SA 4412. Mr. SCHUMER submitted an amendment intended to be proposed to amendment SA 4387 submitted by Mr. Dodd (for himself and Mr. Shelby) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986
to provide tax incentives for the production of renewable energy and energy conservation; which was ordered to lie on the table; as follows:

On page 82, between lines 7 and 8, insert the following:
SEC. 605. RECYCLING OF TAX-EXEMPT DEBT FOR FINANCING RESIDENTIAL RENTAL PROJECTS.
(a) In General.--Section 146(i) of the Internal Revenue Code of 1986 (relating to treatment of refunding issues) is amended by adding at the end the following new paragraph:
``(6) TREATMENT OF CERTAIN RESIDENTIAL RENTAL PROJECT BONDS AS REFUNDING BONDS IRRESPECTIVE OF OBLIGOR.--
``(A) IN GENERAL.--Subject to subparagraph (B), if within 6 months after receipt of a repayment of a conduit loan used to finance a project described in 142(d) such repayment is used to provide a new conduit loan for any project so described, any bond which is issued to refinance the issue financing the original conduit loan shall be treated as a refunding issue to the extent the principal amount of such refunding issue does not exceed the principal amount of the bonds refunded.
``(B) LIMITATIONS.--Subparagraph (A) shall apply to only one refunding of the original issue and only if--
``(i) the refunding issue is issued not later than the earlier of--
``(I) the date which is 4 years after the date on which the original issue was issued, or
``(II) December 31, 2014,
``(ii) the refunded bond is issued before January 1, 2011,
``(iii) the latest maturity date of any bond of the refunding issue is not later than 34 years after the date on which the refunded bond was issued, and
``(iv) the refunding issue shall have been approved in accordance with section 147(f) prior to the issuance of the refunding issue.''.
(b) Conforming Amendment.--Clause (ii) of section 42(h)(4)(A) of the Internal Revenue Code of 1986 (relating to credits for buildings financed by tax-exempt bonds subject to volume cap not taken into account) is amended by inserting ``or such financing is refunded as described in section 146(i)(6)'' after ``provide such financing''.
(c) Effective Date.--The amendments made by this section shall apply to repayments of conduit loans received after the date of the enactment of this Act.


(As printed in the Congressional Record for the Senate on Apr 3, 2008.)