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Federal Register and post on the Department of Trans-
portation web site the substantive criteria and standards 
used by the Secretary to determine whether to approve 
or disapprove applications submitted under section 502 of 
the Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822).
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rail Infrastructure De-
velopment and Expansion Act for the 21st Century’’. 
SEC. 2. HIGH-SPEED INTERCITY RAIL FACILITY BONDS. 
(a) AMENDMENT.—Chapter 261 of title 49, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 26106. High-speed rail infrastructure bonds 
‘‘(a) DESIGNATION.—The Secretary may designate 
bonds for purposes of subsection (f) or section 54 of the In-
ternal Revenue Code of 1986 if—
‘‘(1) the bonds are to be issued by—
‘‘(A) a State, if the entire railroad pas-
senger transportation corridor containing the in-
frastructure project to be financed is within the 
State; 
‘‘(B) 1 or more of the States that have en-
tered into an agreement or an interstate compact
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consented to by Congress under section 410(a) of 
Public Law 105–134 (49 U.S.C 24101 nt); or 
‘‘(C) an agreement or an interstate compact 
described in subparagraph (B); 
‘‘(2) the bonds are for the purpose of financing—
‘‘(A) projects that make a substantial con-
tribution to providing the infrastructure and 
equipment required to complete a high-speed rail 
transportation corridor (including projects for 
the acquisition, financing, or refinancing of 
equipment and other capital improvements, in-
cluding the introduction of new high-speed tech-
nologies such as magnetic levitation systems, 
track or signal improvements, the elimination of 
grade crossings, development of intermodal fa-
cilities, improvement of train speeds or safety, or 
both, and station rehabilitation or construction), 
but only if the Secretary determines that the 
projects are part of a viable and comprehensive 
high-speed rail transportation corridor design for 
intercity passenger service, including a design 
for minimally operable segments of a corridor 
designated under section 104(d)(2) of title 23, 
United States Code; or 
‘‘(B) projects for the Alaska Railroad;
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‘‘(3) for a railroad passenger transportation cor-
ridor design that includes the use of rights-of-way 
owned by a freight railroad, a written agreement ex-
ists between the applicant and the freight railroad re-
garding such use and ownership, including compensa-
tion for such use and assurances regarding the ade-
quacy of infrastructure capacity to accommodate both 
existing and future freight and passenger operations, 
and including an assurance by the freight railroad 
that collective bargaining agreements with the freight 
railroad’s employees (including terms regulating the 
contracting of work) shall remain in full force and ef-
fect according to their terms for work performed by 
the freight railroad on such railroad passenger trans-
portation corridor; 
‘‘(4) the corridor design eliminates existing rail-
way-highway grade crossings that the Secretary deter-
mines would impede high-speed rail operations; 
‘‘(5) the applicant agrees to comply with—
‘‘(A) the standards of section 24312, as in 
effect on September 1, 2002, with respect to the 
project in the same manner that the National 
Railroad Passenger Corporation is required to 
comply with such standards for construction
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work financed under an agreement made under 
section 24308(a); and 
‘‘(B) the protective arrangements established 
under section 504 of the Railroad Revitalization 
and Regulatory Reform Act of 1976 (45 U.S.C. 
836) with respect to employees affected by ac-
tions taken in connection with the project to be 
financed by the bond; and
‘‘(6) the applicant agrees not to pay the prin-
cipal or interest on the bonds using funds derived di-
rectly or indirectly from the Highway Trust Fund, 
except as permitted by law as of the date of the enact-
ment of this section. 
‘‘(b) BOND AMOUNT LIMITATION.—
‘‘(1) IN GENERAL.—The amount of bonds des-
ignated under this section may not exceed—
‘‘(A) in the case of subsection (f) bonds, 
$1,200,000,000 for each of the fiscal years 2004 
through 2013; and 
‘‘(B) in the case of section 54 bonds, 
$1,200,000,000 for each of the fiscal years 2004 
through 2013. 
