HR 2470 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to expand the incentives for the construction and renovation of public schools.CommentsClose CommentsPermalink

May 24, 2007

Mr. RANGEL (for himself, Mr. RAMSTAD, Mr. ETHERIDGE, Mr. ABERCROMBIE, Mr. ANDREWS, Mr. ARCURI, Mr. BACA, Mr. BARROW, Mr. BECERRA, Ms. BERKLEY, Mr. BERMAN, Mr. BERRY, Mr. BISHOP of Georgia, Mr. BISHOP of New York, Mr. BLUMENAUER, Mr. BOSWELL, Mr. BOUCHER, Mrs. BOYDA of Kansas, Mr. BRALEY of Iowa, Ms. CORRINE BROWN of Florida, Mr. BUTTERFIELD, Mrs. CAPITO, Mrs. CAPPS, Mr. CARDOZA, Ms. CASTOR, Mr. CHANDLER, Ms. CLARKE, Mr. CLAY, Mr. CLEAVER, Mr. CONYERS, Mr. CROWLEY, Mr. CUELLAR, Mr. CUMMINGS, Mr. DAVIS of Alabama, Mr. DAVIS of Illinois, Mr. LINCOLN DAVIS of Tennessee, Mrs. DAVIS of California, Mr. DEFAZIO, Ms. DELAURO, Mr. DICKS, Mr. DOYLE, Mr. EDWARDS, Mr. ELLISON, Mr. EMANUEL, Mr. ENGEL, Mr. ENGLISH of Pennsylvania, Ms. ESHOO, Mr. FARR, Mr. FERGUSON, Mr. FILNER, Mrs. GILLIBRAND, Mr. GONZALEZ, Mr. GORDON of Tennessee, Mr. AL GREEN of Texas, Mr. GENE GREEN of Texas, Mr. GRIJALVA, Mr. HARE, Mr. HASTINGS of Florida, Ms. HERSETH SANDLIN, Mr. HIGGINS, Mr. HINOJOSA, Ms. HIRONO, Mr. HOLDEN, Mr. HOLT, Mr. HONDA, Ms. HOOLEY, Mr. INSLEE, Mr. ISRAEL, Ms. JACKSON-LEE of Texas, Mr. JEFFERSON, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. KAGEN, Mr. KILDEE, Ms. KILPATRICK, Mr. KIND, Mr. KUCINICH, Mr. LAHOOD, Mr. LAMPSON, Mr. LARSON of Connecticut, Mr. LEVIN, Mr. LEWIS of Georgia, Mr. LOBIONDO, Mr. LOEBSACK, Mrs. LOWEY, Mr. LYNCH, Mrs. MALONEY of New York, Mr. MATHESON, Ms. MATSUI, Mrs. MCCARTHY of New York, Ms. MCCOLLUM of Minnesota, Mr. MCDERMOTT, Mr. MCGOVERN, Mr. MCHUGH, Mr. MCINTYRE, Mr. MCNULTY, Mr. MEEHAN, Mr. MEEK of Florida, Mr. MICHAUD, Mr. MILLER of North Carolina, Mr. GEORGE MILLER of California, Mr. MOORE of Kansas, Mr. MORAN of Virginia, Mr. NADLER, Mrs. NAPOLITANO, Mr. NEAL of Massachusetts, Ms. NORTON, Mr. OLVER, Mr. ORTIZ, Mr. PALLONE, Mr. PASCRELL, Mr. PASTOR, Mr. PAYNE, Mr. PERLMUTTER, Mr. POMEROY, Mr. PRICE of North Carolina, Mr. RAHALL, Mr. REYES, Mr. RODRIGUEZ, Mr. ROSS, Mr. ROTHMAN, Mr. RUPPERSBERGER, Mr. RUSH, Mr. SALAZAR, Ms. LINDA T. SANCHEZ of California, Ms. LORETTA SANCHEZ of California, Mr. SAXTON, Ms. SCHAKOWSKY, Ms. SCHWARTZ, Mr. SCOTT of Virginia, Mr. SCOTT of Georgia, Ms. SHEA-PORTER, Mr. SHERMAN, Mr. SHULER, Mr. SIMPSON, Ms. SLAUGHTER, Mr. SMITH of Washington, Mr. SPRATT, Mr. STARK, Ms. SUTTON, Mrs. TAUSCHER, Mr. TERRY, Mr. THOMPSON of Mississippi, Mr. THOMPSON of California, Mr. TIERNEY, Mrs. JONES of Ohio, Mr. UDALL of New Mexico, Mr. VAN HOLLEN, Ms. WASSERMAN SCHULTZ, Ms. WATSON, Mr. WATT, Mr. WAXMAN, Mr. WELLER of Illinois, Mr. WEXLER, Ms. WOOLSEY, Mr. WU, and Mr. WYNN) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to expand the incentives for the construction and renovation of public schools.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `America's Better Classrooms Act of 2007'.CommentsClose CommentsPermalink

