In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

Input: Consider Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Breast Cancer and Environmental
Research Act of 2005''.

SEC. 2. FINDINGS.

The Congress finds as follows:
(1) Breast cancer is the second leading cause of cancer
deaths among American women.
(2) More women in the United States are living with breast
cancer than any other cancer (excluding skin cancer).
Approximately 3,000,000 women in the United States are living
with breast cancer, about 2,000,000 of which have been
diagnosed and an estimated 1,000,000 who do not yet know that
they have the disease.
(3) Breast cancer is the most commonly diagnosed cancer
among women in the United States and worldwide (excluding skin
cancer). In 2005, it is estimated that 269,730 new cases of
breast cancer will be diagnosed among women in the United
States, 211,240 invasive breast cancers and 58,490 cases of
ductal carcinoma in situ (DCIS).
(4) Approximately 40,410 women in the United States will
die from the disease in 2005. Breast cancer is the leading
cause of cancer death for women in the United States between
the ages of 20 and 59, and the leading cause of cancer death
for women worldwide.
(5) A woman who lives into her 80s in the United States has
a 1 in 7 chance of developing invasive breast cancer in her
lifetime. This risk was 1 in 11 in 1975. In 2005, a new case of
breast cancer will be diagnosed every 2 minutes and a woman
will die from breast cancer every 13 minutes.
(6) All women are at risk for breast cancer. About 90
percent of women who develop breast cancer do not have a family
history of the disease.
(7) The National Action Plan on Breast Cancer, a public
private partnership, has recognized the importance of expanding
the scope and breadth of biomedical, epidemiological, and
behavioral research activities related to the etiology of
breast cancer and the role of the environment.
(8) To date, there has been only a limited research
investment to expand the scope or coordinate efforts across
disciplines or work with the community to study the role of the
environment in the development of breast cancer.
(9) In 2003, the National Institute of Environmental Health
Sciences awarded grants to four research centers to begin to
study the prenatal-to-adult environmental exposures that may
predispose a woman to breast cancer. The currently funded
research is examining the mammary tissue in animals and young
girls and study the subjects' life exposures to environmental,
nutritional, and social factors that impact menarche. Early
menarche, beginning menstruation before the age of 12, has been
shown to increase breast cancer risk later in life.
(10) The National Cancer Institute and the National
Institute of Environmental Health Sciences have paired together
to make those four centers possible. The two institutes work
well together, combining their respective areas of expertise to
the best advantage of the research.
(11) In order to take full advantage of the tremendous
potential for avenues of prevention, the Federal investment in
the role of the environment and the development of breast
cancer should be expanded. The research conducted at the four
centers, while critically important, is one small facet of the
many issues that must be addressed in order to gauge the link
between environmental factors and breast cancer.
(12) In order to understand the effect of chemicals and
radiation on the development of cancer, multi-generational,
prospective studies are probably required.

SEC. 3. NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES; AWARDS FOR
DEVELOPMENT AND OPERATION OF RESEARCH CENTERS REGARDING
ENVIRONMENTAL FACTORS RELATED TO BREAST CANCER.

Subpart 12 of part C of title IV of the Public Health Service Act
(42 U.S.C. 285l et seq.) is amended by adding at the end the following
section:

''SEC. 463C. RESEARCH CENTERS REGARDING ENVIRONMENTAL FACTORS RELATED
TO BREAST CANCER.

