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.
“TAXPAYER REFUND ACT OF 1999” mentioning the Federal Reserve System was published in the Senate section on pages S9613-S9620 on July 28, 1999.
The publication is reproduced in full below:
TAXPAYER REFUND ACT OF 1999
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ABRAHAM (AND OTHERS) AMENDMENT NO. 1390
(Ordered to lie on the table.)
Mr. ABRAHAM (for himself and Mr. Hatch, Mr. Shelby, Mr. DeWine, Mr. Robb, and Mr. Sessions) submitted an amendment intended to be proposed by them to the bill, S. 1429, supra; as follows:
At the appropriate place in title XI, insert the following:
SECTION 11. PLACED-IN-SERVICE DEFINITION.
(a) Section 1205 is amended by redesignating subsection (d) as subsection (e) and inserting the following:
(d) Section 29(g) is amended by adding new paragraph (3):
``(3) Coal based synthetic fuel facilities.--For purposes of subparagraph (A) of paragraph (1) a facility producing a qualified fuel described in subparagraph (C) of subsection
(c)(1) shall be treated as placed in service before July 1, 1998, if such facility produced such qualified fuel on or before such date.''
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BINGAMAN AMENDMENT NO. 1391
(Ordered to lie on the table.)
Mr. BINGAMAN submitted an amendment intended to be proposed by him to the bill, S. 1429, supra; as follows:
At the end of the bill add the following:
DIVISION II--ENERGY SECURITY TAX INCENTIVES
SECTION 1. DEPRECIATION TREATMENT OF DISTRIBUTED POWER
PROPERTY.
(a) In General.--Section 168(e)(3)(E) of the Internal Revenue Code (classifying certain property as 15-year property) is amended by striking `and' at the end of clause
(ii), striking the period at the end of clause (iii) and inserting, `, and', and by adding the following new clause:
``(iv) any distributed power property.''
(b) Conforming Amendments.--(1) Section 168(i) is amended by adding at the end the following new paragraph:
``(15) Distributed power property.--the term `distributed power property' means property--
``(A) which is used in the generation of electricity for primary use--
``(i) in nonresidential real or residential rental property used in the taxpayer's trade or business, or
``(ii) in the taxpayer's industrial manufacturing process or plant activity, with a rated total capacity in excess of 500 kilowatts,
``(B) which also may produce usable thermal energy or mechanical power for use in a heating or cooling application, as long as at least 40 percent of the total useful energy produced consists of--
``(i) with respect to assets described in subparagraph
(A)(i), electrical power (whether sold or used by the taxpayer), or
``(ii) with respect to assets described in subparagraph
(A)(ii), electrical power (whether sold or used by the taxpayer) and thermal or mechanical energy used in the taxpayer's industrial manufacturing process or plant activity,
``(C) which is not used to transport primary fuel to the generating facility or to distribute energy within or outside of the facility, and
``(D) where it is reasonably expected that not more than 50 percent of the produced electricity will be sold to, or used by, unrelated persons.
For purposes of subparagraph (B), energy output is determined on the basis of expected annual output levels, measured in British thermal units (Btu), using standard conversion factors established by the Secretary.''.
(2) Subparagraph (B) of section 168(g)(3) is amended by inserting after the item relating to subparagraph (E)(iii) in the table contained therein the following new line:
``(E)(iv) 22''.
(c) Effective Date.--The amendments made by this section are effective for property placed in service on or after the date of enactment.
SEC. 2. TAX CREDIT FOR COMBINED HEAT AND POWER SYSTEM
PROPERTY.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48 the following new section:
``SEC. 48A. ENERGY CREDIT
``(a) In General.--For purposes of section 46, the energy credit for any taxable year is the amount equal to the energy percentage of the basis of each energy property placed in service during such taxable year.
``(b) Energy Percentage.--
``(1) In general.--Except as otherwise provided in this subsection, the energy percentage is 10 percent.
``(2) Combined heat and power property.--The energy percentage is 8 percent in the case of combined heat and power property.
``(3) Period for which credit is allowed for combined heat and power property.--In the case of combined heat and power property, the credit under subsection (a) shall be allowed only for the period beginning on January 1, 2000 and ending on December 31, 2002.
``(4) Coordination with rehabilitation.--The energy percentage does not apply to that portion of the basis of any property which is attributable to qualified rehabilitation expenditures.
``(5) Transition rules.--Rules similar to the rule of section 48(m) (as in effect on the day before the date of the enactment of the Revenue reconciliation Act of 1990) shall apply for purposes of this subsection
``(c) Energy Property Defined.--
``(1) In general.--For purposes of this subpart, the term
`energy property' means any property--
``(A) which is--
``(i) solar energy property,
``(ii) geothermal energy property, or
``(iii) combined heat and power system property,
``(B)(i) the construction, reconstruction, or erection of which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer,
``(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and
``(D) which meets--
``(i) the performance and quality standards (if any), and the certification requirements (if any), which have been prescribed by the Secretary by regulations (after consultation with the Secretary of Energy or the EPA Administrator, as appropriate), and
``(ii) are in effect at the time the property is placed in service.
``(2) Exception.--Such term shall not include any property which is public utility property (as defined in section 46(f)(5) as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). The preceding sentence shall not apply to combined heat and power system property.
``(d) Definitions Relating to Types of Energy Property.--For purposes of this section--
``(1) Solar energy property.--The term `solar energy property' means equipment which uses solar energy--
``(A) to generate electricity,
``(B) to heat or cool (or provide hot water for use in) a structure, or
``(C) to provide solar process heat.
``(2) Geothermal energy property.--The term `geothermal energy property' means equipment used to produce, distribute, or use 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.
``(3) Combined heat and power system property--
``(A) In general.--The term `combined heat and power system property' means property comprising a system--
``(i) which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy
(including heating and cooling applications),
``(ii) which has an electrical capacity of more than 50 kilowatts or a mechanical energy capacity of more than 67 horsepower or an equivalent combination of electrical and mechanical energy capacities,
``(iii) which produces--
``(I) at least 20 percent of its total useful energy in the form of thermal energy, and
``(II) at least 20 percent of its total energy in the form of electrical or mechanical power (or a combination thereof), and
``(iv) the energy efficiency percentage of which exceeds 60 percent (70 percent in the case of a system with an electrical capacity in excess of 67,000 horsepower (or a combination thereof)).
``(B) Special rules.--
``(i) Energy efficiency percentage.--For purpose of subparagraph (A)(iv), the energy efficiency percentage of a system is the fraction--
``(I) the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and
``(II) the denominator of which is the lower heating value of the primary fuel source for the system.
``(ii) Determinations made on btu basis.--The energy efficiency percentage and the percentages under subparagraph
(A)(iii) shall be determined on a Btu basis.
``(iii) Input and output property not included.--The term
`combined heat and power system property' does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.
``(iv) Accounting rule for public utility property.--In the case that combined heat and power system property is public utility property (as defined in section 46(f)(5) as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990), the taxpayer may claim the credit under subsection (a)(1) only, if with resect to such property, the taxpayer uses a normalization method of accounting.