SEC. 2. EXPANSION OF INCENTIVES FOR PUBLIC SCHOOLS.

(a) In General- Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to credits against tax) is amended by adding at the end the following new subpart:CommentsClose CommentsPermalink

`Subpart I--Public School Modernization Bonds

`Sec. 54A. Credit to holders of qualified public school modernization bonds.CommentsClose CommentsPermalink





`Sec. 54B. Qualified school construction bonds.CommentsClose CommentsPermalink





`Sec. 54C. Qualified zone academy bonds.CommentsClose CommentsPermalink

`SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED PUBLIC SCHOOL MODERNIZATION BONDS.

`(a) Allowance of Credit- If a taxpayer holds a qualified public school modernization bond on one or more credit allowance dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates.CommentsClose CommentsPermalink





`(b) Amount of Credit-CommentsClose CommentsPermalink





`(1) IN GENERAL- The amount of the credit determined under this subsection with respect to any credit allowance date for a qualified public school modernization bond is 25 percent of the annual credit determined with respect to such bond.CommentsClose CommentsPermalink





`(2) ANNUAL CREDIT- The annual credit determined with respect to any qualified public school modernization bond is the product of--CommentsClose CommentsPermalink





`(A) the applicable credit rate, multiplied byCommentsClose CommentsPermalink





`(B) the outstanding face amount of the bond.CommentsClose CommentsPermalink





`(3) APPLICABLE CREDIT RATE- For purposes of paragraph (2), the applicable credit rate is the rate which the Secretary or the Secretary's designee estimates will permit the issuance of qualified public school modernization bonds with a specified maturity or redemption date without discount and without interest cost to the qualified issuer. The applicable credit rate with respect to any qualified public school modernization bond shall be determined as of the first day on which there is a binding, written contract for the sale or exchange of the bond.CommentsClose CommentsPermalink





`(4) SPECIAL RULE FOR ISSUANCE AND REDEMPTION- In the case of a bond which is issued during the 3-month period ending on a credit allowance date, the amount of the credit determined under this subsection with respect to such credit allowance date shall be a ratable portion of the credit otherwise determined based on the portion of the 3-month period during which the bond is outstanding. A similar rule shall apply when the bond is redeemed or matures.CommentsClose CommentsPermalink





`(c) Limitation Based on Amount of Tax-CommentsClose CommentsPermalink





`(1) IN GENERAL- The credit allowed under subsection (a) for any taxable year shall not exceed the excess of--CommentsClose CommentsPermalink





`(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, overCommentsClose CommentsPermalink





`(B) the sum of the credits allowable under this part (other than subpart C and this subpart).CommentsClose CommentsPermalink





`(2) CARRYOVER OF UNUSED CREDIT- If the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year.CommentsClose CommentsPermalink





`(d) Qualified Public School Modernization Bond- For purposes of this section--CommentsClose CommentsPermalink





`(1) QUALIFIED PUBLIC SCHOOL MODERNIZATION BOND- The term `qualified public school modernization bond' means--CommentsClose CommentsPermalink





`(A) a qualified school construction bond, andCommentsClose CommentsPermalink





`(B) a qualified zone academy bond,CommentsClose CommentsPermalink





which is part of an issue that meets requirements of paragraphs (2), (3), (4), and (5).CommentsClose CommentsPermalink





