“TEXT OF AMENDMENTS” published by the Congressional Record on May 21, 2001

Volume 147, No. 70 covering the 1st Session of the 107th Congress (2001 - 2002) was published by the Congressional Record.

The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.

“TEXT OF AMENDMENTS” mentioning the Department of Interior was published in the Senate section on pages S5280-S5399 on May 21, 2001.

The publication is reproduced in full below:

TEXT OF AMENDMENTS

SA 689. Mr. KENNEDY submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

At the appropriate place, insert:

SEC. __. EXTENSION OF APPLICATION OF JOINT AND SURVIVOR

ANNUITY RULES.

(a) Application to All Defined Contribution Plans.--

(1) Amendments to erisa.--

(A) In general.--Section 205(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1055(a)) is amended by striking ``to which this section applies''.

(B) Conforming amendments.--

(i) Section 205(b) of such Act (29 U.S.C. 1055(b)) is amended to read as follows:

``(b)(1)(A) In the case of--

``(i) a tax credit employee stock ownership plan (as defined in section 409(a) of the Internal Revenue Code of 1986), or

``(ii) an employee stock ownership plan (as defined in section 4975(e)(7) of such Code),subsection (a) shall not apply to that portion of the employee's accrued benefit to which the requirements of section 409(h) of such Code apply.

``(B) Subparagraph (A) shall not apply with respect to any participant unless--

``(i) such plan provides that the participant's nonforfeitable accrued benefit (reduced by any security interest held by the plan by reason of a loan outstanding to such participant) is payable in full, on the death of the participant, to the participant's surviving spouse (or, if there is no surviving spouse or the surviving spouse consents in the manner required under subsection (c)(2), to a designated beneficiary),

``(ii) such participant does not elect the payment of benefits in the form of a life annuity, and

``(iii) with respect to such participant, such plan is not a direct or indirect transferee (in a transfer after December 31, 1984) of a plan to which, at the time of the transfer, subsection (a) applied (or to which this clause applied with respect to the participant).

Clause (iii) shall apply only with respect to the transferred assets (and income therefrom) if the plan separately accounts for such assets and any income therefrom. A plan shall not be treated as failing to meet the requirements of this subparagraph merely because the plan provides that benefits will not be payable to the surviving spouse of the participant unless the participant and such spouse had been married throughout the 1-year period ending on the earlier of the participant's annuity starting date or the date of the participant's death.

``(2) This section shall not apply to a plan which the Secretary of the Treasury or his delegate has determined is a plan described in section 404(c) of the Internal Revenue Code of 1986 (or a continuation thereof) in which participation is substantially limited to individuals who, before January 1, 1976, ceased employment covered by the plan.''

(ii) Section 205(e)(2) of such Act (20 U.S.C. 1055(e)(2)) is amended by striking ``individual account plan or participant described in subparagraph (B) or (C) of subsection (b)(1)'' and inserting ``individual account plan to which this section applies, or any participant described in subsection (b)(1)(B)''.

(2) Amendments to internal revenue code.--

(A) In general.--Section 401(a)(11)(A) of the Internal Revenue Code of 1986 (relating to requirement of joint and survivor annuity and preretirement survivor annuity) is amended by striking the matter preceding clause (i) and inserting:

``(A) In general.--Except as provided in section 417 and subparagraph (B), a trust forming part of a plan shall not constitute a qualified trust under this section unless such plan provides--''.

(B) Conforming amendments.--

(i) Section 401(a)(11) of such Code is amended by striking subparagraphs (B), (C), and (D) and inserting the following new subparagraphs:

``(B) Exception for certain esop benefits.--

``(i) In general.--In the case of--

``(I) a tax credit employee stock ownership plan (as defined in section 409(a)), or

``(II) an employee stock ownership plan (as defined in section 4975(e)(7)),

subparagraph (A) shall not apply to that portion of the employee's accrued benefit to which the requirements of section 409(h) apply.

``(ii) Nonforfeitable benefit must be paid in full, etc.--In the case of any participant, clause (i) shall not apply unless--

``(I) such plan provides that the participant's nonforfeitable accrued benefit (reduced by any security interest held by the plan by reason of a loan outstanding to such participant) is payable in full, on the death of the participant, to the participant's surviving spouse (or, if there is no surviving spouse or the surviving spouse consents in the manner required under section 417(a)(2), to a designated beneficiary),

``(II) such participant does not elect the payment of benefits in the form of a life annuity, and

``(III) with respect to such participant, such plan is not a direct or indirect transferee (in a transfer after December 31, 1984) of a plan to which, at the time of the transfer, subparagraph (A) applied (or to which this subclause applied with respect to the participant).

Subclause (III) shall apply only with respect to the transferred assets (and income therefrom) if the plan separately accounts for such assets and any income therefrom.

``(C) Special rule where participant and spouse married less than 1 year.--A plan shall not be treated as failing to meet the requirements of subparagraph (B)(ii) merely because the plan provides that benefits will not be payable to the surviving spouse of the participant unless the participant and such spouse had been married throughout the 1-year period ending on the earlier of the participant's annuity starting date or the date of the participant's death.''

(ii) Section 401(a)(11) of such Code is amended by redesignating subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively.

(iii) Section 417(c)(2) of such Code is amended by striking

``defined contribution plan or participant described in clause (ii) or (iii) of section 401(a)(11)(B)'' and inserting

``defined contribution plan to which section 401(a)(11) applies, or any participant described in section 401(a)(11)(B)(ii),''.

(b) Special Rules Relating to Defined Contribution Plans.--

(1) Amendments to erisa.--

(A) Payments in lieu of annuity.--Section 205 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1055) is amended by redesignating subsection (l) as subsection (m) and by inserting after subsection (k) the following new subsection:

``(l)(1) For purposes of this section, a defined contribution plan shall be treated as providing--

``(A) a qualified joint and survivor annuity if the plan provides that the account balance of the participant to which the participant had a nonforfeitable right (within the meaning of section 203) will be distributed in a series of periodic payments (determined in accordance with tables prescribed by the Secretary of the Treasury) over the joint lives of the participant and the participant's spouse, and

``(B) a qualified preretirement survivor annuity if the plan provides that the account balance of the participant (as of the date of death) to which the participant had a nonforfeitable right (as so defined) will be distributed to the surviving spouse, at the option of the spouse, in either such a series of periodic payments over the life of the surviving spouse or in a lump sum if the plan provides for lump sums.

A plan shall not be treated as failing to meet the requirements of subparagraph (A) if the plan provides that a participant may, with the consent of the spouse, elect at any time to have the plan pay all of the remaining portion of the account balance in a lump sum.

``(2) In the case of a termination of a defined contribution plan which is providing payments described in paragraph (1), such plan shall be treated as meeting the requirements of paragraph (1) if the plan--

``(A) purchases an irrevocable commitment from an insurer in accordance with section 4041(b)(3)(A)(i) for each participant or surviving spouse eligible to receive such payments, or

``(B) in accordance with regulations to be prescribed by the corporation, transfers to the corporation each participant's or spouse's right to receive such payments, for treatment and payment by the corporation to the participant or spouse in a manner similar to the manner in which payments are treated and made under section 4050.''

(B) Restrictions on cash-outs.--Section 205(g) of such Act

(29 U.S.C. 1055(g)) is amended by adding at the end the following:

``(4) In the case of a defined contribution plan, the plan shall pay one-half of any distribution under paragraph (1) to the participant and one-half to the participant's spouse unless the spouse consents in writing to have the entire distribution paid to the participant.''

(2) Amendments to internal revenue code.--

(A) Payments in lieu of annuity.--Section 417 of the Internal Revenue Code of 1986 (relating to definitions and special rules for purposes of survivor minimum annuity requirements) is amended by adding at the end the following new subsection:

``(g) Special Rules for Defined Contribution Plans.--For purposes of this section--

``(1) Payments in lieu of annuities.--A defined contribution plan shall be treated as providing--

``(A) a qualified joint and survivor annuity if the plan provides that the account balance of the participant to which the participant had a nonforfeitable right (within the meaning of section 411(a)) will be distributed in a series of periodic payments (determined in accordance with tables prescribed by the Secretary) over the joint lives of the participant and the participant's spouse, and

``(2) Plan termination.--In the case of a termination of a defined contribution plan which is providing payments described in paragraph (1), such plan shall be treated as meeting the requirements of paragraph (1) if the plan--

``(A) purchases an irrevocable commitment from an insurer in accordance with section 4041(b)(3)(A)(i) of the Employee Retirement Income Security Act of 1974 for each participant or surviving spouse eligible to receive such payments, or

``(B) in accordance with regulations to be prescribed by the Pension Benefit Guaranty Corporation, transfers to the Corporation each participant's or spouse's right to receive such payments, for treatment and payment by the Corporation to the participant or spouse in a manner similar to the manner in which payments are treated and made under section 4050 of such Act.''