``(v) Depreciation.--No credit shall be allowed for any combined heat and power system property unless the taxpayer elects to treat such property for purposes of section 168 as having a class life of not less than 22 years.
``(e) Special Rules.--For purposes of this section--
``(1) Special rule for property financed by subsidized energy financing or industrial development bonds--
``(A) Reduction of basis.--For purposes of applying the energy percentage to any property, if such property is financed in whole or in part by--
``(i) subsidized energy financing, or
``(ii) the proceeds of a private activity bond (within the meaning of section 141) the interest on which is exempt from tax under section 103, the amount taken into account as the basis of such property shall not exceed the amount which (but for this subparagraph (B).
``(B) Determination of fraction.--For purposes of subparagraph (A), the fraction determined under this subparagraph is 1 reduced by a fraction--
``(ii) the numerator of which is that portion of the basis of the property which is allocable to such financing or proceeds, and
``(ii) the denominator of which is the basis of the property.
``(C) Subsidized energy financing.--For purposes of subparagraph (A), the term `subsidized energy financing' means financing provided under a Federal, State, or local program a principal purpose of which is to provide subsidized financing for projects designed to conserve or produce energy.
``(2) Certain progress expenditures rule made applicable.--Rules similar to the rules of subsections (c)(4) and(d) section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.'.
``(b) Conforming Amendments--
``(1) Section 48 of such Code is amended to read as follows:
``SEC. 48. REFORESTATION CREDIT.
``(a) In General.--For purposes of section 46, the reforestation a credit for any taxable year is 10 percent of the portion of the amortizable
basis of any qualified timber property which was acquired during such taxable year and which is taken into account under section 194 (after the application of section 194(b)(1)).
``(b) Definitions.--For purposes of this subpart the terms
`amortizable basis' and `qualified timber property' have the respective meanings given to such terms by section 194.''.
(2) Subsection (d) section 39 of such Code is amended by adding at the end the following new paragraph:
``(9) No carryback of energy credit before effective date.--No portion of the unused business credit for any taxable year which is attributable to the energy credit determined under section 48A, except for the credit determined with respect to solar energy property and geothermal energy property, may be carried back to a taxable year ending before the date of the enactment of section 48A.''.
(3) Paragraph (3) of section 50(c) of such Code is amended by adding at the end the following flush sentence:
``In the case of the energy credit, the preceding sentence shall apply only to so much of such credit as relates to solar energy property and geothermal property (as such terms as defined in section 48A(e)).''.
(4) Subclause (III) of section 29(b)(3)(A)(i) of such Code is amended by striking ``section 48(a)(4)(C)'' and inserting
``section 48A(g)(1)(C)''.
(5) Subparagraph (E) of section 50(a)(2) of such Code is amended by striking ``section 48(a)(5)'' and inserting
``section 48A(g)(2)''.
(6) Subparagraph (B) of section 168(e)(3) of such Code is amended--
(A) in clause (vi)(I) by striking ``section 48(a)(3)'' and inserting ``paragraphs (1) and (2) of section 48A(d)'', and
(B) in the last sentence by striking ``section 48(a)(3)'' and inserting ``section 48A(c)(2)''.
(7) Subparagraph (E) of section 168(e)(3) of such Code, as amended by section 803(a), is further amended by striking
``and'' at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ``, and'', and by inserting after clause (iv) the following new clause:
``(v) any combined heat and power system property (as defined in section 48A(d)(4)) for which a credit is followed under section 48A and which, but for this clause, would have a recovery period of less than 15 years.''.
(8) The table contained in subparagraph (B) of section 168(g)(3) of such Code, as amended by section 803(b)(2), is further amended by adding at end the following ``(E)(v) 11.''
(c) Clerical Amendment.--The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 48 and inserting the following new items:
``Sec. 48. Reforestation credit.
``Sec. 48A Energy credit.''.
(d) Effective Date.--The amendments made by this section shall apply to periods after December 31, 1999, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
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SPECTER AMENDMENT NO. 1392
(Order to lie on the table.)
Mr. SPECTER submitted an amendment intended to be proposed by him to the bill, S. 1429, supra; as follows:
At the end of title XI, insert the following:
SEC. ____. BIOTECHNOLOGY INVESTMENT TAX CREDIT.
(a) Allowance of Credit.--Section 46(a) (relating to amount of investment credit) is amended by striking ``and'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``, and'', and by adding at the end the following new paragraph:
``(4) the biotechnology investment credit.''
(b) Amount of Credit.--Section 48 is amended by adding at the end the following new subsection:
``(c) Biotechnology Investment Credit.--
``(1) In general.--For purposes of section 46, the biotechnology investment credit for any taxable year is an amount equal to 10 percent of the qualified investment for such taxable year.
``(2) Qualified investment.--
``(A) In general.--For purposes of paragraph (1), the qualified investment for any taxable year is the aggregate of--
``(i) the applicable percentage of the basis of each new biotechnology property placed in service by the taxpayer during such taxable year, plus
``(ii) the applicable percentage of the cost of each used biotechnology property placed in service by the taxpayer during such taxable year.
``(B) Applicable percentage.--For purposes of subparagraph
(A), the applicable percentage for any property shall be determined under paragraphs (2) and (7) of section 46(c) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
``(C) Certain rules made applicable.--The provisions of subsections (b) and (c) of section 48 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this paragraph.
``(3) Biotechnology property.--For purposes of this subsection--
``(A) In general.--The term `biotechnology property' means any property--
``(i) which is used in connection with applicable biotechnology research, and
``(ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.
``(B) Applicable biotechnology research.--The term
`applicable biotechnology research' means the use of applicable technologies to benefit society by improving human healthcare through--
``(i) producing or modifying products, and developing microorganisms, for specific uses,
``(ii) identifying targets for small molecule pharmaceutical development, and
``(iii) transforming biological systems into useful processes and products.
``(C) Applicable technologies.--The term `applicable technologies' means recombinant DNA techniques, biochemistry, molecular and cellular biology, genetics and genetic engineering, biological cell fusion techniques, and other bioprocesses which use living organisms, or parts of such organisms, for the purposes described in subparagraph (B).
``(4) Coordination with other credits.--No credit shall be determined under this subsection for any amount taken into account in determining the amount of any other credit allowable under this chapter. A taxpayer may elect which credit under this chapter shall apply to any amount.
``(5) Certain progress expenditure rules made applicable.--Rules similar to rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this subsection.''
(c) Technical Amendments.--
(1) Subparagraph (C) of section 49(a)(1) 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) the basis of any new biotechnology property and the cost of any used biotechnology property.''
(2) Subparagraph (E) of section 50(a)(2) is amended by striking ``section 48(a)(5)(A)'' and inserting ``section 48
(a)(5) or (c)(5)''.
(3) Paragraph (5) of section 50(a) is amended by adding at the end the following new subparagraph:
``(D) Special rules for certain property.--In the case of any biotechnology property which is 3-year property (within the meaning of section 168(e))--
``(i) the percentage set forth in clause (ii) of the table contained in paragraph (1)(B) shall be 66 percent,
``(ii) the percentage set forth in clause (iii) of such table shall be 33 percent, and
``(iii) clauses (iv) and (v) of such table shall not apply.''