`(2) SPECIAL RULES RELATING TO EXPENDITURES-CommentsClose CommentsPermalink





`(A) IN GENERAL- An issue shall be treated as meeting the requirements of this paragraph if, as of the date of issuance, the issuer reasonably expects--CommentsClose CommentsPermalink





`(i) at least 95 percent of the gross proceeds are to be spent for 1 or more qualified purposes within the 3-year period beginning on such date of issuance,CommentsClose CommentsPermalink





`(ii) a binding commitment with a third party to spend at least 10 percent of such gross proceeds will be incurred within the 6-month period beginning on such date of issuance, andCommentsClose CommentsPermalink





`(iii) such purposes will be completed with due diligence and such gross proceeds from the sale of the issue will be spent with due diligence.CommentsClose CommentsPermalink





`(B) EXTENSION OF PERIOD- Upon submission of a request prior to the expiration of the period described in subparagraph (A)(i), the Secretary may extend such period if the issuer establishes that the failure to satisfy the 3-year requirement is due to reasonable cause and the related purposes will continue to proceed with due diligence.CommentsClose CommentsPermalink





`(C) FAILURE TO SPEND REQUIRED AMOUNT OF BOND PROCEEDS WITHIN 3 YEARS- To the extent that less than 95 percent of the gross proceeds of the issue are expended by the close of the 3-year period beginning on the date of issuance (or if an extension has been obtained under subparagraph (B), by the close of the extended period), the issuer shall redeem all of the nonqualified bonds within 90 days after the end of such period. For purposes of this paragraph, the amount of the nonqualified bonds required to be redeemed shall be determined in the same manner as under section 142.CommentsClose CommentsPermalink





`(D) QUALIFIED PURPOSE- For purposes of this paragraph, the term `qualified purpose' means--CommentsClose CommentsPermalink





`(i) in the case of a qualified school construction bond, a purpose specified in section 54B(a)(1), andCommentsClose CommentsPermalink





`(ii) in the case of a qualified zone academy bond, a purpose specified in section 54C(a)(4).CommentsClose CommentsPermalink





`(3) REPORTING- An issue shall be treated as meeting the requirements of this paragraph if the issuer of qualified public school modernization bonds submits reports similar to the reports required under section 149(e).CommentsClose CommentsPermalink





`(4) SPECIAL RULES RELATING TO ARBITRAGE- An issue shall be treated as meeting the requirements of this paragraph if the issue meets the requirements of section 148, except that such requirements shall not apply if the issuer elects--CommentsClose CommentsPermalink





`(A) to treat any earnings on proceeds invested before use for a qualified purpose as part of gross proceeds for purposes of paragraph (2), andCommentsClose CommentsPermalink





`(B) to apply paragraph (2)(C) by substituting `100 percent' for `95 percent'.CommentsClose CommentsPermalink





`(5) MATURITY LIMITATION- An issue shall not be treated as meeting the requirements of this paragraph if the maturity of any bond which is part of such issue exceeds the maximum term determined by the Secretary under rules similar to the rules of section 54(e)(2).CommentsClose CommentsPermalink





`(e) Other Definitions- For purposes of this subchapter--CommentsClose CommentsPermalink





`(1) CREDIT ALLOWANCE DATE- The term `credit allowance date' means--CommentsClose CommentsPermalink





`(A) March 15,CommentsClose CommentsPermalink





`(B) June 15,CommentsClose CommentsPermalink





`(C) September 15, andCommentsClose CommentsPermalink





`(D) December 15.CommentsClose CommentsPermalink





Such term includes the last day on which the bond is outstanding.CommentsClose CommentsPermalink





`(2) LOCAL EDUCATIONAL AGENCY- The term `local educational agency' has the meaning given to such term by section 14101 of the Elementary and Secondary Education Act of 1965. Such term includes the local educational agency that serves the District of Columbia but does not include any other State agency.CommentsClose CommentsPermalink





`(3) BOND- The term `bond' includes any obligation.CommentsClose CommentsPermalink





`(4) STATE- The term `State' includes the District of Columbia and any possession of the United States.CommentsClose CommentsPermalink





`(5) PUBLIC SCHOOL FACILITY- The term `public school facility' shall not include--CommentsClose CommentsPermalink





