II 

116TH CONGRESS 

2D SESSION S. 4754 

To amend the Internal Revenue Code of 1986 to establish COVID Recovery 

Bonds, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 29, 2020 

Mr. PERDUE (for himself and Mr. CASSIDY) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

COVID Recovery Bonds, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. COVID RECOVERY BONDS. 

4 (a) IN GENERAL.—Chapter 1 of the Internal Rev5 enue Code of 1986 is amended by inserting after sub6 chapter V the following new subchapter: 

7 ‘‘Subchapter W—COVID Recovery Bonds 

‘‘Sec. 1400. COVID Recovery Bonds. 


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1 ‘‘SEC. 1400. COVID RECOVERY BONDS. 

2 ‘‘(a) IN GENERAL.—For purposes of this title, any 

3 qualified COVID recovery bond shall be treated as an ex4 empt facility bond. 

5 ‘‘(b) QUALIFIED COVID RECOVERY BOND.—For 

6 purposes of this section, the term ‘qualified COVID recov7 ery bond’ means any bond issued as part of an issue if— 

8 ‘‘(1) 95 percent or more of the net proceeds (as 

9 defined in section 150(a)(3)) of such issue are to be 

10 used for qualified project costs, 

11 ‘‘(2) such bond is designated by the State for 

12 purposes of this section by— 

13 ‘‘(A) in the case of a bond which is re14 quired under State law to be approved by the 

15 bond commission of such State, such bond com16 mission, and 

17 ‘‘(B) in the case of any other bond, the 

18 Governor of such State, and 

19 ‘‘(3) no portion of the proceeds of such issue is 

20 to be used to provide any property described in sec21 tion 144(c)(6)(B). 

22 ‘‘(c) LIMITATIONS ON BONDS.—The maximum ag23 gregate face amount of bonds which may be designated 

24 under this section with respect to any State shall not ex25 ceed the amount of the national COVID recovery bond 

26 limitation allocated to such State under subsection (g). 


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1 ‘‘(d) QUALIFIED PROJECT COSTS.—For purposes of 

2 this section, the term ‘qualified project costs’ means the 

3 cost of acquisition, construction, reconstruction, and ren4 ovation of any qualified facility located in the State which 

5 designated the bonds under subsection (b)(2). 

6 ‘‘(e) QUALIFIED FACILITY.—For purposes of this 

7 section, the term ‘qualified facility’ means— 

8 ‘‘(1) any facility described in section 142(a) 

9 (with the exception of any facility described in para10 graph (7) of such section), and 

11 ‘‘(2) any facility to provide electric energy or 

12 gas, including facilities for the generation, manufac13 turing, storage, transportation, or processing of elec14 tricity or gas. 

15 ‘‘(f) SPECIAL RULES.—In applying this title to any 

16 qualified COVID recovery bond, the following modifica17 tions shall apply: 

18 ‘‘(1) Section 146 (relating to volume cap) shall 

19 not apply. 

20 ‘‘(2) Section 147(d) (relating to acquisition of 

21 existing property not permitted) shall be applied by 

22 substituting ‘50 percent’ for ‘15 percent’ in each 

23 place it appears. 

24 ‘‘(3) Section 148(f)(4)(C) (relating to exception 

25 from rebate for certain proceeds to be used to fiVerDate Sep 11 2014 20:25 Oct 19, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4754.IS S4754

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1 nance construction expenditures) shall apply to the 

2 available construction proceeds of bonds which are 

3 part of an issue described in subsection (b). 

4 ‘‘(4) Section 57(a)(5) (relating to tax-exempt 

5 interest) shall not apply. 

6 ‘‘(g) ALLOCATIONS.— 

7 ‘‘(1) IN GENERAL.— 

8 ‘‘(A) GENERAL ALLOCATION.—The Sec9 retary shall allocate the national COVID recov10 ery bond limitation among the States in the 

11 proportion that each such State’s 2020 popu12 lation bears to the aggregate 2020 population 

13 for all of the States. 

14 ‘‘(B) MINIMUM ALLOCATION.—The Sec15 retary shall adjust the allocations under sub16 paragraph (A) for each State to the extent nec17 essary to ensure that no State receives less than 

18 0.9 percent of the national COVID recovery 

19 bond limitation. 

