I 
108TH CONGRESS 
1ST SESSION 
H. R. 396
To provide assistance to the unemployed, tax relief for average Americans, 
fiscal assistance to state and local governments, and jobs and security 
through infrastructure investment, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 28, 2003
Mr. DEFAZIO introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committees on Trans-
portation and Infrastructure, Education and the Workforce, Energy and 
Commerce, Agriculture, Financial Services, and Armed Services, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To provide assistance to the unemployed, tax relief for aver-
age Americans, fiscal assistance to state and local gov-
ernments, and jobs and security through infrastructure 
investment, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Emergency Anti-Recession Act of 2003’’. 
(b) TABLE OF CONTENTS.—
Sec. 1. Short title. 
TITLE I—ASSISTANCE TO THE UNEMPLOYED 
Sec. 101. Entitlement to additional weeks of temporary extended unemployment 
compensation. 
TITLE II—PAYROLL TAX RELIEF 
Sec. 201. Payroll tax holiday. 
TITLE III—FISCAL ASSISTANCE FOR STATE AND LOCAL 
GOVERNMENTS 
Sec. 301. Findings. 
Sec. 302. Financial assistance authorized. 
Sec. 303. Allocation. 
Sec. 304. Use of funds by State and local governments. 
TITLE IV—TRANSPORTATION AND WATER INFRASTRUCTURE 
INVESTMENT 
Subtitle A—Rail Infrastructure Investment 
PART I—CREDIT FOR AMTRAK BONDS 
Sec. 401. Credit to holders of qualified Amtrak bonds. 
PART II—HIGH-SPEED RAIL PROVISIONS 
Sec. 403. Department of transportation approval for qualified Amtrak projects. 
Sec. 404. Multiyear capital spending plan and oversight. 
Sec. 405. Issuance of regulations. 
Sec. 406. Sense of Congress regarding effect on Amtrak funding. 
Sec. 407. Effective date. 
PART III—AMTRAK CAPITAL INVESTMENT 
Sec. 411. Authorization of appropriations. 
PART IV—CAPITAL INVESTMENT FOR RAILROAD REHABILITATION 
Sec. 416. Capital grants for railroad track. 
Sec. 417. Regulatory procedure amendments. 
Subtitle B—Environmental Infrastructure Investment 
Sec. 421. General authority for capitalization grants. 
Sec. 422. Capitalization grants agreements. 
Sec. 423. Water pollution control revolving funds. 
Sec. 424. Authorization of appropriations for clean water State revolving funds. 
Sec. 425. Wet weather. 
Sec. 426. Safe drinking water State revolving funds. 
Subtitle C—Highway Infrastructure Investment 
Sec. 431. Federal-aid highway program obligation ceiling. 
Sec. 432. Limitations on credit amounts. 
Subtitle D—Transit Infrastructure Investment
TITLE I—ASSISTANCE TO THE 
UNEMPLOYED 
SEC. 101. ENTITLEMENT TO ADDITIONAL WEEKS OF TEM-
PORARY EXTENDED UNEMPLOYMENT COM-
PENSATION. 
(a) IN GENERAL.—Paragraph (1) of section 203(b) 
of the Temporary Extended Unemployment Compensation 
Act of 2002 (26 U.S.C. 3304 note) is amended—
(1) in subparagraph (A), by striking ‘‘50’’ and 
inserting ‘‘100’’; and 
(2) in subparagraph (B), by striking ‘‘13’’ and 
inserting ‘‘26’’. 
(b) PROGRAM EXTENSION.—Paragraph (3) of section 
208(b) of such Act is amended by striking ‘‘August 30’’ 
and inserting ‘‘November 29’’. 
(c) CONFORMING AMENDMENT.—Paragraph (1) of 
section 203(c) of such Act is amended by inserting ‘‘50 
percent of’’ before ‘‘the amount originally established in 
such account’’. 
SEC. 102. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this 
title—
(1) shall take effect as if included in the enact-
ment of Public Law 107–147; but
(2) shall apply only with respect to weeks of un-
employment beginning on or after the date of enact-
ment this Act, subject to subsection (b). 