`(A) any stadium or other facility primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public, orCommentsClose CommentsPermalink





`(B) any facility which is not owned by a State or local government or any agency or instrumentality of a State or local government.CommentsClose CommentsPermalink





`(6) GROSS PROCEEDS- The term `gross proceeds' means proceeds from the sale of an issue reduced by reasonable issuance costs.CommentsClose CommentsPermalink





`(f) Credit Included in Gross Income- Gross income includes the amount of the credit allowed to the taxpayer under this section (determined without regard to subsection (c)) and the amount so included shall be treated as interest income.CommentsClose CommentsPermalink





`(g) Bonds Held by Regulated Investment Companies- If any qualified public school modernization bond is held by a regulated investment company, the credit determined under subsection (a) shall be allowed to shareholders of such company under procedures prescribed by the Secretary.CommentsClose CommentsPermalink





`(h) Credits May Be Stripped- Under regulations prescribed by the Secretary--CommentsClose CommentsPermalink





`(1) IN GENERAL- There may be a separation (including at issuance) of the ownership of a qualified public school modernization bond and the entitlement to the credit under this section with respect to such bond. In case of any such separation, the credit under this section shall be allowed to the person who on the credit allowance date holds the instrument evidencing the entitlement to the credit and not to the holder of the bond.CommentsClose CommentsPermalink





`(2) CERTAIN RULES TO APPLY- In the case of a separation described in paragraph (1), the rules of section 1286 shall apply to the qualified public school modernization bond as if it were a stripped bond and to the credit under this section as if it were a stripped coupon.CommentsClose CommentsPermalink





`(i) Treatment for Estimated Tax Purposes- Solely for purposes of sections 6654 and 6655, the credit allowed by this section to a taxpayer by reason of holding a qualified public school modernization bond on a credit allowance date shall be treated as if it were a payment of estimated tax made by the taxpayer on such date.CommentsClose CommentsPermalink

`SEC. 54B. QUALIFIED SCHOOL CONSTRUCTION BONDS.

`(a) Qualified School Construction Bond- For purposes of this subchapter, the term `qualified school construction bond' means any bond issued as part of an issue if--CommentsClose CommentsPermalink





`(1) 95 percent or more of the gross proceeds of such issue are to be used for the construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds of such issue,CommentsClose CommentsPermalink





`(2) the bond is issued by a State or local government within the jurisdiction of which such school is located, andCommentsClose CommentsPermalink





`(3) the issuer designates such bond for purposes of this section.CommentsClose CommentsPermalink





`(b) Limitation on Amount of Bonds Designated- The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (a) by any issuer shall not exceed the sum of--CommentsClose CommentsPermalink





`(1) the limitation amount allocated under subsection (d) for such calendar year to such issuer, andCommentsClose CommentsPermalink





`(2) if such issuer is a large local educational agency (as defined in subsection (e)(4)) or is issuing on behalf of such an agency, the limitation amount allocated under subsection (e) for such calendar year to such agency.CommentsClose CommentsPermalink





`(c) National Limitation on Amount of Bonds Designated- There is a national qualified school construction bond limitation for each calendar year. Such limitation is--CommentsClose CommentsPermalink





`(1) $11,000,000,000 for 2008CommentsClose CommentsPermalink





`(2) $11,000,000,000 for 2009, andCommentsClose CommentsPermalink





`(3) except as provided in subsection (f), zero after 2009.CommentsClose CommentsPermalink





`(d) 60 Percent of Limitation Allocated Among States-CommentsClose CommentsPermalink





`(1) IN GENERAL- 60 percent of the limitation applicable under subsection (c) for any calendar year shall be allocated by the Secretary among the States in proportion to the respective numbers of children in each State who have attained age 5 but not age 18 for the most recent fiscal year ending before such calendar year. The limitation amount allocated to a State under the preceding sentence shall be allocated by the State to issuers within such State.CommentsClose CommentsPermalink





`(2) MINIMUM ALLOCATIONS TO STATES-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Secretary shall adjust the allocations under this subsection for any calendar year for each State to the extent necessary to ensure that the sum of--CommentsClose CommentsPermalink