(B) Restrictions on cash-outs.--Section 417(e) of such Code

(relating to restrictions on cash-outs) is amended by adding at the end the following:

``(4) Special rule for defined contribution plans.--In the case of a defined contribution plan, the plan shall pay one-half of any distribution under paragraph (1) to the participant and one-half to the participant's spouse unless the spouse consents in writing to have the entire distribution paid to the participant.''

(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to plan years beginning after December 31, 2001.

(2) Special rule for collectively bargained plans.--In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified on or before the date of enactment of this Act, the amendments made by this section shall not, in the case of employees covered by any such agreement, apply to plan years beginning before the earlier of--

(A) the later of--

(i) January 1, 2002, or

(ii) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof after the date of enactment of this Act), or

(B) January 1, 2003.

____

SA 690. Mr. KENNEDY submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

At the appropriate place, insert:

SEC. . QUALIFIED JOINT AND 75 PERCENT SURVIVOR ANNUITY.

(a) Amendments to ERISA.--

(1) Amount of annuity.--Paragraph (1) of section 205(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1055(a)) is amended by inserting ``or, at the election of the participant, shall be provided in the form of a qualified joint and 75 percent survivor annuity'' after

``survivor annuity,''.

(2) Definition.--Subsection (d) of section 205 of such Act

(29 U.S.C. 1055) is amended--

(A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively,

(B) by inserting ``(1)'' after ``(d)'', and

``(2) For purposes of this section, the term `qualified joint and 75 percent survivor annuity' means an annuity for the life of the participant with a survivor annuity for the life of the spouse which is not less than 75 percent of (and is not greater than 100 percent of) the amount of the annuity which is payable during the joint lives of the participant and the spouse.''

(b) Amendments to Internal Revenue Code.--

(1) Amount of annuity.--Clause (i) of section 401(a)(11)(A)

(relating to requirement of joint and survivor annuity and preretirement survivor annuity) is amended by inserting ``or, at the election of the participant, shall be provided in the form of a qualified joint and 75 percent survivor annuity'' after ``survivor annuity,''.

(2) Definition.--Section 417(f) (relating to definitions and special rules) is amended by adding at the end the following new paragraph:

``(8) Definition of qualified joint and seventy five percent survivor annuity.--The term `qualified joint and 75 percent survivor annuity' means an annuity for the life of the participant with a survivor annuity for the life of the spouse which is not less than 75 percent of (and is not greater than 100 percent of) the amount of the annuity which is payable during the joint lives of the participant and the spouse.''

(1) In general.--Except as provided in paragraphs (2) and

(3), the amendments made by this section shall apply to plan years beginning after December 31, 2001.

(2) Application to current employees.--The amendments made by this section shall not apply to any employee who does not have at least 1 hour of service in any plan year beginning after December 31, 2001.

(3) Collective bargaining agreements.--In the case of a plan maintained pursuant to 1 or more collective bargaining agreements between employee representatives and 1 or more employers ratified on or before the date of the enactment of this Act, the amendments made by this section shall not, in the case of employees covered by any such agreement, apply to plan years beginning before the earlier of--

(A) the later of--

(i) the date on which the last of such collective bargaining agreements terminates (determined without regard to any extension thereof on or after such date of enactment), or

(ii) January 1, 2002, or

(B) January 1, 2003.

____

SA 691. Mr. KYL submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; as follows:

At the end of subtitle D of title IV, add the following:

SEC. __. CREDIT FOR CONTRIBUTIONS TO CHARITABLE ORGANIZATIONS

WHICH PROVIDE SCHOLARSHIPS FOR STUDENTS

ATTENDING ELEMENTARY AND SECONDARY SCHOOLS.

(a) In General.--Subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:

``SEC. 30B. CREDIT FOR CONTRIBUTIONS TO CHARITABLE

ORGANIZATIONS WHICH PROVIDE SCHOLARSHIPS FOR

STUDENTS ATTENDING ELEMENTARY AND SECONDARY

SCHOOLS.

``(a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified charitable contributions of the taxpayer for the taxable year.

``(b) Maximum Credit.--The credit allowed by subsection (a) for any taxable year shall not exceed $250 ($500, in the case of a joint return).

``(c) Qualified Charitable Contribution.--For purposes of this section--

``(1) In general.--The term `qualified charitable contribution' means, with respect to any taxable year, the amount allowable as a deduction under section 170 (determined without regard to subsection (d)(1)) for cash contributions to a school tuition organization.

``(2) School tuition organization.--

``(A) In general.--The term `school tuition organization' means any organization described in section 170(c)(2) if the annual disbursements of the organization for elementary and secondary school scholarships are normally not less than 90 percent of the sum of such organization's annual gross income and contributions and gifts.

``(B) Elementary and secondary school scholarship.--The term `elementary and secondary school scholarship' means any scholarship excludable from gross income under section 117 for expenses related to education at or below the 12th grade.

``(d) Special Rules.--

``(1) Denial of double benefit.--No deduction shall be allowed under this chapter for any contribution for which credit is allowed under this section.

``(2) Application with other credits.--The credit allowable under subsection (a) for any taxable year shall not exceed the excess (if any) of--

``(A) the regular tax for the taxable year, reduced by the sum of the credits allowable under subpart A and the preceding sections of this subpart, over

``(B) the tentative minimum tax for the taxable year.

``(3) Controlled groups.--All persons who are treated as one employer under subsection (a) or (b) of section 52 shall be treated as 1 taxpayer for purposes of this section.

``(e) Election To Have Credit Not Apply.--A taxpayer may elect to have this section not apply for any taxable year.''.

(b) Clerical Amendment.--The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:

``Sec. 30B. Credit for contributions to charitable organizations which provide scholarships for students attending elementary and secondary schools.''.

____

SA 692. Mr. WELLSTONE proposed an amendment to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; as follows:

Mr. Wellstone moves to commit the bill H.R. 1836, as amended, to the Committee on Finance with instructions to report the same back to the Senate not later than that date that is 3 days after the date on which this motion is adopted with the following amendments:

(1) Establish a reserve account for purposes of providing funds for Federal education programs.

(2) Strike the reductions to the highest rate of tax under section 1 of the Internal Revenue Code of 1986 contained in section 101.

(3) Provide for the deposit in the reserve account described in paragraph (1) in each of fiscal years 2002 through 2011 of an amount equal to the amount that would result from striking the reductions described in paragraph

(2) (as determined by the Joint Committee on Taxation).

(4) Make available amounts in the reserve account described in paragraph (1) in each of fiscal years 2002 through 2011 for purposes of funding Federal education programs, which amounts shall be in addition to any other amounts available for funding such programs during each such fiscal year.

____

SA 693. Mr. LIEBERMAN (for himself and Mr. Daschle) submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; as follows:

On page 7, line 15, insert ``(12.5 percent in taxable years beginning in 2001)'' after ``percent''.

On page 13, between lines 15 and 16, insert the following:

SEC. __. REFUND OF INDIVIDUAL INCOME AND EMPLOYMENT TAXES.

(a) Refund.--

(1) In general.--Subchapter B of chapter 65 (relating to rules of special application in the case of abatements, credits, and refunds) is amended by adding at the end the following new section:

``SEC. 6428. REFUND OF INDIVIDUAL INCOME AND EMPLOYMENT

TAXES.

``(a) General Rule.--Except as otherwise provided in this section, each individual shall be treated as having made a payment against the tax imposed by chapter 1 for any taxable year beginning in 2001, in an amount equal to the lesser of--

``(1) the amount of the taxpayer's liability for tax for the taxpayer's last taxable year beginning in calendar year 2000, or

``(2) the taxpayer's applicable amount.