(b) SPECIAL RULES.—In the case of an individual for 
whom a temporary extended unemployment account was 
established before the date of enactment of this Act, the 
Temporary Extended Unemployment Compensation Act of 
2002 (as amended by this title) shall be applied subject 
to the following: 
(1) Any amounts deposited in the individual’s 
temporary extended unemployment compensation ac-
count by reason of section 203(c) of such Act (com-
monly known as ‘‘TEUC–X amounts’’) before the 
date of enactment of this Act shall be treated as 
amounts deposited by reason of section 203(b) of 
such Act (commonly known as ‘‘TEUC amounts’’), 
as amended by section 101(a). 
(2) For purposes of determining whether the in-
dividual is eligible for any TEUC–X amounts under 
such Act, as amended by this title—
(A) any determination made under section 
203(c) of such Act before the application of the 
amendments made by this title shall be dis-
regarded; and
(B) any such determination shall instead 
be made by applying section 203(c) of such Act, 
as amended by this title—
(i) as of the time that all amounts es-
tablished in such account in accordance 
with section 203(b) of such Act (as amend-
ed by this title, and including any amounts 
described in paragraph (1)) are in fact ex-
hausted, except that 
(ii) if such individual’s account was 
both augmented by and exhausted of all 
TEUC–X amounts before the date of en-
actment of this Act, such determination 
shall be made as if exhaustion (as de-
scribed in section 203(c)(1) of such Act) 
had not occurred until such date of enact-
ment. 
TITLE II—PAYROLL TAX RELIEF 
SEC. 201. PAYROLL TAX HOLIDAY. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the rate of tax with respect to the first 
$10,000 of remuneration received during the payroll tax 
holiday period shall be zero under sections 1401(a), 
3101(a), and 3111(a) of the Internal Revenue Code of 
1986 and for purposes of determining the applicable per-
centage under section 3201(a), 3211(a)(1), and 3221(a) 
of such Code. 
(b) PAYROLL TAX HOLIDAY PERIOD.—The term 
‘‘payroll tax holiday period’’ means the 1-year period be-
ginning on the 1st day of the 1st calendar month which 
begins more than 30 days after the date of the enactment 
of this Act. 
(c) EMPLOYER NOTIFICATION.—The Secretary of the 
Treasury shall notify employers of the payroll tax holiday 
period in any manner the Secretary deems appropriate. 
(d) TRANSFER OF FUNDS.—The Secretary of the 
Treasury shall transfer from the general revenues of the 
Federal Government an amount sufficient so as to ensure 
that the income and balances of the trust funds under sec-
tion 201 of the Social Security Act and the Social Security 
Equivalent Benefit Account under section 15A of the Rail-
road Retirement Act of 1974 (45 U.S.C. 231n–1) are not 
reduced as a result of the application of subsection (a). 
(e) DETERMINATION OF BENEFITS.—In making any 
determination of benefits under title II of the Social Secu-
rity Act, the Commissioner of Social Security shall dis-
regard the effect of the payroll tax holiday period on any 
individual’s earnings record.
TITLE III—FISCAL ASSISTANCE 
FOR STATE AND LOCAL GOV-
ERNMENTS 
SEC. 301. FINDINGS. 
The Congress finds that: 
(1) State and local governments represent a 
significant segment of the national economy whose 
economic health is essential to national economic 
prosperity; 
(2) present national economic problems have 
imposed considerable hardships on State and local 
government budgets; 
(3) those governments, because of their own fis-
cal difficulties, are being forced to take budget-re-
lated actions which tend to undermine Federal gov-
ernment efforts to stimulate the economy; 
(4) efforts to stimulate the economy through re-
ductions in Federal government tax obligations or 
increased spending on federal programs are weak-
ened when State and local governments are forced to 
increase taxes or cut spending; 
(5) efforts by the Federal government to stimu-
late the economic recovery will be substantially en-
hanced by a program of emergency Federal govern-
ment assistance to State and local governments to
help prevent those governments from taking budget-
related actions which undermine the Federal govern-
ment efforts to stimulate economic recovery. 
SEC. 302. FINANCIAL ASSISTANCE AUTHORIZED. 
(a) PAYMENTS
TO STATE
AND LOCAL GOVERN-
MENTS.—The Secretary of the Treasury shall, in accord-
ance with the provisions in this title, make payments to 
states to coordinate budget related actions by such govern-
ments with federal government efforts to stimulate eco-
nomic recovery. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $50,000,000,000 to be 
made available through fiscal year 2004 for the purpose 
of payments under this title. 
