance program adminis-
tered by the Department of Housing and Urban De-
velopment that involves initial and periodic review of
an applicant’s or participant’s income, except that
return information may be disclosed under this
clause only on written request by the Secretary of
Housing and Urban Development and only for use
by officers and employees of the Department of
Housing and Urban Development with respect to ap-
plicants for and participants in such programs.’’;
and
(4) by adding at the end thereof the following:
‘‘Clause (ix) shall not apply after September 30,
1998.’’
(b) CONFORMING AMENDMENT.—The heading of
paragraph (7) of section 6103(l) is amended by inserting
after ‘‘ CODE’’ the following: ‘‘, OR CERTAIN HOUSING AS-
SISTANCE PROGRAMS’’.
1485
(c) E FFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
(d) S TUDY.—The Secretary of the Treasury or his
delegate, in consultation with the Secretary of Housing
and Urban Development, shall conduct a study on—
(1) whether the information provided under sec-
tion 6103(l)(7)(D)(ix) of the Internal Revenue Code
of 1986 is being used effectively by the Department
of Housing and Urban Development,
(2) such Department’s compliance with the re-
quirements of section 6103(p) of such Code, and
(3) the impact on the privacy rights of appli-
cants for and participants in housing assistance pro-
grams administered by the Department of Housing
and Urban Development.
The report of such study shall be submitted before Janu-
ary 1, 1998, to the Congress.
PART II—USER FEE PROVISIONS
SEC. 14411. FEES FOR APPLICATIONS FOR ALCOHOL LA-
BELING AND FORMULA REVIEWS.
(a) IN GENERAL.—The Secretary of the Treasury or
his delegate (hereinafter in this section referred to as the
‘Secretary’) shall establish a program requiring the pay-
ment of user fees for—
1486
(1) requests for each certificate of alcohol label
approval required under the Federal Alcohol Admin-
istration Act (27 U.S.C. 201 et seq.) and for each
request for exemption from such requirement, and
(2) requests for each formula review, and re-
quests for each statement of process (including lab-
oratory tests and analyses), under such Act or under
chapter 51 of the Internal Revenue Code of 1986.
(b) PROGRAM CRITERIA.—
(1) I N GENERAL.—The fees charged under the
program required by subsection (a) shall be deter-
mined such that the Secretary estimates that the ag-
gregate of such fees received during any fiscal year
will be $5,000,000.
(2) M INIMUM FEES.—The fee charged under
the program required by subsection (a) shall not be
less than—
(A) $50 for each request referred to in
subsection (a)(1), and
(B) $250 for each request referred to in
subsection (a)(2).
(c) APPLICATION OF SECTION.—Subsection (a) shall
apply to requests made on or after the 90th day after the
date of the enactment of this Act.
1487
(d) DEPOSIT
AND CREDIT
AS OFFSETTING RE-
CEIPTS.—The amounts collected by the Secretary under
the program required by subsection (a) (to the extent such
amounts do not exceed $5,000,000) shall be deposited into
the Treasury as offsetting receipts and ascribed to the al-
cohol compliance program of the Bureau of Alcohol, To-
bacco, and Firearms.
SEC. 14412. USE OF HARBOR MAINTENANCE TRUST FUND
AMOUNTS FOR ADMINISTRATIVE EXPENSES.
(a) IN GENERAL.—Paragraph (3) of section 9505(c)
(relating to expenditures from Harbor Maintenance Trust
Fund) is amended to read as follows:
‘‘(3) for the payment of all expenses of adminis-
tration incurred by the Department of the Treasury
in administering subchapter A of chapter 36 (relat-
ing to harbor maintenance tax), but not in excess of
$5,000,000 for any fiscal year.’’
(b) E FFECTIVE DATE.—The amendment made by
subsection (a) shall apply to fiscal years beginning after
the date of the enactment of this Act.
SEC. 14413. INCREASE IN TAX ON FUEL USED IN COMMER-
CIAL TRANSPORTATION ON INLAND WATER-
WAYS.