``(b) Liability for Tax.--For purposes of this section, the liability for tax for the taxable year shall be the sum of--

``(1) the excess (if any) of--

``(A) the sum of--

``(i) the taxpayer's regular tax liability (within the meaning of section 26(b)) for the taxable year, and

``(ii) the tax imposed by section 55(a) with respect to such taxpayer for the taxable year, over

``(B) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than sections 31, 33, and 34) for the taxable year, and

``(2) the taxes imposed by sections 1401, 3101, 3111, 3201(a), 3211(a)(1), and 3221(a) on amounts received by the taxpayer for the taxable year.

``(c) Applicable Amount.--For purposes of this section--

``(1) In general.--The applicable amount for any taxpayer shall be determined under the following table:

``In the case of a taxpayer described in: The applicable amount is:

Section 1(a)................................................$600 ....

Section 1(b)................................................$450 ....

Section 1(c)................................................$300 ....

Section 1(d)................................................$300 ....

Paragraph (2)...............................................$300.....

``(2) Taxpayers with only payroll tax liability.--A taxpayer is described in this paragraph if such taxpayer's liability for tax for the taxable year does not include any liability described in subsection (b)(1).

``(d) Date Payment Deemed Made.--

``(1) In general.--The payment provided by this section shall be deemed made on the date of the enactment of this section.

``(2) Remittance of payment.--The Secretary shall remit to each taxpayer the payment described in paragraph (1) within 90 days after such date of enactment.

``(3) Claim for nonpayment.--Any taxpayer who erroneously does not receive a payment described in paragraph (1) may make claim for such payment in a manner and at such time as the Secretary prescribes.

``(e) Certain Persons Not Eligible.--This section shall not apply to--

``(1) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins,

``(2) any estate or trust, or

``(3) any nonresident alien individual.''.

(2) Determination of withholding tables.--Section 3402(a)

(relating to requirement of withholding) is amended by adding at the following new paragraph:

``(3) Changes made by restoring earnings to lift individuals and empower families (relief) act of 2001.--Notwithstanding the provisions of this subsection, the Secretary shall modify the tables and procedures under paragraph (1) to reflect the amendments made by section 101 of the Restoring Earnings To Lift Individuals and Empower Families (RELIEF) Act of 2001 with respect to the 10-percent rate bracket, and such modification shall take effect on July 1, 2001, as if the lowest rate of tax under section 1 (as amended by such section 101) was the 10-percent rate effective on such date.''.

(3) Conforming Amendments.--

(A) Section 1324(b)(2) of title 31, United States Code, is amended by inserting before the period ``, or enacted by the Restoring Earnings To Lift Individuals and Empower Families

(RELIEF) Act of 2001''.

(B) The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item:

``Sec. 6428. Refund of individual income and employment taxes.''.

(4) Effective Dates.--

(A) In general.--Except as provided in subparagraph (B), the amendments made by this subsection shall take effect on the date of the enactment of this Act.

(B) Amendments to withholding provision.--The amendments made by paragraph (2) shall apply to amounts paid after June 30, 2001.

(b) Revenue Offset.--The Secretary of the Treasury shall adjust the reduction in the highest marginal tax rate in the table contained in section 1(i)(2) of the Internal Revenue Code of 1986, as added by section 101(a), as necessary to offset the decrease in revenues to the Treasury for each fiscal year resulting from the amendments made by subsection

(a).

____

SA 694. Mr. REID (for himself and Mrs. Clinton) submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

On page 314, after line 21, add the following:

SEC. 803. MODIFICATIONS TO CREDIT FOR ELECTRICITY PRODUCED

FROM RENEWABLE AND WASTE PRODUCTS.

(a) Increase in Credit Rate.--

(1) In general.--Section 45(a)(1) is amended by striking

``1.5 cents'' and inserting ``1.8 cents''.

(2) Conforming amendments.--

(A) Section 45(b)(2) is amended by striking ``1.5 cent'' and inserting ``1.8 cent''.

(B) Section 45(d)(2)(B) is amended by inserting ``(calendar year 2001 in the case of the 1.8 cent amount in subsection

(a))'' after ``1992''.

(b) Expansion of Qualified Resources.--

(1) In general.--Section 45(c)(1) (relating to qualified energy resources) is amended by striking ``and'' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ``, and'', and by adding at the end the following:

``(D) alternative resources.''.

(2) Definition of alternative resources.--Section 45(c)

(relating to definitions) is amended--

(A) by redesignating paragraph (3) as paragraph (5),

(B) by redesignating paragraph (4) as paragraph (3), and

``(4) Alternative Resources.--

``(A) In general.--The term `alternative resources' means--

``(i) solar,

``(ii) biomass (other than closed loop biomass),

``(iii) municipal solid waste,

``(iv) incremental hydropower,

``(v) geothermal,

``(vi) landfill gas, and

``(vii) steel cogeneration.

``(B) Biomass.--The term `biomass' means any solid, nonhazardous, cellulosic waste material or any organic carbohydrate matter, which is segregated from other waste materials, and which is derived from--

``(i) any of the following forest-related resources: mill residues, precommercial thinnings, slash, and brush, but not including old-growth timber,

``(ii) waste pallets, crates, dunnage, untreated wood waste from construction or manufacturing activities, and landscape or right-of-way tree trimmings, but not including unsegregated municipal solid waste or post-consumer wastepaper, or

``(iii) any of the following agriculture sources: orchard tree crops, vineyard, grain, legumes, sugar, and other crop by-products or residues, including any packaging and other materials which are nontoxic and biodegradable and are associated with the processing, feeding, selling, transporting, and disposal of such agricultural materials.

``(C) Municipal solid waste.--The term `municipal solid waste' has the same meaning given the term `solid waste' under section 2(27) of the Solid Waste Utilization Act (42 U.S.C. 6903).

``(D) Incremental hydropower.--The term `incremental hydropower' means additional generating capacity achieved from--

``(i) increased efficiency, or

``(ii) additions of new capacity,at a licensed non-Federal hydroelectric project originally placed in service before the date of the enactment of this paragraph.

``(E) Geothermal.--The term `geothermal' means energy derived from a geothermal deposit (within the meaning of section 613(e)(2)), but only, in the case of electricity generated by geothermal power, up to (but not including) the electrical transmission stage.

``(F) Landfill gas.--The term `landfill gas' means gas generated from the decomposition of any household solid waste, commercial solid waste, and industrial solid waste disposed of in a municipal solid waste landfill unit (as such terms are defined in regulations promulgated under subtitle D of the Solid Waste Disposal Act (42 U.S.C. 6941 et seq.).

``(G) Steel cogeneration.--The term `steel cogeneration' means the production of electricity and steam (or other form of thermal energy) from any or all waste sources defined in paragraphs (2) and (3) and subparagraphs (B) and (C) of this paragraph within an operating facility which produces or integrates the production of coke, direct reduced iron ore, iron, or steel provided that the cogeneration meets any regulatory energy-efficiency standards established by the Secretary, and only to the extent that such energy is produced from--

``(i) gases or heat generated from the production of metallurgical coke,

``(ii) gases or heat generated from the production of direct reduced iron ore or iron, from blast furnace or direct ironmaking processes, or

``(iii) gases or heat generated from the manufacture of steel.''.

(3) Qualified facility.--Section 45(c)(5) (defining qualified facility), as redesignated by paragraph 2(A), is amended by adding at the end the following:

``(D) Alternative resources facility.--

``(i) In general.--Except as provided in clauses (ii),

(iii), and (iv), in the case of a facility using alternative resources to produce electricity, the term `qualified facility' means any facility of the taxpayer which is originally placed in service after the date of the enactment of this subparagraph.

``(ii) Biomass facility.--In the case of a facility using biomass described in paragraph (4)(A)(ii) to produce electricity, the term `qualified facility' means any facility of the taxpayer.

``(iii) Geothermal facility.--In the case of a facility using geothermal to produce electricity, the term `qualified facility' means any facility of the taxpayer which is originally placed in service after December 31, 1992.