(c) RESERVATIONS.—Not less than one-third of the 
money authorized to be appropriated under section 302(b) 
shall be made available to local governments under the ap-
plicable laws of a given State. 
SEC. 303. ALLOCATION. 
The Secretary of the Treasury shall establish a for-
mula for determining each State’s allocation under section 
302(b). The formula shall give priority weight to the fol-
lowing factors: 
(1) The State unemployment rate in relation to 
the national average unemployment rate.
(2) The duration of a State unemployment rate 
above such average. 
(3) Median income. 
(4) Population. 
SEC. 304. USE OF FUNDS BY STATE AND LOCAL GOVERN-
MENTS. 
(a) IN GENERAL.—Funds received under this title 
may be used only for priority expenditures. For purposes 
of this title, the term ‘‘priority expenditures’’ means 
only—
(1) ordinary and necessary maintenance and 
operating expenses for—
(A) primary, secondary, or higher edu-
cation, 
(B) worker retraining, 
(C) public safety, 
(D) public health, 
(E) social services for the poor or aged, 
(F) public transportation, 
(G) environmental protection, and 
(H) libraries; and 
(2) ordinary and necessary capital expenditures 
authorized by law. 
(b) CERTIFICATES BY STATE AND LOCAL GOVERN-
MENTS.—The Secretary is authorized to accept a certifi-
cation by the chief executive officer of a State or local gov-
ernment that the State or local government has used the 
funds received by it under this subtitle for an entitlement 
period only for priority expenditures, unless the Secretary 
determines that such certification is not sufficiently reli-
able to enable the Secretary to carry out his or her duties 
under this title. The Secretary shall prescribe by rule the 
time and manner in which the certification must be filed. 
TITLE 
IV—TRANSPORTATION 
AND 
WATER 
INFRASTRUC-
TURE INVESTMENT 
Subtitle A—Rail Infrastructure 
Investment 
PART I—CREDIT FOR AMTRAK BONDS 
SEC. 401. CREDIT TO HOLDERS OF QUALIFIED AMTRAK 
BONDS. 
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 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 Amtrak Bonds
‘‘Sec. 54. Credit to holders of qualified Amtrak bonds.
‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK 
BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified Amtrak bond on a credit al-
lowance 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 sub-
section (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 
determined under this subsection with respect to any 
credit allowance date for a qualified Amtrak bond is 
25 percent of the annual credit determined with re-
spect to such bond. 
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified Amtrak 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
market yield (as of the day before the date of sale 
of the issue) on outstanding long-term corporate 
debt obligations (determined under regulations pre-
scribed 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 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) 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 this part (other than this subpart and 
subpart C). 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) exceeds the 
limitation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year. 
‘‘(d) 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 (c)) and the amount so included shall be treat-
ed as interest income. 
‘‘(e) QUALIFIED AMTRAK BOND.—For purposes of 
this part, the term ‘qualified Amtrak bond’ means any 
bond issued as part of an issue if—
‘‘(1) 95 percent or more of the proceeds from 
the sale of such issue are to be used for expenditures
incurred after the date of the enactment of this sec-
tion for any qualified project, 
‘‘(2) the bond is issued by the National Rail-
road Passenger Corporation, is in registered form, 
and meets the bond limitation requirements under 
subsection (f), 
‘‘(3) the issuer designates such bond for pur-
poses of this section, 
‘‘(4) the issuer certifies that it meets the State 
contribution requirement of subsection (k) with re-
spect to such project, as in effect on the date of the 
enactment of this section, 
‘‘(5) the issuer certifies that it has obtained the 
written approval of the Secretary of Transportation 
for such project in accordance with section 26301 of 
title 49, United States Code, as in effect on the date 
of the enactment of this section, 
‘‘(6) the term of each bond which is part of 
such issue does not exceed 20 years, 
‘‘(7) the payment of principal with respect to 
such bond is the obligation of the National Railroad 
Passenger Corporation, and 
‘‘(8) the issue meets the requirements of sub-
section (g) (relating to arbitrage).
