Page:United States Statutes at Large Volume 111 Part 1.djvu/1077

 PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 1053 "(h) EXEMPTION FOR SKYDIVING USES. —No tax shall be imposed by this section or section 4271 on any air transportation exclusively for the purpose of skydiving.". (b) TRANSPORTATION TREATED AS NONCOMMERCIAL AVIATION.— The last sentence of section 4041(c)(2) is amended by inserting before the period "or by reason of section 4261(h)". (c) EFFECTIVE DATES.— (1) SUBSECTION (a).— The amendment made by subsection 26 USC 4261 (a) shall apply to amounts paid after September 30, 1997. note. (2) SUBSECTION (b).— The amendment made by subsection 26 USC 4041 (b) shall take effect on October 1, 1997. note. SEC. 1436. ALLOWANCE OR CREDIT OF REFUND FOR TAX-PAID AVIA- TION FUEL PURCHASED BY REGISTERED PRODUCER OF AVIATION FUEL. (a) IN GENERAL. —Section 4091 (relating to aviation fuel) is amended by adding at the end the following new subsection: "(d) REFUND OF TAX-PAID AVIATION FUEL TO REGISTERED PRO- DUCER OF FUEL.— If— "(1) a producer of aviation fuel is registered under section 4101, and "(2) such producer establishes to the satisfaction of the Secretary that a prior tax was paid (and not credited or refunded) on aviation fuel held by such producer, then an amount equal to the tax so paid shall be allowed as a refund (without interest) to such producer in the same manner as if it were an overpayment of tax imposed by this section.". (b) CONFORMING AMENDMENT. —The last sentence of section 6416(d) is amended by inserting before the period "or to the tax imposed by section 4091 in the case of refunds described in section 4091(d)". (c) EFFECTIVE DATE.—The amendments made by this section 26 USC 4091 shall apply to fuel acquired by the producer after September 30, note. 1997. Subtitle B—Tax-Exempt Bond Provisions SEC. 1441. REPEAL OF $100,000 LIMITATION ON UNSPENT PROCEEDS UNDER 1-YEAR EXCEPTION FROM REBATE. Subclause (I) of section 148(f)(4)(B)(ii) (relating to additional period for certain bonds) is amended by striking "the lesser of 5 percent of the proceeds of the issue or $100,000" and inserting "5 percent of the proceeds of the issue". SEC. 1442. EXCEPTION FROM REBATE FOR EARNINGS ON BONA FIDE DEBT SERVICE FUND UNDER CONSTRUCTION BOND RULES. Subparagraph (C) of section 148(f)(4) is amended by adding at the end the following new clause: "(xvii) TREATMENT OF BONA FIDE DEBT SERVICE FUNDS.— If the spending requirements of clause (ii) are met with respect to the available construction proceeds of a construction issue, then paragraph (2) shall not apply to earnings on a bona fide debt service fund for such issue.".

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