Ill STAT. 818 PUBLIC LAW 105-34—AUG. 5, 1997 Subtitle C—Other Education Initiatives SEC. 221. EXTENSION OF EXCLUSION FOR EMPLOYER-PROVIDED EDU- CATIONAL ASSISTANCE. (a) IN GENERAL. —Subsection (d) of section 127 (relating to educational assistance programs) is amended to read as follows: "(d) TERMINATION.T —Tlus section shall not apply to expenses paid with respect to courses beginning after May 31, 2000.". 26 USC 127 note. (b) EFFECTIVE DATE. —The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1996. SEC. 222. REPEAL OF LIMITATION ON QUALIFIED 501(c)(3) BONDS OTHER THAN HOSPITAL BONDS. Section 145(b) (relating to qualified 501(c)(3) bond) is amended by adding at the end the following new paragraph: "(5) TERMINATION OF LIMITATION.— Th is subsection shall not apply with respect to bonds issued after the date of the enactment of this paragraph as part of an issue 95 percent or more of the net proceeds of which are to be used to finance capital expenditures incurred after such date.". SEC. 223. INCREASE IN ARBITRAGE REBATE EXCEPTION FOR GOVERN- MENTAL BONDS USED TO FINANCE EDUCATION FACILI- TIES. (a) IN GENERAL.—Section 148(f)(4)(D) (relating to exception for governmental units issuing $5,000,000 or less of bonds) is amended by adding at the end the following new clause: "(vii) INCREASE IN EXCEPTION FOR BONDS FINANC- ING PUBLIC SCHOOL CAPITAL EXPENDITURES.— Each of the $5,000,000 amounts in the preceding provisions of this subparagraph shall be increased by the lesser of $5,000,000 or so much of the aggregate face amount of the bonds as are attributable to financing the construction (within the meaning of subparagraph (C)(iv)) of public school facilities. ". 26 USC l48note. (b) EFFECTIVE DATE. —The amendments made by this section shall apply to bonds issued after December 31, 1997. SEC. 224. CONTRIBUTIONS OF COMPUTER TECHNOLOGY AND EQUIP- MENT FOR ELEMENTARY OR SECONDARY SCHOOL PUR- POSES. (a) CONTRIBUTIONS OF COMPUTER TECHNOLOGY AND EQUIPMENT FOR ELEMENTARY OR SECONDARY SCHOOL PURPOSES.— Subsection (e) of section 170 is amended by adding at the end the following new paragraph: " (6) SPECIAL RULE FOR CONTRIBUTIONS OF COMPUTER TECH- NOLOGY AND EQUIPMENT FOR ELEMENTARY OR SECONDARY SCHOOL PURPOSES.— "(A) LIMIT ON REDUCTION.—In the case of a qualified elementary or secondary educational contribution, the reduction under paragraph (1)(A) shall be no greater than the amount determined under paragraph (3)(B). "(B) QUALIFIED ELEMENTARY OR SECONDARY EDU- CATIONAL CONTRIBUTION. — For purposes of this paragraph, the term 'qualified elementary or secondary educational
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