Text: H.R.2329 — 107th Congress (2001-2002)All Information (Except Text)

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Introduced in House (06/27/2001)

 
[Congressional Bills 107th Congress]
[From the U.S. Government Printing Office]
[H.R. 2329 Introduced in House (IH)]



107th CONGRESS
  1st Session
                                H. R. 2329

To amend the Internal Revenue Code of 1986 to allow a credit to holders 
 of qualified bonds issued by Amtrak, to amend title 49, United States 
  Code, to provide for approval by the Secretary of Transportation of 
     projects to be funded by those bonds, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 27, 2001

 Mr. Houghton (for himself, Mr. Oberstar, Mr. Quinn, Mr. Clement, Mr. 
  King, Mr. Rahall, Mr. Cummings, Mr. Castle, Mr. DeFazio, Ms. Eddie 
Bernice Johnson of Texas, Mr. McHugh, Ms. Norton, Ms. Brown of Florida, 
   Mr. Shays, Mr. Lipinski, Mr. Sweeney, Mr. Cardin, Mr. Borski, Mr. 
Costello, Mr. Gilman, Mr. Cantor, Mr. Barcia, Mr. Bachus, Mr. Isakson, 
   Mr. Menendez, Mr. Horn, Mr. Blagojevich, Mr. Rush, Mr. Owens, Mr. 
LaTourette, Mr. Boswell, Mr. Ehlers, Mr. Payne, Mr. Farr of California, 
     Mr. Acevedo-Vila, Mrs. Roukema, Mr. Kildee, Mr. McGovern, Mr. 
    Gutierrez, Mr. Schrock, Ms. Dunn of Washington, Mr. Barrett of 
    Wisconsin, Mr. English, Mr. Towns, Mr. Capuano, Mr. Nadler, Mr. 
Becerra, Mr. Norwood, Mrs. Jones of Ohio, Ms. Baldwin, Mr. Andrews, Mr. 
Meeks of New York, Mr. Kirk, Mr. Boucher, Mr. Doyle, Mr. Pascrell, Ms. 
Millender-McDonald, Mr. Blumenauer, Ms. Pelosi, Mr. Filner, Mr. Larsen 
  of Washington, Mr. Baca, Mr. Baird, Mr. Ferguson, Mr. Baldacci, Mr. 
 Brown of Ohio, Mr. Dicks, Mr. Upton, Mrs. Tauscher, Mr. Hinchey, Mr. 
Inslee, Ms. Kaptur, Mr. Boehlert, Ms. Kilpatrick, Mr. Weller, Ms. Lee, 
 Ms. McKinney, Mrs. Meek of Florida, Mr. Buyer, Mr. Moran of Virginia, 
   Mr. Holden, Mr. Ford, Mr. Goodlatte, Mr. Matsui, Ms. McCarthy of 
   Missouri, Mr. Dooley of California, Mr. Mascara, Mr. Serrano, Mr. 
 Carson of Oklahoma, Mr. Holt, Mr. McNulty, Mr. Davis of Illinois, Mr. 
 Evans, Mrs. Thurman, Mr. Hilliard, Mr. Sandlin, Mr. Sawyer, Mr. Brady 
  of Pennsylvania, Ms. Berkley, Mr. Berry, Ms. Carson of Indiana, Mr. 
Scott, Mr. Price of North Carolina, Ms. Hooley of Oregon, Mr. Lewis of 
Georgia, Mrs. Maloney of New York, Ms. Slaughter, Mr. Frank, Mr. Allen, 
  Mr. Bishop, Ms. Jackson-Lee of Texas, Mr. Smith of Washington, Ms. 
    DeLauro, Mr. Markey, Ms. Rivers, Mr. Kucinich, Mr. Lampson, Mr. 
 Etheridge, Mrs. Capps, Mr. La-Falce, Mr. George Miller of California, 
 Mr. Calvert, Mr. Lantos, and Ms. Watson of California) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Transportation and Infrastructure, 
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