`(i) the amount allocated to such State under this subsection for such year, andCommentsClose CommentsPermalink





`(ii) the aggregate amounts allocated under subsection (e) to large local educational agencies in such State for such year,CommentsClose CommentsPermalink





is not less than an amount equal to such State's minimum percentage of the amount to be allocated under paragraph (1) for the calendar year.CommentsClose CommentsPermalink





`(B) MINIMUM PERCENTAGE- A State's minimum percentage for any calendar year is the minimum percentage described in section 1124(d) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6334(d)) for such State for the most recent fiscal year ending before such calendar year.CommentsClose CommentsPermalink





`(3) ALLOCATIONS TO CERTAIN POSSESSIONS- The amount to be allocated under paragraph (1) to any possession of the United States other than Puerto Rico shall be the amount which would have been allocated if all allocations under paragraph (1) were made on the basis of respective populations of individuals below the poverty line (as defined by the Office of Management and Budget). In making other allocations, the amount to be allocated under paragraph (1) shall be reduced by the aggregate amount allocated under this paragraph to possessions of the United States.CommentsClose CommentsPermalink





`(4) ALLOCATIONS FOR INDIAN SCHOOLS- In addition to the amounts otherwise allocated under this subsection, $200,000,000 for calendar year 2008, and $200,000,000 for calendar year 2009, shall be allocated by the Secretary of the Interior for purposes of the construction, rehabilitation, and repair of schools funded by the Bureau of Indian Affairs. In the case of amounts allocated under the preceding sentence, Indian tribal governments (as defined in section 7871) shall be treated as qualified issuers for purposes of this subchapter.CommentsClose CommentsPermalink





`(e) 40 Percent of Limitation Allocated Among Largest School Districts-CommentsClose CommentsPermalink





`(1) IN GENERAL- 40 percent of the limitation applicable under subsection (c) for any calendar year shall be allocated under paragraph (2) by the Secretary among local educational agencies which are large local educational agencies for such year.CommentsClose CommentsPermalink





`(2) ALLOCATION FORMULA- The amount to be allocated under paragraph (1) for any calendar year shall be allocated among large local educational agencies in proportion to the respective amounts each such agency received for Basic Grants under subpart 2 of part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for the most recent fiscal year ending before such calendar year.CommentsClose CommentsPermalink





`(3) ALLOCATION OF UNUSED LIMITATION TO STATE- The amount allocated under this subsection to a large local educational agency for any calendar year may be reallocated by such agency to the State in which such agency is located for such calendar year. Any amount reallocated to a State under the preceding sentence may be allocated as provided in subsection (d)(1).CommentsClose CommentsPermalink





`(4) LARGE LOCAL EDUCATIONAL AGENCY- For purposes of this section, the term `large local educational agency' means, with respect to a calendar year, any local educational agency if such agency is--CommentsClose CommentsPermalink





`(A) among the 100 local educational agencies with the largest numbers of children aged 5 through 17 from families living below the poverty level, as determined by the Secretary using the most recent data available from the Department of Commerce that are satisfactory to the Secretary, orCommentsClose CommentsPermalink





`(B) 1 of not more than 25 local educational agencies (other than those described in subparagraph (A)) that the Secretary of Education determines (based on the most recent data available satisfactory to the Secretary) are in particular need of assistance, based on a low level of resources for school construction, a high level of enrollment growth, or such other factors as the Secretary deems appropriate.CommentsClose CommentsPermalink





`(f) Carryover of Unused Limitation- If for any calendar year--CommentsClose CommentsPermalink





`(1) the amount allocated under subsection (d) to any State, exceedsCommentsClose CommentsPermalink





`(2) the amount of bonds issued during such year which are designated under subsection (a) pursuant to such allocation,CommentsClose CommentsPermalink





the limitation amount under such subsection for such State for the following calendar year shall be increased by the amount of such excess. A similar rule shall apply to the amounts allocated under subsection (d)(4) or (e).CommentsClose CommentsPermalink

`SEC. 54C. QUALIFIED ZONE ACADEMY BONDS.

