Page:United States Statutes at Large Volume 95.djvu/376

 95 STAT. 350

26 USC 103 "°*^ 26 USC 103.

PUBLIC LAW 97-34—AUG. 13, 1981 "(i) which is leased to a mass transit system wholly owned by 1 or more governmental units (or agencies or instrumentalities thereof), and "(ii) which is used by such system in providing mass commuting services. "(B) TERMINATION.—Paragraph (4)(I) shall not apply to any obligation issued after December 31, 1984." (c) EFFECTIVE DATE.—The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC. 812. OBLIGATIONS OF CERTAIN VOLUNTEER FIRE DEPARTMENTS. (a) IN GENERAL.—Section 103 (relating to interest on certain governmental obligations) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: "(i) OBLIGATIONS OF CERTAIN VOLUNTEER FIRE DEPARTMENTS.—

"(1) IN GENERAL.—An obligation of a volunteer fire department shall be treated as an obligation of a political subdivision of a State if— "(A) such department is a qualified volunteer fire department with respect to an area within the jurisdiction of such political subdivision, and "(B) such obligation is issued as part of an issue substantially all of the proceeds of which are to be used for the acquisition, construction, reconstruction, or improvement of a firehouse or firetruck used or to be used by such department. "(2) QUALIFIED VOLUNTEER FIRE DEPARTMENT.—For purposes of this subsection, the term 'qualified volunteer fire department' means, with respect to a political subdivision of a State, any organization— "(A) which is organized and operated to provide firefighting or emergency medical services for persons in an area (within the jurisdiction of such political subdivision) which is not provided with any other firefighting services, "(B) which is required (by written agreement) by the political subdivision to furnish firefighting services in such area." 26 USC 103

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(b) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendment made by subsection (a) shall apply to obligations issued after December 31, 1980. (2) SPECIAL RULE FOR CERTAIN OBLIGATIONS ISSUED BEFORE EFFECTIVE DATE.—

(A) IN GENERAL.—Interest on any obligation described in subparagraph (B) shall be excluaed from gross income. (B) OBLIGATION TO WHICH PARAGRAPH APPLIES.—For purposes of subparagraph (A), an obligation is described in this subparagraph if the obligation— (i) was issued after December 31, 1969, and before January 1, 1981, to the First Bank and Trust Company of Indianapolis, Indiana, (ii) was issued by a qualified volunteer fire department (within the meaning of section 103(i)(2) of the Internal Revenue Code of 1954), and (iii) was issued for the acquisition, construction, reconstruction, or improvement of firefighting property.

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