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow a credit to holders 
 of qualified bonds issued by Amtrak, to amend title 49, United States 
  Code, to provide for approval by the Secretary of Transportation of 
     projects to be funded by those bonds, 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. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``High-Speed Rail 
Investment Act of 2001''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                    TITLE I--CREDIT FOR AMTRAK BONDS

Sec. 101. Credit to holders of qualified Amtrak bonds.
                  TITLE II--HIGH-SPEED RAIL PROVISIONS

Sec. 201. Department of Transportation approval for qualified Amtrak 
                            projects.
Sec. 202. Multiyear capital spending plan and oversight.
Sec. 203. Issuance of regulations.
Sec. 204. Sense of Congress regarding effect on Amtrak funding.
Sec. 205. Effective date.

                    TITLE I--CREDIT FOR AMTRAK BONDS

SEC. 101. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

    (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:

``Subpart H--Nonrefundable Credit for Holders of Qualified Amtrak Bonds

                              ``Sec. 54. Credit to holders of qualified 
                                        Amtrak bonds.

``SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK BONDS.

    ``(a) Allowance of Credit.--In the case of a taxpayer who holds a 
qualified Amtrak bond on a credit allowance date of such bond which 
occurs during the taxable year, there shall be allowed as a credit 
against the tax imposed by this chapter for such taxable year an amount 
equal to the sum of the credits determined under subsection (b) with 
respect to credit allowance dates during such year on which the 
taxpayer holds such bond.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any credit allowance date 
        for a qualified Amtrak bond is 25 percent of the annual credit 
        determined with respect to such bond.
            ``(2) Annual credit.--The annual credit determined with 
        respect to any qualified Amtrak bond is the product of--
                    ``(A) the applicable credit rate, multiplied by
                    ``(B) the outstanding face amount of the bond.
            ``(3) Applicable credit rate.--For purposes of paragraph 
        (2), the applicable credit rate with respect to an issue is the 
        rate equal to an average market yield (as of the day before the 
        date of sale of the issue) on outstanding long-term corporate 
        debt obligations (determined under regulations prescribed by 
        the Secretary).
            ``(4) Credit allowance date.--For purposes of this section, 
        the term `credit allowance date' means--
                    ``(A) March 15,
                    ``(B) June 15,
                    ``(C) September 15, and
                    ``(D) December 15.
        Such term includes the last day on which the bond is 
        outstanding.
            ``(5) 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.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than this subpart and subpart C).
            ``(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.
    ``(d) 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.
    ``(e) Qualified Amtrak Bond.--For purposes of this part, the term 
`qualified Amtrak bond' means any bond issued as part of an issue if--
            ``(1) 95 percent or more of the proceeds from the sale of 
        such issue are to be used for expenditures incurred after the 
        date of the enactment of this section for any qualified 
        project,
            ``(2) the bond is issued by the National Railroad Passenger 
        Corporation, is in registered form, and meets the bond 
        limitation requirements under subsection (f),
            ``(3) the issuer designates such bond for purposes of this 
        section,
            ``(4) the issuer certifies that it meets the State 
        contribution requirement of subsection (k) with respect to such 
        project, as in effect on the date of the enactment of this 
        section,
            ``(5) the issuer certifies that it has obtained the written 
        approval of the Secretary of Transportation for such project in 
        accordance with section 26301 of title 49, United States Code, 
        as in effect on the date of the enactment of this section,
            ``(6) the term of each bond which is part of such issue 
        does not exceed 20 years,
            ``(7) the payment of principal with respect to such bond is 
        the obligation of the National Railroad Passenger Corporation, 
        and
            ``(8) the issue meets the requirements of subsection (g) 
        (relating to arbitrage).
    ``(f) Limitations on Amount of Bonds Designated.--
            ``(1) In general.--There is a qualified Amtrak bond 
        limitation for each fiscal year. Such limitation is--
                    ``(A) $1,200,000,000 for each of the fiscal years 
                2002 through 2011, and
                    ``(B) zero after fiscal year 2011.
            ``(2) Limits on bonds for northeast rail corridor and 
        individual states.--
                    ``(A) Northeast rail corridor.--Not more than 
                $3,000,000,000 of the limitation under paragraph (1) 
                may be designated for qualified projects on the 
                northeast rail corridor between Washington, D.C., and 
                Boston, Massachusetts.
                    ``(B) Individual states.--Not more than 
                $3,000,000,000 of the limitation under paragraph (1) 