‘‘(2) CARRYOVER
OF
UNUSED
LIMITATION.—If 
for any fiscal year the limitation amount under sub-
paragraph (A) or (B) of paragraph (1) exceeds—
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‘‘(A) with respect to subparagraph (A) of 
paragraph (1), the amount of subsection (f) 
bonds issued during such year; or 
‘‘(B) with respect to subparagraph (B) of 
paragraph (1), the amount of section 54 bonds 
issued during such year, 
the limitation amount under subparagraph (A) or 
(B) of paragraph (1), as the case may be, for the fol-
lowing fiscal year (through fiscal year 2017) shall be 
increased by the amount of such excess. 
‘‘(c) PREFERENCE.—The Secretary shall give pref-
erence to the designation under this section of bonds for 
projects—
‘‘(1) to be funded through a combination of sub-
section (f) bonds and section 54 bonds; 
‘‘(2) which propose to link rail passenger service 
with other modes of transportation; 
‘‘(3) expected to have a significant impact on air 
traffic congestion; 
‘‘(4) expected to also improve commuter rail op-
erations; 
‘‘(5) where all environmental work has already 
been completed and the project is ready to commence; 
or
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‘‘(6) that have received financial commitments 
and other support of State and local governments. 
‘‘(d) TIMELY DISPOSITION
OF APPLICATION.—The 
Secretary shall grant or deny a requested designation with-
in 9 months after receipt of an application. 
‘‘(e) ANNUAL REPORTS.—
‘‘(1) FROM ISSUER OF BONDS.—The issuer of 
bonds designated under subsection (a) shall report an-
nually to the Secretary regarding the terms of out-
standing designated bonds and the progress made 
with respect to the project financed by the bonds. 
‘‘(2) FROM SECRETARY.—The Secretary, in con-
sultation with the Secretary of the Treasury, shall 
transmit to the Congress an annual report which in-
cludes—
‘‘(A) reports received under paragraph (1); 
and 
‘‘(B) an assessment of the progress made to-
ward completion of high-speed rail transpor-
tation corridors resulting from projects financed 
by bonds designated under subsection (a). 
‘‘(f) TAX TREATMENT OF SUBSECTION (f) BONDS.—
‘‘(1) EXCLUSION FROM GROSS INCOME.—The in-
terest on a bond designated by the Secretary under 
subsection (a) for purposes of this subsection shall be
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excluded from gross income under section 103 of the 
Internal Revenue Code of 1986, notwithstanding sec-
tion 149(c) of such Code. 
‘‘(2) EXEMPTION FROM VOLUME CAP.—For pur-
poses of section 146 of such Code, a bond designated 
by the Secretary under subsection (a) for purposes of 
this subsection shall be considered to be exempt from 
the volume cap of the issuing authority in the same 
manner as bonds listed in subsection (g) of such sec-
tion 146. 
‘‘(g) REFINANCING RULES.—Bonds designated by the 
Secretary under subsection (a) may be issued for refi-
nancing projects only if the indebtedness being refinanced 
(including any obligation directly or indirectly refinanced 
by such indebtedness) was originally incurred by the 
issuer—
‘‘(1) after the date of the enactment of this sec-
tion; 
‘‘(2) for a term of not more than 3 years; 
‘‘(3) to finance projects described in subsection 
(a)(2); and 
‘‘(4) in anticipation of being refinanced with 
proceeds of a bond designated under subsection (a). 
‘‘(h) PROVISIONS
REGARDING
HIGH-SPEED
RAIL 
SERVICE.—
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‘‘(1) STATUS AS EMPLOYER OR CARRIER.—Any 
entity providing railroad transportation (within the 
meaning of section 20102) that begins operations 
after the date of enactment of this section and that 
uses property acquired pursuant to this section (ex-
cept as provided in subsection (a)(2)(B)), shall be 
considered an employer for purposes of the Railroad 
Retirement Act of 1974 (45 U.S.C. 231 et seq.) and 
considered a carrier for purposes of the Railway 
Labor Act (45 U.S.C. 151 et seq.).