20 ‘‘(2) NATIONAL LIMITATIONS.—There is a na21 tional COVID recovery bond limitation of 

22 $40,000,000,000.’’. 

23 (b) CLERICAL AMENDMENT.—The table of sub24 chapters for chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after the item relating to 

2 subchapter V the following new item: 

‘‘SUBCHAPTER W—COVID RECOVERY BONDS’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to obligations issued after the date 

5 of the enactment of this Act. 

6 SEC. 2. TAX-EXEMPT FINANCING OF QUALIFIED GOVERN7 MENT BUILDINGS. 

8 (a) IN GENERAL.—Section 142(a) of the Internal 

9 Revenue Code of 1986 is amended by striking ‘‘or’’ at the 

10 end of paragraph (14), by striking the period at the end 

11 of paragraph (15) and inserting ‘‘, or’’, and by adding at 

12 the end the following new paragraph: 

13 ‘‘(16) qualified government buildings.’’. 

14 (b) QUALIFIED GOVERNMENT BUILDINGS.—Section 

15 142 of the Internal Revenue Code of 1986 is amended by 

16 adding at the end the following new subsection: 

17 ‘‘(n) QUALIFIED GOVERNMENTAL BUILDINGS.— 

18 ‘‘(1) IN GENERAL.—For purposes of subsection 

19 (a)(16), the term ‘qualified governmental buildings’ 

20 means any building or facility that consists of one 

21 or more of the following: 

22 ‘‘(A) An elementary school or a secondary 

23 school (within the meanings given such terms 

24 by section 14101 of the Elementary and Sec25 ondary Education Act of 1965 (20 U.S.C. 


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1 8801), as in effect on the date of the enactment 

2 of this subsection). 

3 ‘‘(B) A facility of a State college or univer4 sity used for educational purposes. 

5 ‘‘(C) A library maintained for, and open 

6 to, the general public. 

7 ‘‘(D) A court of law. 

8 ‘‘(E) A hospital or health care facility. 

9 ‘‘(F) A laboratory or research facility used 

10 by a governmental unit. 

11 ‘‘(G) A public safety facility (including po12 lice, fire, enhanced 911, emergency or disaster 

13 management, and ambulance or emergency 

14 medical service facilities and jails and correc15 tional facilities). 

16 ‘‘(H) An office for employees of a govern17 mental unit. 

18 Such term shall include any equipment, functionally 

19 related and subordinate facility, or land (and any 

20 real property rights appurtenant thereto) with re21 spect to any such building or facility. 

22 ‘‘(2) SPECIFICALLY EXCLUDED FACILITIES.— 

23 Such term shall not include— 

24 ‘‘(A) a building or facility the primary pur25 pose of which is one of the following: retail food 


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1 and beverage services, or the provision of recre2 ation or entertainment, or 

3 ‘‘(B) any building or facility that includes 

4 any of the following: any private or commercial 

5 golf course, country club, massage parlor, ten6 nis club, skating facility (including roller skat7 ing, skateboard, and ice skating), racquet 

8 sports facility (including any handball or 

9 racquetball court), hot tub facility, suntan facil10 ity, racetrack, convention center, or sports sta11 dium or arena. 

12 ‘‘(3) OFFICE SPACE.—Subsection (b)(2) shall 

13 not apply with respect to any qualified governmental 

14 building. 

15 ‘‘(4) NO DEPRECIATION OR INVESTMENT CRED16 IT.—No depreciation, amortization, or business cred17 it under section 38 shall be allowed with respect to 

18 any facility described in subsection (a)(16) which 

19 has been financed by the net proceeds of the issue.’’. 

20 (c) GOVERNMENTALLY OWNED REQUIREMENT.— 

21 Section 142(b)(1)(A) of the Internal Revenue Code of 

22 1986 is amended by striking ‘‘or (12)’’ and inserting 

23 ‘‘(12), or (16)’’. 

24 (d) EXEMPTION FROM VOLUME CAP ON PRIVATE

25 ACTIVITY BONDS.—Section 146(g)(3) of the Internal RevVerDate Sep 11 2014 20:25 Oct 19, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4754.IS S4754

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1 enue Code of 1986 is amended by striking ‘‘or (15)’’ and 

2 inserting ‘‘(15), or (16)’’. 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to bonds issued after the date of 

5 the enactment of this Act. 

Æ 


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