‘‘(1) $3,600,000,000 for 2000,
‘‘(2) $3,600,000,000 for 2001, and
‘‘(3) except as provided in subsection (e), zero
after 2001.
‘‘(d) ALLOCATION OF LIMITATION AMONG STATES.—
‘‘(1) IN GENERAL.—The Secretary shall allo-
cate the national qualified school construction bond
limitation for any calendar year among the States
with projected enrollment increases. The amount al-
located to a State under the preceding sentence shall
be allocated by the State education agency to issuers
within such State and such allocations may be made
only if there is an approved State application.
‘‘(2) ALLOCATION FORMULA.—
‘‘(A) IN GENERAL.—The national qualified
school construction bond limitation shall be al-
located among the States with projected enroll-
ment increases in proportion to their respective
shares of the national projected enrollment in-
crease.
‘‘(B) 
PROJECTED
ENROLLMENT
IN-
CREASE.—The amount of projected enrollment
increase for the United States or any State is
the amount of the increase (as projected by the
Secretary of Education using data as of Janu-
ary 1, 1998) in enrollment in public elementary
and secondary schools in the United States or
in such State (as the case may be) during the
10-year period beginning with 1997.
‘‘(3) APPROVED
STATE
APPLICATION.—For
purposes of paragraph (1), the term ‘approved State
application’ means an application which is approved
by the Secretary of Education and which includes—
‘‘(A) the results of a recent publicly-avail-
able survey (undertaken by the State with the
involvement of local education officials, mem-
bers of the public, and experts in school con-
struction and management) of such State’s
needs for public school facilities, including de-
scriptions of—
‘‘(i) health and safety problems at
such facilities,
‘‘(ii) the capacity of public schools in
the State to house projected enrollments,
and
‘‘(iii) the extent to which the public
schools in the State offer the physical in-
frastructure needed to provide a high-qual-
ity education to all students, and
‘‘(B) a description of how the State will al-
locate to local educational agencies, or other-
wise use, its allocation under this subsection to
address the needs identified under subpara-
graph (A), including a description of how it
will—
‘‘(i) give priority to localities experi-
encing the largest increases in enrollment,
‘‘(ii) use its allocation under this sub-
section to assist localities that lack the fis-
cal capacity to issue bonds on their own,
and
‘‘(iii) ensure that its allocation under
this subsection is used only to supplement,
and not supplant, the amount of school
construction, rehabilitation, and repair in
the State that would have occurred in the
absence of such allocation.
Any allocation under paragraph (1) by a State edu-
cation agency shall be binding if such agency reason-
ably determined that the allocation was in accord-
ance with the plan approved under this paragraph.
‘‘(e) CARRYOVER OF UNUSED LIMITATION.—If for
any calendar year—
‘‘(1) the amount allocated under subsection (d)
to any State, exceeds
‘‘(2) the amount of bonds issued during such
year which are designated under subsection (a) pur-
suant to such allocation,
the limitation amount under such subsection for such
State for the following calendar year shall be increased
by the amount of such excess. The subsection shall not
apply if such following calendar year is after 2003.’’
(b) REPORTING.—Subsection (d) of section 6049 of
such Code (relating to returns regarding payments of in-
terest) is amended by adding at the end the following new
paragraph:
‘‘(8) REPORTING
OF
CREDIT
ON
QUALIFIED
PUBLIC SCHOOL CONSTRUCTION BONDS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts
includible in gross income under section 54(e)
and such amounts shall be treated as paid on
the credit allowance date (as defined in section
54(d)(1)).
‘‘(B) 
REPORTING
TO
CORPORATIONS,
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in
subparagraph (A) of this paragraph, subsection
(b)(4) of this section shall be applied without
regard to subparagraphs (A), (H), (I), (J), (K),
and (L)(i).
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may prescribe such regulations as are
necessary or appropriate to carry out the pur-
poses of this paragraph, including regulations
which require more frequent or more detailed
reporting.’’
(c) CLERICAL AMENDMENT.—The table of subparts
for part IV of subchapter A of chapter 1 of such Code
is amended by adding at the end the following new item:
‘‘Subpart H. Credit to holders of qualified public school construc-
tion bonds.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to obligations issued after Decem-
ber 31, 1999.
Æ