‘‘(2) COLLECTIVE
BARGAINING
AGREEMENT.—
Any entity providing high-speed intercity passenger 
railroad transportation (within the meaning of sec-
tion 20102) that begins operations after the date of 
enactment of this section on a project funded in whole 
or in part by bonds designated under subsection (a), 
and replaces intercity rail passenger service that was 
provided by another entity as of the date of enactment 
of this section, shall enter into an agreement with the 
authorized bargaining agent or agents for employees 
of the predecessor provider that—
‘‘(A) gives each employee of the predecessor 
provider priority in hiring according to the em-
ployee’s seniority on the predecessor provider for 
each position with the replacing entity that is in
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the employee’s craft or class and is available 
within three years after the termination of the 
service being replaced; 
‘‘(B) establishes a procedure for notifying 
such an employee of such positions; 
‘‘(C) establishes a procedure for such an em-
ployee to apply for such positions; and
‘‘(D) establishes rates of pay, rules, and 
working conditions. 
‘‘(3) IMMEDIATE
REPLACEMENT
OF
EXISTING 
RAIL PASSENGER SERVICE.—
‘‘(A) NEGOTIATIONS.—If the replacement of 
preexisting intercity rail passenger service occurs 
concurrent with or within a reasonable amount 
of time before the commencement of the replacing 
entity’s high-speed rail passenger service, the re-
placing entity shall give written notice of its 
plan to replace existing rail passenger service to 
the authorized collective bargaining agent or 
agents for the employees of the predecessor pro-
vider at least 90 days prior to the date it plans 
to commence service. Within 5 days after the 
date of receipt of such written notice, negotia-
tions between the replacing entity and the collec-
tive bargaining agent or agents for the employees
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of the predecessor provider shall commence for 
the purpose of reaching agreement with respect 
to all matters set forth in paragraph (2)(A)–(D). 
The negotiations shall continue for 30 days or 
until an agreement is reached, whichever is soon-
er. If at the end of 30 days the parties have not 
entered into an agreement with respect to all 
such matters, the unresolved issues shall be sub-
mitted for arbitration in accordance with the 
procedure set forth in subparagraph (B). 
‘‘(B) ARBITRATION.—If an agreement has 
not been entered into with respect to all matters 
set forth in paragraph (2)(A)–(D) as provided in 
subparagraph (A) of this paragraph, the parties 
shall select an arbitrator. If the parties are un-
able to agree upon the selection of such arbitrator 
within 5 days, either or both parties shall notify 
the National Mediation Board, which shall pro-
vide a list of seven arbitrators with experience in 
arbitrating rail labor protection disputes. Within 
5 days after such notification, the parties shall 
alternately strike names from the list until only 
one name remains, and that person shall serve as 
the neutral arbitrator. Within 45 days after se-
lection of the arbitrator, the arbitrator shall con-
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duct a hearing on the dispute and shall render 
a decision with respect to the unresolved issues 
set forth in paragraph (2)(A)–(D). This decision 
shall be final, binding, and conclusive upon the 
parties. The salary and expenses of the arbi-
trator shall be borne equally by the parties; all 
other expenses shall be paid by the party incur-
ring them. 
‘‘(C) SERVICE COMMENCEMENT.—A replac-
ing entity under this paragraph shall commence 
service only after an agreement is entered into 
with respect to the matters set forth in para-
graph (2)(A)–(D) or the decision of the arbi-
trator has been rendered. 
‘‘(4) SUBSEQUENT REPLACEMENT OF EXISTING 
RAIL PASSENGER SERVICE.—If the replacement of ex-
isting rail passenger service takes place within 3 
years after the replacing entity commences high-speed 
rail passenger service, the replacing entity and the 
collective bargaining agent or agents for the employees 
of the predecessor provider shall enter into an agree-
ment with respect to the matters set forth in para-
graph (2)(A)–(D). If the parties have not entered into 
an agreement with respect to all such matters within 
60 days after the date on which the replacing entity
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replaces the predecessor provider, the parties shall se-
lect an arbitrator using the procedures set forth in 
paragraph (3)(B), who shall, within 20 days after the 
commencement of the arbitration, conduct a hearing 
and decide all unresolved issues. This decision shall be 
final, binding, and conclusive upon the parties. 