``(iv) Steel cogeneration facilities.--In the case of a facility using steel cogeneration to produce electricity, the term `qualified facility' means any facility permitted to operate under the environmental requirements of the Clean Air Act Amendments of 1990 which is owned by the taxpayer and originally placed in service after the date of the enactment of this subparagraph. Such a facility may be treated as originally placed in service when such facility was last upgraded to increase efficiency or generation capability after such date.

``(v) Special rules.--In the case of a qualified facility described in this subparagraph, the 10-year period referred to in subsection (a) shall be treated as beginning no earlier than the date of the enactment of this subparagraph.''.

(4) Government-owned facility.--Section 45(d)(6) (relating to credit eligibility in the case of government-owned facilities using poultry waste) is amended--

(A) by inserting ``or alternative resources'' after

``poultry waste'', and

(B) by inserting ``or alternative resources'' after

``poultry waste'' in the heading thereof.

(5) Qualified facilities with co-production.--Section 45(b)

(relating to limitations and adjustments) is amended by adding at the end the following:

``(4) Increased credit for co-production facilities.--

``(A) In general.--In the case of a qualified facility described in subsection (c)(3)(D)(i) which has a co-production facility or a qualified facility described in subparagraph (A), (B), or (C) of subsection (c)(3) which adds a co-production facility after the date of the enactment of this paragraph, the amount in effect under subsection (a)(1) for an eligible taxable year of a taxpayer shall (after adjustment under paragraph (2) and before adjustment under paragraphs (1) and (3)) be increased by .25 cents.

``(B) Co-production facility.--For purposes of subparagraph

(A), the term `co-production facility' means a facility which--

``(i) enables a qualified facility to produce heat, mechanical power, chemicals, liquid fuels, or minerals from qualified energy resources in addition to electricity, and

``(ii) produces such energy on a continuous basis.

``(C) Eligible taxable year.--For purposes of subparagraph

(A), the term `eligible taxable year' means any taxable year in which the amount of gross receipts attributable to the co-production facility of a qualified facility are at least 10 percent of the amount of gross receipts attributable to electricity produced by such facility.''.

(6) Qualified facilities located within qualified indian lands.--Section 45(b) (relating to limitations and adjustments), as amended by paragraph (5), is amended by adding at the end the following:

``(5) Increased credit for qualified facility located within qualified indian land.--In the case of a qualified facility described in subsection (c)(3)(D) which--

``(A) is located within--

``(i) qualified Indian lands (as defined in section 7871(c)(3)), or

``(ii) lands which are held in trust by a Native Corporation (as defined in section 3(m) of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)) for Alaska Natives, and

``(B) is operated with the explicit written approval of the Indian tribal government or Native Corporation (as so defined) having jurisdiction over such lands,the amount in effect under subsection (a)(1) for a taxable year shall (after adjustment under paragraphs (2) and (4) and before adjustment under paragraphs (1) and (3)) be increased by .25 cents.''.

(7) Electricity produced from certain resources co-fired in coal plants.--Section 45(d) (relating to definitions and special rules) is amended by adding at the end the following:

``(8) Special rule for electricity produced from certain resources co-fired in coal plants.--In the case of electricity produced from biomass (including closed loop biomass), municipal solid waste, or animal waste, co-fired in a facility which produces electricity from coal--

``(A) subsection (a)(1) shall be applied by substituting `1 cent' for `1.8 cents',

``(B) such facility shall be considered a qualified facility for purposes of this section, and

``(C) the 10-year period referred to in subsection (a) shall be treated as beginning no earlier than the date of the enactment of this paragraph.''.

(8) Conforming amendments.--

(A) The heading for section 45 is amended by inserting

``AND WASTE ENERGY'' after ``RENEWABLE''.

(B) The item relating to section 45 in the table of sections subpart D of part IV of subchapter A of chapter 1 is amended by inserting ``and waste energy'' after

``renewable''.

(1) Credits for certain tax exempt organizations and governmental units.--Section 45(d) (relating to definitions and special rules), as amended by subsection (b)(7), is amended by adding at the end the following:

``(9) Credits for certain tax exempt organizations and governmental units.--

``(A) Allowance of credit.--Any credit which would be allowable under subsection (a) with respect to a qualified facility of an entity if such entity were not exempt from tax under this chapter shall be treated as a credit allowable under subpart C to such entity if such entity is--

``(i) an organization described in section 501(c)(12)(C) and exempt from tax under section 501(a),

``(ii) an organization described in section 1381(a)(2)(C), or

``(iii) an entity the income of which is excludable from gross income under section 115.

``(B) Use of credit.--

``(i) Transfer of credit.--An entity described in subparagraph (A) may assign, trade, sell, or otherwise transfer any credit allowable to such entity under subparagraph (A) to any taxpayer.

``(ii) Use of credit as an offset.--Notwithstanding any other provision of law, in the case of an entity described in clause (i) or (ii) of subparagraph (A), any credit allowable to such entity under subparagraph (A) may be applied by such entity, without penalty, as a prepayment of any loan, debt, or other obligation the entity has incurred under subchapter I of chapter 31 of title 7 of the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.).

``(C) Credit not income.--Neither a transfer under clause

(i) or a use under clause (ii) of subparagraph (B) of any credit allowable under subparagraph (A) shall result in income for purposes of section 501(c)(12).

``(D) Transfer proceeds treated as arising from essential government function.--Any proceeds derived by an entity described in subparagraph (A)(iii) from the transfer of any credit under subparagraph (B)(i) shall be treated as arising from an essential government function.

``(E) Credits not reduced by tax-exempt bonds or certain other subsidies.--Subsection (b)(3) shall not apply to reduce any credit allowable under subparagraph (A) with respect to--

``(i) proceeds described in subparagraph (A)(ii) of such subsection, or

``(ii) any loan, debt, or other obligation incurred under subchapter I of chapter 31 of title 7 of the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.),used to provide financing for any qualified facility.

``(F) Treatment of unrelated persons.--For purposes of this paragraph, sales among and between entities described in subparagraph (A) shall be treated as sales between unrelated parties.''.

(2) Coordination with other credits.--Section 45(d), as amended by paragraph (1), is amended by adding at the end the following:

``(10) Coordination with other credits.--This section shall not apply to any qualified facility with respect to which a credit under any other section is allowed for the taxable year unless the taxpayer elects to waive the application of such credit to such facility.''.

(3) Expansion to include animal waste.--Section 45

(relating to electricity produced from certain renewable resources), as amended by paragraphs (2) and (4) of subsection (b), is amended--

(A) by striking ``poultry'' each place it appears in subsection (c)(1)(C) and subsection (d)(6) and inserting

``animal'',

(B) by striking ``poultry'' in the heading of paragraph (6) of subsection (d) and inserting ``animal'',

``(3) Animal waste.--The term `animal waste' means poultry manure and litter and other animal wastes, including--

``(A) wood shavings, straw, rice hulls, and other bedding material for the disposition of manure, and

``(B) byproducts, packaging, and other materials which are nontoxic and biodegradable and are associated with the processing, feeding, selling, transporting, and disposal of such animal wastes.'', and

(D) by striking subparagraph (C) of subsection (c)(5) and inserting the following:

``(C) Animal waste facility.--

``(i) In general.--Except as provided in clause (ii), in the case of a facility using animal waste (other than poultry) to produce electricity, the term `qualified facility' means any facility of the taxpayer which is originally placed in service after the date of the enactment of this clause.

``(ii) Poultry waste.--In the case of a facility using animal waste relating to poultry to produce electricity, the term `qualified facility' means any facility of the taxpayer which is originally placed in service after December 31, 1999.''.

(4) Treatment of qualified facilities not in compliance with pollution laws.--Section 45(c)(5) (relating to qualified facilities), as amended by paragraphs (2) and (3) of subsection (b), is amended by adding at the end the following:

``(E) Noncompliance with pollution laws.--For purposes of this paragraph, a facility which is not in compliance with the applicable State and Federal pollution prevention, control, and permit requirements for any period of time shall not be considered to be a qualified facility during such period.''.

(5) Permanent extension of qualified facility dates.--Section 45(c)(5) (relating to qualified facility), as redesignated by subsection (b)(2), is amended by striking ``, and before January 1, 2002'' in subparagraphs (A) and (B).

