[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4915 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 4915
To amend the Internal Revenue Code of 1986 to modify the low-income
housing credit and to reauthorize and reform the Generalized System of
Preferences, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 31, 2024
Ms. Cantwell introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify the low-income
housing credit and to reauthorize and reform the Generalized System of
Preferences, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Table of contents.
TITLE I--AFFORDABLE HOUSING
Sec. 101. State housing credit ceiling increase for low-income housing
credit.
Sec. 102. Tax-exempt bond financing requirement.
TITLE II--REAUTHORIZATION AND REFORM OF GENERALIZED SYSTEM OF
PREFERENCES
Sec. 201. Modification of eligibility criteria for beneficiary
developing countries.
Sec. 202. Supplemental reviews and reporting.
Sec. 203. Extension of Generalized System of Preferences.
TITLE I--AFFORDABLE HOUSING
SEC. 101. STATE HOUSING CREDIT CEILING INCREASE FOR LOW-INCOME HOUSING
CREDIT.
(a) In General.--Section 42(h)(3)(I) of the Internal Revenue Code
of 1986 is amended--
(1) by striking ``and 2021,'' and inserting ``2021, 2023,
2024, and 2025,'', and
(2) by striking ``2018, 2019, 2020, and 2021'' in the
heading and inserting ``certain calendar years''.
(b) Effective Date.--The amendments made by this section shall
apply to calendar years after 2022.
SEC. 102. TAX-EXEMPT BOND FINANCING REQUIREMENT.
(a) In General.--Section 42(h)(4) of the Internal Revenue Code of
1986 is amended by striking subparagraph (B) and inserting the
following:
``(B) Special rule where minimum percent of
buildings is financed with tax-exempt bonds subject to
volume cap.--For purposes of subparagraph (A),
paragraph (1) shall not apply to any portion of the
credit allowable under subsection (a) with respect to a
building if--
``(i) 50 percent or more of the aggregate
basis of such building and the land on which
the building is located is financed by 1 or
more obligations described in subparagraph (A),
or
``(ii)(I) 30 percent or more of the
aggregate basis of such building and the land
on which the building is located is financed by
1 or more qualified obligations, and
``(II) 1 or more of such qualified
obligations--
``(aa) are part of an issue the
issue date of which is after December
31, 2023, and
``(bb) provide the financing for
not less than 5 percent of the
aggregate basis of such building and
the land on which the building is
located.
``(C) Qualified obligation.--For purposes of
subparagraph (B)(ii), the term `qualified obligation'
means an obligation which is described in subparagraph
(A) and which is part of an issue the issue date of
which is before January 1, 2026.''.
(b) Effective Date.--
(1) In general.--The amendment made by this section shall
apply to buildings placed in service in taxable years beginning
after December 31, 2023.
(2) Rehabilitation expenditures treated as separate new
building.--In the case of any building with respect to which
any expenditures are treated as a separate new building under
section 42(e) of the Internal Revenue Code of 1986, for
purposes of paragraph (1), both the existing building and the
separate new building shall be treated as having been placed in
service on the date such expenditures are treated as placed in
service under section 42(e)(4) of such Code.
TITLE II--REAUTHORIZATION AND REFORM OF GENERALIZED SYSTEM OF
PREFERENCES
SEC. 201. MODIFICATION OF ELIGIBILITY CRITERIA FOR BENEFICIARY
DEVELOPING COUNTRIES.
(a) In General.--Section 502 of the Trade Act of 1974 (19 U.S.C.
2462) is amended--
(1) in subsection (b)(2)--
(A) by inserting after subparagraph (H) the
following:
``(I) Such country has failed, in a manner
affecting trade or investment--
``(i) to effectively enforce its
environmental laws or regulations through a
sustained or recurring course of action or
inaction; or
``(ii) to adopt and maintain measures
implementing its obligations under common
multilateral environmental agreements.