                may be designated for any individual State. The dollar 
                limitation under this subparagraph is in addition to 
                the dollar limitation for the qualified projects 
                described in subparagraph (A).
            ``(3) Limit on bonds for other projects.--Not more than 
        $100,000,000 of the limitation under paragraph (1) for any 
        fiscal year may be designated for all qualified projects 
        described in subsection (j)(1)(C).
            ``(4) Carryover of unused limitation.--If for any fiscal 
        year--
                    ``(A) the limitation amount under paragraph (1), 
                exceeds
                    ``(B) the amount of bonds issued during such year 
                which are designated under subsection (e)(3),
        the limitation amount under paragraph (1) for the following 
        fiscal year (through fiscal year 2015) shall be increased by 
        the amount of such excess.
    ``(g) Special Rules Relating to Arbitrage.--
            ``(1) In general.--Subject to paragraph (2), an issue shall 
        be treated as meeting the requirements of this subsection if as 
        of the date of issuance, the issuer reasonably expects--
                    ``(A) to spend at least 95 percent of the proceeds 
                from the sale of the issue for 1 or more qualified 
                projects within the 3-year period beginning on such 
                date,
                    ``(B) to incur a binding commitment with a third 
                party to spend at least 10 percent of the proceeds from 
                the sale of the issue, or to commence construction, 
                with respect to such projects within the 6-month period 
                beginning on such date, and
                    ``(C) to proceed with due diligence to complete 
                such projects and to spend the proceeds from the sale 
                of the issue.
            ``(2) Rules regarding continuing compliance after 3-year 
        determination.--If at least 95 percent of the proceeds from the 
        sale of the issue is not expended for 1 or more qualified 
        projects within the 3-year period beginning on the date of 
        issuance, but the requirements of paragraph (1) are otherwise 
        met, an issue shall be treated as continuing to meet the 
        requirements of this subsection if either--
                    ``(A) the issuer uses all unspent proceeds from the 
                sale of the issue to redeem bonds of the issue within 
                90 days after the end of such 3-year period, or
                    ``(B) the following requirements are met:
                            ``(i) The issuer spends at least 75 percent 
                        of the proceeds from the sale of the issue for 
                        1 or more qualified projects within the 3-year 
                        period beginning on the date of issuance.
                            ``(ii) Either--
                                    ``(I) the issuer spends at least 95 
                                percent of the proceeds from the sale 
                                of the issue for 1 or more qualified 
                                projects within the 4-year period 
                                beginning on the date of issuance, or
                                    ``(II) the issuer pays to the 
                                Federal Government any earnings on the 
                                proceeds from the sale of the issue 
                                that accrue after the end of the 3-year 
                                period beginning on the date of 
                                issuance and uses all unspent proceeds 
                                from the sale of the issue to redeem 
                                bonds of the issue within 90 days after 
                                the end of the 4-year period beginning 
                                on the date of issuance.
    ``(h) Recapture of Portion of Credit Where Cessation of 
Compliance.--
            ``(1) In general.--If any bond which when issued purported 
        to be a qualified Amtrak bond ceases to be such a qualified 
        bond, the issuer shall pay to the United States (at the time 
        required by the Secretary) an amount equal to the sum of--
                    ``(A) the aggregate of the credits allowable under 
                this section with respect to such bond (determined 
                without regard to subsection (c)) for taxable years 
                ending during the calendar year in which such cessation 
                occurs and the 2 preceding calendar years, and
                    ``(B) interest at the underpayment rate under 
                section 6621 on the amount determined under 
                subparagraph (A) for each calendar year for the period 
                beginning on the first day of such calendar year.
            ``(2) Failure to pay.--If the issuer fails to timely pay 
        the amount required by paragraph (1) with respect to such bond, 
        the tax imposed by this chapter on each holder of any such bond 
        which is part of such issue shall be increased (for the taxable 
        year of the holder in which such cessation occurs) by the 
        aggregate decrease in the credits allowed under this section to 
        such holder for taxable years beginning in such 3 calendar 
        years which would have resulted solely from denying any credit 
        under this section with respect to such issue for such taxable 
        years.