‘‘(i) ISSUANCE OF REGULATIONS.—Not later than 6 
months after the date of the enactment of this section, the 
Secretary shall issue regulations for carrying out this sec-
tion. 
‘‘(j) DEFINITIONS.—For purposes of this section—
‘‘(1) SUBSECTION (f) BOND.—The term ‘sub-
section (f) bond’ means a bond designated by the Sec-
retary under subsection (a) for purposes of subsection 
(f). 
‘‘(2) SECTION 54 BOND.—The term ‘section 54 
bond’ means a bond designated by the Secretary 
under subsection (a) for purposes of section 54 of the 
Internal Revenue Code of 1986 (relating to credit to 
holders of qualified high-speed rail infrastructure 
bonds).’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections of chapter 261 of title 49, United States Code, is 
amended by adding after the item relating to section 26105 
the following new item:
‘‘26106.
High-speed rail infrastructure bonds.’’.
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SEC. 3. TAX CREDIT TO HOLDERS OF QUALIFIED HIGH-
SPEED RAIL INFRASTRUCTURE BONDS. 
(a) IN GENERAL.—Part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 (relating to credits 
against tax) is amended by adding at the end the following 
new subpart: 
‘‘Subpart H—Nonrefundable Credit for Holders of 
Qualified High-Speed Rail Infrastructure Bonds
‘‘Sec. 54. Credit to holders of qualified high-speed rail infrastruc-
ture bonds.
‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED HIGH-SPEED 
RAIL INFRASTRUCTURE BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified high-speed rail infrastructure 
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 
during such year on which the taxpayer holds such bond. 
‘‘(b) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—The amount of the credit de-
termined under this subsection with respect to any 
credit allowance date for a qualified high-speed rail 
infrastructure bond is 25 percent of the annual credit 
determined with respect to such bond.
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‘‘(2) ANNUAL CREDIT.—The annual credit deter-
mined with respect to any qualified high-speed rail 
infrastructure 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 (2), the applicable credit rate with re-
spect to an issue is the rate equal to an average mar-
ket yield (as of the day before the date of sale of the 
issue) on outstanding long-term corporate debt obliga-
tions (determined under regulations prescribed by the 
Secretary). 
‘‘(4) CREDIT ALLOWANCE DATE.—For purposes 
of this section, 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. 
‘‘(5) SPECIAL RULE FOR ISSUANCE AND REDEMP-
TION.—In the case of a bond which is issued during
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the 3-month period ending on a credit allowance date, 
the amount of the credit determined under this sub-
section with respect to such credit allowance date 
shall be a ratable portion of the credit otherwise deter-
mined based on the portion of the 3-month period 
during which the bond is outstanding. A similar rule 
shall apply when the bond is redeemed. 
‘‘(c) 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 imposed by 
section 55, over 
‘‘(B) the sum of the credits allowable under 
this part (other than this subpart and subpart 
C). 
‘‘(2) CARRYOVER
OF
UNUSED
CREDIT.—If the 
credit allowable under subsection (a) exceeds the limi-
tation 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. 
‘‘(d) CREDIT INCLUDED IN GROSS INCOME.—Gross in-
come includes the amount of the credit allowed to the tax-
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payer under this section (determined without regard to sub-
section (c)) and the amount so included shall be treated as 
interest income. 
‘‘(e) QUALIFIED HIGH-SPEED RAIL INFRASTRUCTURE 
BOND.—For purposes of this part, the term ‘qualified high-
speed rail infrastructure bond’ means any bond issued as 
part of an issue if—
‘‘(1) the issuer certifies that the Secretary of 
Transportation has designated the bond for purposes 
of this section under section 26106(a) of title 49, 
United States Code, as in effect on the date of the en-
actment of this section, 
‘‘(2) 95 percent or more of the proceeds from the 
sale of such issue are to be used for expenditures in-
curred after the date of the enactment of this section 
for any project described in section 26106(a)(2) of 
title 49, United States Code, 
‘‘(3) the term of each bond which is part of such 
issue does not exceed 20 years, 
‘‘(4) the payment of principal with respect to 
such bond is the obligation solely of the issuer, and 
‘‘(5) the issue meets the requirements of sub-
section (f) (relating to arbitrage). 
