‘‘(3) STATE.—The term ‘State’ includes the
District of Columbia and any possession of the
United States.
‘‘(4) QUALIFIED
CONTAMINATED
SITE.—The
term 
‘qualified 
contaminated 
site’ 
means 
a
brownfield site designated by the Administrator of
the Environmental Protection Agency.
‘‘(5) HAZARDOUS SUBSTANCE.—The term ‘haz-
ardous substance’ has the meaning provided by sec-
tion 198(d).
‘‘(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 brownfields cleanup bond
is held by a regulated investment company, the credit de-
termined under subsection (a) shall be allowed to share-
holders of such company under procedures 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 brownfields cleanup bond and the entitlement to
the credit under this section with respect to such
bond. In case of any such separation, the credit
under this section shall be allowed to the person who
on the credit allowance date holds the instrument ev-
idencing 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
brownfields cleanup 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 brownfields cleanup 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.—Issuers of qualified brownfields
cleanup bonds shall submit reports similar to the reports
required under section 149(e).’’
(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
BROWNFIELDS CLEANUP 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)(1)).
‘‘(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 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.’’
(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 public brownfields clean-
up bonds.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to obligations issued after Decem-
ber 31, 1999.
Æ