            ``(3) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (2) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under paragraph (2) shall not be treated as a tax 
                imposed by this chapter for purposes of determining--
                            ``(i) the amount of any credit allowable 
                        under this part, or
                            ``(ii) the amount of the tax imposed by 
                        section 55.
    ``(i) Trust Account.--
            ``(1) In general.--The following amounts shall be held in a 
        trust account by a trustee independent of the National Railroad 
        Passenger Corporation:
                    ``(A) The proceeds from the sale of all bonds 
                designated for purposes of this section.
                    ``(B) The amount of any matching contributions with 
                respect to such bonds.
                    ``(C) The temporary period investment earnings on 
                proceeds from the sale of such bonds.
                    ``(D) Any earnings on any amounts described in 
                subparagraph (A), (B), or (C).
            ``(2) Use of funds.--Amounts in the trust account may be 
        used only to pay costs of qualified projects and redeem 
        qualified Amtrak bonds, except that amounts withdrawn from the 
        trust account to pay costs of qualified projects may not exceed 
        the aggregate proceeds from the sale of all qualified Amtrak 
        bonds issued under this section.
            ``(3) Use of remaining funds in trust account.--Upon the 
        redemption of all qualified Amtrak bonds issued under this 
        section, any remaining amounts in the trust account described 
        in paragraph (1) shall be available to the issuer for any 
        qualified project.
    ``(j) Qualified Project.--For purposes of this section--
            ``(1) In general.--The term `qualified project' means--
                    ``(A) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements (including the introduction of new high-
                speed technologies such as magnetic levitation 
                systems), including track or signal improvements or the 
                elimination of grade crossings, for the northeast rail 
                corridor between Washington, D.C., and Boston, 
                Massachusetts,
                    ``(B) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements (including the introduction of new high-
                speed technologies such as magnetic levitation 
                systems), including development of intermodal 
                facilities, track or signal improvements, or the 
                elimination of grade crossings, for the improvement of 
                train speeds or safety (or both) on the high-speed rail 
                corridors designated under section 104(d)(2) of title 
                23, United States Code, as in effect on the date of the 
                enactment of this section, and
                    ``(C) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements, including station rehabilitation or 
                construction, development of intermodal facilities, 
                track or signal improvements, or the elimination of 
                grade crossings, for the improvement of train speeds or 
                safety (or both) for other intercity passenger rail 
corridors and for the Alaska Railroad.
            ``(2) Refinancing rules.--For purposes of paragraph (1), a 
        refinancing shall constitute a qualified project only if the 
        indebtedness being refinanced (including any obligation 
        directly or indirectly refinanced by such indebtedness) was 
        originally incurred by the issuer--
                    ``(A) after the date of the enactment of this 
                section,
                    ``(B) for a term of not more than 3 years,
                    ``(C) to finance or acquire capital improvements 
                described in paragraph (1), and
                    ``(D) in anticipation of being refinanced with 
                proceeds of a qualified Amtrak bond.
    ``(k) State Contribution Requirements.--
            ``(1) In general.--For purposes of subsection (e)(4), the 
        State contribution requirement of this subsection is met with 
        respect to any qualified project if the National Railroad 
        Passenger Corporation has received from 1 or more States, not 
        later than the date of issuance of the bond, matching 
        contributions of not less than 20 percent of the cost of the 
        qualified project.
            ``(2) No state contribution requirement for certain 
        qualified projects.--The State contribution requirement of this 
        subsection is zero with respect to the following projects:
                    ``(A) Any qualified project for the acquisition and 
                installation of platform facilities, performance of 
                railroad force account work necessary to complete 
                improvements below street grade, and any other 
                necessary improvements related to construction at the 
                railroad station at the James A. Farley Post Office 
                Building in New York City, New York.
                    ``(B) Any project described in subsection (j)(1)(C) 
                for the Alaska Railroad.
            ``(3) State matching contributions may not include federal 
        funds.--For purposes of this subsection, State matching 
        contributions shall not be derived, directly or indirectly, 
        from Federal funds, including any transfers from the Highway 