‘‘(f) SPECIAL RULES RELATING TO ARBITRAGE.—
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‘‘(1) IN GENERAL.—Subject to paragraph (2), an 
issue shall be treated as meeting the requirements of 
this subsection if as of the date of issuance, the issuer 
reasonably expects—
‘‘(A) to spend at least 95 percent of the pro-
ceeds from the sale of the issue for 1 or more 
qualified projects within the 3-year period begin-
ning on such date, 
‘‘(B) to incur a binding commitment with 
a third party to spend at least 10 percent of the 
proceeds from the sale of the issue, or to com-
mence construction, with respect to such projects 
within the 6-month period beginning on such 
date, and 
‘‘(C) to proceed with due diligence to com-
plete such projects and to spend the proceeds 
from the sale of the issue. 
‘‘(2) RULES
REGARDING
CONTINUING
COMPLI-
ANCE AFTER 3-YEAR DETERMINATION.—If at least 95 
percent of the proceeds from the sale of the issue is not 
expended for 1 or more qualified projects within the 
3-year period beginning on the date of issuance, but 
the requirements of paragraph (1) are otherwise met, 
an issue shall be treated as continuing to meet the re-
quirements of this subsection if either—
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‘‘(A) the issuer uses all unspent proceeds 
from the sale of the issue to redeem bonds of the 
issue within 90 days after the end of such 3-year 
period, or 
‘‘(B) the following requirements are met:
‘‘(i) The issuer spends at least 75 per-
cent of the proceeds from the sale of the 
issue for 1 or more qualified projects within 
the 3-year period beginning on the date of 
issuance.
‘‘(ii) Either— 
‘‘(I) the issuer spends at least 95 
percent of the proceeds from the sale of 
the issue for 1 or more qualified 
projects within the 4-year period be-
ginning on the date of issuance, or 
‘‘(II) the issuer pays to the Fed-
eral Government any earnings on the 
proceeds from the sale of the issue that 
accrue after the end of the 3-year pe-
riod beginning on the date of issuance 
and uses all unspent proceeds from the 
sale of the issue to redeem bonds of the 
issue within 90 days after the end of
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the 4-year period beginning on the date 
of issuance. 
‘‘(g) RECAPTURE OF PORTION OF CREDIT WHERE 
CESSATION OF COMPLIANCE.—
‘‘(1) IN
GENERAL.—If any bond which when 
issued purported to be a qualified high-speed rail in-
frastructure bond ceases to be such a qualified bond, 
the issuer shall pay to the United States (at the time 
required by the Secretary) an amount equal to the 
sum of—
‘‘(A) the aggregate of the credits allowable 
under this section with respect to such bond (de-
termined without regard to subsection (c)) for 
taxable years ending during the calendar year in 
which such cessation occurs and the 2 preceding 
calendar years, and 
‘‘(B) interest at the underpayment rate 
under section 6621 on the amount determined 
under subparagraph (A) for each calendar year 
for the period beginning on the first day of such 
calendar year. 
‘‘(2) FAILURE TO PAY.—If the issuer fails to 
timely pay the amount required by paragraph (1) 
with respect to such bond, the tax imposed by this 
chapter on each holder of any such bond which is part
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of such issue shall be increased (for the taxable year 
of the holder in which such cessation occurs) by the 
aggregate decrease in the credits allowed under this 
section to such holder for taxable years beginning in 
such 3 calendar years which would have resulted sole-
ly from denying any credit under this section with re-
spect to such issue for such taxable years. 
‘‘(3) SPECIAL RULES.—
‘‘(A) TAX BENEFIT RULE.—The tax for the 
taxable year shall be increased under paragraph 
(2) only with respect to credits allowed by reason 
of this section which were used to reduce tax li-
ability. In the case of credits not so used to re-
duce tax liability, the carryforwards and 
carrybacks under section 39 shall be appro-
priately adjusted. 
