Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Problem:SECTION 1. SHORT TITLE.

This Act may be cited as the ''Intercity Passenger Rail Trust Fund
Act of 1995''.

SEC. 2. INTERCITY PASSENGER RAIL TRUST FUND.

(a) Establishment of Trust Fund.--Subchapter A of chapter 98 of the
Internal Revenue Code of 1986 (relating to trust fund code) is amended
by adding at the end the following new section:

''SEC. 9512. INTERCITY PASSENGER RAIL TRUST FUND.

''(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the 'Intercity
Passenger Rail Trust Fund', consisting of such amounts as may be
transferred or credited to the Trust Fund as provided in section
9503(c)(7) or section 9602(b).
''(b) Expenditures From Trust Fund.--
''(1) In general.--Except as provided in paragraph (2),
amounts in the Intercity Passenger Rail Trust Fund shall be
available, as provided by appropriation Acts, to finance
qualified expenses of--
''(A) the National Railroad Passenger Corporation,
and
''(B) each eligible State, to the extent determined
under paragraph (3).
''(2) Direct spending amounts.--The following amounts in
the Intercity Passenger Rail Trust Fund are hereby appropriated
to finance qualified expenses:
Amount
''Fiscal year: Available:
1996.......................................... $131,000,000
1997.......................................... 663,000,000
1998.......................................... 667,000,000
1999.......................................... 670,000,000
2000.......................................... 672,000,000.
''(3) Maximum amount of funds to eligible states.--Each
eligible State shall receive under this subsection an amount
equal to the lesser of--
''(A) the State's qualified expenses for the fiscal
year, or
''(B) the product of--
''(i) /12\ of 1 percent of the lesser
of--
''(I) the aggregate amounts
transferred and credited to the
Intercity Passenger Rail Trust Fund
under subsection (a) for such fiscal
year, or
''(II) the aggregate amounts
appropriated from the Intercity
Passenger Rail Trust Fund under this
subsection for such fiscal year, and
''(ii) the number of months such State was
an eligible State in the preceding fiscal year.
If the amount determined under subparagraph (B) exceeds the
amount under subparagraph (A) for any fiscal year, the amount
under subparagraph (B) for the following fiscal year shall be
increased by the amount of such excess.
''(c) Definitions.--For purposes of this section--
''(1) Qualified expenses.--The term 'qualified expenses'
means expenses incurred, with respect to obligations made,
after December 31, 1995, and before October 1, 2000--
''(A) in the case of--
''(i) the National Railroad Passenger
Corporation, for capital improvements in
intercity passenger rail service, or
''(ii) an eligible State, for capital
improvements in intercity rail service, and
''(B) certified by the Secretary of Transportation
as meeting the requirements of subparagraph (A).
''(2) Eligible state.--The term 'eligible State' means any
State which does not receive intercity passenger rail service
from the National Railroad Passenger Corporation.
''(d) Termination.--The Secretary shall determine and retain, not
later than October 1, 2000, the amount in the Intercity Passenger Rail
Trust Fund necessary to pay any outstanding qualified expenses, and
shall transfer any amount not so retained to the Mass Transit Account
under section 9503(e).''
(b) Transfers From Highway Trust Fund.--Section 9503(c) of the
Internal Revenue Code of 1986 (relating to expenditures from Highway
Trust Fund) is amended by adding at the end the following new
paragraph:
''(7) Transfers from trust fund for intercity passenger
rail.--
''(A) In general.--The Secretary shall transfer
from time to time from the Highway Trust Fund to the
Intercity Passenger Rail Trust Fund under section 9512
the intercity passenger rail portion of the amounts
appropriated to the Highway Trust Fund under subsection
(b) which are attributable to taxes under sections 4041
and 4081 imposed after December 31, 1995, and before
October 1, 2000.
''(B) Intercity passenger rail portion.--For
purposes of subparagraph (A), the term 'intercity
passenger rail portion' means the amount--
''(i) determined at the rate of 0.5 cent
for each gallon with respect to which tax was
imposed under section 4041 or 4081, and
''(ii) reduced (but not below zero) by the
amount by which--
''(I) the outlays of the Mass
Transit Account for the fiscal year
with respect to which such tax was
imposed, as estimated by the Secretary,
exceed
''(II) the available funds in the
Mass Transit Account for such fiscal
year (as so estimated).''
(c) Conforming Amendments.--
(1) Section 9503(e)(2) of the Internal Revenue Code of 1986
(relating to transfers to mass transit account) is amended by
striking ''4081.'' and inserting ''4081 (for the period
beginning after December 31, 1995, and ending before October 1,
2000, an amount determined at the rate of 1.5 cents for each
such gallon, increased by the amount described in subsection
(c)(7)(B)(ii)).''.
(2) The table of sections for subchapter A of chapter 98 of
such Code (relating to trust fund code) is amended by adding at
the end the following new item:

''Sec. 9512. Intercity Passenger Rail
Trust Fund.''
(d) Effective Date.--The amendments made by this section shall
apply with respect to taxes imposed after December 31, 1995.

SEC. 3. DENIAL OF DEDUCTION FOR INTEREST ON LOANS WITH RESPECT TO
COMPANY-OWNED INSURANCE.

(a) In General.--Paragraph (4) of section 264(a) of the Internal
Revenue Code of 1986 (relating to certain amounts paid in connection
with insurance contracts) is amended--
(1) by inserting '', or any endowment or annuity contracts
owned by the taxpayer covering any individual,'' after ''the
life of any individual'', and
(2) by striking all that follows ''carried on by the
taxpayer'' and inserting a period.
(b) Exception for Contracts Relating to Key Persons; Permissible
Interest Rates.--Section 264 of the Internal Revenue Code of 1986 is
amended--
(1) by striking ''Any'' in subsection (a)(4) and inserting
''Except as provided in subsection (d), any'', and
(2) by adding at the end the following new subsection:
''(d) Special Rules for Application of Subsection (a)(4).--
''(1) Exception for key persons.--Subsection (a)(4) shall
not apply to any interest paid or accrued on any indebtedness
with respect to policies or contracts covering an individual
who is a key person to the extent that the aggregate amount of
such indebtedness with respect to policies and contracts
covering such individual does not exceed $50,000.
''(2) Interest rate cap on key persons and pre-1986
contracts.--No deduction shall be allowed by reason of
paragraph (1) or the last sentence of subsection (a) with
respect to interest paid or accrued for any month to the extent
the amount of such interest exceeds the amount which would have
been determined if the rate of interest for such month were the
rate of interest described as Moody's Corporate Bond Yield
Average-Monthly Average Corporates as published by Moody's
Investors Service, Inc., or any successor thereto, for such
month.
''(3) Key person.--For purposes of paragraph (1), the term
'key person' means an officer or 20-percent owner, except that
the number of individuals who may be treated as key persons
with respect to any taxpayer shall not exceed the greater of--
''(A) 5 individuals, or
''(B) the lesser of 5 percent of the total officers
and employees of the taxpayer or 25 individuals.
''(4) 20-percent owner.--For purposes of this subsection,
the term '20-percent owner' means--
''(A) if the taxpayer is a corporation, any person
who owns directly 20 percent or more of the outstanding
stock of the corporation or stock possessing 20 percent
or more of the total combined voting power of all stock
of the corporation, or
''(B) if the taxpayer is not a corporation, any
person who owns 20 percent or more of the capital or
profits interest in the employer.
''(5) Aggregation rules.--
''(A) In general.--For purposes of paragraph (4)(A)
and applying the $50,000 limitation in paragraph (1)--
''(i) all members of a controlled group
shall be treated as 1 taxpayer, and
''(ii) such limitation shall be allocated
among the members of such group in such manner
as the Secretary may prescribe.
''(B) Controlled group.--For purposes of this
paragraph, all persons treated as a single employer
under subsection (a) or (b) of section 52 or subsection
(m) or (o) of section 414 shall be treated as members
of a controlled group.''
(c) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to interest paid or accrued after December 31, 1995.
(2) Transition rule for existing indebtedness.--
(A) In general.--In the case of indebtedness
incurred before January 1, 1996, the amendments made by
this section shall not apply to qualified interest paid
or accrued on such indebtedness after October 13, 1995,
and before January 1, 2001.
(B) Qualified interest.--For purposes of
subparagraph (A), the qualified interest with respect
to any indebtedness for any month is the amount of
interest which would be paid or accrued for such month
on such indebtedness if the lesser of the following
rates of interest were used for such month:
(i) The rate of interest specified under
the terms of the indebtedness as in effect on
October 13, 1995 (and without regard to
modification of such terms after such date).
(ii) The applicable percentage rate of
interest described as Moody's Corporate Bond
Yield Average-Monthly Average Corporates as
published by Moody's Investors Service, Inc.,
or any successor thereto, for such month.
(C) Applicable percentage.--For purposes of
subparagraph (B), the applicable percentage is as
follows:

For calendar year:
The percentage is:
1995 or 1996......................... 100 percent
1997................................. 95 percent
1998................................. 90 percent
1999................................. 85 percent
2000................................. 80 percent.
(3) Special rule for grandfathered contracts.--This section
shall not apply to any contract purchased on or before June 20,
1986, except that--
(A) paragraph (2) shall apply to interest on
indebtedness incurred in connection with such contract
which is paid or accrued after October 13, 1995, and
before January 1, 1996, and
(B) section 264(d)(2) of the Internal Revenue Code
of 1986 (as added by subsection (b)) shall apply to
such interest paid or accrued after December 31, 1995.
(d) Spread of Income Inclusion on Surrender, Etc. of Contracts.--
(1) In general.--If any amount is received under any life
insurance policy or endowment or annuity contract described in
paragraph (4) of section 264(a) of the Internal Revenue Code of
1986--
(A) on the complete surrender, redemption, or
maturity of such policy or contract during calendar
year 1996, 1997, 1998, 1999, 2000, or 2001, or
(B) in full discharge during any such calendar year
of the obligation under the policy or contract which is
in the nature of a refund of the consideration paid for
the policy or contract,
then (in lieu of any other inclusion in gross income) such
amount shall be includible in gross income ratably over the 4-
taxable year period beginning with the taxable year such amount
would (but for this paragraph) be includible. The preceding
sentence shall only apply to the extent the amount is
includible in gross income for the taxable year in which the
event described in subparagraph (A) or (B) occurs.
(2) Special rules for applying section 264.--A contract
shall not be treated--
(A) as failing to meet the requirement of section
264(c)(1) of the Internal Revenue Code of 1986, or
(B) as a single premium contract under section
264(b)(1) of such Code,
solely by reason of an occurrence described in subparagraph (A)
or (B) of paragraph (1) of this subsection or solely by reason
of no additional premiums being received under the contract by
reason of a lapse occurring after October 13, 1995.
(3) Special rule for deferred acquisition costs.--In the
case of the occurrence of any event described in subparagraph
(A) or (B) of paragraph (1) of this subsection with respect to
any policy or contract--
(A) section 848 of the Internal Revenue Code of
1986 shall not apply to the unamortized balance (if
any) of the specified policy acquisition expenses
attributable to such policy or contract immediately
before the insurance company's taxable year in which
such event occurs, and
(B) there shall be allowed as a deduction to such
company for such taxable year under chapter 1 of such
Code an amount equal to such unamortized balance.
Solution:
Intercity Passenger Rail Trust Fund Act of 1995 - Amends the Internal Revenue Code to establish the Intercity Passenger Rail Trust Fund to finance qualified expenses of: (1) the National Railroad Passenger Corporation; and (2) eligible States. Makes appropriations in specified amounts for FY 1996 through FY 2000 to such Fund. Directs the Secretary of Transportation, by October 1, 2000, to determine and retain the amount in the Intercity Passenger Rail Fund necessary to pay any outstanding qualified expenses, and to transfer any amount not so retained to the Mass Transit Fund.
Authorizes the Secretary to transfer from time to time from the Highway Trust Fund to the Intercity Passenger Rail Trust Fund the intercity passenger rail portion of specified funds appropriated to the Highway Trust Fund.
Prohibits a deduction for interest paid on loans with respect to any endowment or annuity insurance contracts owned by the taxpayer covering any individual.