`(a) Qualified Zone Academy Bond- For purposes of this subchapter--CommentsClose CommentsPermalink





`(1) IN GENERAL- The term `qualified zone academy bond' means any bond issued as part of an issue if--CommentsClose CommentsPermalink





`(A) 95 percent or more of the gross proceeds of such issue are to be used for a qualified purpose with respect to a qualified zone academy established by a local educational agency,CommentsClose CommentsPermalink





`(B) the bond is issued by a State or local government within the jurisdiction of which such academy is located, andCommentsClose CommentsPermalink





`(C) the issuer--CommentsClose CommentsPermalink





`(i) designates such bond for purposes of this section,CommentsClose CommentsPermalink





`(ii) certifies that it has written assurances that the private business contribution requirement of paragraph (2) will be met with respect to such academy, andCommentsClose CommentsPermalink





`(iii) certifies that it has the written approval of the local educational agency for such bond issuance.CommentsClose CommentsPermalink





`(2) PRIVATE BUSINESS CONTRIBUTION REQUIREMENT-CommentsClose CommentsPermalink





`(A) IN GENERAL- For purposes of paragraph (1), the private business contribution requirement of this paragraph is met with respect to any issue if the local educational agency that established the qualified zone academy has written commitments from private entities to make qualified contributions having a present value (as of the date of issuance of the issue) of not less than 10 percent of the gross proceeds of the issue.CommentsClose CommentsPermalink





`(B) QUALIFIED CONTRIBUTIONS- For purposes of subparagraph (A), the term `qualified contribution' means any contribution (of a type and quality acceptable to the local educational agency) of--CommentsClose CommentsPermalink





`(i) equipment for use in the qualified zone academy (including state-of-the-art technology and vocational equipment),CommentsClose CommentsPermalink





`(ii) technical assistance in developing curriculum or in training teachers in order to promote appropriate market driven technology in the classroom,CommentsClose CommentsPermalink





`(iii) services of employees as volunteer mentors,CommentsClose CommentsPermalink





`(iv) internships, field trips, or other educational opportunities outside the academy for students, orCommentsClose CommentsPermalink





`(v) any other property or service specified by the local educational agency.CommentsClose CommentsPermalink





`(3) QUALIFIED ZONE ACADEMY- The term `qualified zone academy' means any public school (or academic program within a public school) which is established by and operated under the supervision of a local educational agency to provide education or training below the postsecondary level if--CommentsClose CommentsPermalink





`(A) such public school or program (as the case may be) is designed in cooperation with business to enhance the academic curriculum, increase graduation and employment rates, and better prepare students for the rigors of college and the increasingly complex workforce,CommentsClose CommentsPermalink





`(B) students in such public school or program (as the case may be) will be subject to the same academic standards and assessments as other students educated by the local educational agency,CommentsClose CommentsPermalink





`(C) the comprehensive education plan of such public school or program is approved by the local educational agency, andCommentsClose CommentsPermalink





`(D)(i) such public school is located in an empowerment zone or enterprise community (including any such zone or community designated after the date of the enactment of this section), orCommentsClose CommentsPermalink





`(ii) there is a reasonable expectation (as of the date of issuance of the bonds) that at least 35 percent of the students attending such school or participating in such program (as the case may be) will be eligible for free or reduced-cost lunches under the school lunch program established under the National School Lunch Act.CommentsClose CommentsPermalink





`(4) QUALIFIED PURPOSE- The term `qualified purpose' means, with respect to any qualified zone academy--CommentsClose CommentsPermalink





`(A) constructing, rehabilitating, or repairing the public school facility in which the academy is established,CommentsClose CommentsPermalink





`(B) acquiring the land on which such facility is to be constructed with part of the proceeds of such issue,CommentsClose CommentsPermalink





`(C) providing equipment for use at such academy,CommentsClose CommentsPermalink





`(D) developing course materials for education to be provided at such academy, andCommentsClose CommentsPermalink





`(E) training teachers and other school personnel in such academy.CommentsClose CommentsPermalink





`(b) Limitations on Amount of Bonds Designated-CommentsClose CommentsPermalink





`(1) IN GENERAL- There is a national zone academy bond limitation for each calendar year. Such limitation is--CommentsClose CommentsPermalink