‘‘(f) LIMITATIONS
ON AMOUNT
OF BONDS DES-
IGNATED.—
‘‘(1) IN GENERAL.—There is a qualified Am-
trak bond limitation for each fiscal year. Such limi-
tation is—
‘‘(A) $1,500,000,000 for each of the fiscal 
years 2002 through 2011, and 
‘‘(B) zero after fiscal year 2011. 
‘‘(2) LIMITS ON BONDS FOR NORTHEAST RAIL 
CORRIDOR AND INDIVIDUAL STATES.—
‘‘(A) NORTHEAST
RAIL
CORRIDOR.—Not 
more than $3,000,000,000 of the limitation 
under paragraph (1) may be designated for 
qualified projects on the northeast rail corridor 
between Washington, D.C., and Boston, Massa-
chusetts. 
‘‘(B) 
INDIVIDUAL
STATES.—Not 
more 
than $3,000,000,000 of the limitation under 
paragraph (1) may be designated for any indi-
vidual State. The dollar limitation under this 
subparagraph is in addition to the dollar limita-
tion for the qualified projects described in sub-
paragraph (A). 
‘‘(3) 
LIMIT
ON
BONDS
FOR
OTHER 
PROJECTS.—Not more than $100,000,000 of the
limitation under paragraph (1) for any fiscal year 
may be designated for all qualified projects described 
in subsection (j)(1)(C). 
‘‘(4) CARRYOVER OF UNUSED LIMITATION.—If 
for any fiscal year—
‘‘(A) the limitation amount under para-
graph (1), exceeds 
‘‘(B) the amount of bonds issued during 
such year which are designated under sub-
section (e)(3), 
the limitation amount under paragraph (1) for the 
following fiscal year (through fiscal year 2015) shall 
be increased by the amount of such excess. 
‘‘(g) SPECIAL RULES RELATING TO ARBITRAGE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
an issue shall be treated as meeting the require-
ments of this subsection if as of the date of 
issuance, the issuer reasonably expects—
‘‘(A) to spend at least 95 percent of the 
proceeds from the sale of the issue for 1 or 
more qualified projects within the 3-year period 
beginning 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 con-
tinuing to meet the requirements of this subsection 
if either—
‘‘(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 with-
in 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 
period beginning on the date of 
issuance and uses all unspent pro-
ceeds from the sale of the issue to re-
deem bonds of the issue within 90 
days after the end of the 4-year pe-
riod 
beginning 
on 
the 
date 
of 
issuance. 
‘‘(h) RECAPTURE OF PORTION OF CREDIT WHERE 
CESSATION OF COMPLIANCE.—
‘‘(1) IN GENERAL.—If any bond which when 
issued purported to be a qualified Amtrak 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 
(determined 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 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 begin-
ning in such 3 calendar years which would have re-
sulted solely from denying any credit under this sec-
tion with respect to such issue for such taxable 
years. 
‘‘(3) SPECIAL RULES.—
‘‘(A) TAX
BENEFIT
RULE.—The tax for 
the taxable year shall be increased under para-
graph (2) only with respect to credits allowed 
by reason of this section which were used to re-
duce tax liability. In the case of credits not so 
used to reduce 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 
purposes of determining—
‘‘(i) the amount of any credit allow-
able under this part, or 
‘‘(ii) the amount of the tax imposed 
by section 55. 
‘‘(i) TRUST ACCOUNT.—
‘‘(1) IN
GENERAL.—The following amounts 
shall be held in a trust account by a trustee inde-
pendent of the National Railroad Passenger Cor-
poration: 
‘‘(A) The proceeds from the sale of all 
bonds designated for purposes of this section. 
‘‘(B) The amount of any matching con-
tributions with respect to such bonds.
‘‘(C) The temporary period investment 
earnings on proceeds from the sale of such 
bonds. 
‘‘(D) Any earnings on any amounts de-
scribed in subparagraph (A), (B), or (C). 
‘‘(2) USE OF FUNDS.—Amounts in the trust ac-
count may be used only to pay costs of qualified 
projects and redeem qualified Amtrak bonds, except 
that amounts withdrawn from the trust account to 
pay costs of qualified projects may not exceed the 
aggregate proceeds from the sale of all qualified Am-
trak bonds issued under this section. 
