School Infrastructure Modernization Act of 2023

II 118TH CONGRESS 1ST SESSION S. 1523 To amend the Internal Revenue Code of 1986 to allow rehabilitation expenditures for public school buildings to qualify for rehabilitation credit. IN THE SENATE OF THE UNITED STATES MAY 10, 2023 Mr. KAINE (for himself and Mr. WARNER) 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 allow reha- bilitation expenditures for public school buildings to qual- ify for rehabilitation credit. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘School Infrastructure 4 Modernization Act of 2023’’. 5 VerDate Sep 11 2014 23:01 May 19, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1523.IS S1523 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1523 IS SEC. 2. QUALIFICATION OF REHABILITATION EXPENDI- 1 TURES FOR PUBLIC SCHOOL BUILDINGS FOR 2 REHABILITATION CREDIT. 3 (a) IN GENERAL.—Section 47(c)(2)(B)(v) of the In- 4 ternal Revenue Code of 1986 is amended by adding at the 5 end the following new subclause: 6 ‘‘(III) CLAUSE NOT TO APPLY TO 7 PUBLIC SCHOOLS.—This clause shall 8 not apply in the case of the rehabilita- 9 tion of any building which was used 10 as a qualified public educational facil- 11 ity (as defined in section 142(k)(1), 12 determined without regard to sub- 13 paragraph (B) thereof) at any time 14 during the 5-year period ending on 15 the date that such rehabilitation be- 16 gins and which is used as such a facil- 17 ity immediately after such rehabilita- 18 tion.’’. 19 (b) REPORT.—Not later than the date which is 5 20 years after the date of the enactment of this Act, the Sec- 21 retary of the Treasury, after consultation with the heads 22 of appropriate Federal agencies, shall report to Congress 23 on the effects resulting from the amendment made by sub- 24 section (a), including— 25 VerDate Sep 11 2014 23:01 May 19, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1523.IS S1523 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1523 IS (1) the number of qualified public education fa- 1 cilities rehabilitated (stated separately with respect 2 to each State) and the number of students using 3 such facilities (stated separately with respect to each 4 such State), 5 (2) the number of qualified public education fa- 6 cilities rehabilitated in low income communities (as 7 defined in section 45D(e)(1) of the Internal Revenue 8 Code of 1986) and the number of students using 9 such facilities, 10 (3) the amount of qualified rehabilitation ex- 11 penditures for each qualified public education facility 12 rehabilitated, and 13 (4) and any other data determined by the Sec- 14 retary to be useful in evaluating the impact of such 15 amendment. 16 (c) EFFECTIVE DATE.—The amendment made by 17 this section shall apply to property placed in service after 18 December 31, 2023. 19 Æ VerDate Sep 11 2014 23:01 May 19, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S1523.IS S1523 kjohnson on DSK79L0C42PROD with BILLS