[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6048 Introduced in House (IH)]
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114th CONGRESS
2d Session
H. R. 6048
To amend the Securities Act of 1933 and the Internal Revenue Code of
1986 to provide an exemption and payments from taxation for 501(c)(3)
bonds issued on behalf of a historically Black college or university.
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IN THE HOUSE OF REPRESENTATIVES
September 15, 2016
Mr. Ellison (for himself, Mr. Scott of Virginia, Ms. Maxine Waters of
California, Ms. Lee, and Ms. Adams) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addition
to the Committee on Financial Services, 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 concerned
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A BILL
To amend the Securities Act of 1933 and the Internal Revenue Code of
1986 to provide an exemption and payments from taxation for 501(c)(3)
bonds issued on behalf of a historically Black college or university.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``HBCU Investment Expansion Act''.
SEC. 2. TAX EXEMPTION FOR HBCU BONDS.
The Securities Act of 1933 (15 U.S.C. 77aa et seq.) is amended by
inserting after section 28 the following:
``SEC. 29. TAX EXEMPTION FOR HBCU BONDS.
``(a) In General.--A qualified 501(c)(3) bond (as defined in
section 145 of the Internal Revenue Code of 1986) issued after the date
of the enactment of the HBCU Investment Expansion Act on behalf of a
historically Black college or university shall be exempt from taxation
by any State, Territory, or possession, or by any county, municipality,
or other municipal subdivision of any State, territory, or possession
of the United States, or by the District of Columbia.
``(b) Historically Black College or University Defined.--For
purposes of this section, the term `historically Black college or
university' means a part B institution (as defined in section 322(2) of
the Higher Education Act of 1965 (20 U.S.C. 1061(2)).''.
SEC. 3. CREDIT WITH RESPECT TO 501(C)(3) BONDS ISSUED ON BEHALF OF
HISTORICALLY BLACK COLLEGES AND UNIVERSITIES.
(a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 is amended by adding at the end the following:
``SEC. 6433. CREDIT WITH RESPECT TO 501(C)(3) BONDS ISSUED ON BEHALF OF
HISTORICALLY BLACK COLLEGES AND UNIVERSITIES.
``(a) In General.--In the case of a qualified bond issued after the
date of the enactment of the HBCU Investment Expansion Act, a credit
shall be allowed to a jurisdiction specified in subsection (c)(3) that
forgoes tax pursuant to section 29 of the Securities Act of 1933 with
respect to each interest payment under such bond. The credit shall be
payable by the Secretary as provided in subsection (b).
``(b) Payment of Credit.--The Secretary shall pay (as soon as
practicable after the return of income tax for a taxable year is filed
with the qualified jurisdiction by the recipient of such interest
payment under such bond) an amount equal to the total amount of
interest paid under such bond during the taxable year.
``(c) Definitions.--For purposes of this section--
``(1) Qualified bond.--The term `qualified bond' means a
qualified 501(c)(3) bond (as defined in section 145) issued on
behalf of a historically Black college or university.
``(2) Historically black college or university.--The term
`historically Black college or university' means a part B
institution (as defined in section 322(2) of the Higher
Education Act of 1965 (20 U.S.C. 1061(2)).
``(3) Jurisdiction specified.--A jurisdiction is specified
in this paragraph if the jurisdiction is--
``(A) a State, territory, or possession of the
United States,
``(B) a political jurisdiction of a State,
territory, or possession of the United States, or
``(C) the District of Columbia.
``(d) Application of Arbitrage Rules.--For purposes of section 148,
the yield on a qualified bond shall be reduced by the credit allowed
under this section.
``(e) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary to carry out this section.''.
(b) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by striking ``or 6431,'' and inserting ``6431, or
6433,''.
(2) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended by striking ``and 6431'' and inserting ``6431,
and 6433''.
(3) The table of sections for subchapter B of chapter 65 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new item:
``Sec. 6433. Credit with respect to 501(c)(3) bonds issued on behalf of
historically Black colleges and
universities.''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
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