''(a) In General.--The Director of the Institute, based on
recommendations from the Breast Cancer and Environmental Research Panel
established under subsection (b) (referred to in this section as the
'Panel'), shall make grants, after a process of peer review and
programmatic review, to public or nonprofit private entities for the
development and operation of not more than 8 centers for the purpose of
conducting multidisciplinary and multi-institutional research on
environmental factors that may be related to the etiology of breast
cancer. Each such center shall be known as a Breast Cancer and
Environmental Research Center of Excellence.
''(b) Breast Cancer and Environmental Research Panel.--
''(1) Establishment.--The Secretary shall establish in the
Institute of Environmental Health Sciences a Breast Cancer and
Environmental Research Panel.
''(2) Composition.--The Panel shall be composed of--
''(A) 9 members to be appointed by the Secretary,
of which--
''(i) six members shall be appointed from
among physicians, and other health
professionals, who--
''(I) are not officers or employees
of the United States;
''(II) represent multiple
disciplines, including clinical, basic,
and public health sciences;
''(III) represent different
geographical regions of the United
States;
''(IV) are from practice settings
or academia or other research settings;
and
''(V) are experienced in biomedical
review; and
''(ii) three members shall be appointed
from the general public who are representatives
of individuals who have had breast cancer and
who represent a constituency; and
''(B) such nonvoting, ex officio members as the
Secretary determines to be appropriate.
''(3) Chairperson.--The members of the Panel appointed
under paragraph (2)(A) shall select a chairperson from among
such members.
''(4) Meetings.--The Panel shall meet at the call of the
chairperson or upon the request of the Director, but in no case
less often than once each year.
''(5) Duties.--The Panel shall--
''(A) oversee the peer review process for the
awarding of grants under subsection (a) and conduct the
programmatic review under such subsection;
''(B) make recommendations with respect to the
funding criteria and mechanisms under which amounts
will be allocated under this section; and
''(C) make final programmatic recommendations with
respect to grants under this section.
''(c) Collaboration With Community.--Each center under subsection
(a) shall establish and maintain ongoing collaborations with community
organizations in the geographic area served by the center, including
those that represent women with breast cancer.
''(d) Coordination of Centers; Reports.--The Director of the
Institute shall, as appropriate, provide for the coordination of
information among centers under subsection (a) and ensure regular
communication between such centers, and may require the periodic
preparation of reports on the activities of the centers and the
submission of the reports to the Director.
''(e) Required Consortium.--Each center under subsection (a) shall
be formed from a consortium of cooperating institutions, meeting such
requirements as may be prescribed by the Director of the Institute.
Each center shall require collaboration among highly accomplished
scientists, other health professionals and advocates of diverse
backgrounds from various areas of expertise.
''(f) Duration of Support.--Support of a center under subsection
(a) may be for a period not exceeding 5 years. Such period may be
extended for one or more additional periods not exceeding 5 years if
the operations of such center have been reviewed by an appropriate
technical and scientific peer review group established by the Director
of the Institute and if such group has recommended to the Director that
such period should be extended.
''(g) Geographic Distribution of Centers.--The Director of the
Institute shall, to the extent practicable, provide for an equitable
geographical distribution of centers under this section.
''(h) Innovative Approaches.--Each center under subsection (a)
shall use innovative approaches to study unexplored or under-explored
areas of the environment and breast cancer.
''(i) Authorization of Appropriations.--For the purpose of carrying
out this section, there is authorized to be appropriated $30,000,000
for each of the fiscal years 2006 through 2011. Such authorization is
in addition to any other authorization of appropriations that is
available for such purpose.''.

Output: Breast Cancer and Environmental Research Act of 2005 - Amends the Public Health Service Act to require the Director of the National Institute of Environmental Health Sciences to make grants to public or nonprofit private entities for the development and operation of not more than eight centers to conduct multidisciplinary and multi-institutional research on environmental factors that may be related to the etiology of breast cancer. Requires each such center to: (1) be known as a Breast Cancer and Environmental Research Center of Excellence; (2) establish ongoing collaborations with community organizations; (3) be formed from a consortium of cooperating institutions; (4) be supported under this Act for a period of not more than five years with additional periods allowed after review and recommendation; and (5) use innovative approaches to study unexplored areas of the environment and breast cancer.

Requires the Secretary of Health and Human Services to establish a Breast Cancer and Environmental Research Panel to make recommendations for and to review grants awarded under this Act.

Input: Consider Input: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

(a) Short Title.--This Act may be cited as the ''Long-Term
Investment Incentive Act of 1997''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.

SEC. 2. REDUCTION OF TAX ON LONG-TERM CAPITAL GAINS ON ASSETS HELD MORE
THAN 2 YEARS.

(a) In General.--Part I of subchapter P of chapter 1 (relating to
treatment of capital gains) is amended by redesignating section 1202 as
section 1203 and by inserting after section 1201 the following new
section:

''SEC. 1202. CAPITAL GAINS DEDUCTION FOR ASSETS HELD BY NONCORPORATE
TAXPAYERS MORE THAN 2 YEARS.