``(J) Such country engages in gross violations of
internationally recognized human rights in that country
(including any designated zone in that country).''; and
(B) in the text following subparagraph (J) (as
inserted by subparagraph (A)), by striking ``and (H)
(to the extent described in section 507(6)(D))'' and
inserting ``(H) (to the extent described in section
507(6)(D)), (I), and (J)''; and
(2) in subsection (c)--
(A) in paragraph (6)(B), by striking ``; and'' and
inserting a semicolon;
(B) in paragraph (7)--
(i) by striking ``whether'' and all that
follows through ``afford'' and inserting ``the
extent to which such country is affording'';
and
(ii) by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following:
``(8) the extent to which such country is effectively
enforcing its environmental laws and regulations and adopting
and maintaining measures implementing its obligations under
common multilateral environmental agreements;
``(9) the extent to which such country is achieving the
goals described in section 3(b) of the Women's Entrepreneurship
and Economic Empowerment Act of 2018 (22 U.S.C. 2151-2(b));
``(10) the extent to which such country has established, or
is making continual progress toward establishing--
``(A) the rule of law, political pluralism, and the
right to due process, a fair trial, and equal
protection under the law;
``(B) economic policies to reduce poverty, increase
the availability of health care and educational
opportunities, expand physical infrastructure, promote
the development of private enterprise, and encourage
the formation of capital markets through micro-credit
or other programs; and
``(C) a system to combat corruption and bribery,
such as signing and implementing the Convention on
Combating Bribery of Foreign Public Officials in
International Business Transactions, done at Paris
December 17, 1997, and entered into force February 15,
1999 (TIAS 99-215); and
``(11) the extent to which such country--
``(A) has refrained from imposing, or has
eliminated, digital trade barriers, including
unnecessary or discriminatory data localization or data
transfer restrictions; and
``(B) has taken steps in the digital environment to
support consumer protections, the privacy of personal
information, and open digital ecosystems.''.
(b) Modification of Withdrawal, Suspension, or Limitation
Requirements.--Section 502 of the Trade Act of 1974 (19 U.S.C. 2462) is
amended--
(1) in subsection (d)(1), in the second sentence--
(A) by striking ``shall consider'' and inserting
the following: ``shall--
``(A) consider'';
(B) by striking the period at the end and inserting
``; and''; and
(C) by adding at the end the following:
``(B) hold a public hearing or provide for a period
of not less than 30 days for submission of comments by
the public.''; and
(2) in subsection (f)(2)--
(A) in the paragraph heading, by inserting ``or
suspension'' after ``termination'';
(B) by inserting ``or suspend'' after ``terminate''
each place it appears; and
(C) by inserting ``or suspension'' after
``termination''.
(c) Publication of Determinations Relating to Petitions for
Review.--Section 502 of the Trade Act of 1974 (19 U.S.C. 2462) is
amended by adding at the end the following:
``(g) Publication of Determinations Relating to Petitions for
Review.--The United States Trade Representative shall publish in the
Federal Register a notice of, and the rationale for, any determination
of the Trade Representative with respect to a petition for review of
the eligibility of a country for designation as a beneficiary
developing country, including a determination--
``(1) to accept or deny such a petition;
``(2) to continue to review the eligibility of the country;
or
``(3) to withdraw, suspend, or limit the application of
duty-free treatment under this title with respect to the
country.''.
(d) Definitions.--Section 507 of the Trade Act of 1974 (19 U.S.C.
2467) is amended--
(1) in paragraph (4)--
(A) in subparagraph (D), by striking ``; and'' and
inserting a semicolon;
(B) in subparagraph (E), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(F) the elimination of all forms of
discrimination with respect to occupation and
employment.''; and
(2) by adding at the end the following:
``(7) Common multilateral environmental agreement.--
``(A) In general.--The term `common multilateral
environmental agreement', for purposes of determining
the eligibility of a country for designation as a
beneficiary developing country under this title, means
any agreement specified in subparagraph (B) to which
both the United States and that country are full
parties, including any current or future mutually
agreed upon protocols, amendments, annexes, or
adjustments to such an agreement.