‘‘(B) NO CREDITS AGAINST TAX.—Any in-
crease in tax under paragraph (2) shall not be 
treated as a tax imposed by this chapter for pur-
poses of determining—
‘‘(i) the amount of any credit allowable 
under this part, or 
‘‘(ii) the amount of the tax imposed by 
section 55.
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‘‘(h) OTHER DEFINITIONS AND SPECIAL RULES.—For 
purposes of this section—
‘‘(1) BOND.—The term ‘bond’ includes any obli-
gation. 
‘‘(2) QUALIFIED PROJECT.—The term ‘qualified 
project’ means any project described in section 
26106(a)(2) of title 49, United States Code. 
‘‘(3) TREATMENT
OF
CHANGES
IN
USE.—For 
purposes of subsection (e)(2), the proceeds from the 
sale of an issue shall not be treated as used for a 
qualified project to the extent that the issuer takes 
any action within its control which causes such pro-
ceeds not to be used for a qualified project. The Sec-
retary shall prescribe regulations specifying remedial 
actions that may be taken (including conditions to 
taking such remedial actions) to prevent an action de-
scribed in the preceding sentence from causing a bond 
to fail to be a qualified high-speed rail infrastructure 
bond. 
‘‘(4) PARTNERSHIP; S CORPORATION; AND OTHER 
PASS-THRU ENTITIES.—Under regulations prescribed 
by the Secretary, in the case of a partnership, trust, 
S corporation, or other pass-thru entity, rules similar 
to the rules of section 41(g) shall apply with respect 
to the credit allowable under subsection (a).
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‘‘(5) BONDS HELD BY REGULATED INVESTMENT 
COMPANIES.—If any qualified high-speed rail infra-
structure bond is held by a regulated investment com-
pany, the credit determined under subsection (a) shall 
be allowed to shareholders of such company under 
procedures prescribed by the Secretary. 
‘‘(6) REPORTING.—Issuers of qualified high-
speed rail infrastructure bonds shall submit reports 
similar to the reports required under section 149(e).’’. 
(b) AMENDMENTS TO OTHER CODE SECTIONS.—
(1) REPORTING.—Subsection (d) of section 6049 
of the Internal Revenue Code of 1986 (relating to re-
turns regarding payments of interest) is amended by 
adding at the end the following new paragraph: 
‘‘(8) REPORTING
OF
CREDIT
ON
QUALIFIED 
HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts 
includible in gross income under section 54(d) 
and such amounts shall be treated as paid on the 
credit allowance date (as defined in section 
54(b)(4)). 
‘‘(B) REPORTING TO CORPORATIONS, ETC.—
Except as otherwise provided in regulations, in 
the case of any interest described in subpara-
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graph (A), subsection (b)(4) shall be applied 
without regard to subparagraphs (A), (H), (I), 
(J), (K), and (L)(i) of such subsection.
‘‘(C) REGULATORY
AUTHORITY.—The Sec-
retary may prescribe such regulations as are nec-
essary or appropriate to carry out the purposes 
of this paragraph, including regulations which 
require more frequent or more detailed report-
ing.’’. 
(2) TREATMENT
FOR
ESTIMATED
TAX
PUR-
POSES.—
(A) INDIVIDUAL.—Section 6654 of such 
Code (relating to failure by individual to pay es-
timated income tax) is amended by redesig-
nating subsection (m) as subsection (n) and by 
inserting after subsection (l) the following new 
subsection: 
‘‘(m) SPECIAL RULE FOR HOLDERS OF QUALIFIED 
HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—For pur-
poses of this section, the credit allowed by section 54 to a 
taxpayer by reason of holding a qualified high-speed rail 
infrastructure bond on a credit allowance date shall be 
treated as if it were a payment of estimated tax made by 
the taxpayer on such date.’’.
