I 
108TH CONGRESS 
1ST SESSION H. R. 2571
To provide for the financing of high-speed rail infrastructure, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 24, 2003
Mr. YOUNG of Alaska (for himself, Mr. OBERSTAR, Mr. QUINN, and Ms. 
CORRINE BROWN of Florida) introduced the following bill; which was re-
ferred to the Committee on Transportation and Infrastructure, and in ad-
dition to the Committee on Ways and Means, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To provide for the financing of high-speed rail infrastructure, 
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. 
This Act may be cited as the ‘‘Rail Infrastructure De-
velopment and Expansion Act for the 21st Century’’.
SEC. 2. HIGH-SPEED INTERCITY RAIL FACILITY BONDS. 
(a) AMENDMENT.—Chapter 261 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 26106. High-speed rail infrastructure bonds 
‘‘(a) DESIGNATION.—The Secretary may designate 
bonds for purposes of subsection (f) or section 54 of the 
Internal Revenue Code of 1986 if—
‘‘(1) the bonds are to be issued by—
‘‘(A) a State, if the entire railroad pas-
senger transportation corridor containing the 
infrastructure project to be financed is within 
the State; 
‘‘(B) 1 or more of the States that have en-
tered into an agreement or an interstate com-
pact consented to by Congress under section 
410(a) of Public Law 105–134 (49 U.S.C 
24101 nt); or 
‘‘(C) an agreement or an interstate com-
pact described in subparagraph (B); 
‘‘(2) the bonds are for the purpose of financ-
ing—
‘‘(A) projects that make a substantial con-
tribution to providing the infrastructure and 
equipment required to complete a high-speed 
rail transportation corridor (including projects
for the acquisition, financing, or refinancing of 
equipment and other capital improvements, in-
cluding the introduction of new high-speed tech-
nologies such as magnetic levitation systems, 
track or signal improvements, the elimination of 
grade crossings, development of intermodal fa-
cilities, improvement of train speeds or safety, 
or both, and station rehabilitation or construc-
tion), but only if the Secretary determines that 
the projects are part of a viable and comprehen-
sive high-speed rail transportation corridor de-
sign for intercity passenger service, including a 
design for minimally operable segments of a 
corridor designated under section 104(d)(2) of 
title 23, United States Code; or 
‘‘(B) projects for the Alaska Railroad; 
‘‘(3) for a railroad passenger transportation 
corridor design that includes the use of rights-of-way 
owned by a freight railroad, a written agreement ex-
ists between the applicant and the freight railroad 
regarding such use and ownership, including com-
pensation for such use and assurances regarding the 
adequacy of infrastructure capacity to accommodate 
both existing and future freight and passenger oper-
ations, and including an assurance by the freight
railroad that collective bargaining agreements with 
the freight railroad’s employees (including terms 
regulating the contracting of work) shall remain in 
full force and effect according to their terms for 
work performed by the freight railroad on such rail-
road passenger transportation corridor; 
‘‘(4) the corridor design eliminates existing rail-
way-highway grade crossings that the Secretary de-
termines would impede high-speed rail operations; 
‘‘(5) the applicant agrees to comply with—
‘‘(A) the standards of section 24312, as in 
effect on September 1, 2002, with respect to 
the project in the same manner that the Na-
tional Railroad Passenger Corporation is re-
quired to comply with such standards for con-
struction work financed under an agreement 
made under section 24308(a); and 
‘‘(B) the protective arrangements estab-
lished under section 504 of the Railroad Revi-
talization and Regulatory Reform Act of 1976 
(45 U.S.C. 836) with respect to employees af-
fected by actions taken in connection with the 
project to be financed by the bond; and 
‘‘(6) the applicant agrees not to pay the prin-
cipal or interest on the bonds using funds derived di-
rectly or indirectly from the Highway Trust Fund, 
except as permitted by law as of the date of the en-
actment of this section. 
