Financing Lead Out of Water Act of 2022

Bill: 117-s-4921
Sponsor: full_name: Sen. Bennet, Michael F. [D-CO]
Introduced: 2022-09-22
Policy area: Taxation
Latest action: action_date: 2022-09-22
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2022-09-22
action_desc: Introduced in Senate
text: <p><strong>Financing Lead Out of Water Act of 2022</strong></p> <p>This bill allows the issuance of tax-exempt private activity bonds to finance the replacement of any privately-owned portion of a lead service line in a public water system. Specifically, the bill provides that the use of proceeds from such bonds for replacement of a lead service line does not constitute private business use.</p>

tv_txt: II 117th CONGRESS 2d Session S. 4921 IN THE SENATE OF THE UNITED STATES September 22, 2022 Mr. Bennet (for himself, Mr. Cardin , Mr. Booker , Mr. Brown , Ms. Klobuchar , Mrs. Feinstein , and Mr. Van Hollen ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to modify the private business use requirements for bonds issued for lead service line replacement projects.

1. Short title This Act may be cited as the Financing Lead Out of Water Act of 2022 . 2. Modification of private business use requirements for certain bonds (a) In general Section 141(b)(6) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (D) Clarification relating to qualified lead service line replacement use (i) In general For purposes of this subsection, qualified lead service line replacement use shall not constitute private business use. (ii) Definitions For purposes of this subparagraph— (I) Qualified lead service line replacement use The term qualified lead service line replacement use means, with respect to any public water system, use of the proceeds of an issue to replace any privately-owned portion of a lead service line connected to such system to facilitate, achieve or maintain compliance with a national primary drinking water regulation for lead. (II) Lead service line The term lead service line has the meaning given such term in section 1459B(a)(4) of the Safe Drinking Water Act. (III) National primary drinking water regulation for lead The term national primary drinking water regulation for lead means a national primary drinking water regulation for lead promulgated under section 1412 of such Act. (IV) Public water system The term public water system has the meaning given such term in section 1401(4) of such Act. . (b) Effective date The amendments made by this section shall apply to obligations issued after December 31, 2022.