(d) Revenue Offset.--The Secretary of the Treasury shall adjust the highest rate of tax under section 1 of the Internal Revenue Code of 1986 (as amended by section 101 of this Act) to the extent necessary to offset in each fiscal year beginning before October 1, 2011, the decrease in revenues to the Treasury for that fiscal year resulting from the amendments made by this section.

(e) Effective Date.--The amendments made by this section shall apply to electricity and other energy produced after the date of the enactment of this Act.

____

SA 695. Mr. DODD (for himself and Mr. Reid) submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; as follows:

On page 9, in the matter between lines 11 and 12, strike

``37.6%'' in the item relating to 2005 and 2006 and insert

``38%'' and strike ``36%'' in the item relating to 2007 and thereafter and insert ``38%''.

Strike title V and insert:

TITLE V--ESTATE AND GIFT TAX RELIEF

SEC. 501. INCREASE IN AMOUNT OF UNIFIED CREDIT AGAINST ESTATE

AND GIFT TAXES.

(a) In General.--The table contained in section 2010(c)

(relating to applicable credit amount) is amended to read as follows:

``In the case of estates of decedentThe applicable exclusion amount is:

2002, 2003, 2004, 2005, and 2006......................$1,000,000

2007 and 2008.........................................$1,125,000

2009..................................................$1,500,000

2010 or thereafter.................................$2,000,000.''.

(b) Effective Date.--The amendment made by this section shall apply to the estates of decedents dying, and gifts made, after December 31, 2001.

SEC. 502. INCREASE IN QUALIFIED FAMILY-OWNED BUSINESS

INTEREST DEDUCTION AMOUNT.

(a) In General.--Paragraph (2) of section 2057(a) (relating to family-owned business interests) is amended to read as follows:

``(2) Maximum deduction.--

``(A) In general.--The deduction allowed by this section shall not exceed the sum of--

``(i) the applicable deduction amount, plus

``(ii) in the case of a decedent described in subparagraph

(C), the applicable unused spousal deduction amount.

``(B) Applicable deduction amount.--For purposes of this subparagraph (A)(i), the applicable deduction amount is determined in accordance with the following table:

``In the case of estates of decedentThe applicable deduction amount is:

2002, 2003, 2004, 2005, and 2006.......................$1,375,000

2007 and 2008..........................................$1,625,000

2009...................................................$2,375,000

2010 or thereafter....................................$3,375,000.

``(C) Applicable unused spousal deduction amount.--If an immediately predeceased spouse of a decedent died after December 31, 2001, and the estate of such immediately predeceased spouse met the requirements of subsection (b)(1), the applicable unused spousal deduction amount for such decedent is equal to the excess of--

``(i) the applicable deduction amount allowable under this section to the estate of such immediately predeceased spouse, over

``(ii) the sum of--

``(I) the applicable deduction amount allowed under this section to the estate of such immediately predeceased spouse, plus

``(II) the amount of any increase in such estate's unified credit under paragraph (3)(B) which was allowed to such estate.''.

(b) Conforming Amendments.--Section 2057(a)(3)(B) is amended--

(1) by striking ``$675,000'' both places it appears and inserting ``the applicable deduction amount'', and

(2) by striking ``$675,000'' in the heading and inserting

``applicable deduction amount''.

(c) Effective Date.--The amendment made by this section shall apply to the estates of decedents dying, and gifts made, after December 31, 2001.

____

SA 696. Mr. NELSON of Nebraska submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. CIRCUIT BREAKER.

(a) In General.--In any fiscal year beginning with fiscal year 2004, if the level of debt held by the public for that fiscal year (as projected by the Office of Management and Budget sequestration update report on August 20th for that fiscal year) would exceed the level of debt held by the public for that fiscal year set forth in the concurrent resolution on the budget for fiscal year 2002 (H. Con. Res. 83, 107th Congress), any Member of Congress may move to proceed to a bill that would make changes in law to reduce discretionary spending and direct spending and increase revenues in a manner that would reduce the debt held by the public for the fiscal year to a level not exceeding the level provided in this resolution for that fiscal year. The motion to proceed shall be voted on at the end of 4 hours of debate.

(b) Consideration of Legislation.--A bill considered under subsection (a) shall be considered as provided in section 310(e) of the Congressional Budget Act of 1974 (2 U.S.C. 641(e)).

____

SA 697. Mr. HATCH (for himself, Mr. Allen, Mr. Craig, Mr. Smith of Oregon, Mr. Reid, Mr. Brownback, Mr. Bennett, and Mr. Kerry) proposed an amendment to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; as follows:

At the end of subtitle A of title VIII insert the following:

SEC. __. RESEARCH CREDIT.

(a) Permanent Extension of Research Credit.--

(1) In general.--Section 41 (relating to credit for increasing research activities) is amended by striking subsection (h).

(2) Conforming Amendment.--Paragraph (1) of section 45C(b) is amended by striking subparagraph (D).

(3) Effective Date.--The amendments made by this subsection shall apply to amounts paid or incurred after the date of the enactment of this Act.

(b) Increases in Rates of Alternative Incremental Credit.--

(1) In General.--Subparagraph (A) of section 41(c)(4)

(relating to election of alternative incremental credit) is amended--

(A) by striking ``2.65 percent'' and inserting ``3 percent'',

(B) by striking ``3.2 percent'' and inserting ``4 percent'', and

(2) Effective Date.--The amendments made by this subsection shall apply to taxable years ending after the date of the enactment of this Act.

____

SA 698. Mr. KENNEDY submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

On page 9, strike the matter between lines 11 and 12, and insert:

------------------------------------------------------------------------

The corresponding percentages

shall be substituted for the

``In the case of taxable years following percentages:

beginning during calendar year: -----------------------------------

28% 31% 36% 39.6%

------------------------------------------------------------------------

2002, 2003, and 2004................ 27% 30% 35% 39%

2005 and 2006....................... 26% 29% 34% 38.2%

2007 and thereafter................. 25% 28% 33% 36.6%

------------------------------------------------------------------------

On page 62, between lines 7 and 8, insert:

SEC. __. HOPE SCHOLARSHIP CREDIT AVAILABLE FOR COSTS OF

ATTENDANCE.

(a) In General.--Section 25A(f)(1) is amended by adding at the end the following subparagraph:

``(D) Costs of attendance.--For purposes of determining the amount of the Hope Scholarship Credit under subsection (b), such term shall include the cost of attendance (as defined in section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll), as in effect on the date of enactment of this subparagraph) of the eligible student at an eligible educational institution.''

(b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2001.

____

SA 699. Mr. KENNEDY submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

On page 9, between lines 14 and 15, insert:

``(4) Reduction in top rate contingent on increases in federal pell grant funding.--Notwithstanding paragraph (2), the reductions in the 39.6 percent rate bracket which

(without regard to this paragraph) would take effect for taxable years beginning in 2002, 2005, or 2007 shall not take effect at all unless the Secretary of Education certifies to the Secretary of the Treasury before November 1, 2001, November 1, 2004, or November 1, 2006, whichever is applicable, that during the fiscal year ending in 2001, or during each of the 2 fiscal years ending in 2003 and 2004 or 2005 and 2006, whichever is applicable, the Federal Government honored its commitment to fund the Federal Pell Grant program under subpart I of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a) in an amount sufficient to increase the maximum Federal Pell Grant amounts awarded under such program to--

``(A) $4,250 for the 2002-2003 school year,

``(B) $4,650 for the 2003-2004 school year,

``(C) $5,050 for the 2004-2005 school year,

``(D) $5,450 for the 2005-2006 school year,

``(E) $5,850 for the 2006-2007 school year,

``(F) $6,250 for the 2007-2008 school year,

``(G) $6,650 for the 2008-2009 school year,

``(H) $7,050 for the 2009-2010 school year, and

``(I) $7,450 for the 2010-2011 school year.''.

____

SA 700. Mr. KENNEDY submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

On page 9, between lines 14 and 15, insert:

``(4) Reduction in top rate contingent on head start funding.--Notwithstanding paragraph (2), the reductions in the 39.6 percent rate bracket which (without regard to this paragraph) would take effect for taxable years beginning in 2005 or 2007 shall not take effect at all unless the Secretary of Education certifies to the Secretary of the Treasury before November 1, 2004, or November 1, 2006, whichever is applicable, that during each of the 2 fiscal years ending in 2003 and 2004 or 2005 and 2006, whichever is applicable, the Federal Government honored its commitment to fund the Head Start Act in an amount sufficient to enable every eligible child access to such program.''.