‘‘(b) BOND AMOUNT LIMITATION.—
‘‘(1) IN GENERAL.—The amount of bonds des-
ignated under this section may not exceed—
‘‘(A) in the case of subsection (f) bonds, 
$1,200,000,000 for each of the fiscal years 
2004 through 2013; and 
‘‘(B) in the case of section 54 bonds, 
$1,200,000,000 for each of the fiscal years 
2004 through 2013. 
‘‘(2) CARRYOVER OF UNUSED LIMITATION.—If 
for any fiscal year the limitation amount under sub-
paragraph (A) or (B) of paragraph (1) exceeds—
‘‘(A) with respect to subparagraph (A) of 
paragraph (1), the amount of subsection (f) 
bonds issued during such year; or 
‘‘(B) with respect to subparagraph (B) of 
paragraph (1), the amount of section 54 bonds 
issued during such year, 
the limitation amount under subparagraph (A) or 
(B) of paragraph (1), as the case may be, for the 
following fiscal year (through fiscal year 2017) shall 
be increased by the amount of such excess.
‘‘(c) PREFERENCE.—The Secretary shall give pref-
erence to the designation under this section of bonds for 
projects—
‘‘(1) to be funded through a combination of 
subsection (f) bonds and section 54 bonds; 
‘‘(2) which propose to link rail passenger serv-
ice with other modes of transportation; 
‘‘(3) expected to have a significant impact on 
air traffic congestion; 
‘‘(4) expected to also improve commuter rail op-
erations; 
‘‘(5) where all environmental work has already 
been completed and the project is ready to com-
mence; or 
‘‘(6) that have received financial commitments 
and other support of State and local governments. 
‘‘(d) TIMELY DISPOSITION OF APPLICATION.—The 
Secretary shall grant or deny a requested designation 
within 9 months after receipt of an application. 
‘‘(e) ANNUAL REPORTS.—
‘‘(1) FROM ISSUER OF BONDS.—The issuer of 
bonds designated under subsection (a) shall report 
annually to the Secretary regarding the terms of 
outstanding designated bonds and the progress made 
with respect to the project financed by the bonds.
‘‘(2) FROM
SECRETARY.—The Secretary, in 
consultation with the Secretary of the Treasury, 
shall transmit to the Congress an annual report 
which includes—
‘‘(A) reports received under paragraph (1); 
and 
‘‘(B) an assessment of the progress made 
toward completion of high-speed rail transpor-
tation corridors resulting from projects financed 
by bonds designated under subsection (a). 
‘‘(f) TAX TREATMENT OF SUBSECTION (f) BONDS.—
‘‘(1) EXCLUSION FROM GROSS INCOME.—The 
interest on a bond designated by the Secretary 
under subsection (a) for purposes of this subsection 
shall be excluded from gross income under section 
103 of the Internal Revenue Code of 1986, notwith-
standing section 149(c) of such Code. 
‘‘(2) EXEMPTION
FROM
VOLUME
CAP.—For 
purposes of section 146 of such Code, a bond des-
ignated by the Secretary under subsection (a) for 
purposes of this subsection shall be considered to be 
exempt from the volume cap of the issuing authority 
in the same manner as bonds listed in subsection (g) 
of such section 146.
‘‘(g) REFINANCING RULES.—Bonds designated by 
the Secretary under subsection (a) may be issued for refi-
nancing projects only if the indebtedness being refinanced 
(including any obligation directly or indirectly refinanced 
by such indebtedness) was originally incurred by the 
issuer—
‘‘(1) after the date of the enactment of this sec-
tion; 
‘‘(2) for a term of not more than 3 years; 
‘‘(3) to finance projects described in subsection 
(a)(2); and 
‘‘(4) in anticipation of being refinanced with 
proceeds of a bond designated under subsection (a). 
‘‘(h) PROVISIONS REGARDING HIGH-SPEED RAIL 
SERVICE.—
‘‘(1) STATUS AS EMPLOYER OR CARRIER.—Any 
entity providing railroad transportation (within the 
meaning of section 20102) that begins operations 
after the date of enactment of this section and that 
uses property acquired pursuant to this section (ex-
cept as provided in subsection (a)(2)(B)), shall be 
considered an employer for purposes of the Railroad 
Retirement Act of 1974 (45 U.S.C. 231 et seq.) and 
considered a carrier for purposes of the Railway 
Labor Act (45 U.S.C. 151 et seq.).
