I
107TH CONGRESS
1ST SESSION
H. R. 3218
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
NOVMEBER 1, 2001
Mr. KANJORSKI (for himself, Mrs. CUBIN, Mr. SHERWOOD, Mr. NEY, Mr.
HOLDEN, Mr. GEKAS, Ms. KAPTUR, Ms. HART, Mr. MURTHA, and Mr.
BORSKI) introduced the following bill; which was referred to the Com-
mittee 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 2001’’.
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.