``(B) Agreements specified.--The agreements
specified in this subparagraph are the following:
``(i) The Convention on International Trade
in Endangered Species of Wild Fauna and Flora,
done at Washington March 3, 1973 (27 UST 1087;
TIAS 8249).
``(ii) The Montreal Protocol on Substances
that Deplete the Ozone Layer, done at Montreal
September 16, 1987.
``(iii) The Protocol of 1978 Relating to
the International Convention for the Prevention
of Pollution from Ships, 1973, done at London
February 17, 1978.
``(iv) The Convention on Wetlands of
International Importance, Especially as
Waterfowl Habitat, done at Ramsar February 2,
1971 (TIAS 11084).
``(v) The Convention on the Conservation of
Antarctic Marine Living Resources, done at
Canberra May 20, 1980 (33 UST 3476).
``(vi) The International Convention for the
Regulation of Whaling, done at Washington
December 2, 1946 (62 Stat. 1716).
``(vii) The Convention for the
Establishment of an Inter-American Tropical
Tuna Commission, done at Washington May 31,
1949 (1 UST 230).''.
SEC. 202. SUPPLEMENTAL REVIEWS AND REPORTING.
(a) Assessment and Report on Compliance With Eligibility
Requirements.--Section 502 of the Trade Act of 1974, as amended by
section 201, is further amended by adding at the end the following:
``(h) Assessment and Report on Compliance With Eligibility
Requirements.--
``(1) In general.--The President shall--
``(A) on an annual basis--
``(i) conduct assessments of the compliance
of an appropriate number of countries
designated as beneficiary developing countries
for purposes of this title in meeting or
continuing to meet the eligibility requirements
under this title; and
``(ii) make determinations with respect to
whether to initiate full reviews of the
practices of those countries to assess the
continued eligibility of those countries for
designation as beneficiary developing countries
under this title; and
``(B) submit to Congress a report consisting of the
results of such assessments and determinations.
``(2) Frequency.--The President shall conduct an assessment
described in clause (i) of paragraph (1)(A) and make a
determination described in clause (ii) of that paragraph with
respect to each country designated as a beneficiary developing
country for purposes of this title not less frequently than
once every 3 years.''.
(b) Assessment of Effectiveness of Generalized System of
Preferences in Strengthening and Maintaining Internationally Recognized
Worker Rights and Women's Entrepreneurship and Economic Empowerment.--
(1) Policy of the united states.--It is the policy of the
United States to support gender equality and worker rights by
promoting legal reforms that address legal, structural, and
social barriers that constrain the full and free economic
participation of all workers in the global economy.
(2) Amendment to trade act of 1974.--
(A) In general.--Title V of the Trade Act of 1974
(19 U.S.C. 2461 et seq.) is amended by inserting after
section 504 the following:
``SEC. 504A. ASSESSMENT OF EFFECTIVENESS IN STRENGTHENING AND
MAINTAINING INTERNATIONALLY RECOGNIZED WORKER RIGHTS AND
WOMEN'S ENTREPRENEURSHIP AND ECONOMIC EMPOWERMENT.
``(a) In General.--Not later than 15 months after the date of the
enactment of this section, and every 2 years thereafter, the United
States Trade Representative and the Deputy Undersecretary of Labor for
International Affairs, in consultation with the policy advisory
committee on labor established under section 135(c)(1), shall jointly
submit to Congress an assessment of the effectiveness of the
administration of this title in maintaining or strengthening the
efforts of beneficiary developing countries relating to the factors
described in paragraphs (7) and (9) of section 502(c).
``(b) Methodology and Sources.--The assessment required by
subsection (a) shall include--
``(1) an explanation of the methodology and sources used to
prepare the assessment; and
``(2) where relevant, citations to data, information,
studies, and assessments that were used to prepare the
assessment and were gathered, compiled, or developed by the
United States Government, foreign governments, multilateral
institutions, nongovernmental organizations, or educational
institutions.