(4)(A) The section heading for section 48 is amended to read as follows:
``SEC. 48. OTHER CREDITS.''
(B) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 48 and inserting the following:
``Sec. 48. Other Credits.''
(d) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 1999.
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GREGG AMENDMENTS NOS. 1393-1394
(Ordered to lie on the table.)
Mr. GREGG submitted two amendments intended to be proposed by him to the bill, S. 1429, supra; as follows:
Amendment No. 1393
On page 235, strike lines 15 through 19, and insert:
(1) In general.--Section 2031(c)(8)(A) (defining land subject to a qualified conservation easement) is amended by striking clause (i) and by redesignating clauses (ii) and
(iii) as clauses (i) and (ii), respectively.
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Amendment No. 1394
On page 235, strike lines 15 through 19, and insert:
(1) In general.--Clause (i) of section 2031(c)(8)(A)
(defining land subject to a conservation easement) is amended--
(A) by striking ``25 miles'' both places it appears and inserting ``50 miles'', and
(B) striking ``10 miles'' and inserting ``25 miles''.
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SESSIONS (AND OTHERS) AMENDMENT NO. 1395
(Ordered to lie on the table.)
Mr. SESSIONS (for himself, Mr. Coverdell, and Mr. Craig) submitted an amendment intended to be proposed by him to the bill, S. 1429, supra; as follows:
On page 371, between lines 16 and 17, insert the following: SEC. ____. CAPITAL GAIN TREATMENT UNDER SECTION 631(B) TO
APPLY WHETHER OR NOT OWNER RETAINS ECONOMIC
INTEREST.
(a) In General.--Subsection (b) of section 631 (relating to disposal of timber with a retained economic interest) is amended--
(1) by inserting ``and Outright Sales of Timber'' after
``Economic Interest'' in the subsection heading, and
(2) by striking ``such owner retains an economic interest in such timber'' and inserting ``such owner either retains an economic interest in such timber or makes an outright sale of such timber''.
(b) Effective Date.--The amendments made by this section shall apply to sales after the date of the enactment of this Act.
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LEAHY AMENDMENT NO. 1396
(Ordered to lie on the table.)
Mr. LEAHY submitted an amendment intended to be proposed by him to the bill, S. 1429, supra; as follows:
At the end of title XI, insert the following:
SEC. ____. DEDUCTION FOR COSTS OF MAKING COMPUTERS AND
COMPUTER SOFTWARE YEAR 2000 COMPLIANT.
(a) In General.--
(1) Property placed in service in 1999.--A taxpayer may elect to treat the cost of a business Y2K asset placed in service during the taxpayer's first taxable year beginning in 1999 as an expense which is not chargeable to capital account. The cost so treated shall be allowed as a deduction from gross income for purposes of the Internal Revenue Code of 1986.
(2) Property placed in service in 1997 or 1998.--A taxpayer may elect to deduct from gross income an amount equal to the unrecovered basis of a business Y2K asset placed in service during the 2 taxable years preceding the first taxable year beginning in 1999 and which is otherwise subject to depreciation under such Code.
(b) Limitations.--
(1) In general.--The aggregate amount allowed as a deduction under subsection (a) shall not exceed $40,000.
(2) Application of business limitations of section 179.--Rules similar to the rules of paragraphs (2), (3), and (4) of section 179(b) of such Code shall apply for purposes of this section. For purposes of the preceding sentence, the cost of property to which the limitation in paragraph (2) of such section 179(b) applies shall be the sum of--
(A) the amounts elected under subsection (a)(1) with respect to property placed in service during the taxpayer's first taxable year beginning in 1999, and
(B) the amounts elected under subsection (a)(2) with respect to the unrecovered basis of business Y2K assets placed in service during the 2 taxable years preceding the first taxable year beginning in 1999.
(c) Definitions.--For purposes of this section--
(1) Business y2k asset.--The term ``business Y2K asset'' means an asset acquired by purchase for use in the active conduct of a trade or business which is--
(A) any computer acquired to replace a computer where such replacement is necessary because of the year 2000 computer conversion problem, and
(B) any of the following items which are of a character subject to the allowance for depreciation under such Code:
(i) the modification of computer software to address the year 2000 computer conversion problem, and
(ii) computer software which is year 2000 compliant acquired to replace computer software which is not so compliant.
(2) Computer.--The term ``computer'' means a computer or peripheral equipment (as defined by section 168(i)(2)(B)) of such Code.
(3) Computer software.--The term ``computer software'' has the meaning given to such term by section 167(f) of such Code.
(4) Unrecovered basis.--The term ``unrecovered basis'' means the adjusted basis of the business Y2K asset determined as of the close of the last taxable year beginning before January 1, 1999.
(d) Special Rules.--
(1) In general.--Rules similar to the rules of subsections
(c) and (d) (other than paragraph (1) thereof) of section 179 of such Code shall apply for purposes of this section.
(2) Treatment as deduction under section 179.--For purposes of the Internal Revenue Code of 1986, the deduction allowed under this section shall be treated in the same manner as a deduction allowed under section 179 of such Code.
(3) Ordering rule.--For purposes of section 179 of such Code, subsection (b)(3)(C) of such section shall be applied without regard to the deduction allowed under this section.
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McCAIN AMENDMENT NO. 1397
Mr. McCAIN proposed an amendment to the bill, S. 1429, supra; as follows:
At the appropriate place, add the following:
TITLE ____--EDUCATIONAL OPPORTUNITIES FOR DISADVANTAGED CHILDREN
Subtitle A--Educational Opportunities
SEC. ____01. PURPOSES.
The purposes of this title are--
(1) to assist States to--
(A) give children from low-income families the same choices among all elementary and secondary schools and other academic programs as children from wealthier families already have;
(B) improve schools and other academic programs by giving parents in low-income families increased consumer power to choose the schools and programs that the parents determine best fit the needs of their children; and
(C) more fully engage parents in their children's schooling; and
(2) to demonstrate, through a 3-year national grant program, the effects of a voucher program that gives parents in low-income families--
(A) choice among public, private, and religious schools for their children; and
(B) access to the same academic options as parents in wealthy families have for their children.
SEC. ____02. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated to carry out this title (other than section ____10)
$1,800,000,000 for each of fiscal years 2001 through 2003.
(b) Evaluation.--There is authorized to be appropriated to carry out section ____10 $17,000,000 for fiscal years 2001 through 2004.
SEC. ____03. PROGRAM AUTHORITY.
(a) In General.--The Secretary shall make grants to States, from allotments made under section ____04 to enable the States to carry out educational choice programs that provide scholarships, in accordance with this title.
(b) Limit on Federal Administrative Expenditures.--The Secretary may reserve not more than $1,000,000 of the amounts appropriated under section ____02(a) for a fiscal year to pay for the costs of administering this title.
SEC. ____04. ALLOTMENTS TO STATES.