`(A) $1,400,000,000, for 2008,CommentsClose CommentsPermalink





`(B) $1,400,000,000 for 2009, andCommentsClose CommentsPermalink





`(C) except as provided in paragraph (3), zero after 2009.CommentsClose CommentsPermalink





`(2) ALLOCATION OF LIMITATION-CommentsClose CommentsPermalink





`(A) ALLOCATION AMONG STATES- The national zone academy bond limitation for any calendar year shall be allocated by the Secretary among the States in proportion to the respective amounts each such State received for Basic Grants under subpart 2 of part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for the most recent fiscal year ending before such calendar year.CommentsClose CommentsPermalink





`(B) ALLOCATION TO LOCAL EDUCATIONAL AGENCIES- The limitation amount allocated to a State under subparagraph (A) shall be allocated by the State to qualified zone academies within such State.CommentsClose CommentsPermalink





`(C) DESIGNATION SUBJECT TO LIMITATION AMOUNT- The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (a) with respect to any qualified zone academy shall not exceed the limitation amount allocated to such academy under subparagraph (B) for such calendar year.CommentsClose CommentsPermalink





`(3) CARRYOVER OF UNUSED LIMITATION- If for any calendar year--CommentsClose CommentsPermalink





`(A) the limitation amount under this subsection for any State, exceedsCommentsClose CommentsPermalink





`(B) the amount of bonds issued during such year which are designated under subsection (a) (or the corresponding provisions of prior law) with respect to qualified zone academies within such State,CommentsClose CommentsPermalink





the limitation amount under this subsection for such State for the following calendar year shall be increased by the amount of such excess.'.CommentsClose CommentsPermalink





(b) Reporting- Subsection (d) of section 6049 of such Code (relating to returns regarding payments of interest) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(8) REPORTING OF CREDIT ON QUALIFIED PUBLIC SCHOOL MODERNIZATION BONDS-CommentsClose CommentsPermalink





`(A) IN GENERAL- For purposes of subsection (a), the term `interest' includes amounts includible in gross income under section 54A and such amounts shall be treated as paid on the credit allowance date (as defined in section 54A(e)(1)).CommentsClose CommentsPermalink





`(B) REPORTING TO CORPORATIONS, ETC- Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A) of this paragraph, subsection (b)(4) of this section shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).CommentsClose CommentsPermalink





`(C) REGULATORY AUTHORITY- The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.'.CommentsClose CommentsPermalink





(c) Modification of Section 1397E-CommentsClose CommentsPermalink





(1) REPEAL OF RESTRICTION ON ZONE ACADEMY BOND HOLDERS-CommentsClose CommentsPermalink





(A) Section 1397E(a) is amended by striking `eligible taxpayer' and inserting `taxpayer'.CommentsClose CommentsPermalink





(B) Section 1397E(d) is amended by striking paragraph (6).CommentsClose CommentsPermalink





(C) Section 1397E(i) is amended by striking `which is an eligible taxpayer'.CommentsClose CommentsPermalink





(2) CARRYOVER OF UNUSED LIMITATION TO SECTION 54C-CommentsClose CommentsPermalink





(A) Section 1397E(e) of such Code is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(5) CARRYOVER OF UNUSED LIMITATION TO SECTION 54C AFTER 2007- If for calendar year 2007--CommentsClose CommentsPermalink





`(A) the limitation amount for any State, exceedsCommentsClose CommentsPermalink





`(B) the amount of bonds issued during such year which are designated under subsection (d)(1) with respect to qualified zone academies within such State,CommentsClose CommentsPermalink





the limitation amount for such State under section 54C for calendar year 2008 shall be increased by the amount of such excess and such excess shall not otherwise be taken into account under this section.'.CommentsClose CommentsPermalink





(B) The heading of section 1397E(e)(4) of such Code is amended by inserting before the period `FROM YEARS BEFORE 2008'.CommentsClose CommentsPermalink





(d) Clerical Amendment- The table of subparts for part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:CommentsClose CommentsPermalink

`subpart i. public school modernization bonds.'.

