102 STAT. 3728

PUBLIC LAW 100-647—NOV. 10, 1988

26 USC 142 note.

will 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 (aXU) only if any
owner of such facility which is not a governmental unit irrev-
ocably 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 (aXU) 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 para-
graph:

"(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 FACILI-
TIES" 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.