(a) I N GENERAL.—The table contained in section
4042(a)(2)(A) is amended to read as follows:
1488
‘‘If the use occurs during:
The tax per gallon is:
1994 ............................................................... 24 cents
1995 ............................................................... 40 cents
1996 ............................................................... 55 cents
1997 or thereafter ......................................... 70 cents.’’
(b) E FFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on January 1, 1994.
PART III—PUBLIC DEBT LIMIT
SEC. 14421. INCREASE IN PUBLIC DEBT LIMIT.
(a) GENERAL RULE.—Subsection (b) of section 3101
of title 31, United States Code, is amended by striking
out the dollar limitation contained in such subsection and
inserting in lieu thereof ‘‘$4,900,000,000,000’’.
(b) R EPEAL OF TEMPORARY INCREASE.—Effective
on and after the date of the enactment of this Act, section
1 of Public Law 103–12 is hereby repealed.
PART IV—VACCINE PROVISIONS
SEC. 14431. EXCISE TAX ON CERTAIN VACCINES MADE PER-
MANENT.
(a) TAX.—Subsection (c) of section 4131 (relating to
tax on certain vaccines) is amended to read as follows:
‘‘(c) APPLICATION OF SECTION.—The tax imposed by
this section shall apply—
‘‘(1) after December 31, 1987, and before Jan-
uary 1, 1993, and
‘‘(2) during periods after the date of the enact-
ment of this subsection.’’
1489
(b) TRUST FUND.—Paragraph (1) of section 9510(c)
(relating to expenditures from Vaccine Injury Compensa-
tion Trust Fund) is amended by striking ‘‘and before Oc-
tober 1, 1992,’’.
(c) S TUDY.—The Secretary of the Treasury, in con-
sultation with the Secretary of Health and Human Serv-
ices, shall conduct a study of—
(1) the estimated amount that will be paid from
the Vaccine Injury Compensation Trust Fund with
respect to vaccines administered after September 30,
1988,
(2) the rates of vaccine-related injury or death
with respect to the various types of such vaccines,
(3) new vaccines and immunization practices
being developed or used for which amounts may be
paid from such Trust Fund,
(4) whether additional vaccines should be in-
cluded in the vaccine injury compensation program,
and
(5) the appropriate treatment of vaccines pro-
duced by State governmental entities.
The report of such study shall be submitted not later than
1 year after the date of the enactment of this Act, to the
Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate.
1490
(d) FLOOR STOCKS TAX.—
(1) I MPOSITION OF TAX.—On any taxable vac-
cine—
(A) which was sold by the manufacturer,
producer, or importer before the date of the en-
actment of this Act,
(B) on which no tax was imposed by sec-
tion 4131 of the Internal Revenue Code of 1986
(or, if such tax was imposed, was credited or re-
funded), and
(C) which is held on such date by any per-
son for sale or use,
there is hereby imposed a tax in the amount deter-
mined under section 4131(b) of such Code.
(2) L IABILITY FOR TAX AND METHOD OF PAY-
MENT.—
(A) LIABILITY
FOR
TAX.—The person
holding any taxable vaccine to which the tax
imposed by paragraph (1) applies shall be liable
for such tax.
(B) M ETHOD OF PAYMENT.—The tax im-
posed by paragraph (1) shall be paid in such
manner as the Secretary shall prescribe by reg-
ulations.
1491
(C) TIME
FOR
PAYMENT.—The tax im-
posed by paragraph (1) shall be paid on or be-
fore the last day of the 6th month beginning
after the date of the enactment of this Act.
(3) D EFINITIONS.—For purposes of this sub-
section, terms used in this subsection which are also
used in section 4131 of such Code shall have the re-
spective meanings such terms have in such section.
(4) O THER LAWS APPLICABLE.—All provisions
of law, including penalties, applicable with respect to
the taxes imposed by section 4131 of such Code
shall, insofar as applicable and not inconsistent with
the provisions of this subsection, apply to the floor
stocks taxes imposed by paragraph (1), to the same
extent as if such taxes were imposed by such section
4131.
SEC. 14432. CONTINUATION COVERAGE UNDER GROUP
HEALTH PLANS OF COSTS OF PEDIATRIC
VACCINES.
