Keeping Texas School Construction Costs Down Act of 2023

I 118TH CONGRESS 1ST SESSION H. R. 32 To amend the Internal Revenue Code of 1986 to create a safe harbor for certain perpetual trust funds. IN THE HOUSE OF REPRESENTATIVES JANUARY 9, 2023 Mr. DOGGETT (for himself and Mr. ARRINGTON) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to create a safe harbor for certain perpetual trust funds. 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 ‘‘Keeping Texas School 4 Construction Costs Down Act of 2023’’. 5 SEC. 2. SAFE HARBOR FOR CERTAIN PERPETUAL TRUST 6 FUNDS. 7 (a) IN GENERAL.—Section 148(b) of the Internal 8 Revenue Code of 1986 is amended by adding at the end 9 the following new paragraph: 10 VerDate Sep 11 2014 23:02 Jan 11, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H32.IH H32 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 32 IH ‘‘(5) SAFE HARBOR FOR CERTAIN PERPETUAL 1 TRUST FUNDS.—The term ‘investment property’ 2 does not include any fund created and controlled by 3 a State and established pursuant to its constitution 4 or State law if— 5 ‘‘(A) substantially all of the assets of the 6 fund consist of nonfinancial assets, revenues de- 7 rived from such assets, gifts, appropriations, or 8 bequests, 9 ‘‘(B) the assets of the fund may be used 10 only to support specifically designated essential 11 governmental functions (within the meaning of 12 section 115(1)) that are carried out by political 13 subdivisions with general taxing powers or pub- 14 lic elementary and public secondary schools, 15 ‘‘(C) the assets of the fund are required to 16 support designated functions, 17 ‘‘(D) to the extent the fund guarantees ob- 18 ligations, such obligations are not private activ- 19 ity bonds (other than qualified 501(c)(3) bonds) 20 substantially all of the proceeds of which are to 21 be used for designated functions, and 22 ‘‘(E) the fund satisfied each of the require- 23 ments of subparagraphs (A) through (D) on 24 August 16, 1986.’’. 25 VerDate Sep 11 2014 23:02 Jan 11, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H32.IH H32 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 32 IH (b) EFFECTIVE DATE.—The amendment made by 1 this section shall take effect on the date of the enactment 2 of this Act. 3 Æ VerDate Sep 11 2014 23:02 Jan 11, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H32.IH H32 pbinns on DSKJLVW7X2PROD with $$_JOB