(a) Allotments.--The Secretary shall make the allotments to States in accordance with a formula specified in regulations issued in accordance with subsection (b). The formula shall provide that the Secretary shall allot to each State an amount that bears the same relationship to the amounts appropriated under section ____02(a) for a fiscal year (other than funds reserved under section ____03(b)) as the number of covered children in the State bears to the number of covered children in all such States.
(b) Formula.--Not later than 90 days after the date of enactment of this Act, the Secretary shall issue regulations specifying the formula referred to in subsection (a).
(c) Limit on State Administrative Expenditures.--The State may reserve not more than 1 percent of the funds made available through the State allotment to pay for the costs of administering this title.
(d) Definition.--In this section, the term ``covered child'' means a child who is enrolled in a public school
(including a charter school) that is an elementary school or secondary school.
SEC. ____05. ELIGIBLE SCHOOLS.
(a) Eligibility.--
(1) In general.--Schools identified by a State under paragraph (2) shall be considered to be eligible schools under this title.
(2) Determination.--Not later than 180 days after the date the Secretary issues regulations under section ____04(b), each State shall identify the public elementary schools and secondary schools in the State that are at or below the 25th percentile for academic performance of schools in the State.
(b) Performance.--The State shall determine the academic performance of a school under this section based on such criteria as the State may consider to be appropriate.
SEC. ____06. SCHOLARSHIPS.
(a) In General.--
(1) Scholarship awards.--With funds awarded under this title, each State awarded a grant under this title shall provide scholarships to the parents of eligible children, in accordance with subsections (b) and (c). The State shall ensure that the scholarships may be redeemed for elementary or secondary education for the children at any of a broad variety of public and private schools, including religious schools, in the State.
(2) Scholarship amount.--The amount of each scholarship shall be $2000 per year.
(3) Tax exemption.--Scholarships awarded under this title shall not be considered income of the parents for Federal income tax purposes or for determining eligibility for any other Federal program.
(b) Eligible Children.--To be eligible to receive a scholarship under this title, a child shall be--
(1) a child who is enrolled in a public elementary school or secondary school that is an eligible school; and
(2) a member of a family with a family income that is not more than 200 percent of the poverty line.
(c) Award Rules.--
(1) Priority.--In providing scholarships under this title, the State shall provide scholarships for eligible children through a lottery system administered for all eligible schools in the State by the State educational agency.
(2) Continuing eligibility.--Each State receiving a grant under this title to carry out an educational choice program shall provide a scholarship in each year of the program to each child who received a scholarship during the previous year of the program, unless--
(A) the child no longer resides in the area served by an eligible school;
(B) the child no longer attends school;
(C) the child's family income exceeds, by 20 percent or more, 200 percent of the poverty line; or
(D) the child is expelled or convicted of a felony, including felonious drug possession, possession of a weapon on school grounds, or a violent act against an other student or a member of the school's faculty.
SEC. ____07. USES OF FUNDS.
Any scholarship awarded under this title for a year shall be used--
(1) first, for--
(A) the payment of tuition and fees at the school selected by the parents of the child for whom the scholarship was provided; and
(B) the reasonable costs of the child's transportation to the school, if the school is not the school to which the child would be assigned in the absence of a program under this title;
(2) second, if the parents so choose, to obtain supplementary academic services for the child, at a cost of not more than $500, from any provider chosen by the parents, that the State determines is capable of providing such services and has an appropriate refund policy; and
(3) finally, for educational programs that help the eligible child achieve high levels of academic excellence in the school attended by the eligible child, if the eligible child chooses to attend a public school.
SEC. ____08. STATE REQUIREMENT.
A State that receives a grant under this title shall allow lawfully operating public and private elementary schools and secondary schools, including religious schools, if any, serving the area involved to participate in the program.
SEC. ____09. EFFECT OF PROGRAMS.
(a) Title I.--Notwithstanding any other provision of law, if a local educational agency in the State would, in the absence of an educational choice program that is funded under this title, provide services to a participating eligible child under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.), the State shall ensure the provision of such services to such child.
(b) Individuals With Disabilities.--Nothing in this title shall be construed to affect the requirements of part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.).
(c) Aid.--
(1) In general.--Scholarships under this title shall be considered to aid families, not institutions. For purposes of determining Federal assistance under Federal law, a parent's expenditure of scholarship funds under this title at a school or for supplementary academic services shall not constitute Federal financial aid or assistance to that school or to the provider of supplementary academic services.
(2) Supplementary academic services.--
(A) In general.--Notwithstanding paragraph (1), a school or provider of supplementary academic services that receives scholarship funds under this title shall, as a condition of participation under this title, comply with the provisions of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794).
(B) Regulations.--The Secretary shall promulgate regulations to implement the provisions of subparagraph (A), taking into account the purposes of this title and the nature, variety, and missions of schools and providers that may participate in providing services to children under this title.
(d) Other Federal Funds.--No Federal, State, or local agency may, in any year, take into account Federal funds provided to a State or to the parents of any child under this title in determining whether to provide any other funds from Federal, State, or local resources, or in determining the amount of such assistance, to such State or to a school attended by such child.
(e) No Discretion.--Nothing in this title shall be construed to authorize the Secretary to exercise any direction, supervision, or control over the curriculum, program of instruction, administration, or personnel of any educational institution or school participating in a program under this title.
SEC. ____10. EVALUATION.
The Comptroller General of the United States shall conduct an evaluation of the program authorized by this title. Such evaluation shall, at a minimum--
(1) assess the implementation of educational choice programs assisted under this title and their effect on participants, schools, and communities in the school districts served, including parental involvement in, and satisfaction with, the program and their children's education;
(2) compare the educational achievement of participating eligible children with the educational achievement of similar non-participating children before, during, and after the program; and
(3) compare--
(A) the educational achievement of eligible children who use scholarships to attend schools other than the schools the children would attend in the absence of the program; with
(B) the educational achievement of children who attend the schools the children would attend in the absence of the program.
SEC. ____11. ENFORCEMENT.
(a) Regulations.--The Secretary shall promulgate regulations to enforce the provisions of this title.
(b) Private Cause.--No provision or requirement of this title shall be enforced through a private cause of action.
SEC. ____12. DEFINITIONS.
In this title:
(1) Charter school.--The term ``charter school'' has the meaning given the term in section 10310 of the Elementary and Secondary Education Act of 1965 (as redesignated in section 3(g) of Public Law 105-278; 112 Stat. 2687).
(2) Elementary school; local educational agency; parent; secondary school; state educational agency.--The terms
``elementary school'', ``local educational agency'',
``parent'', ``secondary school'', and ``State educational agency'' have the meanings given the terms in section 14101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
(3) Poverty line.--The term ``poverty line'' means the poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a family of the size involved.
(4) Secretary.--The term ``Secretary'' means the Secretary of Education.
(5) State.--The term ``State'' means each of the 50 States.
Subtitle B--Revenue Provisions
SEC. ____21. PHASEOUT OF OIL AND GAS EXPENSING OF DRILLING
AND DEVELOPMENT COSTS.