‘‘(3) IMMEDIATE REPLACEMENT OF EXISTING 
RAIL PASSENGER SERVICE.—
(A) NEGOTIATIONS.—If the replacement of 
preexisting intercity rail passenger service oc-
curs concurrent with or within a reasonable 
amount of time before the commencement of 
the replacing entity’s high-speed rail passenger 
service, the replacing entity shall give written 
notice of its plan to replace existing rail pas-
senger service to the authorized collective bar-
gaining agent or agents for the employees of 
the predecessor provider at least 90 days prior 
to the date it plans to commence service. With-
in 5 days after the date of receipt of such writ-
ten notice, negotiations between the replacing 
entity and the collective bargaining agent or 
agents for the employees of the predecessor pro-
vider shall commence for the purpose of reach-
ing agreement with respect to all matters set 
forth in paragraph (2)(A)–(D). The negotia-
tions shall continue for 30 days or until an 
agreement is reached, whichever is sooner. If at 
the end of 30 days the parties have not entered 
into an agreement with respect to all such mat-
ters, the unresolved issues shall be submitted
for arbitration in accordance with the procedure 
set forth in subparagraph (B). 
‘‘(B) ARBITRATION.—If an agreement has 
not been entered into with respect to all mat-
ters set forth in paragraph (2)(A)–(D) as pro-
vided in subparagraph (A) of this paragraph, 
the parties shall select an arbitrator. If the par-
ties are unable to agree upon the selection of 
such arbitrator within 5 days, either or both 
parties shall notify the National Mediation 
Board, which shall provide a list of seven arbi-
trators with experience in arbitrating rail labor 
protection disputes. Within 5 days after such 
notification, the parties shall alternately strike 
names from the list until only one name re-
mains, and that person shall serve as the neu-
tral arbitrator. Within 45 days after selection of 
the arbitrator, the arbitrator shall conduct a 
hearing on the dispute and shall render a deci-
sion with respect to the unresolved issues set 
forth in paragraph (2)(A)–(D). This decision 
shall be final, binding, and conclusive upon the 
parties. The salary and expenses of the arbi-
trator shall be borne equally by the parties; all
other expenses shall be paid by the party incur-
ring them. 
‘‘(C) SERVICE
COMMENCEMENT.—A re-
placing entity under this paragraph shall com-
mence service only after an agreement is en-
tered into with respect to the matters set forth 
in paragraph (2)(A)–(D) or the decision of the 
arbitrator has been rendered. 
‘‘(4) SUBSEQUENT REPLACEMENT OF EXISTING 
RAIL PASSENGER SERVICE.—If the replacement of 
existing rail passenger service takes place within 3 
years after the replacing entity commences high-
speed rail passenger service, the replacing entity and 
the collective bargaining agent or agents for the em-
ployees of the predecessor provider shall enter into 
an agreement with respect to the matters set forth 
in paragraph (2)(A)–(D). If the parties have not en-
tered into an agreement with respect to all such 
matters within 60 days after the date on which the 
replacing entity replaces the predecessor provider, 
the parties shall select an arbitrator using the proce-
dures set forth in paragraph (3)(B), who shall, with-
in 20 days after the commencement of the arbitra-
tion, conduct a hearing and decide all unresolved
issues. This decision shall be final, binding, and con-
clusive upon the parties. 
‘‘(i) ISSUANCE OF REGULATIONS.—Not later than 6 
months after the date of the enactment of this section, 
the Secretary shall issue regulations for carrying out this 
section. 
‘‘(j) DEFINITIONS.—For purposes of this section—
‘‘(1) SUBSECTION (f) BOND.—The term ‘sub-
section (f) bond’ means a bond designated by the 
Secretary under subsection (a) for purposes of sub-
section (f). 
