I 
108TH CONGRESS 
1ST SESSION 
H. R. 419
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 of abandoned mine land areas. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 28, 2003
Mr. KANJORSKI (for himself, Mr. NEY, Mrs. CUBIN, Mr. HOLDEN, Mr. SHER-
WOOD, Mr. MURTHA, Mr. GREENWOOD, Mrs. CAPITO, Ms. KAPTUR, and 
Mr. UDALL of Colorado) 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 of abandoned mine 
land areas.
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 ‘‘Abandoned Mine Land 
Area Redevelopment Act of 2003’’.
SEC. 2. CREDIT TO HOLDERS OF QUALIFIED ABANDONED 
MINE LAND AREA 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 ABAN-
DONED MINE LAND AREA REDEVELOPMENT 
BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified abandoned mine land area re-
development bond on a credit allowance date of such bond 
which occurs during the taxable year, there shall be al-
lowed 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 tax-
payer 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 abandoned mine 
land area 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 abandoned
mine land area 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 ABANDONED MINE LAND AREA RE-
DEVELOPMENT BOND.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified aban-
doned mine land area 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 designated by an approved special purpose en-
tity shall not exceed the portion of the national vol-
ume cap allocated to that entity by the Adminis-
trator of the Environmental Protection Agency.
‘‘(3) NATIONAL
VOLUME
CAP.—The national 
volume cap is $20,000,000,000. The Administrator 
of the Environmental Protection Agency shall allo-
cate such amount among the approved special pur-
pose 
entities, 
except 
that 
not 
less 
than 
$2,000,000,000 of such amount shall be allocated to 
an entity whose comprehensive plan only covers 
abandoned mine land areas containing anthracite 
coal. 
‘‘(4) 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 
areas, and 
‘‘(C) such entity and plan are approved by 
the Administrator of the Environmental Protec-
tion Agency. 
‘‘(5) 
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) for any taxable 
year exceeds the limitation imposed by paragraph 
(1) for such taxable year, the excess shall be carried 
to the succeeding taxable year and added to the 
amount allowable as a credit under subsection (a) 
for such succeeding taxable year. 
‘‘(e) OTHER DEFINITIONS.—For purposes of this 
section—
‘‘(1) ABANDONED
MINE
LAND
AREAS.—The 
term ‘abandoned mine land areas’ means lands and 
water eligible pursuant to section 404 of the Surface 
Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1234) for expenditures from the Abandoned 
Mine Reclamation Fund under title IV of such Act 
(30 U.S.C. 1231 et seq.). 
‘‘(2) QUALIFIED PURPOSE.—The term ‘quali-
fied purpose’ means, with respect to any qualified 
abandoned mine land area redevelopment bond—
‘‘(A) the purchase, restoration, and rede-
velopment of abandoned mine land areas, 
‘‘(B) the cleanup of waterways and their 
tributaries, both surface and subsurface, on 
abandoned mine land areas from acid mine 
drainage and other pollution, 
‘‘(C) the provision of financial and tech-
nical assistance for infrastructure construction 
and upgrading water and sewer systems on 
abandoned mine land areas, 
‘‘(D) research and development relating to 
abandoned mine land areas, 
‘‘(E) other environmental and economic de-
velopment purposes relating to abandoned mine 
land areas, 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 abandoned mine land area 
redevelopment bond is held by a regulated investment 
company, the credit determined under subsection (a) shall 
be allowed to shareholders of such company under proce-
dures prescribed 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 abandoned mine land area redevelopment bond 
and the entitlement to the credit under this section 
with respect to such bond. In case of any such sepa-
ration, 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 aban-
doned mine land area redevelopment bond as if it 
were a stripped bond and to the credit under this 
section as if it were a stripped coupon. 
‘‘(i) TREATMENT FOR ESTIMATED TAX PURPOSES.—
Solely for purposes of sections 6654 and 6655, the credit 
allowed by this section to a taxpayer by reason of holding 
a qualified abandoned mine land area redevelopment 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.
‘‘(j) CREDIT MAY BE TRANSFERRED.—Nothing in 
any law or rule of law shall be construed to limit the trans-
ferability of the credit allowed by this section through sale 
and repurchase agreements. 
‘‘(k) REPORTING.—The issuer of qualified abandoned 
mine land area redevelopment bonds shall submit reports 
similar to the reports required under section 149(e). 
‘‘(l) TERMINATION.—This section shall not apply to 
any bond issued more than 10 years after the date that 
the first qualified abandoned mine land area redevelop-
ment bond is issued.’’
(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 
ABANDONED
MINE
LAND
AREA
REDEVELOPMENT 
BONDS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts 
includible in gross income under section 30B(f) 
and such amounts shall be treated as paid on 
the credit allowance date (as defined in section 
30B(e)(3)).
‘‘(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 shall 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) CONFORMING AMENDMENT.—The table of sec-
tions for subpart B of part IV of subchapter A of chapter 
1 of such Code is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 30B. Credit to holders of qualified abandoned mine land 
area redevelopment bonds.’’
(d) DEADLINE FOR REGULATIONS.—The Secretary 
of the Treasury shall prescribe the regulations required 
by section 6049(d)(8) of the Internal Revenue Code of 
1986 (as added by this section) not later than 120 days 
after the date of the enactment of this Act. 
(e) APPROVAL OF BONDS, ETC., BY ADMINISTRATOR 
OF THE ENVIRONMENTAL PROTECTION AGENCY.—The
Administrator of the Environmental Protection Agency 
shall act on any request for an approval required by sec-
tion 30B of the Internal Revenue Code of 1986 (as added 
by this section) not later than 60 days after the date such 
request is submitted to such Administrator. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2003.
Æ