Section 263(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence:
``This subsection shall not apply to the applicable percentage of costs incurred in taxable years beginning after December 31, 1999. For purposes of the preceding sentence, the applicable percentage for any taxable year shall be determined in accordance with the following table:
The applicable percentage is--ear beginning in--
2000..........................................................20 ....
2001..........................................................40 ....
2002..........................................................60 ....
2003..........................................................80 ....
After 2003.................................................100.''....
SEC. ____22. SUNSET OF ALCOHOL FUELS INCENTIVES.
(a) In General.--The following provisions of the Internal Revenue Code of 1986 are each repealed:
(1) Section 40 (relating to alcohol used as fuel).
(2) Section 4041(b)(2) (relating to qualified methanol and ethanol).
(3) Section 4041(k) (relating to fuels containing alcohol).
(4) Section 4081(c) (relating to taxable fuels mixed with alcohol).
(5) Section 4091(c) (relating to reduced rate of tax for aviation fuel in alcohol mixture, etc.).
(6) Section 6427(f) (relating to gasoline, diesel fuel, kerosene, and aviation fuel used to produce certain alcohol fuels).
(7) The headings 9901.00.50 and 9901.00.52 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 3007).
(b) Effective Date.--The repeals made by subsection (a) shall take effect on October 1, 1999.
SEC. ____23. REPEAL OF ENHANCED OIL RECOVERY CREDIT.
Section 43 of the Internal Revenue Code of 1986 is amended by adding at the end the following:
``(f) Termination.--In the case of taxable years beginning after December 31, 1999, the enhanced oil recovery credit is zero.''.
SEC. ____24. REPEAL OF UNLIMITED PASSIVE LOSS DEDUCTIONS FOR
OIL AND GAS PROPERTIES.
Section 469(c)(3) of the Internal Revenue Code of 1986
(relating to working interests in oil and gas property) is amended by adding at the end the following:
``(C) Termination.--This paragraph shall not apply with respect to any taxable year beginning after December 31, 1999.''
SEC. 25____. SUGAR PROGRAM.
(a) Elimination of Authority To Use Sugar as Collateral for Loans.--Section 156 of the Agricultural Market Transition Act
(7 U.S.C. 7272) is amended--
(1) in subsection (d)--
(A) by striking ``(d)'' and all that follows through ``A loan under'' and inserting ``(d) Term of Loans.--A loan under'';
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and indenting appropriately;
(2) by striking subsection (g); and
(3) by redesignating subsections (h) and (i) as subsections
(g) and (h), respectively.
(b) Elimination of Sugar Price Support and Production Adjustment Programs.--
(1) In general.--Notwithstanding any other provision of law--
(A) a processor of any of the 2003 or subsequent crops of sugarcane or sugar beets shall not be eligible for a loan under any provision of law with respect to the crop; and
(B) the Secretary of Agriculture may not make price support available, whether in the form of a loan, payment, purchase, or other operation, for any of the 2003 and subsequent crops of sugar beets and sugarcane by using the funds of the Commodity Credit Corporation or other funds available to the Secretary.
(2) Termination of marketing quotas and allotments.--
(A) In general.--Part VII of subtitle B of title III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa et seq.) is repealed.
(B) Conforming amendment.--Section 344(f)(2) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1344(f)(2)) is amended by striking ``sugar cane for sugar, sugar beets for sugar,''.
(3) General powers.--
(A) Designated nonbasic agricultural commodities.--Section 201(a) of the Agricultural Act of 1949 (7 U.S.C. 1446(a)) is amended by striking ``milk, sugar beets, and sugarcane'' and inserting ``and milk''.
(B) Powers of commodity credit corporation.--Section 5(a) of the Commodity Credit Corporation Charter Act (15 U.S.C. 714c(a)) is amended by inserting after ``agricultural commodities'' the following: ``(other than sugar)''.
(C) Section 32 activities.--Section 32 of the Act of August 24, 1935 (49 Stat. 774, chapter 641; 7 U.S.C. 612c), is amended in the second sentence of the first paragraph--
(i) in paragraph (1), by inserting ``(other than sugar)'' after ``commodities''; and
(ii) in paragraph (3), by inserting ``(other than sugar)'' after ``commodity''.
(4) Transition provisions.--This subsection and the amendments made by this subsection shall not affect the liability of any person under any provision of law as in effect before the application of this subsection and the amendments made by this subsection.
(5) Crops.--This subsection and the amendments made by this subsection shall apply beginning with the 2003 crop of sugar beets and sugarcane.
______
ABRAHAM (AND OTHERS) AMENDMENT NO. 1398
Mr. ABRAHAM (for himself, Mr. Domenici, Mr. Ashcroft, Mr. Crapo, Mr. Enzi, Mr. Santorum, Mr. Grams, Mr. Allard, Mr. Frist, and Mr. Coverdell) proposed an amendment to the bill, S. 1429, supra; as follows:
At the end of the bill, add the following:
TITLE ____--SOCIAL SECURITY SURPLUS PRESERVATION AND DEBT REDUCTION ACT
SEC. ____01. SHORT TITLE.
This title may be cited as the ``Social Security Surplus Preservation and Debt Reduction Act''.
SEC. ____02. FINDINGS.
Congress finds that--
(1) the $69,246,000,000 unified budget surplus achieved in fiscal year 1998 was entirely due to surpluses generated by the social security trust funds and the cumulative unified budget surpluses projected for subsequent fiscal years are primarily due to surpluses generated by the social security trust funds;
(2) Congress and the President should balance the budget excluding the surpluses generated by the social security trust funds;
(3) according to the Congressional Budget Office, balancing the budget excluding the surpluses generated by the social security trust funds will reduce the debt held by the public by a total of $1,859,500,000,000 by the end of fiscal year 2009; and
(4) social security surpluses should be used for social security reform or to reduce the debt held by the public and should not be spent on other programs.
SEC. ____03. PROTECTION OF THE SOCIAL SECURITY TRUST FUNDS.
(a) Protection by Congress.--
(1) Reaffirmation of support.--Congress reaffirms its support for the provisions of section 13301 of the Budget Enforcement Act of 1990 that provides that the receipts and disbursements of the social security trust funds shall not be counted for the purposes of the budget submitted by the President, the congressional budget, or the Balanced Budget and Emergency Deficit Control Act of 1985.
(2) Protection of social security benefits.--If there are sufficient balances in the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, the Secretary of Treasury shall give priority to the payment of social security benefits required to be paid by law.
(b) Points of Order.--Section 301 of the Congressional Budget Act of 1974 is amended by adding at the end the following:
``(j) Social Security Point of Order.--It shall not be in order in the Senate to consider a concurrent resolution on the budget, an amendment thereto, or a conference report thereon that violates section 13301 of the Budget Enforcement Act of 1990.
``(k) Debt Held by the Public Point of Order.--It shall not be in order in the Senate to consider any bill, joint resolution, amendment, motion, or conference report that would--
``(1) increase the limit on the debt held by the public in section 253A(a) of the Balanced Budget and Emergency Deficit Control Act of 1985; or
``(2) provide additional borrowing authority that would result in the limit on the debt held by the public in section 253A(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 being exceeded.