''(a) General Rule.--If a taxpayer other than a corporation has a
net capital gain for any taxable year, there shall be allowed as a
deduction an amount equal to the sum of the applicable percentages of
the classes of net capital gain described in the table under subsection
(b).
''(b) Applicable Percentage.--For purposes of this subsection, the
applicable percentage shall be the percentage determined in accordance
with the following table:

The applicable
''In the case of:
percentage is:
2-year gain........................ 7.145
3-year gain........................ 14.29
4-year gain........................ 21.45
5-year gain........................ 28.57
6-year gain........................ 35.71
7-year gain........................ 42.86
8-year gain........................ 50.00.
''(c) Gain to Which Deduction Applies.--For purposes of this
section--
''(1) 2-year gain.--The term '2-year gain' means the lesser
of--
''(A) the net capital gain for the taxable year, or
''(B) the amount of long-term capital gain which
would be computed for the taxable year if only gain
from the sale or exchange of property held by the
taxpayer for more than 2 years but not more than 3
years were taken into account.
''(2) 3-year gain, etc.--The terms '3-, 4-,
5-, 6-, or 7-year gain' mean the amounts determined under
paragraph (1)--
''(A) by reducing the amount of the net capital
gain under subparagraph (A) thereof by an amount equal
to the long-term capital gain from the sale or exchange
of property with a holding period less than the minimum
holding period for any such category, and
''(B) by substituting 3, 4, 5, 6, or 7 years for 2
years and 4, 5, 6, 7, or 8 years for 3 years,
respectively, in subparagraph (B) thereof.
''(3) 8-year gain.--The term '8-year gain' means the lesser
of--
''(A) the net capital gain for the taxable year,
reduced by in the same manner as under paragraph
(2)(A), or
''(B) the amount of the long-term capital gain
which would be computed for the taxable year if only
gain from the sale or exchange of property held by the
taxpayer for more than 8 years were taken into account.
''(d) Estates and Trusts.--In the case of an estate or trust, the
deduction under subsection (a) shall be computed by excluding the
portion (if any) of the gains for the taxable year from sales or
exchanges of capital assets which, under sections 652 and 662 (relating
to inclusions of amounts in gross income of beneficiaries of trusts),
is includible by the income beneficiaries as gain derived from the sale
or exchange of capital assets.
''(e) Coordination With Treatment of Capital Gain Under Limitation
on Investment Interest.--For purposes of this section, the net capital
gain for any taxable year shall be reduced (but not below zero) by the
amount which the taxpayer takes into account as investment income under
section 163(d)(4)(B)(iii).
''(f) Treatment of Collectibles.--
''(1) In general.--Solely for purposes of this section, any
gain or loss from the sale or exchange of a collectible shall
be treated as a short-term capital gain or loss (as the case may be),
without regard to the period such asset was held. The preceding
sentence shall apply only to the extent the gain or loss is taken into
account in computing taxable income.
''(2) Treatment of certain sales of interest in
partnership, etc.--For purposes of paragraph (1), any gain from
the sale or exchange of an interest in a partnership, S
corporation, or trust which is attributable to unrealized
appreciation in the value of collectibles held by such entity
shall be treated as gain from the sale or exchange of a
collectible. Rules similar to the rules of section 751(f) shall
apply for purposes of the preceding sentence.
''(3) Collectible.--For purposes of this subsection, the
term 'collectible' means any capital asset which is a
collectible (as defined in section 408(m) without regard to
paragraph (3) thereof).
''(g) Transitional Rule.--
''(1) In general.--Gain may be taken into account under
subsection (c) only if such gain is properly taken into account