(a) 
IN
GENERAL.—Paragraph 
(1) 
of 
section
4980B(f) is amended by inserting ‘‘the coverage of the
costs of pediatric vaccines (as defined under section 2162
of the Public Health Service Act) is not reduced below
the coverage provided by the plan as of May 1, 1993, and
only if’’ after ‘‘only if’’.
1492
(b) E FFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to plan years begin-
ning after the date of the enactment of this Act.
SEC. 14433. CHILDHOOD IMMUNIZATION TRUST FUND.
(a) I N GENERAL.—Subchapter A of chapter 98 (re-
lating to trust fund code) is amended by adding at the
end thereof the following new section:
‘‘SEC. 9512. CHILDHOOD IMMUNIZATION TRUST FUND.
‘‘(a) C REATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund
to be known as the ‘Childhood Immunization Trust Fund’,
consisting of such amounts as may be appropriated or
credited to such Trust Fund as provided in this section
or section 9602(b).
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Childhood Immunization Trust
Fund amounts equivalent to the taxes received in the
Treasury under any tax hereafter specified by law for pur-
poses of this subsection.
‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts
in the Childhood Immunization Trust Fund shall be avail-
able, as provided in appropriation Acts, only for purposes
of making expenditures to carry out part A of subtitle 3
of title XXI of the Public Health Service Act.’’
1493
(b) C LERICAL AMENDMENT.—The table of sections
for such subchapter A is amended by adding at the end
thereof the following new item:
‘‘Sec. 9512. Childhood Immunization Trust Fund.’’
TITLE XV—BUDGET PROCESS
SEC. 15001. PURPOSE.
The purposes of this title are to extend through fiscal
year 1998 the enforcement of budget legislation by discre-
tionary caps and the pay-as-you-go requirement; to make
simplifications and technical corrections to those methods
of budget enforcement; to conform congressional budget
enforcement to those methods of budget enforcement to
the extent possible; and to make permanent the require-
ment for 5-year, enforceable budget resolutions.
Subtitle A—Budget Enforcement
Act of 1993
SEC. 15100. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Budget Enforcement Act of 1993’’.
(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this subtitle an amendment or re-
peal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be con-
sidered to be made to a section or other provision of the
Balanced Budget and Emergency Deficit Control Act of
1985.
1494
SEC. 15101. DEFINITIONS.
Section 250 is amended as follows:
(1) Strike ‘‘; STATEMENT OF BUDGET EN-
FORCEMENT
THROUGH
SEQUESTRATION;’’ in
the section heading and insert ‘‘AND’’.
(2) Strike subsection (a) and insert the follow-
ing new subsection:
‘‘(a) TABLE OF CONTENTS.—
‘‘Sec. 250. Table of contents and definitions.
‘‘Sec. 251. Discretionary limits.
‘‘Sec. 252. Pay-as-you-go.
‘‘Sec. 253. Enforcing deficit targets.
‘‘Sec. 254. Reports and orders.
‘‘Sec. 255. Exempt programs and activities.
‘‘Sec. 256. General and special sequestration rules.
‘‘Sec. 257. The baseline.
‘‘Sec. 258. Suspension in the event of war or low growth.
‘‘Sec. 258A. Modification of Presidential order.
‘‘Sec. 258B. Alternative defense sequestration.
‘‘Sec. 258C. Special reconciliation process.’’.
(3) Strike subsections (b) and (c) and insert
after subsection (a) the following new subsection:
‘‘(b) D EFINITIONS AND TREATMENTS.—As used in
this Act:
‘‘(1) The terms ‘budget authority’, ‘new budget
authority’, ‘outlays’, and ‘deficit’ have the meanings
given to such terms in section 3 of the Congressional
Budget and Impoundment Control Act of 1974 and
the term ‘receipts’ shall be treated as a synonym for
the term ‘revenues’ as it is used in that Act.
‘‘(2) The terms ‘sequester’ and ‘sequestration’
refer to or mean the cancellation of budget authority
1495
provided by discretionary appropriations or direct
spending law.
‘‘(3) The term ‘breach’ means, for any fiscal
year, the amount (if any) by which the baseline level
of discretionary new budget authority or outlays for
that year exceeds the discretionary limit on new
budget authority or outlays for that year.