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(B) CORPORATE.—Section 6655 of such 
Code (relating to failure by corporation to pay 
estimated income tax) is amended by adding at 
the end of subsection (g) the following new para-
graph: 
‘‘(5) SPECIAL RULE FOR HOLDERS OF QUALIFIED 
HIGH-SPEED
RAIL
INFRASTRUCTURE
BONDS.—For 
purposes of this section, the credit allowed by section 
54 to a taxpayer by reason of holding a qualified 
high-speed rail infrastructure bond on a credit allow-
ance date shall be treated as if it were a payment of 
estimated tax made by the taxpayer on such date.’’. 
(c) CLERICAL AMENDMENTS.—
(1) The table of subparts for part IV of sub-
chapter A of chapter 1 is amended by adding at the 
end the following new item:
‘‘Subpart H. Nonrefundable Credit for Holders of Qualified High-
Speed Rail Infrastructure Bonds.’’.
(2) Section 6401(b)(1) of such Code is amended 
by striking ‘‘and G’’ and inserting ‘‘G, and H’’. 
(d) ISSUANCE OF REGULATIONS.—Not later than 6 
months after the date of the enactment of this section, the 
Secretary of the Treasury shall issue regulations for car-
rying out this section and the amendments made by this 
section. 
(e) HIGH-SPEED INTERCITY RAIL FACILITIES.—
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(1) REQUIREMENT TO MEET TITLE 49 REQUIRE-
MENTS.—Section 142(i) of the Internal Revenue Code 
of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(4) 
ADDITIONAL
REQUIREMENTS.—A 
bond 
issued as part of an issue described in subsection 
(a)(11) shall not be considered an exempt facility 
bond unless the requirements of paragraphs (1) 
through (6) of section 26106(a) of title 49, United 
States Code, are met.’’. 
(2) REVISION
OF
SPEED
REQUIREMENT.—Sec-
tion 142(i)(1) of such Code is amended by striking 
‘‘150 miles per hour’’ and inserting ‘‘110 miles per 
hour’’. 
(f) EFFECTIVE DATE.—The amendments made by this 
section shall apply to obligations issued after the date of 
enactment of this Act. 
SEC. 4. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT. 
(a) CORRIDOR DEVELOPMENT.—
(1) AMENDMENTS.—Section 26101 of title 49, 
United States Code, is amended—
(A) in the section heading, by striking 
‘‘planning’’ and inserting ‘‘development’’;
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(B) in the heading of subsection (a), by 
striking ‘‘PLANNING’’ and inserting ‘‘DEVELOP-
MENT’’;
(C) by striking ‘‘corridor planning’’ each 
place it appears and inserting ‘‘corridor develop-
ment’’; 
(D) in subsection (b)(1)—
(i) by inserting ‘‘, or if it is an activ-
ity described in subparagraph (M)’’ after 
‘‘high-speed rail improvements’’; 
(ii) by striking ‘‘and’’ at the end of 
subparagraph (K); 
(iii) by striking the period at the end 
of subparagraph (L) and inserting ‘‘; and’’; 
and 
(iv) by adding at the end the following 
new subparagraph: 
‘‘(M) the acquisition of locomotives, rolling stock, 
track, and signal equipment.’’; and 
(E) in subsection (c)(2), by striking ‘‘plan-
ning’’ and inserting ‘‘development’’. 
(2) CONFORMING AMENDMENT.—The item relat-
ing to section 26101 in the table of sections of chapter 
261 of title 49, United States Code, is amended by 
striking ‘‘planning’’ and inserting ‘‘development’’.
HR 2571 RH 
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section 
26104 of title 49, United States Code, is amended to read 
as follows: 
‘‘§ 26104. Authorization of appropriations 
‘‘(a) FISCAL YEARS 2004 THROUGH 2011.—There are 
authorized to be appropriated to the Secretary—
‘‘(1) $70,000,000 for carrying out section 26101; 
and 
‘‘(2) $30,000,000 for carrying out section 26102, 
for each of the fiscal years 2004 through 2011. 
‘‘(b) FUNDS TO REMAIN AVAILABLE.—Funds made 
available under this section shall remain available until ex-
pended.’’. 
SEC. 5. REHABILITATION AND IMPROVEMENT FINANCING. 