on or after May 7, 1997.
''(2) Special rules for pass-thru entities.--
''(A) In general.--In applying paragraph (1) with
respect to any pass-thru entity, the determination of
when gains and losses are properly taken into account
shall be made at the entity level.
''(B) Pass-thru entity defined.--For purposes of
subparagraph (A), the term 'pass-thru entity' means--
''(i) a regulated investment company,
''(ii) a real estate investment trust,
''(iii) an S corporation,
''(iv) a partnership,
''(v) an estate or trust, and
''(vi) a common trust fund.''
(b) Deduction Allowable in Computing Adjusted Gross Income.--
Subsection (a) of section 62 is amended by inserting after paragraph
(16) the following new paragraph:
''(17) Long-term capital gains.--The deduction allowed by
section 1202.''
(c) Maximum Capital Gains Rate.--Section 1(h) is amended by adding
at the end the following new sentence: ''For purposes of this
subsection, taxable income shall be computed without regard to the
deduction allowed under section 1202.''
(d) Treatment of Certain Pass-Thru Entities.--
(1) Capital gain dividends of regulated investment
companies.--
(A) Subparagraph (B) of section 852(b)(3) is
amended to read as follows:
''(B) Treatment of capital gain dividends by
shareholders.--A capital gain dividend shall be treated
by the shareholders as gain from the sale or exchange
of a capital asset held for more than 1 year but not
more than 2 years; except that the portion of any such
dividend designated by the company as allocable 2-, 3-,
4-, 5-, 6-, 7-, or 8-year gain of the company shall be
treated as gain from the sale or exchange of a capital
asset held for the amount of years in such class for
purposes of section 1202. Rules similar to the rules of
subparagraph (C) shall apply to any designation under
the preceding sentence.''
(B) Clause (i) of section 852(b)(3)(D) is amended
by adding at the end the following new sentence:
''Rules similar to the rules of subparagraph (B) shall
apply in determining character of the amount to be so
included by any such shareholder.''
(2) Capital gain dividends of real estate investment
trusts.--Subparagraph (B) of section 857(b)(3) is amended to
read as follows:
''(B) Treatment of capital gain dividends by
shareholders.--A capital gain dividend shall be treated
by the shareholders or holders of beneficial interests
as gain from the sale or exchange of a capital asset
held for more than 1 year but not more than 2 years;
except that the portion of any such dividend designated
by the company as allocable to 2-, 3-, 4-, 5-, 6-, 7-,
or 8-year gain of the company shall be treated as gain
from the sale or exchange of a capital asset held for
the amount of years in such class for purposes of
section 1202. Rules similar to the rules of
subparagraph (C) shall apply to any designation under
the preceding sentence.''
(3) Common trust funds.--Subsection (c) of section 584 is
amended--
(A) by inserting ''and not more than 2 years''
after ''1 year'' each place it appears in paragraph
(2),
(B) by striking ''and'' at the end of paragraph
(2), and
(C) by redesignating paragraph (3) as paragraph (4)
and inserting after paragraph (2) the following new
paragraph:
''(3) as part of its gains from sales or exchanges of
capital assets held for periods described in the classes of
gains under section 1202(c), its proportionate share of the
gains of the common trust fund from sales or exchanges of
capital assets held for such periods, and''.
(e) Technical and Conforming Changes.--
(1) Subparagraph (B) of section 170(e)(1) is amended by
inserting ''(or, in the case of a taxpayer other than a
corporation, the percentage of such gain equal to 100 percent
minus the percentage applicable to such gain under section
1202(a))'' after ''the amount of gain''.
(2) Subparagraph (B) of section 172(d)(2) is amended to
read as follows:
''(B) the deduction under section 1202 and the
exclusion under section 1203 shall not be allowed.''
(3)(A) Section 221 (relating to cross reference) is amended
to read as follows:

''SEC. 221. CROSS REFERENCES.

''(1) For deduction for net capital gains in the case of a taxpayer
other than a corporation, see section 1202.
''(2) For deductions in respect of a decedent, see section 691.''
(B) The table of sections for part VII of subchapter B of
chapter 1 is amended by striking ''reference'' in the item
relating to section 221 and inserting ''references''.
(4) The last sentence of section 453A(c)(3) is amended by
striking all that follows ''long-term capital gain,'' and
inserting ''the maximum rate on net capital gain under section
1(h) or 1201 or the deduction under section 1202 (whichever is
appropriate) shall be taken into account.''
(5) Paragraph (4) of section 642(c) is amended to read as
follows:
''(4) Adjustments.--To the extent that the amount otherwise
allowable as a deduction under this subsection consists of gain
from the sale or exchange of capital assets held for more than
1 year, proper adjustment shall be made for any deduction
allowable to the estate or trust under section 1202 or any
exclusion allowable to the estate or trust under section
1203(a). In the case of a trust, the deduction allowed by this
subsection shall be subject to section 681 (relating to
unrelated business income).''
(6) The last sentence of paragraph (3) of section 643(a) is
amended to read as follows: ''The deduction under section 1202
and the exclusion under section 1203 shall not be taken into
account.''
(7) Subparagraph (C) of section 643(a)(6) is amended by
inserting ''(i)'' before ''there shall'' and by inserting
before the period '', and (ii) the deduction under section 1202
(relating to capital gains deduction) shall not be taken into
account''.
(8) Paragraph (4) of section 691(c) is amended by striking
''sections 1(h), 1201, and 1211'' and inserting ''sections
1(h), 1201, 1202, and 1211''.
(9) The second sentence of section 871(a)(2) is amended by
inserting ''or 1203'' after ''1202''.
(10) Subsection (d) of section 1044 is amended by striking
''1202'' and inserting ''1203''.
(11) Paragraph (1) of section 1402(i) is amended by
inserting '', and the deduction provided by section 1202 shall
not apply'' before the period at the end thereof.
(f) Clerical Amendment.--The table of sections for part I of
subchapter P of chapter 1 is amended by inserting after the item
relating to section 1201 the following new item:

''Sec. 1202. Capital gains deduction for
assets held by noncorporate
taxpayers more than 2 years.''
(g) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years ending on and after May 7, 1997.
(2) Contributions.--The amendment made by subsection (e)(1)
shall apply to contributions on or after May 7, 1997.

Output: Long-Term Investment Incentive Act of 1997 - Amends the Internal Revenue Code to establish a sliding scale capital gains deduction on assets held between two years and eight years by noncorporate taxpayers.

Input: Consider Input: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

(a) Short Title.--This Act may be cited as the ''Rural Renaissance
Act II of 2005''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.

SEC. 2. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.

(a) In General.--Part IV of subchapter A of chapter 1 (relating to
credits against tax) is amended by adding at the end the following new
subpart:

''Subpart H--Nonrefundable Credit to Holders of Rural Renaissance Bonds

''Sec. 54. Credit to holders of rural renaissance bonds.

''SEC. 54. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.