``(l) Social Security Surplus Protection Point of Order.--
``(1) In general.--It shall not be in order in the Senate to consider a concurrent resolution on the budget, an amendment thereto, or a conference report thereon that sets forth a deficit in any fiscal year.
``(2) Exception.--Paragraph (1) shall not apply if--
``(A) the limit on the debt held by the public in section 253A(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 is suspended; or
``(B) the deficit for a fiscal year results solely from the enactment of--
``(i) social security reform legislation, as defined in section 253A(e)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985; or
``(ii) provisions of legislation that are designated as an emergency requirement pursuant to section 251(b)(2)(A) or 252(e) of the Balanced Budget and Emergency Deficit Control Act of 1985.''.
(c) Supermajority Waiver and Appeal.--Subsections (c)(1) and (d)(2) of section 904 of the Congressional Budget Act of 1974 are amended by striking ``305(b)(2),'' and inserting
``301(k), 301(l), 305(b)(2),''.
SEC. ____04. DEDICATION OF SOCIAL SECURITY SURPLUSES TO
REDUCTION IN THE DEBT HELD BY THE PUBLIC.
(a) Amendments to the Congressional Budget Act of 1974.--The Congressional Budget Act of 1974 is amended--
(1) in section 3, by adding at the end the following:
``(11)(A) The term `debt held by the public' means the outstanding face amount of all debt obligations issued by the United States Government that are held by outside investors, including individuals, corporations, State or local governments, foreign governments, and the Federal Reserve System.
``(B) For the purpose of this paragraph, the term `face amount', for any month, of any debt obligation issued on a discount basis that is not redeemable before maturity at the option of the holder of the obligation is an amount equal to the sum of--
``(i) the original issue price of the obligation; plus
``(ii) the portion of the discount on the obligation attributable to periods before the beginning of such month.
``(12) The term `social security surplus' means the amount for a fiscal year that receipts exceed outlays of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.'';
(2) in section 301(a) by--
(A) redesignating paragraphs (6) and (7) as paragraphs (7) and (8), respectfully; and
(B) inserting after paragraph (5) the following:
``(6) the debt held by the public; and''; and
(3) in section 310(a) by--
(A) striking ``or'' at the end of paragraph (3);
(B) by redesignating paragraph (4) as paragraph (5); and
(C) inserting the following new paragraph;
``(4) specify the amounts by which the statutory limit on the debt held by the public is to be changed and direct the committee having jurisdiction to recommend such change; or''.
(b) Amendments to the Balanced Budget and Emergency Deficit Control Act of 1985.--The Balanced Budget and Emergency Deficit Control Act of 1985 is amended--
(1) in section 250, by striking subsection (b) and inserting the following:
``(b) General Statement of Purpose.--This part provides for the enforcement of--
``(1) a balanced budget excluding the receipts and disbursements of the social security trust funds; and
``(2) a limit on the debt held by the public to ensure that social security surpluses are used for social security reform or to reduce debt held by the public and are not spent on other programs.'';
(2) in section 250(c)(1), by inserting `` ` debt held by the public', `social security surplus' '' after ``outlays',
''; and
(3) by inserting after section 253 the following:
``SEC. 253A. DEBT HELD BY THE PUBLIC LIMIT.
``(a) Limit.--The debt held by the public shall not exceed--
``(1) for the period beginning May 1, 2000 through April 30, 2001, $3,618,000,000,000;
``(2) for the period beginning May 1, 2001 through April 30, 2002, $3,488,000,000,000;
``(3) for the period beginning May 1, 2002 through April 30, 2004, $3,349,000,000,000;
``(4) for the period beginning May 1, 2004 through April 30, 2006, $3,045,000,000,000;
``(5) for the period beginning May 1, 2006 through April 30, 2008, $2,698,000,000,000; and,
``(6) for the period beginning May 1, 2008 through April 30, 2010, $2,301,000,000.
``(b) Adjustments for Actual Social Security Surplus Levels.--
``(1) Estimated levels.--The estimated level of social security surpluses for the purposes of this section is--
``(A) for fiscal year 1999, $125,000,000,000;
``(B) for fiscal year 2000, $147,000,000,000;
``(C) for fiscal year 2001, $155,000,000,000;
``(D) for fiscal year 2002, $163,000,000,000;
``(E) for fiscal year 2003, $172,000,000,000;
``(F) for fiscal year 2004, $181,000,000,000;
``(G) for fiscal year 2005, $195,000,000,000;
``(H) for fiscal year 2006, $205,000,000,000;
``(I) for fiscal year 2007, $217,000,000,000;
``(J) for fiscal year 2008, $228,000,000,000; and
``(K) for fiscal year 2009, $235,000,000,000.
``(2) Adjustment to the limit for actual social security surpluses.--After October 1 and no later than December 31 of each year, the Secretary shall make the following calculations and adjustments:
``(A) Calculation.--After the Secretary determines the actual level for the social security surplus for the current year, the Secretary shall take the estimated level of the social security surplus for that year specified in paragraph
(1) and subtract that actual level.
``(B) Adjustment.--
``(i) 2000 through 2004.--With respect to the periods described in subsections (a)(1), (a)(2), and (a)(3), the Secretary shall add the amount calculated under subparagraph (A) to--
``(I) the limit set forth in subsection (a) for the period of years that begins on May 1st of the following calendar year; and
``(II) each subsequent limit.
``(ii) 2004 through 2010.--With respect to the periods described in subsections (a)(4), (a)(5), and (a)(6), the Secretary shall add the amount calculated under subparagraph
(A) to--
``(I) the limit set forth in subsection (a) for the period of years that includes May 1st of the following calendar year; and
``(II) each subsequent limit.
``(c) Adjustment to the Limit for Emergencies.--
``(1) Estimate of legislation.--
``(A) Calculation.--If legislation is enacted into law that contains a provision that is designated as an emergency requirement pursuant to section 251(b)(2)(A) or 252(e), OMB shall estimate the amount the debt held by the public will change as a result of the provision's effect on the level of total outlays and receipts excluding the impact on outlays and receipts of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.
``(B) Baseline levels.--OMB shall calculate the changes in subparagraph (A) relative to baseline levels for each fiscal year through fiscal year 2010 using current estimates.
``(C) Estimate.--OMB shall include the estimate required by this paragraph in the report required under section 251(a)(7) or section 252(d), as the case may be.
``(2) Adjustment.--After January 1 and no later than May 1 of each calendar year beginning with calendar year 2000--
``(A) with respect to the periods described in subsections
(a)(1), (a)(2), and (a)(3), the Secretary shall add the amounts calculated under paragraph (1)(A) for the current year included in the report referenced in paragraph (1)(C) to--
``(i) the limit set forth in subsection (a) for the period of years that begins on May 1 of that calendar year; and
``(ii) each subsequent limit; and
``(B) with respect to the periods described in subsections
(a)(4), (a)(5), and (a)(6), the Secretary shall add the amounts calculated under paragraph (1)(A) for the current year included in the report referenced in paragraph (1)(C) to--
``(i) the limit set forth in subsection (a) for the period of years that includes May 1 of that calendar year; and
``(ii) each subsequent limit.