‘‘(4) The term ‘baseline’ or ‘current policy base-
line’ means the projection (described in section 257)
of current-year levels of new budget authority, out-
lays, receipts, and the surplus or deficit into the
budget year and the outyears.
‘‘(5) The term ‘discretionary limits’ refers to
the limits on discretionary new budget authority and
outlays set forth in section 601 of the Congressional
Budget Act of 1974, as adjusted under section
251(b).
‘‘(6) The term ‘discretionary’ refers to pro-
grams (except direct-spending programs) for which
new budget authority is provided in appropriation
Acts. If an appropriation Act alters the level of di-
rect spending, that effect shall be treated as a dis-
cretionary appropriation.
‘‘(7) The term ‘direct spending’ means budget
authority provided by a law other than an appropria-
1496
tion Act or by a law that determines amounts need-
ed to fund mandatory appropriations (including the
food stamp program). If a law other than an appro-
priation Act alters the level of discretionary appro-
priations, that effect shall be treated as direct
spending.
‘‘(8) As used in this Act, all references to man-
datory appropriations shall include the list of man-
datory appropriations included in the joint explana-
tory statement of managers accompanying the con-
ference report on the Omnibus Budget Reconcili-
ation Act of 1993.
‘‘(9) The term ‘current’ means, with respect to
OMB estimates included with a budget submission
under section 1105(a) of title 31, United States
Code, the estimates consistent with the economic
and technical assumptions underlying that budget
and with respect to estimates that are not included
with a budget submission, estimates consistent with
the economic and technical assumptions underlying
the most recently submitted President’s budget, ex-
cept to the extent that clerical errors are corrected
in the midsession review as required by section 1106
of title 31, United States Code.
1497
‘‘(10) The term ‘real economic growth’, with re-
spect to any fiscal year, means the growth in the
gross domestic product during such fiscal year, ad-
justed for inflation, consistent with Department of
Commerce definitions.
‘‘(11) The term ‘account’ means an item for
which appropriations are made in any appropriation
Act and, for items not provided for in appropriation
Acts, an item for which there is a designated budget
account identification code number in the Presi-
dent’s budget.
‘‘(12) The term ‘budget year’ means, with re-
spect to a session of Congress, the fiscal year of the
Government that starts on October 1 of the calendar
year in which that session begins.
‘‘(13) The term ‘current year’ means, with re-
spect to a budget year, the fiscal year that imme-
diately precedes that budget year.
‘‘(14) The term ‘outyear’ means, with respect
to a budget year, any of the fiscal years that follow
the budget year, through fiscal year 1998 in the case
of discretionary programs and through 2002 in the
case of direct spending and receipts.
‘‘(15) The term ‘OMB’ means the Director of
the Office of Management and Budget.
1498
‘‘(16) The term ‘CBO’ means the Director of
the Congressional Budget Office.
‘‘(17) The term ‘deposit insurance’ refers to the
expenses of the Federal Deposit Insurance Corpora-
tion and the funds it incorporates, the Resolution
Trust Corporation, the National Credit Union Ad-
ministration and the funds it incorporates, the Of-
fice of Thrift Supervision, the Comptroller of the
Currency Assessment Fund, and the RTC Office of
Inspector General.
‘‘(18) The term ‘composite discretionary outlay
rate’ means the percent of new budget authority
that is converted to outlays in the fiscal year for
which the budget authority is provided and subse-
quent fiscal years, as follows: 60 percent for the first
year, 25 percent for the second year, 7 percent for
the third year, and 3 percent for the fourth year.
‘‘(19) The term ‘asset sale’ means the sale by
the Government to the public of a nonloan asset.
‘‘(20) Notwithstanding any other provision of
law, the receipts and disbursements of the Hospital
Insurance Trust Fund shall be included in all cal-
culations required by this Act.’’.
SEC. 15102. DISCRETIONARY LIMITS.
Section 251 is amended to read as follows:
1499
‘‘SEC. 251. DISCRETIONARY LIMITS.
‘‘(a) INITIAL AMOUNTS.—Subject to adjustments
under subsection (b), the discretionary limits are as set
forth in section 601 of the Congressional Budget Act of
1974.