____

SA 701. Mr. HATCH (for Mr. Kerry (for himself and Mr. Hatch)) proposed an amendment to amendment SA 697 proposed by Mr. Hatch to the bill (H.R. 1836) to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; as follows:

At the end of the matter proposed to be inserted, add the following:

SEC. __. CREDIT FOR MEDICAL RESEARCH RELATED TO DEVELOPING

VACCINES AGAINST WIDESPREAD DISEASES.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1 (relating to business related credits), as amended by section 620, is amended by adding at the end the following new section:

``SEC. 45G. CREDIT FOR MEDICAL RESEARCH RELATED TO DEVELOPING

VACCINES AGAINST WIDESPREAD DISEASES.

``(a) General Rule.--For purposes of section 38, the vaccine research credit determined under this section for the taxable year is an amount equal to 30 percent of the qualified vaccine research expenses for the taxable year.

``(b) Qualified Vaccine Research Expenses.--For purposes of this section--

``(1) Qualified vaccine research expenses.--

``(A) In general.--Except as otherwise provided in this paragraph, the term `qualified vaccine research expenses' means the amounts which are paid or incurred by the taxpayer during the taxable year which would be described in subsection (b) of section 41 if such subsection were applied with the modifications set forth in subparagraph (B).

``(B) Modifications; increased incentive for contract research payments.--For purposes of subparagraph (A), subsection (b) of section 41 shall be applied--

``(i) by substituting `vaccine research' for `qualified research' each place it appears in paragraphs (2) and (3) of such subsection, and

``(ii) by substituting `100 percent' for `65 percent' in paragraph (3)(A) of such subsection.

``(C) Exclusion for amounts funded by grants, etc.--The term `qualified vaccine research expenses' shall not include any amount to the extent such amount is funded by any grant, contract, or otherwise by another person (or any governmental entity).

``(2) Vaccine research.--The term `vaccine research' means research to develop vaccines and microbicides for--

``(A) malaria,

``(B) tuberculosis,

``(C) HIV, or

``(D) any infectious disease (of a single etiology) which, according to the World Health Organization, causes over 1,000,000 human deaths annually.

``(c) Coordination With Credit for Increasing Research Expenditures.--

``(1) In general.--Except as provided in paragraph (2), any qualified vaccine research expenses for a taxable year to which an election under this section applies shall not be taken into account for purposes of determining the credit allowable under section 41 for such taxable year.

``(2) Expenses included in determining base period research expenses.--Any qualified vaccine research expenses for any taxable year which are qualified research expenses (within the meaning of section 41(b)) shall be taken into account in determining base period research expenses for purposes of applying section 41 to subsequent taxable years.

``(d) Special Rules.--

``(1) Limitations on foreign testing.--No credit shall be allowed under this section with respect to any vaccine research (other than human clinical testing) conducted outside the United States.

``(2) Pre-clinical research.--No credit shall be allowed under this section for pre-clinical research unless such research is pursuant to a research plan an abstract of which has been filed with the Secretary before the beginning of such year. The Secretary, in consultation with the Secretary of Health and Human Services, shall prescribe regulations specifying the requirements for such plans and procedures for filing under this paragraph.

``(3) Certain rules made applicable.--Rules similar to the rules of paragraphs (1) and (2) of section 41(f) shall apply for purposes of this section.

``(4) Election.--This section (other than subsection (e)) shall apply to any taxpayer for any taxable year only if such taxpayer elects to have this section apply for such taxable year.

``(e) Credit To Be Refundable for Certain Taxpayers.--

``(1) In general.--In the case of an electing qualified taxpayer--

``(A) the credit under this section shall be determined without regard to section 38(c), and

``(B) the credit so determined shall be allowed as a credit under subpart C.

``(2) Electing qualified taxpayer.--For purposes of this subsection, the term `electing qualified taxpayer' means, with respect to any taxable year, any domestic C corporation if--

``(A) the aggregate gross assets of such corporation at any time during such taxable year are $500,000,000 or less,

``(B) the net income tax (as defined in section 38(c)) of such corporation is zero for such taxable year and the 2 preceding taxable years,

``(C) as of the close of the taxable year, the corporation is not under the jurisdiction of a court in a title 11 or similar case (within the meaning of section 368(a)(3)(A)),

``(D) the corporation provides such assurances as the Secretary requires that, not later than 2 taxable years after the taxable year in which the taxpayer receives any refund of a credit under this subsection, the taxpayer will make an amount of qualified vaccine research expenses equal to the amount of such refund, and

``(E) the corporation elects the application of this subsection for such taxable year.

``(3) Aggregate gross assets.--Aggregate gross assets shall be determined in the same manner as such assets are determined under section 1202(d).

``(4) Controlled groups.--A corporation shall be treated as meeting the requirement of paragraph (2)(B) only if each person who is treated with such corporation as a single employer under subsections (a) and (b) of section 52 also meets such requirement.

``(5) Special rules.--

``(A) Recapture of credit.--The Secretary shall promulgate such regulations as necessary and appropriate to provide for the recapture of any credit allowed under this subsection in cases where the taxpayer fails to make the expenditures described in paragraph (2)(D).

``(B) Exclusion of certain qualified vaccine research expenses.--For purposes of determining the credit under this section for a taxable year, the qualified vaccine research expenses taken into account for such taxable year shall not include an amount paid or incurred during such taxable year equal to the amount described in paragraph (2)(D) (and not already taken into account under this subparagraph for a previous taxable year).''.

(b) Inclusion in General Business Credit.--

(1) In general.--Section 38(b), as amended by section 620, is amended by striking ``plus'' at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting ``, plus'', and by adding at the end the following new paragraph:

``(16) the vaccine research credit determined under section 45G.''.

(2) Transition rule.--Section 39(d), as amended by section 620, is amended by adding at the end the following new paragraph:

``(12) No carryback of section 45g credit before enactment.--No portion of the unused business credit for any taxable year which is attributable to the vaccine research credit determined under section 45G may be carried back to a taxable year ending before the date of the enactment of section 45G.''.

``(d) Credit for Qualified Vaccine Research Expenses.--

``(1) In general.--No deduction shall be allowed for that portion of the qualified vaccine research expenses (as defined in section 45G(b)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 45G(a).

``(2) Certain rules to apply.--Rules similar to the rules of paragraphs (2), (3), and (4) of subsection (c) shall apply for purposes of this subsection.''.

(d) Deduction for Unused Portion of Credit.--Section 196(c)

(defining qualified business credits) is amended by striking

``and'' at the end of paragraph (8), by striking the period at the end of paragraph (9) and inserting ``, and'', and by adding at the end the following new paragraph:

``(10) the vaccine research credit determined under section 45G(a) (other than such credit determined under the rules of section 280C(d)(2)).''.

(e) Technical Amendments.--

(1) Section 1324(b)(2) of title 31, United States Code, is amended by inserting ``or from section 45G(e) of such Code,'' after ``1978,''.

(2) The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by section 620, is amended by adding at the end the following new item:

``Sec. 45G. Credit for medical research related to developing vaccines against widespread diseases.''.

(f) Effective Date.--The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

____

SA 702. Mr. DASCHLE submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

At the end of subtitle A of title VIII insert the following:

SEC. __. WAIVER OF STATUTE OF LIMITATION FOR TAXES ON CERTAIN

FARM VALUATIONS.

If on the date of the enactment of this Act (or at any time within 1 year after the date of the enactment) a refund or credit of any overpayment of tax resulting from the application of section 2032A(c)(7)(E) of the Internal Revenue Code of 1986 is barred by any law or rule of law, the refund or credit of such overpayment shall, nevertheless, be made or allowed if claim therefor is filed before the date 1 year after the date of the enactment of this Act.

____

SA 703. Mr. BYRD proposed an amendment to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; as follows:

At the appropriate place, insert the following:

SEC. __. ENSURING FUNDING FOR SOCIAL SECURITY AND MEDICARE

SOLVENCY, PRESCRIPTION DRUGS, AND LONG-TERM

DEBT REDUCTION.