''(a) Allowance of Credit.--In the case of a taxpayer who holds a
rural renaissance 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 rural renaissance bond is 25 percent of the annual credit
determined with respect to such bond.
''(2) Annual credit.--The annual credit determined with
respect to any rural renaissance bond is the product of--
''(A) the credit rate determined by the Secretary
under paragraph (3) for the day on which such bond was
sold, multiplied by
''(B) the outstanding face amount of the bond.
''(3) Determination.--For purposes of paragraph (2), with
respect to any rural renaissance bond, the Secretary shall
determine daily or caused to be determined daily a credit rate
which shall apply to the first day on which there is a binding,
written contract for the sale or exchange of the bond. The
credit rate for any day is the credit rate which the Secretary
or the Secretary's designee estimates will permit the issuance
of rural renaissance bonds with a specified maturity or
redemption date without discount and without interest cost to
the qualified issuer.
''(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 also includes the last day on which the bond is
outstanding.
''(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
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 redeemed or matures.
''(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 imposed by
section 55, over
''(B) the sum of the credits allowable under this
part (other than subpart C thereof, relating to
refundable credits).
''(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) Rural Renaissance Bond.--For purposes of this section--
''(1) In general.--The term 'rural renaissance bond' means
any bond issued as part of an issue if--
''(A) the bond is issued by a qualified issuer,
''(B) 95 percent or more of the proceeds from the
sale of such issue are to be used for capital
expenditures incurred for 1 or more qualified projects,
''(C) the qualified issuer designates such bond for
purposes of this section and the bond is in registered
form, and
''(D) the issue meets the requirements of
subsections (e) and (g).
''(2) Qualified project; special use rules.--
''(A) In general.--The term 'qualified project'
means 1 or more projects described in subparagraph (B)
located in a rural area.
''(B) Projects described.--A project described in
this subparagraph is--
''(i) a water or waste treatment project,
''(ii) an affordable housing project,
''(iii) a community facility project,
including hospitals, fire and police stations,
and nursing and assisted-living facilities,
''(iv) a value-added agriculture or
renewable energy facility project for
agricultural producers or farmer-owned
entities, including any project to promote the
production, processing, or retail sale of
ethanol (including fuel at least 85 percent of
the volume of which consists of ethanol),
biodiesel, animal waste, biomass, raw
commodities, or wind as a fuel,
''(v) a distance learning or telemedicine
project,
''(vi) a rural utility infrastructure
project, including any electric or telephone
system,
''(vii) a project to expand broadband
technology,
''(viii) a rural teleworks project, and
''(ix) any project described in any
preceding clause carried out by the Delta
Regional Authority.
''(C) Special rules.--For purposes of this
paragraph--
''(i) any project described in subparagraph
(B)(iv) for a farmer-owned entity may be
considered a qualified project if such entity
is located in a rural area, or in the case of a
farmer-owned entity the headquarters of which
are located in a nonrural area, if the project
is located in a rural area, and
''(ii) any project for a farmer-owned
entity which is a facility described in
subparagraph (B)(iv) for agricultural producers
may be considered a qualified project
regardless of whether the facility is located
in a rural or nonrural area.
''(3) Special use rules.--
''(A) Refinancing rules.--For purposes of paragraph
(1)(B), a qualified project may be refinanced with
proceeds of a rural renaissance bond only if the
indebtedness being refinanced (including any obligation
directly or indirectly refinanced by such indebtedness)
was originally incurred after the date of the enactment
of this section.
''(B) Treatment of changes in use.--For purposes of
paragraph (1)(B), the proceeds of an issue shall not be
treated as used for a qualified project to the extent
that a borrower takes any action within its control
which causes such proceeds not to be used for a
qualified project. The Secretary 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
rural renaissance bond.
''(e) Maturity Limitations.--
''(1) Duration of term.--A bond shall not be treated as a
rural renaissance bond if such bond is issued as part of an
issue and--
''(A) the average maturity of bonds issued as a
part of such issue, exceeds
''(B) 120 percent of the average reasonable
expected economic life of the facilities being financed
with the proceeds from the sale of such issue.
''(2) Determination of averages.--For purposes of paragraph
(1), the determination of averages of an issue and economic
life of any facility shall be determined in accordance with
section 147(b).
''(3) Ratable principal amortization required.--A bond
shall not be treated as a rural renaissance bond unless it is
part of an issue which provides for an equal amount of
principal to be paid by the qualified issuer during each
calendar year that the issue is outstanding.
''(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 (c)) and the amount so
included shall be treated as interest income.
''(g) Special Rules Relating to Expenditures.--
''(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if--
''(A) at least 95 percent of the proceeds from the
sale of the issue are to be spent for 1 or more
qualified projects within the 5-year period beginning
on the date of issuance of the rural renaissance bond,
''(B) a binding commitment with a third party to
spend at least 10 percent of the proceeds from the sale
of the issue will be incurred within the 6-month period
beginning on the date of issuance of the rural
renaissance bond or, in the case of a rural renaissance
bond, the proceeds of which are to be loaned to 2 or
more borrowers, such binding commitment will be