(a) DEFINITIONS.—Section 102(7) of the Railroad Re-
vitalization and Regulatory Reform Act of 1976 (45 U.S.C. 
802(7)) is amended to read as follows: 
‘‘(7) ‘railroad’ has the meaning given that term 
in section 20102 of title 49, United States Code; 
and’’. 
(b) GENERAL AUTHORITY.—Section 502(a) of the 
Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822(a)) is amended by striking ‘‘Secretary 
may provide direct loans and loan guarantees to State and 
local governments,’’ and inserting ‘‘Secretary shall provide
HR 2571 RH 
direct loans and loan guarantees to State and local govern-
ments, agreements or interstate compacts consented to by 
Congress under section 410(a) of Public Law 105–134 (49 
U.S.C 24101 nt),’’.
(c) EXTENT OF AUTHORITY.—Section 502(d) of the 
Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822(d)) is amended—
(1) by striking ‘‘$3,500,000,000’’ and inserting 
‘‘$35,000,000,000’’; 
(2) by striking ‘‘$1,000,000,000’’ and inserting 
‘‘$7,000,000,000’’; and 
(3) by adding at the end the following new sen-
tence: ‘‘The Secretary shall not establish any limit on 
the proportion of the unused amount authorized 
under this subsection that may be used for 1 loan or 
loan guarantee.’’. 
(d) COHORTS OF LOANS.—Section 502(f) of the Rail-
road Revitalization and Regulatory Reform Act of 1976 (45 
U.S.C. 822(f)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (D); 
(B) by redesignating subparagraph (E) as 
subparagraph (F); and
HR 2571 RH 
(C) by adding after subparagraph (D) the 
following new subparagraph: 
‘‘(E) the size and characteristics of the co-
hort of which the loan or loan guarantee is a 
member; and’’; and 
(2) by adding at the end of paragraph (4) the 
following: ‘‘A cohort may include loans and loan 
guarantees. The Secretary shall not establish any 
limit on the proportion of a cohort that may be used 
for 1 loan or loan guarantee.’’. 
(e) CONDITIONS OF ASSISTANCE.—Section 502 of the 
Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822) is amended—
(1) in subsection (f)(2)(A), by inserting ‘‘, if 
any’’ after ‘‘collateral offered’’; and 
(2) by adding at the end of subsection (h) the fol-
lowing: 
‘‘The Secretary shall not require an applicant for a direct 
loan or loan guarantee under this section to provide collat-
eral. The Secretary shall not require that an applicant for 
a direct loan or loan guarantee under this section have pre-
viously sought the financial assistance requested from an-
other source. The Secretary shall require recipients of direct 
loans or loan guarantees under this section to apply the
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standards of section 26106(a)(5) of title 49, United States 
Code, to their projects.’’. 
(f) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—
Section 502 of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 822) is amended by adding 
at the end the following new subsection: 
‘‘(i) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—
Not later than 90 days after receiving a complete applica-
tion for a direct loan or loan guarantee under this section, 
the Secretary shall approve or disapprove the application.’’. 
(g) FEES AND CHARGES.—Section 503 of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 
U.S.C. 823) is amended by adding at the end the following 
new subsection: 
‘‘(l) FEES AND CHARGES.—Except as provided in this 
title, the Secretary may not assess any fees, including user 
fees, or charges in connection with a direct loan or loan 
guarantee provided under section 502.’’. 
(h) SUBSTANTIVE CRITERIA AND STANDARDS.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary of Transportation shall publish in the 
Federal Register and post on the Department of Transpor-
tation web site the substantive criteria and standards used 
by the Secretary to determine whether to approve or dis-
approve applications submitted under section 502 of the
HR 2571 RH 
Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822).
Union Calendar No. 206
108TH CONGRESS 
1ST SESSION 
H. R. 2571
[Report No. 108–278, Parts I and II] 
A BILL 
To provide for the financing of high-speed rail 
infrastructure, and for other purposes. 
NOVEMBER 6, 2003
Reported from the Committee on Ways and Means with 
amendments, committed to the Committee of the 
Whole House on the State of the Union, and ordered 
to be printed