198
means any facility designed to serve pri-
marily individuals whose income is 60 per-
cent or less of area median income (within
the meaning of subsection (g)(1)(B)).’’.
(b) CERTAIN NATIVE AMERICAN HOUSING ASSIST-
ANCE DISREGARDED IN DETERMINING WHETHER BUILD-
ING IS FEDERALLY SUBSIDIZED FOR PURPOSES OF THE
LOW-INCOME HOUSING CREDIT.—Subparagraph (E) of
section 42(i)(2) (relating to determination of whether
building is federally subsidized) is amended—
(1) in clause (i), by inserting ‘‘or the Native
American Housing Assistance and Self-Determina-
tion Act of 1996 (25 U.S.C. 4101 et seq.) (as in ef-
fect on October 1, 1997)’’ after ‘‘this subpara-
graph)’’; and
(2) in the subparagraph heading, by inserting
‘‘OR NATIVE AMERICAN HOUSING ASSISTANCE’’ after
‘‘HOME ASSISTANCE’’.
SEC. 505. OTHER MODIFICATIONS.
(a) ALLOCATION
OF CREDIT LIMIT
TO CERTAIN
BUILDINGS.—
(1) The first sentence of section 42(h)(1)(E)(ii)
is amended by striking ‘‘(as of’’ the first place it ap-
pears and inserting ‘‘(as of the later of the date
199
which is 6 months after the date that the allocation
was made or’’.
(2) The last sentence of section 42(h)(3)(C) is
amended by striking ‘‘project which’’ and inserting
‘‘project which fails to meet the 10 percent test
under paragraph (1)(E)(ii) on a date after the close
of the calendar year in which the allocation was
made or which’’.
(b) DETERMINATION OF WHETHER BUILDINGS ARE
LOCATED IN HIGH COST AREAS.—The first sentence of
section 42(d)(5)(C)(ii)(I) is amended—
(1) by inserting ‘‘either’’ before ‘‘in which 50
percent’’; and
(2) by inserting before the period ‘‘or which has
a poverty rate of at least 25 percent’’.
SEC. 506. CARRYFORWARD RULES.
(a) IN GENERAL.—Clause (ii) of section 42(h)(3)(D)
(relating to unused housing credit carryovers allocated
among certain States) is amended by striking ‘‘the excess’’
and all that follows and inserting ‘‘the excess (if any) of—
‘‘(I) the unused State housing
credit ceiling for the year preceding
such year, over
200
‘‘(II) the aggregate housing cred-
it dollar amount allocated for such
year.’’.
(b) CONFORMING AMENDMENT.—The second sen-
tence of section 42(h)(3)(C) (relating to State housing
credit ceiling) is amended by striking ‘‘clauses (i) and
(iii)’’ and inserting ‘‘clauses (i) through (iv)’’.
SEC. 507. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, the
amendments made by this subtitle shall apply to—
(1) housing credit dollar amounts allocated
after December 31, 2000; and
(2) buildings placed in service after such date
to the extent paragraph (1) of section 42(h) of the
Internal Revenue Code of 1986 does not apply to
any building by reason of paragraph (4) thereof, but
only with respect to bonds issued after such date.
Subtitle B—Private Activity Bond
Volume Cap
SEC. 511. ACCELERATION OF PHASE-IN OF INCREASE IN
VOLUME CAP ON PRIVATE ACTIVITY BONDS.
(a) IN GENERAL.—The table contained in section
146(d)(2) (relating to per capita limit; aggregate limit) is
amended to read as follows:
‘‘Calendar Year
Per Capita
Limit
Aggregate
Limit
2001 ....................................................................................
$55.00
$165,000,000
201
‘‘Calendar Year
Per Capita
Limit
Aggregate
Limit
2002 ....................................................................................
60.00
180,000,000
2003 ....................................................................................
65.00
195,000,000
2004, 2005, and 2006 .........................................................
70.00
210,000,000
2007 and thereafter ............................................................
75.00
225,000,000.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to calendar years beginning after
2000.
Subtitle C—Exclusion From Gross
Income for Certain Forgiven
Mortgage Obligations
SEC. 512. EXCLUSION FROM GROSS INCOME FOR CERTAIN
FORGIVEN MORTGAGE OBLIGATIONS.
