TAX-EXEMPT FINANCING FOR CERTAIN RAIL FACILITIES.

SEC. 6180. TAX-EXEMPT FINANCING FOR CERTAIN RAIL FACILITIES. (a) In General.—Subsection (a) of section 142 of the 1986 Code (relating to exempt facility bonds) is amended— (1) by striking out “or” at the end of paragraph (9), (2) by striking out the period at the end of paragraph (10) and inserting in lieu thereof “, or”, and (3) by adding at the end thereof the following new paragraph: “(11) high-speed intercity rail facilities.” (b) Definition and Special Rules for High-Speed Intercity Rail Facilities.— (1) In general.—Section 142 of the 1986 Code is amended by adding at the end thereof the following new subsection: “(i) High-Speed Intercity Rail Facilities.— “(1) For purposes of subsection (a)(H), the term ‘high-speed intercity rail facilities’ means any facility (not including rolling stock) for the fixed guideway rail transportation of passengers and their baggage between metropolitan statistical areas (within the meaning of section 143(k)(2)(B)) using vehicles that are reasonably expected to operate at speeds in excess of 150 miles per hour between scheduled stops, but only if such facility 102 STAT. 3728will be made available to members of the general public as passengers. “(2) Election by nongovernmental owners.— A facility shall be treated as described in subsection (a)(H) only if any owner of such facility which is not a governmental unit irrevocably elects not to claim— “(A) any deduction under section 167 or 168, and “(B) any credit under this subtitle, with respect to the property to be financed by the net proceeds of the issue. “(3) Use of proceeds.—A bond issued as part of an issue described in subsection (a)(11) shall not be considered an exempt facility bond unless any proceeds not used within a 3-year period of the date of the issuance of such bond are used (not later than 6 months after the close of such period) to redeem bonds which are part of such issue.” (2) Use of facilities.— Subsection (c) of section 142 of the 1986 Code (relating to special rules for airport, docks and wharves, and mass commuting facilities) is amended— (A) by striking out “paragraph (1), (2), or (3) of subsection (a)” each place it appears in paragraphs (1) and (2) thereof and inserting in lieu thereof “paragraph (1), (2), (3) or (11) of subsection (a)”, and (B) by striking out “and Mass Commuting Facilities” in the heading thereof and inserting in lieu thereof “Mass Commuting Facilities and High-Speed Intercity Rail Facilities”. (3) Partial exclusion from volume cap.— Subsection (g) of section 146 of the 1986 Code (relating to an exception for certain bonds) is amended— (A) by striking out “and” at the end of paragraph (2), (B) by striking out the period at the end of paragraph (3) and inserting in lieu thereof “, and”, and (C) by adding at the end thereof the following new paragraph: “(3) 75 percent of any exempt facility bond issued as part of an issue described in paragraph (11) of section 142(a) (relating to high-speed intercity rail facilities).” (4) Limitation removed on use of bond proceeds for land acquisition.—Paragraph (3) of section 147(c) of the 1986 Code (relating to limitation on use for land acquisition) is amended by inserting “high-speed intercity rail facility” after “mass commuting facility” each place it appears. (5) Special rule for public approval.— Paragraph (3) of section 147(f) of the 1986 Code (relating to public approval required for private activity bonds) is amended— (A) by inserting “or high-speed intercity rail facilities” after “airport” each place it appears, and (B) by inserting “or high-speed intercity rail facilities” after “airports” in the heading thereof. (c) Effective Date.—The amendments made by this section shall apply to bonds issued after the date of enactment of this Act.