``(c) Measurement of Women's Economic Empowerment.--To support the
measurement of women's economic empowerment, the Trade Representative
shall encourage and support the reporting by beneficiary developing
countries of sex-disaggregated economic and business data, including
the gathering of information consistent with the United Nations
Sustainable Development Goals, particularly the goals relating to
gender equality and decent work.''.
(B) Clerical amendment.--The table of contents for
the Trade Act of 1974 is amended by inserting after the
item relating to section 504 the following:
``Sec. 504A. Assessment of effectiveness in strengthening and
maintaining internationally recognized
worker rights and women's entrepreneurship
and economic empowerment.''.
(c) United States International Trade Commission Study.--Not later
than July 1, 2026, the United States International Trade Commission
shall submit to Congress a report that contains a study on rules of
origin, utilization rates, and eligibility requirements for articles
under the Generalized System of Preferences program under title V of
the Trade Act of 1974 (19 U.S.C. 2461 et seq.), including an assessment
of--
(1) the rate of utilization of the program by countries
designated as least-developed beneficiary developing countries
under section 502(a)(2) of that Act (19 U.S.C. 2462(a)(2));
(2) the effectiveness of the rules of origin of the program
in--
(A) promoting trade benefits to least-developed
beneficiary developing countries under the program; and
(B) preventing the transshipment of articles from
countries that are not designated as beneficiary
developing countries under section 502(a)(1) of that
Act (19 U.S.C. 2462(a)(1)); and
(3) the requirements and procedures for designating
articles as eligible articles under section 503 of that Act (19
U.S.C. 2463), including--
(A) the competitive need limitation under
subsection (c)(2) of that section; and
(B) the process for waiving that limitation under
subsection (d) of that section.
SEC. 203. EXTENSION OF GENERALIZED SYSTEM OF PREFERENCES.
(a) In General.--Section 505 of the Trade Act of 1974 (19 U.S.C.
2465) is amended by striking ``December 31, 2020'' and inserting
``December 31, 2029''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
apply to articles entered on or after the 30th day after the
date of the enactment of this Act.
(2) Retroactive application for certain liquidations and
reliquidations.--
(A) In general.--Notwithstanding section 514 of the
Tariff Act of 1930 (19 U.S.C. 1514) or any other
provision of law and subject to subparagraph (B), any
entry of a covered article to which duty-free treatment
or other preferential treatment under title V of the
Trade Act of 1974 (19 U.S.C. 2461 et seq.) would have
applied if the entry had been made on December 31,
2020, that was made--
(i) after December 31, 2020, and
(ii) before the effective date specified in
paragraph (1),
shall be liquidated or reliquidated as though such
entry occurred on the effective date specified in
paragraph (1).
(B) Requests.--A liquidation or reliquidation may
be made under subparagraph (A) with respect to an entry
only if a request therefor is filed with U.S. Customs
and Border Protection not later than 180 days after the
date of the enactment of this Act that contains
sufficient information to enable U.S. Customs and
Border Protection--
(i) to locate the entry; or
(ii) to reconstruct the entry if it cannot
be located.
(C) Payment of amounts owed.--Any amounts owed by
the United States pursuant to the liquidation or
reliquidation of an entry of a covered article under
subparagraph (A) shall be paid, without interest, not
later than 90 days after the date of the liquidation or
reliquidation (as the case may be).
(3) Definitions.--In this subsection:
(A) Covered article.--The term ``covered article''
means an article from a country that is a beneficiary
developing country under title V of the Trade Act of
1974 (19 U.S.C. 2461 et seq.) as of the effective date
specified in paragraph (1).
(B) Enter; entry.--The terms ``enter'' and
``entry'' include a withdrawal from warehouse for
consumption.
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