(a) IN GENERAL.—Paragraph (1) of section 108(a)
(relating to exclusion from gross income) is amended by
striking ‘‘or’’ at the end of both subparagraphs (A) and
(C), by striking the period at the end of subparagraph (D)
and inserting ‘‘, or’’, and by inserting after subparagraph
(D) the following new subparagraph:
‘‘(E) in the case of an individual, the in-
debtedness discharged is qualified residential in-
debtedness.’’.
(b) 
QUALIFIED
RESIDENTIAL
INDEBTEDNESS
SHORTFALL.—Section 108 (relating to discharge of in-
debtedness) is amended by adding at the end the following
new subsection:
‘‘(h) QUALIFIED RESIDENTIAL INDEBTEDNESS.—
202
‘‘(1) 
LIMITATIONS.—The 
amount 
excluded
under subparagraph (E) of subsection (a)(1) with
respect to any qualified residential indebtedness
shall not exceed the excess (if any) of—
‘‘(A) the outstanding principal amount of
such indebtedness (immediately before the dis-
charge), over
‘‘(B) the sum of—
‘‘(i) the amount realized from the sale
of the real property securing such indebt-
edness reduced by the cost of such sale,
and
‘‘(ii) the outstanding principal amount
of any other indebtedness secured by such
property.
‘‘(2) 
QUALIFIED
RESIDENTIAL
INDEBTED-
NESS.—
‘‘(A) IN
GENERAL.—The term ‘qualified
residential indebtedness’ means indebtedness
which—
‘‘(i) was incurred or assumed by the
taxpayer in connection with real property
used as the principal residence (within the
meaning of section 121) of the taxpayer
and is secured by such real property,
203
‘‘(ii) is incurred or assumed to ac-
quire, construct, reconstruct, or substan-
tially improve such real property, and
‘‘(iii) with respect to which such tax-
payer makes an election to have this para-
graph apply.
‘‘(B) REFINANCED INDEBTEDNESS.—Such
term shall include indebtedness resulting from
the refinancing of indebtedness under subpara-
graph (A)(ii), but only to the extent the amount
of the indebtedness resulting from such refi-
nancing does not exceed the amount of the refi-
nanced indebtedness.
‘‘(C) EXCEPTIONS.—Such term shall not
include qualified farm indebtedness or qualified
real property business indebtedness.’’.
(c) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 108(a) is
amended—
(A) in subparagraph (A) by striking ‘‘and
(D)’’ and inserting ‘‘(D), and (E)’’; and
(B) by amending subparagraph (B) to read
as follows:
‘‘(B) 
INSOLVENCY
EXCLUSION
TAKES
PRECEDENCE OVER QUALIFIED FARM EXCLU-
204
SION; QUALIFIED
REAL
PROPERTY
BUSINESS
EXCLUSION; 
AND
QUALIFIED
RESIDENTIAL
SHORTFALL
EXCLUSION.—Subparagraphs (C),
(D), and (E) of paragraph (1) shall not apply
to a discharge to the extent the taxpayer is in-
solvent.’’.
(2) Paragraph (1) of section 108(b) is amended
by striking ‘‘or (C)’’ and inserting ‘‘(C), or (E)’’.
(3) Subsection (c) of section 121 of such Code
is amended by adding at the end the following new
paragraph:
‘‘(4) SPECIAL RULE RELATING TO DISCHARGE
OF
INDEBTEDNESS.—The amount of gain which
(but for this paragraph) would be excluded from
gross income under subsection (a) with respect to a
principal residence shall be reduced by the amount
excluded 
from 
gross 
income 
under 
section
108(a)(1)(E) with respect to such residence.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to discharges after December 31,
2000.
205
TITLE VI—AMENDMENTS TO THE
FAIR LABOR STANDARDS ACT
OF 1938
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Minimum Wage In-
crease Act of 2000’’.
SEC. 602. MINIMUM WAGE.