incurred within the 6-month period beginning on the
date of the loan of such proceeds to a borrower, and
''(C) such projects will be completed with due
diligence and the proceeds from the sale of the issue
will be spent with due diligence.
''(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the qualified
issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related projects
will continue to proceed with due diligence.
''(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of the
proceeds of such issue are expended within such 5-year period
(and no extension has been obtained under paragraph (2)), the
qualified issuer shall redeem all of the nonqualified bonds on
the earliest call date subsequent to the expiration of the 5-
year period. If such earliest call date is more than 90 days
subsequent to the expiration of the 5-year period, the
qualified issuer shall establish a yield-restricted defeasance
escrow within such 90 days to retire such nonqualified bonds on
the earlier of the date which is 10 years after the issue date
or the first call date. For purposes of this paragraph, the
term 'nonqualified bonds' means the portion of the outstanding
bonds in an amount that, if the remaining bonds were issued on
the fifth anniversary of the date of the issuance of the issue,
at least 95 percent of the proceeds of the remaining bonds
would be used to provide qualified projects.
''(h) Special Rules Relating to Arbitrage.--
''(1) In general.--A bond which is part of an issue shall
not be treated as a rural renaissance bond unless, with respect
to the issue of which the bond is a part, the qualified issuer
satisfies the arbitrage rebate requirements of section 148 with
respect to gross proceeds of the issue (other than any amounts
applied in accordance with subsection (g)). For purposes of
such requirements, yield over the term of an issue shall be
determined under the principles of section 148 based on the
qualified issuer's payments of principal, interest (if any),
and fees for qualified guarantees on such issue.
''(2) Exception.--Amounts on deposit in a bona fide debt
service fund with regard to any rural renaissance bond are not
subject to the arbitrage rebate requirements of section 148.
''(i) Qualified Issuer.--For purposes of this section--
''(1) In general.--The term 'qualified issuer' means any
not-for-profit cooperative lender which has as of the date of
the enactment of this section received a guarantee under
section 306 of the Rural Electrification Act and which meets
the requirement of paragraph (2).
''(2) User fee requirement.--The requirement of this
paragraph is met if the issuer of any rural renaissance bond
makes grants for economic and community development projects on
a semi-annual basis every year that such bond is outstanding in
an annual amount equal to /2\ of the rate on United States
Treasury bills of the same maturity multiplied by the
outstanding principal balance of rural renaissance bonds issued
by such issuer.
''(j) Special Rules Relating to Pool Bonds.--No portion of a pooled
financing bond may be allocable to loan unless the borrower has entered
into a written loan commitment for such portion prior to the issue date
of such issue.
''(k) Other Definitions and Special Rules.--For purposes of this
section--
''(1) Bond.--The term 'bond' includes any obligation.
''(2) Pooled financing bond.--The term 'pooled financing
bond' shall have the meaning given such term by section
149(f)(4)(A).
''(3) Rural area.--The term 'rural area' means any area
other than--
''(A) a city or town which has a population of
greater than 50,000 inhabitants, or
''(B) the urbanized area contiguous and adjacent to
such a city or town.
''(4) Partnership; s corporation; and other pass-thru
entities.--Under regulations prescribed by the Secretary, in
the case of a partnership, 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 investment companies.--If any
rural renaissance bond is held by a regulated investment
company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures
prescribed by the Secretary.
''(6) 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 rural renaissance
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.
''(7) Reporting.--Issuers of rural renaissance bonds shall
submit reports similar to the reports required under section
149(e).''.
(b) Reporting.--Subsection (d) of section 6049 (relating to returns
regarding payments of interest) is amended by adding at the end the
following new paragraph:
''(8) Reporting of credit on rural renaissance bonds.--
''(A) In general.--For purposes of subsection (a),
the term 'interest' includes amounts includible in
gross income under section 54(f) 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 regulations, 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 Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Clerical Amendments.--
(1) The table of subparts for part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
item:

''Subpart H. Nonrefundable credit to holders of rural
renaissance bonds.''.
(2) Section 6401(b)(1) is amended by striking ''and G'' and
inserting ''G, and H''.
(d) Issuance of Regulations.--The Secretary of Treasury shall issue
regulations required under section 54 of the Internal Revenue Code of
1986 (as added by this section) not later than 120 days after the date
of the enactment of this Act.
(e) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
Output: Rural Renaissance Act II of 2005 - Amends the Internal Revenue Code to allow holders of rural renaissance bonds a nonrefundable tax credit of 25 percent of the annual credit amount as determined by the Secretary of the Treasury. Defines "rural renaissance bond" as any bond issued by a nonprofit cooperative lender that is used for capital expenditures for qualified projects in rural areas, including projects for water or waste treatment, affordable housing, community facilities (e.g., hospitals, fire and police stations, nursing facilities, etc.), rural utility infrastructure, broadband technology, and rural teleworks.

Sets forth rules for maturity limitations, arbitrage, and expenditures, including a requirement that 95 percent of the proceeds from the sale of a bond issue be spent on qualified projects within five yeas from the date of a bond issuance.