(a) In General.--Notwithstanding any other provision of this Act--

(1) except for section 1(i)(1) of the Internal Revenue Code of 1986, as added by section 101 of this Act, and any necessary conforming amendments, title I of this Act shall not take effect; and

(2) any provision of title V of this Act that takes effect after 2006 shall not take effect.

(b) Strategic Reserve Fund for Long-Term Debt and Needs.--Subtitle B of title II of H. Con. Res. 83 (107th Congress) is amended by inserting at the end the following:

``SEC. 219. STRATEGIC RESERVE FUND FOR SOCIAL SECURITY

REFORM, MEDICARE REFORM, AND PRESCRIPTION DRUG

BENEFITS.

If legislation is reported by the Committee on Finance of the Senate or the Committee on Energy and Commerce or the Committee on Ways and Means of the House of Representatives, or an amendment thereto is offered or a conference report thereon is submitted, that would strengthen social security, extend the solvency of the Social Security Trust Funds, maintain progressivity in the social security benefit system, continue to lift more seniors out of poverty, extend the solvency of the Medicare Trust Funds or provide prescription drug benefits, the chairman of the appropriate Committee on the Budget shall, upon the approval of the appropriate Committee on the Budget, revise the aggregates, functional totals, allocations, and other appropriate levels and limits in this resolution for that measure by not to exceed $450,000,000,000 for the total of fiscal years 2002 through 2011, as long as that measure will not, when taken together with all other previously enacted legislation, reduce the on-budget surplus below the level of the Medicare Hospital Insurance Trust Fund surplus in any fiscal year provided in this resolution.''.

____

SA 704. Mr. KERRY submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

On page 66, in the table set forth between lines 1 and 2, strike that matter relating to years 2007, 2008, 2009, and 2010 and insert the following:

``2007 and 2008..............................................46 percent

``2009 and 2010..............................................45 percent

On page 174, line 3, strike ``20'' and insert ``50''.

On page 178, line 7, strike ``2 taxable'' and insert ``4 taxable''.

On page 178, line 8, insert before the comma the following:

``and each of the 6 taxable years for an employer with no fewer than 25 employees''.

____

SA 705. Mrs. HUTCHISON submitted an amendment intended to be proposed by her to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

On page 19, beginning with line 21, strike all through the matter preceding line 1 on page 20, and insert:

``(7) Applicable percentage.--For purposes of paragraph

(2), the applicable percentage shall be determined in accordance with the following table:

``For taxable years The applicable

beginning in percentage is--

calendar year--

2002.........................................................174

2003.........................................................180

2004.........................................................187

2005.........................................................193

2006 and thereafter.......................................200.''.

On page 20, line 14, strike ``2005'' and insert ``2001''.

On page 21, line 2, strike ``2005'' and insert ``2001''.

On page 21, strike the matter following line 21, and insert:

``For taxable years The applicable

beginning in percentage is--

calendar year--

2002.........................................................174

2003.........................................................180

2004.........................................................187

2005.........................................................193

2006 and thereafter.......................................200.''.

On page 22, line 15, strike ``2005'' and insert ``2001''.

____

SA 706. Mrs. HUTCHISON submitted an amendment intended to be proposed by her to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

On page 19, beginning with line 21, strike all through the matter preceding line 1 on page 20, and insert:

``(7) Applicable percentage.--For purposes of paragraph

(2), the applicable percentage shall be determined in accordance with the following table:

``For taxable years The applicable

beginning in percentage is--

calendar year--

2002.........................................................174

2003.........................................................180

2004.........................................................187

2005.........................................................193

2006 and thereafter.......................................200.''.

On page 20, line 14, strike ``2005'' and insert ``2001''.

____

SA 707. Mr. JEFFORDS (for himself, Mr. Dodd, Mr. Kennedy, Mr. Rockefeller, and Mr. Levin) proposed an amendment to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; as follows:

At the end of subtitle A of title II insert the following:

SEC. __. DEPENDENT CARE CREDIT.

(a) Increase in Dollar Limit.--Subsection (c) of section 21

(relating to expenses for household and dependent care services necessary for gainful employment) is amended--

(1) by striking ``$2,400'' in paragraph (1) and inserting

``$3,000'',

(2) by striking ``$4,800'' in paragraph (2) and inserting

``$6,000'', and

(3) by adding at the end the following new paragraph:

``(3) Inflation adjustment.--In the case of any taxable year beginning after 2002, any dollar amount contained in paragraph (1) or (2) shall be increased by an amount equal to--

``(A) such dollar amount, multiplied by

``(B) the cost-of-living adjustment determined under section (1)(f)(3) for the calendar year in which the taxable year begins, by substituting ``calendar year 2001'' for

``calendar year 1992.''.

(b) Increase in Applicable Percentage.--Section 21(a)(2)

(defining applicable percentage) is amended--

(1) by striking ``30 percent'' and inserting ``50 percent'', and

(2) by striking ``$10,000'' and inserting ``$30,000''.

(c) Revenue Offset.--The Secretary of the Treasury shall adjust the highest rate of tax under section 1 of the Internal Revenue Code of 1986 (as amended by section 101 of this Act) to the extent necessary to offset in each fiscal year beginning before October 1, 2011, the decrease in revenues to the Treasury for that fiscal year resulting from the amendments made by this section.

(d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2001.

SA 708. Mr. LIEBERMAN (for himself, Mrs. Feinstein, Mrs. Clinton, and Mr. Leahy) submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

On page 9, strike the table between line 11 and 12, and insert the following:

------------------------------------------------------------------------

The corresponding percentages

shall be substituted for the

``In the case of taxable years following percentages:

beginning during calendar year: -----------------------------------

28% 31% 36% 39.6%

------------------------------------------------------------------------

2002, 2003, and 2004................ 27% 30% 35% 38.6%

2005 and 2006....................... 26% 29% 34% 38.6%

2007................................ 25% 28% 33% 38.6%

2008 and thereafter................. 25% 28% 33% 37.6%

------------------------------------------------------------------------

At the end insert the following:

TITLE __--BUSINESS RELIEF

Subtitle__--Productivity Incentives

SEC. __01. INCREASED EXCLUSION AND OTHER MODIFICATIONS

APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK.

(a) Increased Exclusion.--

(1) In general.--Subsection (a) of section 1202 (relating to 50-percent exclusion for gain from certain small business stock) is amended by striking ``50 percent'' and inserting

``100 percent''.

(2) Conforming amendments.--

(A) Subparagraph (A) of section 1(h)(5) is amended to read as follows:

``(A) collectibles gain, over''.

(B) Section 1(h) is amended by striking paragraph (8).

``, gain described in paragraph (7)(A)(i), and section 1202 gain'' and inserting ``and gain described in paragraph

(7)(A)(i)''.

(D) Section 1(h) is amended by redesignating paragraphs (9)

(as amended by subparagraph (C)), (10), (11), (12), and (13) as paragraphs (8), (9), (10), (11), and (12), respectively.

(E) The heading for section 1202 is amended by striking

``PARTIAL'' and inserting ``100-PERCENT''.

(F) The table of sections for part I of subchapter P of chapter 1 is amended by striking ``Partial'' in the item relating to section 1202 and inserting ``100-percent''.

(b) Reduction in Holding Period.--

(1) In general.--Subsection (a) of section 1202 (relating to partial exclusion for gains from certain small business stock) is amended by striking ``5 years'' and inserting ``3 years''.

(2) Conforming amendment.--Subsections (g)(2)(A) and

(j)(1)(A) of section 1202 are each amended by striking ``5 years'' and inserting ``3 years''.

(1) In general.--Subsection (a) of section 1202 (relating to partial exclusion for gains from certain small business stock) is amended by striking ``other than a corporation''.

(2) Technical amendment.--Subsection (c) of section 1202 is amended by adding at the end the following new paragraph:

``(4) Stock held among members of controlled group not eligible.--Stock of a member of a parent-subsidiary controlled group (as defined in subsection (d)(3)) shall not be treated as qualified small business stock while held by another member of such group.''.

(d) Repeal of Minimum Tax Preference.--

(1) In general.--Subsection (a) of section 57 (relating to items of tax preference) is amended by striking paragraph

(7).