``(3) Exception.--The Secretary shall not make the adjustments pursuant to this section if the adjustments for the current year are less than the on-budget surplus for the year before the current year.
``(d) Adjustment to the Limit for Low Economic Growth and War.--
``(1) Suspension of statutory limit on debt held by the public.--
``(A) Low economic growth.--If the most recent of the Department of Commerce's advance, preliminary, or final reports of actual real economic growth indicate that the rate of real economic growth (as measured by real GDP) for each of the most recently reported quarter and the immediately preceding quarter is less than 1 percent, the limit on the debt held by the public established in this section is suspended.
``(B) War.--If a declaration of war is in effect, the limit on the debt held by the public established in this section is suspended.
``(2) Restoration of statutory limit on debt held by the public.--
``(A) Restoration of limit.--The statutory limit on debt held by the public shall be restored on May 1 following the quarter in which the level of real Gross Domestic Product in the final report from the Department of Commerce is equal to or is higher than the level of real Gross Domestic Product in the quarter preceding the first two quarters that caused the suspension of the pursuant to paragraph (1).
``(B) Adjustment.--
``(i) Calculation.--The Secretary shall take level of the debt held by the public on October 1 of the year preceding the date referenced in subparagraph (A) and subtract the limit in subsection (a) for the period of years that includes the date referenced in subparagraph (A).
``(ii) Adjustment.--The Secretary shall add the amount calculated under clause (i) to--
``(I) the limit in subsection (a) for the period of fiscal years that includes the date referenced in subparagraph (A); and
``(II) each subsequent limit.
``(e) Adjustment to the Limit for Social Security Reform Provisions that Affect On-Budget Levels.--
``(1) Estimate of legislation.--
``(A) Calculation.--If social security reform legislation is enacted, OMB shall estimate the amount the debt held by the public will change as a result of the legislation's effect on the level of total outlays and receipts excluding the impact on outlays and receipts of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.
``(B) Baseline levels.--OMB shall calculate the changes in subparagraph (A) relative to baseline levels for each fiscal year through fiscal year 2010 using current estimates.
``(C) Estimate.--OMB shall include the estimate required by this paragraph in the report required under section 252(d) for social security reform legislation.
``(2) Adjustment to limit on the debt held by the public.--If social security reform legislation is enacted, the Secretary shall adjust the limit on the debt held by the public for each period of fiscal years by the amounts determined under paragraph (1)(A) for the relevant fiscal years included in the report referenced in paragraph (1)(C).
``(f) Definitions.--In this section:
``(1) Secretary.--The term `Secretary' means the Secretary of the Treasury.
``(2) Social security reform legislation.--The term `social security reform legislation' means legislation that--
``(A) implements structural social security reform and significantly extends the solvency of the Social Security Trust Fund; and
``(B) includes a provision stating the following: `For purposes of the Social Security Surplus Preservation and Debt Reduction Act of 1999, this Act constitutes social security reform legislation'.
This paragraph shall apply only to the first bill or joint resolution enacted into law as described in this paragraph.''.
SEC. ____05. PRESIDENT'S BUDGET.
Section 1105(f) of title 31, United States Code, is amended by striking ``in a manner consistent'' and inserting ``in compliance''.
SEC. ____06. SENSE OF THE SENATE ON MEDICARE RESERVE FUND.
(a) Findings.--The Senate finds that--
(1) the Congressional budget plan has $505,000,000,000 over ten years in unallocated budget surpluses that could be used for long-term medicare reform, other priorities, or debt reduction;
(2) the Congressional budget resolution for fiscal year 2000 already has set aside $90,000,000,000 over ten years through a reserve fund for long-term medicare reform including prescription drug coverage;
(3) the President estimates that his medicare proposal will cost $46,000,000,000 over 10 years; and
(4) thus the Congressional budget resolution provides more than adequate resources for medicare reform, including prescription drugs.
(b) Sense of the Senate.--It is the sense of the Senate that the Congressional budget resolution for fiscal year 2000 provides a sound framework for allocating resources to medicare to modernize medicare benefits, improve the solvency of the program, and improve coverage of prescription drugs.
SEC. ____07. SUNSET.
This title and the amendments made by this title shall expire on April 30, 2010.
______
ABRAHAM (AND WYDEN) AMENDMENT NO. 1399
(Ordered to lie on the table.)
Mr. ABRAHAM (for himself and Mr. Wyden) submitted an amendment intended to be proposed by them to the bill, S. 1429, supra; as follows:
On page 371, between lines 16 and 17, insert:
SEC. ____. EXPANSION OF DEDUCTION FOR COMPUTER DONATIONS TO
SCHOOLS.
(a) Extension of Age of Eligible Computers.--Section 170(e)(6)(B)(ii) (defining qualified elementary or secondary educational contribution) is amended--
(1) by striking ``2 years'' and inserting ``3 years'', and
(2) by inserting ``for the taxpayer's own use'' after
``constructed by the taxpayer''.
(b) Reacquired Computers Eligible for Donation.--
(1) In general.--Section 170(e)(6)(B)(iii) (defining qualified elementary or secondary educational contribution) is amended by inserting ``, the person from whom the donor reacquires the property,'' after ``the donor''.
(2) Conforming amendment.--Section 170(e)(6)(B)(ii) is amended by inserting ``or reaquired'' after ``acquired''.
(c) Effective Date.--The amendments made by this section shall apply to contributions made in taxable years ending after the date of the enactment of this Act.
SEC. ____. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1 (relating to business related credits), as amended by this Act, is amended by adding at the end the following:
``SEC. 45E. CREDIT FOR COMPUTER DONATIONS TO SCHOOLS.
``(a) General Rule.--For purposes of section 38, the school computer donation credit determined under this section is an amount equal to 30 percent of the qualified elementary or secondary educational contributions made by the taxpayer during the taxable year.
``(b) Qualified Elementary or Secondary Educational Contribution.--For purposes of this section, the term
`qualified elementary or secondary educational contribution' has the meaning given such term by section 170(e)(6)(B), except that such term shall include the contribution of a computer (as defined in section 168(i)(2)(B)(ii)) only if computer software (as defined in section 197(e)(3)(B)) that serves as a computer operating system has been lawfully installed in such computer.
``(c) Increased Percentage for Contributions to Schools in Empowerment Zones, Enterprise Communities, and Indian Reservations.--In the case of a qualified elementary or secondary educational contribution to an educational organization or entity located in an empowerment zone or enterprise community designated under section 1391 or an Indian reservation (as defined in section 168(j)(6)), subsection (a) shall be applied by substituting
`50 percent' for `30 percent'.
``(d) Certain Rules Made Applicable.--For purposes of this section, rules similar to the rules of paragraphs (1) and (2) of section 41(f), and section 170(e)(6)(A), shall apply.