‘‘(b) ADJUSTMENTS TO LIMITS.—Whenever appro-
priate, adjustments to the discretionary limits (as they
exist at the time of the adjustment) for one or more fiscal
years shall be made as follows:
‘‘(1) CHANGES IN ACCOUNTING CONCEPTS.—
For any fiscal year, the discretionary limits shall be
adjusted to reflect any change in budget accounting
concepts (including scorekeeping conventions, budget
classifications, and definitions), which change shall
equal the baseline levels of new budget authority and
outlays using up-to-date concepts minus those levels
using the concepts in effect before the change.
‘‘(2) CHANGES
IN
INFLATION.—(A) For the
budget year and each outyear, the discretionary limit
on new budget authority for each such year shall be
multiplied by the inflation adjustment factor (for the
fiscal year immediately preceding the current year)
calculated under subparagraph (B). The discre-
tionary limit on outlays for each such year shall be
adjusted by applying the composite discretionary
1500
outlay rate to the change in the limits on new budg-
et authority under the preceding sentence.
‘‘(B) The inflation adjustment factor shall be
the ratio of (i) the level of year-over-year inflation
measured for the fiscal year immediately preceding
the current year, and (ii) the applicable estimated
level for that year set forth below:
‘‘For 1993, 1.030.
‘‘For 1994, 1.027.
‘‘For 1995, 1.026.
‘‘For 1996, 1.025.
Inflation shall be measured by the average of the es-
timated fixed-weight gross domestic product price
index for a fiscal year divided by the average index
for the prior fiscal year.
‘‘(3) IMF FUNDING.—If for any fiscal year an
appropriation is enacted to provide to the Inter-
national Monetary Fund the dollar equivalent, in
terms of Special Drawing Rights, of the increase in
the United States quota, the limit on discretionary
new budget authority shall be increased by the
amount of that appropriation.
‘‘(4) IRS FUNDING.—To the extent discre-
tionary appropriations are enacted for fiscal year
1994 or 1995 that provide new budget authority or
1504
under section 254(e), and may not thereafter be al-
tered except to correct clerical errors or errors in the
application of this Act. The entry for each such law
or sequestration shall be displayed separately.
‘‘(2) LOOKBACK.—(A) If after June 30 any dis-
cretionary appropriation is enacted that would
breach the discretionary limit on new budget author-
ity or outlays for the current year, then that breach
shall be entered on the scorecard as a cost under the
column for the budget year.
‘‘(B) If any discretionary appropriation is en-
acted after June 30, 1993, that would have breached
a discretionary spending limit for fiscal year 1993
(under this Act and title VI of the Congressional
Budget Act of 1974 as in effect immediately before
the date of enactment of the Budget Enforcement
Act of 1993), then that breach shall be entered on
the scorecard as a cost under the column for the
budget year.
‘‘(d) ENFORCING DISCRETIONARY LIMITS.—
‘‘(1) SEQUESTRATION.—Within 15 days after
Congress adjourns to end a session there shall be a
sequestration to reduce the amount of nonexempt
discretionary budget authority in the current policy
baseline for the budget year of that session by—
1505
‘‘(A) the amount needed to eliminate a
breach of the discretionary limit on new budget
authority for that year, and
‘‘(B) if any breach of the discretionary
limit on outlays remains, the amount needed to
eliminate that breach for that year,
as measured under subsection (c), unless the total
amount under subparagraphs (A) and (B) is less
than $50,000,000.
‘‘(2) UNIFORM REDUCTION.—Each nonexempt
account (or activity within an account) shall be re-
duced by a dollar amount calculated by multiplying
the baseline level of nonexempt gross discretionary
budget authority for that account or activity by the
uniform percent necessary to reduce net new budget
authority by the amount in paragraph (1), except
that the health programs set forth in section 256(e)
shall not be reduced more than 2 percent and the
uniform percent applicable to all other programs
shall be increased (if necessary) to a level sufficient
to achieve the amount in paragraph (1).
‘‘(3) MILITARY PERSONNEL.—If the President
uses the authority under section 255(f) to exempt
any amounts appropriated for military personnel
from sequestration, all remaining nonexempt discre-