(2) Technical amendment.--Subclause (II) of section 53(d)(1)(B)(ii) is amended by striking ``, (5), and (7)'' and inserting ``and (5)''.

(e) Stock of Larger Businesses Eligible for Exclusion.--

(1) In general.--Paragraph (1) of section 1202(d) (defining qualified small business) is amended by striking

``$50,000,000'' each place it appears and inserting

``$300,000,000''.

(2) Inflation adjustment.--Section 1202(d) (defining qualified small business) is amended by adding at the end the following:

``(4) Inflation adjustment of asset limitation.--In the case of stock issued in any calendar year after 2002, the $300,000,000 amount contained in paragraph (1) shall be increased by an amount equal to--

``(A) such dollar amount, multiplied by

``(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 2001' for `calendar year 1992' in subparagraph (B) thereof

.If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.''.

(f) Repeal of Per-Issuer Limitation.--Section 1202(b)

(relating to per-issuer limitations on taxpayer's eligible gain) is repealed.

(g) Other Modifications.--

(1) Repeal of working capital limitation.--Section 1202(e)(6) (relating to working capital) is amended--

(A) in subparagraph (B), by striking ``2 years'' and inserting ``5 years''; and

(B) by striking the last sentence.

(2) Exception from redemption rules where business purpose.--Section 1202(c)(3) (relating to certain purchases by corporation of its own stock) is amended by adding at the end the following new subparagraph:

``(D) Waiver where business purpose.--A purchase of stock by the issuing corporation shall be disregarded for purposes of subparagraph (B) if the issuing corporation establishes that there was a business purpose for such purchase and one of the principal purposes of the purchase was not to avoid the limitations of this section.''.

(h) Qualified Trade or Business.--Section 1202(e)(3)

(defining qualified trade or business) is amended by inserting ``and'' at the end of subparagraph (C), by striking

``, and'' at the end of subparagraph (D) and inserting a period, and by striking subparagraph (E).

(i) Effective Dates.--

(1) In general.--Except as provided in paragraph (2), the amendments made by this section apply to stock issued after the date of the enactment of this Act.

(2) Special rule.--The amendments made by subsections (a),

(c), (e), (f), and (g)(1) apply to stock issued after August 10, 1993.

SEC. __02. REPEAL OF MINIMUM TAX PREFERENCE FOR EXCLUSION FOR

INCENTIVE STOCK OPTIONS.

(a) In General.--Subsection (b) of section 56 (relating to adjustments in computing alternative minimum taxable income) is amended by striking paragraph (3).

(b) Effective Date.--The amendment made by this section shall apply to options exercised in calendar years beginning after the date of the enactment of this Act.

SEC. __03. 3-YEAR DEPRECIABLE LIFE FOR SEMICONDUCTOR

MANUFACTURING EQUIPMENT.

(a) In General.--Subparagraph (A) of section 168(e)(3)

(relating to classification of property) is amended by striking ``and'' at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ``, and'', and by adding at the end the following new clause:

``(iv) any semiconductor manufacturing equipment.''.

(b) Conforming Amendments.--

(1) Subparagraph (B) of section 168(e)(3) is amended--

(A) by striking clause (ii),

(B) by redesignating clauses (iii) through (vi) as clauses

(ii) through (v), respectively, and

(2) Subparagraph (B) of section 168(g)(3) is amended by striking the items relating to subparagraph (B)(ii) and subparagraph (B)(iii) and inserting the following:

``(A)(iv)......................................................3

``(B)(ii)..................................................9.5''.

(c) Effective Date.--The amendments made by this section shall apply to equipment placed in service after the date of the enactment of this Act.

Subtitle B--Compliance With Congressional Budget Act

SEC. __11. SUNSET OF PROVISIONS OF TITLE.

All provisions of, and amendments made by, this title which are in effect on September 30, 2011, shall cease to apply as of the close of September 30, 2011.

____

SA 709. Mr. HUTCHINSON submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

On page 314, after line 21, insert the following:

SEC. 803. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL

SECURITY BENEFITS.

(a) Restoration of Prior Law Formula.--Subsection (a) of section 86 is amended to read as follows:

``(a) In General.--Gross income for the taxable year of any taxpayer described in subsection (b) (notwithstanding section 207 of the Social Security Act) includes social security benefits in an amount equal to the lesser of--

``(1) one-half of the social security benefits received during the taxable year, or

``(2) one-half of the excess described in subsection

(b)(1).''

(b) Repeal of Adjusted Base Amount.--Subsection (c) of section 86 is amended to read as follows:

``(c) Base Amount.--For purposes of this section, the term

`base amount' means--

``(1) except as otherwise provided in this subsection,

$25,000,

``(2) $32,000 in the case of a joint return, and

``(3) zero in the case of a taxpayer who--

``(A) is married as of the close of the taxable year

(within the meaning of section 7703) but does not file a joint return for such year, and

``(B) does not live apart from his spouse at all times during the taxable year.''

(1) Subparagraph (A) of section 871(a)(3) is amended by striking ``85 percent'' and inserting ``50 percent''.

(2)(A) Subparagraph (A) of section 121(e)(1) of the Social Security Amendments of 1983 (Public Law 98-21) is amended--

(i) by striking ``(A) There'' and inserting ``There'';

(ii) by striking ``(i)'' immediately following ``amounts equivalent to''; and

(iii) by striking ``, less (ii)'' and all that follows and inserting a period.

(B) Paragraph (1) of section 121(e) of such Act is amended by striking subparagraph (B).

(C) Paragraph (3) of section 121(e) of such Act is amended by striking subparagraph (B) and by redesignating subparagraph (C) as subparagraph (B).

(D) Paragraph (2) of section 121(e) of such Act is amended in the first sentence by striking ``paragraph (1)(A)'' and inserting ``paragraph (1)''.

(d) Maintenance of Transfers to Hospital Insurance Trust Fund.--

(1) Appropriation.--There are hereby appropriated to the Hospital Insurance Trust Fund established under section 1817 of the Social Security Act amounts equal to the reduction in revenues to the Treasury by reason of the enactment of this section.

(2) Transfer.--Amounts appropriated under paragraph (1) shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had this section not been enacted.

(e) Effective Date.--

(1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2000.

(2) Subsection (c)(1).--The amendment made by subsection

(c)(1) shall apply to benefits paid after December 31, 2000.

(3) Subsection (c)(2).--The amendments made by subsection

(c)(2) shall apply to tax liabilities for taxable years beginning after December 31, 2000.

____

SA 710. Mr. HATCH submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

At the end of subtitle D of Title IV add the following:

SEC. __. CONTRIBUTIONS OF BOOK INVENTORY.

(a) In General.--Section 170(e)(3) (relating to certain contributions of ordinary income and capital gain property) is amended by adding at the end the following new subparagraph:

``(D) Special rule for contributions of book inventory for educational purposes.--

``(i) Contributions of book inventory.--In determining whether a qualified book contribution is a qualified contribution, subparagraph (A) shall be applied without regard to whether or not--

``(I) the donee is an organization described in the matter preceding clause (i) of subparagraph (A), and

``(II) the property is to be used by the donee solely for the care of the ill, the needy, or infants.

``(ii) Qualified book contribution.--For purposes of this paragraph, the term `qualified book contribution' means a charitable contribution of books, but only if the contribution is to an organization--

``(I) described in subclause (I) or (III) of paragraph

(6)(B)(i), or

``(II) described in section 501(c)(3) and exempt from tax under section 501(a) which is organized primarily to make books available to the general public at no cost or to operate a literacy program.''.

(b) Effective Date.--The amendment made by this section shall apply to contributions made after the date of the enactment of this Act.

____

SA 711. Mrs. LINCOLN submitted an amendment intended to be proposed by her to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; as follows:

On page 31, line 1, strike ``tuition, fees,''.

On page 31, line 11, strike ``room and board,''.

____

SA 712. Mr. LIEBERMAN (for himself and Mrs. Feinstein) submitted an amendment intended to be proposed by him to the bill H.R. 1836, to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002; which was ordered to lie on the table; as follows:

At the end of subtitle A of title VIII, insert the following:

Subtitle B--Research Credits

SEC. __. PERMANENT EXTENSION AND MODIFICATIONS RESEARCH

CREDIT.