        Trust Fund under section 9503.
    ``(l) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Bond.--The term `bond' includes any obligation.
            ``(2) Treatment of changes in use.--For purposes of 
        subsection (e)(1), the proceeds from the sale of an issue shall 
        not be treated as used for a qualified project to the extent 
        that the issuer takes any action within its control which 
        causes such proceeds not to be used for a qualified project. 
        The Secretary shall prescribe regulations specifying remedial 
        actions that may be taken (including conditions to taking such 
        remedial actions) to prevent an action described in the 
        preceding sentence from causing a bond to fail to be a 
        qualified Amtrak bond.
            ``(3) Partnership; s corporation; and other pass-thru 
        entities.--Under regulations prescribed by the Secretary, in 
        the case of a partnership, trust, S corporation, or other pass-
        thru entity, rules similar to the rules of section 41(g) shall 
        apply with respect to the credit allowable under subsection 
        (a).
            ``(4) Bonds held by regulated investment companies.--If any 
        qualified Amtrak 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.
            ``(5) Reporting.--Issuers of qualified Amtrak bonds shall 
        submit reports similar to the reports required under section 
        149(e).''.
    (b) Amendments to Other Code Sections.--
            (1) Reporting.--Subsection (d) of section 6049 of the 
        Internal Revenue Code of 1986 (relating to returns regarding 
        payments of interest) is amended by adding at the end the 
        following new paragraph:
            ``(8) Reporting of credit on qualified amtrak bonds.--
                    ``(A) In general.--For purposes of subsection (a), 
                the term `interest' includes amounts includible in 
                gross income under section 54(d) and such amounts shall 
                be treated as paid on the credit allowance date (as 
                defined in section 54(b)(4)).
                    ``(B) Reporting to corporations, etc.--Except as 
                otherwise provided in regulations, in the case of any 
                interest described in subparagraph (A), subsection 
                (b)(4) shall be applied without regard to subparagraphs 
                (A), (H), (I), (J), (K), and (L)(i) of such subsection.
                    ``(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.''.
            (2) Treatment for estimated tax purposes.--
                    (A) Individual.--Section 6654 of such Code 
                (relating to failure by individual to pay estimated 
                income tax) is amended by redesignating subsection (m) 
                as subsection (n) and by inserting after subsection (l) 
                the following new subsection:
    ``(m) Special Rule for Holders of Qualified Amtrak Bonds.--For 
purposes of this section, the credit allowed by section 54 to a 
taxpayer by reason of holding a qualified Amtrak 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.''.
                    (B) Corporate.--Section 6655 of such Code (relating 
                to failure by corporation to pay estimated income tax) 
                is amended by adding at the end of subsection (g) the 
                following new paragraph:
            ``(5) Special rule for holders of qualified amtrak bonds.--
        For purposes of this section, the credit allowed by section 54 
to a taxpayer by reason of holding a qualified Amtrak 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.''.
            (3) Exclusion from gross income of contributions by Amtrak 
        to other rail carriers.--
                    (A) In general.--Section 118 of the Internal 
                Revenue Code of 1986 (relating to contributions to the 
                capital of a corporation) is amended by redesignating 
                subsection (d) as subsection (e) and by inserting after 
                subsection (c) the following new subsection:
    ``(d) Special Rule for Contributions by Amtrak to Other Rail 
Carriers.--For purposes of this section, the term `contribution to the 
capital of the taxpayer' does not include any contribution by the 
National Railroad Passenger Corporation of personal or real property 
funded by the proceeds of qualified Amtrak bonds under section 54.''.
                    (B) Conforming amendment.--Subsection (b) of such 
                section 118 is amended by striking ``subsection (c)'' 
                and inserting ``subsections (c) and (d)''.
            (4) Protection of highway trust fund.--Section 9503 of such 
        Code (relating to Highway Trust Fund) is amended by adding at 
        the end the following new subsection:
    ``(g) Special Rule Relating to National Railroad Passenger 
Corporation.--Except as provided in subsection (c), as in effect on the 
date of the enactment of this subsection, amounts in the Highway Trust 
Fund may not be used to provide funds to the National Railroad 
Passenger Corporation for any purpose, including issuance of any 
qualified Amtrak bond pursuant to section 54. The preceding sentence 
may not be waived by any provision of law which is not contained or 
referenced in this title, whether such provision of law is a 
subsequently enacted provision or directly or indirectly seeks to waive 
the application of such sentence.''.
    (c) Clerical Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by adding at the end the following new 
        item:

                              ``Subpart H. Nonrefundable Credit for 
                                        Holders of Qualified Amtrak 
                                        Bonds.''.
            (2) Section 6401(b)(1) is amended by striking ``and G'' and 
        inserting ``G, and H''.
    (d) Annual Report by Treasury on Amtrak Trust Account.--The 
Secretary of the Treasury shall annually report to Congress as to 
whether the amount deposited in the trust account established by the 
National Railroad Passenger Corporation under section 54(i) of the 
Internal Revenue Code of 1986, as added by this section, is sufficient 
to fully repay at maturity the principal of any outstanding qualified 
Amtrak bonds issued pursuant to section 54 of such Code (as so added), 
together with amounts expected to be deposited into such account, as 
certified by the National Railroad Passenger Corporation in accordance 
with procedures prescribed by the Secretary of the Treasury.
    (e) Issuance of Regulations.--The Secretary of the Treasury shall 
issue regulations required under section 54 of the Internal Revenue 
Code of 1986 (as added by this section) not later than 90 days after 
the date of the enactment of this Act.
    (f) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of enactment of this Act.

                  TITLE II--HIGH-SPEED RAIL PROVISIONS

SEC. 201. DEPARTMENT OF TRANSPORTATION APPROVAL FOR QUALIFIED AMTRAK 
              PROJECTS.

    (a) Amendment.--Part D of subtitle V of title 49, United States 
Code, is amended by adding at the end the following new chapter:

               ``CHAPTER 263--HIGH-SPEED RAIL INITIATIVES

``Sec.
``26301. Department of Transportation approval for qualified high-speed 
                            rail projects.
``26302. Qualified projects.
``26303. State contribution requirements.''.
``Sec. 26301. Department of Transportation approval for qualified high-
              speed rail projects
    ``(a) In General.--The written approval of a qualified project by 
the Secretary of Transportation required for purposes of subsection 
(e)(5) of section 54 of the Internal Revenue Code of 1986 (relating to 
credit to holders of qualified Amtrak bonds) shall include--
            ``(1) the finding by the Inspector General of the 
        Department of Transportation described in subsection (b);
            ``(2) the certification by the Secretary of Transportation 
        described in subsection (c); and
            ``(3) the agreement by the National Railroad Passenger 
        Corporation described in subsection (d).
    ``(b) Finding by Inspector General.--For purposes of subsection 
(a), the finding described in this subsection is a finding by the 
Inspector General of the Department of Transportation that there is a 
reasonable likelihood that the proposed project will result in a 
positive financial contribution to the National Railroad Passenger 
Corporation and that the investment evaluation process includes 
consideration of a return on investment, leveraging of funds (including 
State capital and operating contributions), cost effectiveness, safety 
improvement, mobility improvement, and feasibility.
    ``(c) Certification.--For purposes of subsection (a), the 
certification described in this subsection is a certification by the 
Secretary of Transportation that the issuer of the qualified Amtrak 
bond--
            ``(1) except with respect to projects described in section 
        54(j)(1)(C) of the Internal Revenue Code of 1986, has entered 
        into a written agreement with the owners of rail properties 
        which are to be improved by the project to be funded by the 
        qualified Amtrak bond, as to the scope and estimated cost of 
        such project and the impact on rail freight capacity; and
            ``(2) has met the State contribution requirements described 
        in section 26303.
The National Railroad Passenger Corporation shall not exercise its 
rights under section 24308(a)(2) to resolve disputes with respect to a 
project to be funded by a qualified Amtrak bond, or with respect to the 
cost of such a project, unless the project is intended to result in 
railroad speeds of 79 miles per hour or less.
    ``(d) Agreement by Amtrak To Issue Additional Bonds for Projects of 
Other Carriers.--
            ``(1) In general.--For purposes of subsection (a), the 
        agreement described in this subsection is an agreement by the 
        National Railroad Passenger Corporation with the Secretary of 
        Transportation to issue bonds which meet the requirements of 
        section 54 of the Internal Revenue Code of 1986 for use in 
        financing projects described in paragraph (2).
            ``(2) Projects covered.--For purposes of paragraph (1), the 
        projects described in this paragraph are any project described 
        in subsection (j)(1)(B) or (j)(1)(C) of section 54 of the 
        Internal Revenue Code of 1986 for an intercity rail passenger 
        carrier other than the National Railroad Passenger Corporation 
        or for the Alaska Railroad.
            ``(3) Additional requirements.--Any project financed by 
        bonds referred to in paragraph (1) shall be carried out by the 
        intercity rail passenger carrier other than the National 
        Railroad Passenger Corporation, through a contract entered into 
        by the National Railroad Passenger Corporation with such 
        carrier. Such other intercity rail passenger carrier, in 
        carrying out the project, shall be subject to the provisions of 
        this subtitle governing the National Railroad Passenger 
        Corporation.
            ``(4) Definition.--For purposes of this subsection, the 
        term `intercity rail passenger carrier' means any rail carrier 
        (as such term is defined in section 24102(7)) that is part of 
        the interstate system of rail transportation and that provides 
        intercity rail passenger transportation (as such term is 
        defined in section 24102(5)).
    ``(e) Additional Selection Criteria.--In determining projects to be 
approved under this section (other than projects for the Alaska 
Railroad), or to be included in an agreement under subsection (d), the 
Secretary of Transportation shall give preference to--
            ``(1) any project with a State matching contribution rate 
        exceeding 20 percent;
            ``(2) projects expected to have a significant impact on air 
        traffic congestion;
            ``(3) projects expected to also improve commuter rail 
        operations;
            ``(4) projects that anticipate fares designed to recover 
        costs and generate a return on investment; and
            ``(5) projects that promote regional balance in 
        infrastructure investment and the national interest in ensuring 
        the development of a nationwide high-speed rail transportation 
        network.
``Sec. 26302. Qualified projects
    ``For purposes of this chapter--
            ``(1) In general.--The term `qualified project' means--
                    ``(A) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements (including the introduction of new high-
                speed technologies such as magnetic levitation 
                systems), including track or signal improvements or the 
                elimination of grade crossings, for the northeast rail 
                corridor between Washington, D.C., and Boston, 
                Massachusetts;
                    ``(B) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements (including the introduction of new high-
                speed technologies such as magnetic levitation 
                systems), including development of intermodal 
                facilities, track or signal improvements, or the 
                elimination of grade crossings, for the improvement of 
                train speeds or safety (or both) on the high-speed rail 
                corridors designated under section 104(d)(2) of title 
                23, United States Code, as in effect on the date of the 
                enactment of this section; and
                    ``(C) the acquisition, financing, or refinancing of 
                equipment, rolling stock, and other capital 
                improvements, including station rehabilitation or 
                construction, development of intermodal facilities, 
                track or signal improvements, or the elimination of 
                grade crossings, for the improvement of train speeds or 
                safety (or both) for other intercity passenger rail 
                corridors and for the Alaska Railroad.
            ``(2) Refinancing rules.--For purposes of paragraph (1), a 
        refinancing shall constitute a qualified project only if the 
        indebtedness being refinanced (including any obligation 
        directly or indirectly refinanced by such indebtedness) was 
        originally incurred by the issuer--
                    ``(A) after the date of the enactment of this 
                section;
                    ``(B) for a term of not more than 3 years;
                    ``(C) to finance or acquire capital improvements 
                described in paragraph (1); and
                    ``(D) in anticipation of being refinanced with 
                proceeds of a qualified Amtrak bond.
``Sec. 26303. State contribution requirements
    ``(a) In General.--For purposes of section 26301(c)(2), the State 
contribution requirement of this section is met with respect to any 
qualified project if the National Railroad Passenger Corporation has 
received from 1 or more States, not later than the date of issuance of 
the bond, matching contributions of not less than 20 percent of the 
cost of the qualified project.
    ``(b) No State Contribution Requirement for Certain Qualified 
Projects.--The State contribution requirement of this section is zero 
with respect to the following projects:
            ``(1) Any qualified project for the acquisition and 
        installation of platform facilities, performance of railroad 
        force account work necessary to complete improvements below 
        street grade, and any other necessary improvements related to 
        construction at the railroad station at the James A. Farley 
        Post Office Building in New York City, New York.
            ``(2) Any project described in subsection (j)(1)(C) of 
        section 54 of the Internal Revenue Code of 1986 for the Alaska 
        Railroad.
    ``(c) State Matching Contributions May Not Include Federal Funds.--
For purposes of this section, State matching contributions shall not be 
derived, directly or indirectly, from Federal funds, including any 
transfers from the Highway Trust Fund under section 9503 of the 
Internal Revenue Code of 1986.''.
    (b) Table of Chapters Amendment.--The table of chapters of subtitle 
V of title 49, United States Code, is amended by inserting after the 
item relating to chapter 261 the following new item:

``263. HIGH-SPEED RAIL INITIATIVES..........................   26301''.

SEC. 202. MULTIYEAR CAPITAL SPENDING PLAN AND OVERSIGHT.

    (a) Amendment.--Chapter 243 of title 49, United States Code, is 
amended by adding at the end the following new section:
``Sec. 24316. Multiyear capital spending plan and oversight
    ``(a) Amtrak Capital Spending Plan.--
            ``(1) In general.--The National Railroad Passenger 
        Corporation shall annually submit to the President and Congress 
        a multiyear capital spending plan, as approved by the Board of 
        Directors of the Corporation.
            ``(2) Contents of plan.--Such plan shall identify the 
        capital investment needs of the Corporation over a period of 
        not less than 5 years and the funding sources available to 
        finance such needs and shall prioritize such needs according to 
        corporate goals and strategies.
            ``(3) Initial submission date.--The first plan shall be 
        submitted before the issuance of any qualified Amtrak bonds by 
        the National Railroad Passenger Corporation pursuant to section 
        54 of the Internal Revenue Code of 1986.
    ``(b) Oversight of Qualified Projects.--The Secretary of 
Transportation shall contract for an annual independent assessment of 
the costs and benefits of the qualified projects financed by qualified 
Amtrak bonds pursuant to section 54 of the Internal Revenue Code of 
1986, including an assessment of the investment evaluation process of 
the Corporation. The annual assessment shall be included in the plan 
submitted under subsection (a).''.
    (b) Table of Sections Amendment.--The table of sections of chapter 
243 of title 49, United States Code, is amended by adding after the 
item relating to section 24315 the following new item:

``24316. Multiyear capital spending plan and oversight.''.

SEC. 203. ISSUANCE OF REGULATIONS.

    The Secretary of Transportation shall issue regulations for 
carrying out chapter 263 of title 49, United States Code (as added by 
section 201 of this Act), not later than 90 days after the date of the 
enactment of this Act.

SEC. 204. SENSE OF CONGRESS REGARDING EFFECT ON AMTRAK FUNDING.

    It is the sense of the Congress that the proceeds of qualified 
Amtrak bonds issued under section 54 of the Internal Revenue Code of 
1986 are intended to finance the construction of qualified projects (as 
defined in section 26302 of title 49, United States Code, as added by 
section 201 of this Act) and are not intended to meet the regular, 
ongoing capital funding needs of the National Railroad Passenger 
Corporation.

SEC. 205. EFFECTIVE DATE.

    The amendments made by this title shall apply to obligations issued 
after the date of the enactment of this Act.
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