``(e) Termination.--This section shall not apply to taxable years beginning on or after the date which is 3 years after the date of the enactment of the Taxpayer Refund Act of 1999.''
(b) Current Year Business Credit Calculation.--Section 38(b) (relating to current year business credit), as amended by this Act, is amended by striking ``plus'' at the end of paragraph (12), by striking the period at the end of paragraph (13) and inserting ``, plus'', and by adding at the end the following:
``(14) the school computer donation credit determined under section 45E(a).''
(c) Disallowance of Deduction by Amount of Credit.--Section 280C (relating to certain expenses for which credits are allowable) is amended by adding at the end the following:
``(d) Credit for School Computer Donations.--No deduction shall be allowed for that portion of the qualified elementary or secondary educational contributions (as defined in section 45E(b)) made during the taxable year that is equal to the amount of credit determined for the taxable year under section 45E(a). In the case of a corporation which is a member of a controlled group of corporations (within the meaning of section 52(a)) or a trade or business which is treated as being under common control with other trades or businesses (within the meaning of section 52(b)), this subsection shall be applied under rules prescribed by the Secretary similar to the rules applicable under subsections
(a) and (b) of section 52.''
(d) Limitation on Carryback.--Subsection (d) of section 39
(relating to carryback and carryforward of unused credits) is amended by adding at the end the following:
``(9) No carryback of school computer donation credit before effective date.--No amount of unused business credit available under section 45E may be carried back to a taxable year beginning on or before the date of the enactment of this paragraph.''
(e) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 45D the following:
``Sec. 45E. Credit for computer donations to schools.''
(f) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to contributions made in taxable years beginning after the date of the enactment of this Act.
(2) Certain contributions.--The amendments made by this section shall apply to contributions made to an organization or entity not described in section 45E(c) of the Internal Revenue Code of 1986, as added by subsection (a), in taxable years beginning after the date that is one year after the date of the enactment of this Act.
______
KERRY AMENDMENT NO. 1400
(Ordered to be lie on the table.)
Mr. KERRY submitted an amendment intended to be proposed by him to the bill, S. 1429, supra; as follows:
At the end of title XI, add the following:
SEC. ____. LOANS USED TO ACQUIRE PRINCIPAL RESIDENCES FOR
FIRST-TIME HOMEBUYERS.
(a) Loans Used To Acquire Principal Residences for First-Time Homebuyers.--
(1) Individual retirement plans.--Section 408(e) (relating to tax treatment of accounts and annuities) is amended by adding at the end thereof the following new paragraph:
``(7) Loans used to purchase a home for first-time homebuyers.--
``(A) In general.--Paragraph (3) shall not apply to any qualified home purchase loan made by an individual retirement plan.
``(B) Qualified home purchase loan.--For purposes of this paragraph, the term `qualified home purchase loan' means a loan--
``(i) made by the trustee of an individual retirement plan at the direction of the individual on whose behalf such plan is established,
``(ii) the proceeds of which are used for the acquisition of a dwelling unit which within a reasonable period of time
(determined at the time the loan is made) is to be used as the principal residence for a first-time homebuyer,
``(iii) which by its terms requires interest on the loan to be paid not less frequently than monthly,
``(iv) which by its terms requires repayment in full not later than the earlier of--
``(I) the date which is 15 years after the date of acquisition of the dwelling unit, or
``(II) the date of the sale or other transfer of the dwelling unit,
``(v) which by its terms treats--
``(I) any amount required to be paid under clause (iii) during any taxable year which is not paid at the time required to be paid, and
``(II) any amount remaining unpaid as of the beginning of the taxable year beginning after the period described in clause (iv),
as distributed during such taxable year to the individual on whose behalf such plan is established and subject to section 72(t)(1), and
``(vi) which bears interest from the date of the loan at a rate not less than 2 percentage points below, and not more than 2 percentage points above, the rate for comparable United States Treasury obligations on such date.
Nothing in this paragraph shall be construed to require such a loan to be secured by the dwelling unit.
``(C) Limitation on amount of loans.--The amount of borrowings to which paragraph (3) does not apply by reason of this paragraph shall not exceed $10,000.
``(D) Denial of interest deduction.--No deduction shall be allowed under this chapter for interest on any qualified home purchase loan.
``(E) Definitions.--For purposes of this paragraph--
``(i) First-time homebuyer.--The term `first-time homebuyer' has the meaning given such term by section 4975(h)(3)(B).
``(ii) Acquisition.--The term `acquisition' has the meaning given such term by section 4975(h)(3)(D)(i).
``(iii) Principal residence.--The term `principal residence' has the same meaning as when used in section 121.
``(iv) Date of acquisition.--The term `date of acquisition' means the date--
``(I) on which a binding contract to acquire the principal residence to which subparagraph (B) applies is entered into, or
``(II) on which construction, reconstruction, or improvement of such a principal residence is commenced.''.
(2) Prohibited transaction.--Section 4975(d) (relating to exemptions from tax on prohibited transactions) is amended by striking ``or'' at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting ``; or'', and by inserting after paragraph (15) the following new paragraph:
``(16) any loan that is a qualified home purchase loan (as defined in section 408(e)(7)(B)).''.
(3) Effective date.--The amendments made by this subsection shall apply to loans made in years after 2001.
(b) Offset.--Notwithstanding section 701(c) of this Act, the effective date of the amendments made by section 701 shall be adjusted by the Secretary of the Treasury as necessary to offset the decrease in revenues to the Treasury resulting from the amendments made by subsection (a).
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ROBB (AND OTHERS) AMENDMENT NO. 1401
Mr. ROBB (for himself, Mr. Graham, Mr. Rockefeller, Ms. Mikulski, Mrs. Murray, and Mr. Bryan) proposed an amendment to the bill, S. 1429, supra; as follows:
At the end add the following:
TITLE XVI--DELAY IN EFFECTIVE DATE
Notwithstanding any other provision of, or amendment made by, this Act, no such provision or amendment shall take effect until legislation has been enacted that extends the solvency of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund under section 201 of the Social Security Act through 2075 and the Federal Hospital Insurance Trust Fund under part A of title XVIII of such Act through 2027.
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KERRY AMENDMENT NO. 1402
(Ordered to be lie on the table.)
Mr. KERRY submitted an amendment intended to be proposed by him to the bill, S. 1429, supra; as follows:
On page 371, between lines 16 and 17, insert the following:
SEC. 1122. DISCLOSURE OF TAX INFORMATION TO FACILITATE
COMBINED EMPLOYMENT TAX REPORTING.
Section 6103(d)(5) of the Internal Revenue Code of 1986 is amended to read as follows:
``(5) Disclosure for combined employment tax reporting.--The Secretary may disclose taxpayer identity information and signatures to any agency, body, or commission of any State for the purpose of carrying out with such agency, body, or commission a combined Federal and State employment tax reporting program approved by the Secretary. Subsections
(a)(2) and (p)(4) and sections 7213 and 7213A shall not apply with respect to disclosures or inspections made pursuant to this paragraph.''
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