(e) Effective Dates-CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to obligations issued after December 31, 2007.CommentsClose CommentsPermalink





(2) REPEAL OF RESTRICTION ON ZONE ACADEMY BOND HOLDERS- The amendments made by subsection (c)(1) shall apply to qualified zone academy bonds held on credit allowance dates after December 31, 2007, during taxable years ending after such date.CommentsClose CommentsPermalink





(3) CARRYOVER OF LIMITATION- The amendments made by subsection (c)(2) shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 3. APPLICATION OF CERTAIN LABOR STANDARDS ON CONSTRUCTION PROJECTS FINANCED UNDER PUBLIC SCHOOL MODERNIZATION PROGRAM.

Section 439 of the General Education Provisions Act (relating to labor standards) is amended--CommentsClose CommentsPermalink





(1) by inserting `(a)' before `All laborers and mechanics', andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





`(b)(1) For purposes of this section, the term `applicable program' also includes the qualified zone academy bond provisions enacted by section 226 of the Taxpayer Relief Act of 1997 and the program established by section 2 of the America's Better Classrooms Act of 2007.CommentsClose CommentsPermalink





`(2) A State or local government participating in a program described in paragraph (1) shall--CommentsClose CommentsPermalink





`(A) in the awarding of contracts, give priority to contractors with substantial numbers of employees residing in the local education area to be served by the school being constructed; andCommentsClose CommentsPermalink





`(B) include in the construction contract for such school a requirement that the contractor give priority in hiring new workers to individuals residing in such local education area.CommentsClose CommentsPermalink





`(3) In the case of a program described in paragraph (1), nothing in this subsection or subsection (a) shall be construed to deny any tax credit allowed under such program. If amounts are required to be withheld from contractors to pay wages to which workers are entitled, such amounts shall be treated as expended for construction purposes in determining whether the requirements of such program are met.'.CommentsClose CommentsPermalink

SEC. 4. EMPLOYMENT AND TRAINING ACTIVITIES RELATING TO CONSTRUCTION OR RECONSTRUCTION OF PUBLIC SCHOOL FACILITIES.

(a) In General- Section 134 of the Workforce Investment Act of 1998 (29 U.S.C. 2864) is amended by adding at the end the following:CommentsClose CommentsPermalink





`(f) Local Employment and Training Activities Relating to Construction or Reconstruction of Public School Facilities-CommentsClose CommentsPermalink





`(1) IN GENERAL- In order to provide training services related to construction or reconstruction of public school facilities receiving funding assistance under an applicable program, each State shall establish a specialized program of training meeting the following requirements:CommentsClose CommentsPermalink





`(A) The specialized program provides training for jobs in the construction industry.CommentsClose CommentsPermalink





`(B) The program provides trained workers for projects for the construction or reconstruction of public school facilities receiving funding assistance under an applicable program.CommentsClose CommentsPermalink





`(C) The program ensures that skilled workers (residing in the area to be served by the school facilities) will be available for the construction or reconstruction work.CommentsClose CommentsPermalink





`(2) COORDINATION- The specialized program established under paragraph (1) shall be integrated with other activities under this Act, with the activities carried out under the National Apprenticeship Act of 1937 by the State Apprenticeship Council or through the Bureau of Apprenticeship and Training in the Department of Labor, as appropriate, and with activities carried out under the Carl D. Perkins Vocational and Technical Education Act of 1998. Nothing in this subsection shall be construed to require services duplicative of those referred to in the preceding sentence.CommentsClose CommentsPermalink





`(3) APPLICABLE PROGRAM- In this subsection, the term `applicable program' has the meaning given the term in section 439(b) of the General Education Provisions Act (relating to labor standards).'.CommentsClose CommentsPermalink





(b) State Plan- Section 112(b)(17)(A) of the Workforce Investment Act of 1998 (29 U.S.C. 2822(b)(17)(A)) is amended--CommentsClose CommentsPermalink





(1) in clause (iii), by striking `and' at the end;CommentsClose CommentsPermalink





(2) by redesignating clause (iv) as clause (v); andCommentsClose CommentsPermalink





(3) by inserting after clause (iii) the following:CommentsClose CommentsPermalink





`(iv) how the State will establish and carry out a specialized program of training under section 134(f); and'.CommentsClose CommentsPermalink