‘‘(3) USE OF REMAINING FUNDS IN TRUST AC-
COUNT.—Upon the redemption of all qualified Am-
trak bonds issued under this section, any remaining 
amounts in the trust account described in paragraph 
(1) shall be available to the issuer for any qualified 
project. 
‘‘(j) QUALIFIED PROJECT.—For purposes of this sec-
tion—
‘‘(1) IN GENERAL.—The term ‘qualified project’ 
means—
‘‘(A) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other 
capital improvements (including the introduc-
tion of new high-speed technologies such as 
magnetic levitation systems), including track or 
signal improvements or the elimination of grade 
crossings, for the northeast rail corridor be-
tween Washington, D.C., and Boston, Massa-
chusetts, 
‘‘(B) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other 
capital improvements (including the introduc-
tion of new high-speed technologies such as 
magnetic levitation systems), including develop-
ment of intermodal facilities, track or signal im-
provements, or the elimination of grade cross-
ings, for the improvement of train speeds or 
safety (or both) on the high-speed rail corridors 
designated under section 104(d)(2) of title 23, 
United States Code, as in effect on the date of 
the enactment of this section, and 
‘‘(C) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and other 
capital improvements, including station rehabili-
tation or construction, development of inter-
modal facilities, track or signal improvements, 
or the elimination of grade crossings, for the 
improvement of train speeds or safety (or both)
for other intercity passenger rail corridors and 
for the Alaska Railroad.
‘‘(2) REFINANCING
RULES.—For purposes of 
paragraph (1), a refinancing shall constitute a quali-
fied project only if the indebtedness being refinanced 
(including any obligation directly or indirectly refi-
nanced by such indebtedness) was originally incurred 
by the issuer—
‘‘(A) after the date of the enactment of 
this section, 
‘‘(B) for a term of not more than 3 years, 
‘‘(C) to finance or acquire capital improve-
ments described in paragraph (1), and 
‘‘(D) in anticipation of being refinanced 
with proceeds of a qualified Amtrak bond. 
‘‘(k) STATE CONTRIBUTION REQUIREMENTS.—
‘‘(1) IN GENERAL.—For purposes of subsection 
(e)(4), the State contribution requirement of this 
subsection is met with respect to any qualified 
project if the National Railroad Passenger Corpora-
tion has received from 1 or more States, not later 
than the date of issuance of the bond, matching con-
tributions of not less than 20 percent of the cost of 
the qualified project.
‘‘(2) NO STATE CONTRIBUTION REQUIREMENT 
FOR
CERTAIN
QUALIFIED
PROJECTS.—The State 
contribution requirement of this subsection is zero 
with respect to the following projects: 
‘‘(A) Any qualified project for the acquisi-
tion and installation of platform facilities, per-
formance of railroad force account work nec-
essary to complete improvements below street 
grade, and any other necessary improvements 
related to construction at the railroad station at 
the James A. Farley Post Office Building in 
New York City, New York. 
‘‘(B) Any project described in subsection 
(j)(1)(C) for the Alaska Railroad. 
‘‘(3) STATE
MATCHING
CONTRIBUTIONS
MAY 
NOT INCLUDE FEDERAL FUNDS.—For purposes of 
this subsection, State matching contributions shall 
not be derived, directly or indirectly, from Federal 
funds, including any transfers from the Highway 
Trust Fund under section 9503. 
‘‘(l) OTHER DEFINITIONS AND SPECIAL RULES.—
For purposes of this section—
‘‘(1) BOND.—The term ‘bond’ includes any ob-
ligation.
‘‘(2) TREATMENT OF CHANGES IN USE.—For 
purposes of subsection (e)(1), 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 
described in the preceding sentence from causing a 
bond to fail to be a qualified Amtrak bond. 
‘‘(3) PARTNERSHIP; 
S
CORPORATION; 
AND 
OTHER
PASS-THRU
ENTITIES.—Under regulations 
prescribed by the Secretary, in the case of a partner-
ship, 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). 
‘‘(4) BONDS
HELD
BY
REGULATED
INVEST-
MENT COMPANIES.—If any qualified Amtrak bond is 
held by a regulated investment company, the credit 
determined under subsection (a) shall be allowed to 
shareholders of such company under procedures pre-
scribed by the Secretary.