‘‘(2) SECTION 54 BOND.—The term ‘section 54 
bond’ means a bond designated by the Secretary 
under subsection (a) for purposes of section 54 of 
the Internal Revenue Code of 1986 (relating to cred-
it to holders of qualified high-speed rail infrastruc-
ture bonds).’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of 
sections of chapter 261 of title 49, United States Code, 
is amended by adding after the item relating to section 
26105 the following new item:
‘‘26106.
High-speed rail infrastructure bonds.’’.
SEC. 3. TAX CREDIT TO HOLDERS OF QUALIFIED HIGH-
SPEED RAIL INFRASTRUCTURE 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 High-Speed Rail Infrastructure Bonds
‘‘Sec. 54. Credit to holders of qualified high-speed rail infrastruc-
ture bonds.
‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED HIGH-SPEED 
RAIL INFRASTRUCTURE BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified high-speed rail infrastructure 
bond on a credit allowance 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 subsection (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 high-speed rail 
infrastructure bond is 25 percent of the annual cred-
it determined with respect to such bond. 
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified high-speed 
rail infrastructure 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 HIGH-SPEED RAIL INFRASTRUC-
TURE BOND.—For purposes of this part, the term ‘quali-
fied high-speed rail infrastructure bond’ means any bond 
issued as part of an issue if—
‘‘(1) the issuer certifies that the Secretary of 
Transportation has designated the bond for purposes 
of this section under section 26106(a) of title 49, 
United States Code, as in effect on the date of the 
enactment of this section, 
‘‘(2) 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 project described in section 26106(a)(2) 
of title 49, United States Code, 
‘‘(3) the term of each bond which is part of 
such issue does not exceed 20 years, 
‘‘(4) the payment of principal with respect to 
such bond is the obligation solely of the issuer, and 
‘‘(5) the issue meets the requirements of sub-
section (f) (relating to arbitrage). 
‘‘(f) 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. 
‘‘(g) RECAPTURE OF PORTION OF CREDIT WHERE 
CESSATION OF COMPLIANCE.—
‘‘(1) IN GENERAL.—If any bond which when 
issued purported to be a qualified high-speed rail in-
frastructure 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.
‘‘(h) OTHER DEFINITIONS AND SPECIAL RULES.—
For purposes of this section—
‘‘(1) BOND.—The term ‘bond’ includes any ob-
ligation. 
‘‘(2) QUALIFIED PROJECT.—The term ‘qualified 
project’ means any project described in section 
26106(a)(2) of title 49, United States Code. 
‘‘(3) TREATMENT OF CHANGES IN USE.—For 
purposes of subsection (e)(2), 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 high-speed rail infra-
structure bond. 
‘‘(4) 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). 
‘‘(5) BONDS
HELD
BY
REGULATED
INVEST-
MENT COMPANIES.—If any qualified high-speed rail 
infrastructure bond is held by a regulated invest-
ment company, the credit determined under sub-
section (a) shall be allowed to shareholders of such 
company under procedures prescribed by the Sec-
retary. 
‘‘(6) REPORTING.—Issuers of qualified high-
speed rail infrastructure bonds shall submit reports 
similar to the reports required under section 
149(e).’’. 
(b) AMENDMENTS TO OTHER CODE SECTIONS.—
(1) REPORTING.—Subsection (d) of section 
6049 of the Internal Revenue Code of 1986 (relating 
to returns regarding payments of interest) is amend-
ed by adding at the end the following new para-
graph: 
‘‘(8) REPORTING
OF
CREDIT
ON
QUALIFIED 
HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts 
includible in gross income under section 54(d) 
and such amounts shall be treated as paid on
the credit allowance date (as defined in section 
54(b)(4)). 
‘‘(B) 
REPORTING
TO
CORPORATIONS, 
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in 
subparagraph (A), subsection (b)(4) shall be 
applied without regard to subparagraphs (A), 
(H), (I), (J), (K), and (L)(i) of such subsection. 
‘‘(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.’’. 