Section 6(a)(1) of the Fair Labor Standards Act of
1938 (29 U.S.C. 206(a)(1)) is amended to read as follows:
‘‘(1) except as otherwise provided in this sec-
tion, not less than—
‘‘(A) $5.15 an hour beginning September
1, 1997,
‘‘(B) $5.65 an hour during the year begin-
ning April 1, 2000, and
‘‘(C) $6.15 an hour beginning April 1,
2001;’’.
SEC. 603. EXEMPTION FOR COMPUTER PROFESSIONALS.
Section 13(a) of the Fair Labor Standards Act of
1938 (29 U.S.C. 213(a)) is amended by amending para-
graph (17) to read as follows:
‘‘(17) any employee who is a computer systems,
network, or database analyst, designer, developer,
programmer, software engineer, or other similarly
skilled worker—
206
‘‘(A) whose primary duty is—
‘‘(i) the application of systems or net-
work or database analysis techniques and
procedures, 
including 
consulting 
with
users, to determine hardware, software,
systems, network, or database specifica-
tions (including functional specifications);
‘‘(ii) the design, configuration, devel-
opment, integration, documentation, anal-
ysis, creation, testing, securing, or modi-
fication of, or problem resolution for, com-
puter systems, networks, databases, or pro-
grams, including prototypes, based on and
related to user, system, network, or data-
base specifications, including design speci-
fications and machine operating systems;
‘‘(iii) the management or training of
employees performing duties described in
clause (i) or (ii); or
‘‘(iv) a combination of duties de-
scribed in clauses (i), (ii), or (iii) the per-
formance of which requires the same level
of skills; and
‘‘(B) who, in the case of an employee who
is compensated on an hourly basis, is com-
207
pensated at a rate of not less than $27.63 an
hour.
For purposes of paragraph (17), the term ‘network’
includes the Internet and intranet networks and the
world wide web. An employee who meets the exemp-
tion provided by paragraph (17) shall be considered
an employee in a professional capacity pursuant to
paragraph (1);’’.
SEC. 604. EXEMPTION FOR CERTAIN SALES EMPLOYEES.
(a) AMENDMENT.—Section 13(a) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 213(a)), as amended
by section 2, is amended by adding at the end the fol-
lowing:
‘‘(18) any employee employed in a sales position
if—
‘‘(A) the employee has specialized or tech-
nical knowledge related to products or services
being sold;
‘‘(B) the employee’s—
‘‘(i) sales are predominantly to per-
sons or entities to whom the employee’s
position has made previous sales; or
‘‘(ii) position does not involve initi-
ating sales contacts;
208
‘‘(C) the employee has a detailed under-
standing of the needs of those to whom the em-
ployee is selling;
‘‘(D) the employee exercises discretion in
offering a variety of products and services;
‘‘(E) the employee receives—
‘‘(i) base compensation, determined
without regard to the number of hours
worked by the employee, of not less than
an amount equal to one and one-half times
the minimum wage in effect under section
6(a)(1) multiplied by 2,080; and
‘‘(ii) in addition to the employee’s
base compensation, compensation based
upon each sale attributable to the em-
ployee;
‘‘(F) the employee’s aggregate compensa-
tion based upon sales attributable to the em-
ployee is not less than 40 percent of one and
one-half times the minimum wage multiplied by
2,080;
‘‘(G) the employee receives a rate of com-
pensation based upon each sale attributable to
the employee which is beyond sales required to
reach the compensation required by subpara-
209
graph (F) which rate is not less than the rate
on which the compensation required by sub-
paragraph (F) is determined; and
‘‘(H) the rate of annual compensation or
base compensation for any employee who did
not work for an employer for an entire calendar
year is prorated to reflect annual compensation
which would have been earned if the employee
had been compensated at the same rate for the
entire calendar year;’’.
(b) CONSTRUCTION.—The amendment made by sub-
section (a) may not be construed to apply to individuals
who are employed as route sales drivers.
SEC. 605. EXEMPTION FOR FUNERAL DIRECTORS.
Section 13(a) of the Fair Labor Standards Act of
1938 (29 U.S.C. 213(a)), as amended by section 3, is
amended by adding after paragraph (18) the following:
‘‘(19) any employee employed as a licensed fu-
neral director or a licensed embalmer.’’.
Passed the House of Representatives March 9,
2000.
Attest:
Clerk.