I 
108TH CONGRESS 
1ST SESSION H. R. 1742
To amend the Internal Revenue Code of 1986 with respect to the eligibility 
of veterans for mortgage bond financing, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 10, 2003
Mr. KLECZKA (for himself, Mr. HERGER, Mr. BACA, Ms. BALDWIN, Mr. CAL-
VERT, Mrs. CAPITO, Mrs. DAVIS of California, Mr. DEFAZIO, Mr. 
DOGGETT, Mr. DOOLITTLE, Mr. EVANS, Mr. FARR, Mr. FROST, Mr. 
GREEN of Texas, Mr. GREEN of Wisconsin, Mr. LAMPSON, Mr. LANTOS, 
Mr. LEWIS of California, Mr. MATSUI, Ms. MILLENDER-MCDONALD, 
Mrs. NAPOLITANO, Mr. OBEY, Mr. PAUL, Mr. PETRI, Mr. POMBO, Mr. 
RAHALL, Mr. RODRIGUEZ, Mr. SANDLIN, Mr. SCHIFF, Mr. SENSEN-
BRENNER, Mr. SESSIONS, Mr. THOMPSON of California, Mr. TURNER of 
Texas, Ms. WATERS, Ms. WATSON, Mr. WAXMAN, Ms. WOOLSEY, and 
Mr. WU) 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 with respect 
to the eligibility of veterans for mortgage bond financing, 
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. ALL VETERANS ELIGIBLE FOR STATE HOME 
LOAN PROGRAMS FUNDED BY QUALIFIED 
VETERANS’ MORTGAGE BONDS. 
(a) IN GENERAL.—Section 143(l)(4) of the Internal 
Revenue Code of 1986 (defining qualified veteran) is 
amended—
(1) by striking ‘‘at some time before January 1, 
1977’’ in subparagraph (A), and 
(2) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) who applied for the financing before 
the date 30 years after the last on which such 
veteran left active service.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to financing provided and mort-
gage credit certificates issued after June 30, 2003. 
SEC. 2. REVISION OF STATE VETERANS LIMIT. 
(a) IN GENERAL.—Subparagraph (B) of section 
143(l)(3) of the Internal Revenue Code of 1986 (relating 
to volume limitation) is amended to read as follows: 
‘‘(B) STATE
VETERANS
LIMIT.—A State 
veterans limit for any calendar year is the 
amount equal to—
‘‘(i) $425,000,000 for the State of 
Texas,
‘‘(ii) $537,000,000 for the State of 
California, 
‘‘(iii) $200,000,000 for the State of 
Oregon, 
‘‘(iv) $200,000,000 for the State of 
Wisconsin, and 
‘‘(v) $200,000,000 for the State of 
Alaska.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to bonds issued after December 
31, 2003. 
SEC. 3. ELECTIVE CARRYFORWARD OF UNUSED LIMITA-
TION. 
(a) IN GENERAL.—Section 143(l)(3) of the Internal 
Revenue Code of 1986 (relating to volume limitation) is 
amended by adding at the end the following: 
‘‘(D) ELECTIVE
CARRYFORWARD
OF
UN-
USED LIMITATION.—
‘‘(i) IN GENERAL.—If—
‘‘(I) a State veterans limit for 
any calendar year after 2002, exceeds 
‘‘(II) the aggregate amount of 
qualified veterans’ mortgage bonds 
issued by such State,
such State may irrevocably elect to treat 
such excess as a carryforward for qualified 
veterans’ mortgage bonds. 
‘‘(ii) USE OF CARRYFORWARD.—
‘‘(I) IN
GENERAL.—If a State 
elects a carryforward under clause (i), 
qualified veterans’ mortgage bonds 
issued during the 3 calendar years fol-
lowing the calendar year in which the 
carryforward arose shall not be taken 
into account under subparagraph (A) 
to the extent the amount of such 
bonds does not exceed the amount of 
the carryforward so elected. 
‘‘(II) 
ORDER
IN
WHICH 
CARRYFORWARD
USED.—
Carryforwards elected shall be used in 
the order of the calendar years in 
which such carryforwards arose.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to bonds issued and carryforward 
elections made after December 31, 2003.
Æ