(2) TREATMENT
FOR
ESTIMATED
TAX
PUR-
POSES.—
(A) INDIVIDUAL.—Section 6654 of such 
Code (relating to failure by individual to pay es-
timated income tax) is amended by redesig-
nating subsection (m) as subsection (n) and by 
inserting after subsection (l) the following new 
subsection: 
‘‘(m) SPECIAL RULE FOR HOLDERS OF QUALIFIED 
HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—For pur-
poses of this section, the credit allowed by section 54 to
a taxpayer by reason of holding a qualified high-speed rail 
infrastructure 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.’’. 
(B) CORPORATE.—Section 6655 of such 
Code (relating to failure by corporation to pay 
estimated income tax) is amended by adding at 
the end of subsection (g) the following new 
paragraph: 
‘‘(5) SPECIAL RULE FOR HOLDERS OF QUALI-
FIED HIGH-SPEED RAIL INFRASTRUCTURE BONDS.—
For purposes of this section, the credit allowed by 
section 54 to a taxpayer by reason of holding a 
qualified high-speed rail infrastructure 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.’’. 
(c) CLERICAL AMENDMENTS.—
(1) The table of subparts for part IV of sub-
chapter A of chapter 1 is amended by adding at the 
end the following new item:
‘‘Subpart H. Nonrefundable Credit for Holders of Qualified Am-
trak Bonds.’’.
(2) Section 6401(b)(1) is amended by striking 
‘‘and G’’ and inserting ‘‘G, and H’’.
(d) ISSUANCE OF REGULATIONS.—Not later than 6 
months after the date of the enactment of this section, 
the Secretary of the Treasury shall issue regulations for 
carrying out this section and the amendments made by 
this section. 
(e) HIGH-SPEED INTERCITY RAIL FACILITIES.—
(1) REQUIREMENT
TO
MEET
TITLE
RE-
QUIREMENTS.—Section 142(i) of the Internal Rev-
enue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(4) ADDITIONAL
REQUIREMENTS.—A bond 
issued as part of an issue described in subsection 
(a)(11) shall not be considered an exempt facility 
bond unless the requirements of paragraphs (1) 
through (6) of section 26106(a) of title 49, United 
States Code, are met.’’. 
(2) REVISION OF SPEED REQUIREMENT.—Sec-
tion 142(i)(1) of such Code is amended by striking 
‘‘150 miles per hour’’ and inserting ‘‘110 miles per 
hour’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of enactment of this Act. 
SEC. 4. HIGH-SPEED RAIL CORRIDOR DEVELOPMENT. 
(a) CORRIDOR DEVELOPMENT.—
(1) AMENDMENTS.—Section 26101 of title 49, 
United States Code, is amended—
(A) in the section heading, by striking 
‘‘planning’’ and inserting ‘‘development’’; 
(B) in the heading of subsection (a), by 
striking ‘‘PLANNING’’ and inserting ‘‘DEVELOP-
MENT’’;
(C) by striking ‘‘corridor planning’’ each 
place it appears and inserting ‘‘corridor devel-
opment’’; 
(D) in subsection (b)(1)—
(i) by inserting ‘‘, or if it is an activity 
described in subparagraph (M)’’ after 
‘‘high-speed rail improvements’’; 
(ii) by striking ‘‘and’’ at the end of 
subparagraph (K); 
(iii) by striking the period at the end 
of subparagraph (L) and inserting ‘‘; and’’; 
and 
(iv) by adding at the end the following 
new subparagraph: 
‘‘(M) the acquisition of locomotives, rolling 
stock, track, and signal equipment.’’; and
(E) in subsection (c)(2), by striking ‘‘plan-
ning’’ and inserting ‘‘development’’.
(2) CONFORMING AMENDMENT.—The item re-
lating to section 26101 in the table of sections of 
chapter 261 of title 49, United States Code, is 
amended by striking ‘‘planning’’ and inserting ‘‘de-
velopment’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 
26104 of title 49, United States Code, is amended to read 
as follows: 
‘‘§ 26104. Authorization of appropriations 
‘‘(a) FISCAL YEARS 2004 THROUGH 2011.—There 
are authorized to be appropriated to the Secretary—
‘‘(1) $70,000,000 for carrying out section 
26101; and 
‘‘(2) $30,000,000 for carrying out section 
26102, 
for each of the fiscal years 2004 through 2011. 
