How S 4921 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill modifies the private business use requirements for certain bonds related to lead service line replacement projects under the Internal Revenue Code.

• Section 141(b)(6)

  (D) Clarification relating to qualified lead service line replacement use.--(i) In general.--For purposes of this subsection, qualified lead service line replacement use shall not constitute private business use. (ii) Definitions.--For purposes of this subparagraph--(I) Qualified lead service line replacement use.--The term `qualified lead service line replacement use' means, with respect to any public water system, use of the proceeds of an issue to replace any privately-owned portion of a lead service line connected to such system to facilitate, achieve or maintain compliance with a national primary drinking water regulation for lead. (II) Lead service line.--The term `lead service line' has the meaning given such term in section 1459B(a)(4) of the Safe Drinking Water Act. (III) National primary drinking water regulation for lead.--The term `national primary drinking water regulation for lead' means a national primary drinking water regulation for lead promulgated under section 1412 of such Act. (IV) Public water system.--The term `public water system' has the meaning given such term in section 1401(4) of such Act.

  This creates a new category that exempts proceeds used for replacing lead service lines from being classified as private business use.

• The amendments made by this section shall apply to obligations issued after December 31, 2022.

  This specifies when the new provisions regarding lead service line replacement will take effect.