‘‘(b) FUNDS TO REMAIN AVAILABLE.—Funds made 
available under this section shall remain available until ex-
pended.’’. 
SEC. 5. REHABILITATION AND IMPROVEMENT FINANCING. 
(a) DEFINITIONS.—Section 102(7) of the Railroad 
Revitalization and Regulatory Reform Act of 1976 (45 
U.S.C. 802(7)) is amended to read as follows:
‘‘(7) ‘railroad’ has the meaning given that term 
in section 20102 of title 49, United States Code; 
and’’. 
(b) GENERAL AUTHORITY.—Section 502(a) of the 
Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822(a)) is amended by striking ‘‘Sec-
retary may provide direct loans and loan guarantees to 
State and local governments,’’ and inserting ‘‘Secretary 
shall provide direct loans and loan guarantees to State and 
local governments, agreements or interstate compacts con-
sented to by Congress under section 410(a) of Public Law 
105–134 (49 U.S.C 24101 nt),’’. 
(c) EXTENT OF AUTHORITY.—Section 502(d) of the 
Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822(d)) is amended—
(1) by striking ‘‘$3,500,000,000’’ and inserting 
‘‘$35,000,000,000’’; 
(2) by striking ‘‘$1,000,000,000’’ and inserting 
‘‘$7,000,000,000’’; and 
(3) by adding at the end the following new sen-
tence: ‘‘The Secretary shall not establish any limit 
on the proportion of the unused amount authorized 
under this subsection that may be used for 1 loan 
or loan guarantee.’’.
(d) COHORTS OF LOANS.—Section 502(f) of the Rail-
road Revitalization and Regulatory Reform Act of 1976 
(45 U.S.C. 822(f)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (D); 
(B) by redesignating subparagraph (E) as 
subparagraph (F); and 
(C) by adding after subparagraph (D) the 
following new subparagraph: 
‘‘(E) the size and characteristics of the co-
hort of which the loan or loan guarantee is a 
member; and’’; and 
(2) by adding at the end of paragraph (4) the 
following: ‘‘A cohort may include loans and loan 
guarantees. The Secretary shall not establish any 
limit on the proportion of a cohort that may be used 
for 1 loan or loan guarantee.’’. 
(e) CONDITIONS OF ASSISTANCE.—Section 502 of the 
Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822) is amended—
(1) in subsection (f)(2)(A), by inserting ‘‘, if 
any’’ after ‘‘collateral offered’’; and 
(2) by adding at the end of subsection (h) the 
following:
‘‘The Secretary shall not require an applicant for a direct 
loan or loan guarantee under this section to provide collat-
eral. The Secretary shall not require that an applicant for 
a direct loan or loan guarantee under this section have 
previously sought the financial assistance requested from 
another source. The Secretary shall require recipients of 
direct loans or loan guarantees under this section to apply 
the standards of section 26106(a)(5) of title 49, United 
States Code, to their projects.’’. 
(f) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—
Section 502 of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 822) is amended by add-
ing at the end the following new subsection: 
‘‘(i) TIME LIMIT FOR APPROVAL OR DISAPPROVAL.—
Not later than 90 days after receiving a complete applica-
tion for a direct loan or loan guarantee under this section, 
the Secretary shall approve or disapprove the applica-
tion.’’. 
(g) FEES AND CHARGES.—Section 503 of the Rail-
road Revitalization and Regulatory Reform Act of 1976 
(45 U.S.C. 823) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(l) FEES AND CHARGES.—Except as provided in 
this title, the Secretary may not assess any fees, including
user fees, or charges in connection with a direct loan or 
loan guarantee provided under section 502.’’. 
(h) SUBSTANTIVE CRITERIA AND STANDARDS.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary of Transportation shall publish in the 
Federal Register and post on the Department of Trans-
portation web site the substantive criteria and standards 
used by the Secretary to determine whether to approve 
or disapprove applications submitted under section 502 of 
the Railroad Revitalization and Regulatory Reform Act of 
1976 (45 U.S.C. 822).
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