II 

112TH CONGRESS 

1ST SESSION S. 1895 

To require the Secretary of Commerce to establish a program for the award 

of grants to States to establish revolving loan funds for small and 

medium-sized manufacturers to improve energy efficiency and produce 

clean energy technology, to provide a tax credit for farmers’ investments 

in value-added agriculture, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 17, 2011 

Mrs. GILLIBRAND introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To require the Secretary of Commerce to establish a program 

for the award of grants to States to establish revolving 

loan funds for small and medium-sized manufacturers 

to improve energy efficiency and produce clean energy 

technology, to provide a tax credit for farmers’ investments in value-added agriculture, 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. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Upstate Works Act’’. 


smartinez on DSK4VPTVN1PROD with BILLS
2 

•S 1895 IS

1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—INVESTMENTS FOR MANUFACTURING PROGRESS AND 

CLEAN TECHNOLOGY 

Sec. 101. Clean energy manufacturing revolving loan fund program. 

Sec. 102. Clean energy and efficiency manufacturing partnerships. 

Sec. 103. Technical amendments. 

TITLE II—AGRICULTURAL PRODUCERS VALUE-ADDED 

INVESTMENT TAX CREDIT 

Sec. 201. Credit for farmer investment in value-added agricultural property. 

TITLE III—TRAINING GRANTS FOR EMPLOYEES 

Sec. 301. Definition of Secretary. 

Sec. 302. Authorization. 

Sec. 303. Use of amounts. 

Sec. 304. Requirement of matching funds. 

Sec. 305. Limit on administrative expenses. 

Sec. 306. Authorization of appropriations. 

TITLE IV—FEDERAL INVESTMENT TO EXPAND BROADBAND 

ACCESS 

Sec. 401. Additional authorization of appropriations to extend access to 

broadband telecommunications services in rural areas. 

TITLE V—BUILD AMERICA BONDS TO CREATE JOBS NOW 

Sec. 501. Short title. 

Sec. 502. Extension of Build America Bonds. 

3 TITLE I—INVESTMENTS FOR 

4 MANUFACTURING PROGRESS 

5 AND CLEAN TECHNOLOGY 

6 SEC. 101. CLEAN ENERGY MANUFACTURING REVOLVING 

7 LOAN FUND PROGRAM. 

8 The National Institute of Standards and Technology 

9 Act (15 U.S.C. 271 et seq.) is amended by inserting after 

10 section 26 the following: 


smartinez on DSK4VPTVN1PROD with BILLS
3 

•S 1895 IS

1 ‘‘SEC. 27. CLEAN ENERGY MANUFACTURING REVOLVING 

2 LOAN FUND PROGRAM. 

3 ‘‘(a) PURPOSES.—The purposes of this section are— 

4 ‘‘(1) to develop the long-term manufacturing 

5 capacity of the United States; 

6 ‘‘(2) to create jobs through the retooling and 

7 expansion of manufacturing facilities to produce 

8 clean energy technology products and energy effi9 cient products; 

10 ‘‘(3) to improve the long-term competitiveness 

11 of domestic manufacturing by increasing the energy 

12 efficiency of manufacturing facilities; and 

13 ‘‘(4) to assist small and medium-sized manufac14 turers diversify operations to respond to emerging 

15 clean energy technology product markets. 

16 ‘‘(b) DEFINITIONS.—In this section: 

17 ‘‘(1) CLEAN ENERGY TECHNOLOGY PRODUCT.— 

18 The term ‘clean energy technology product’ means 

19 technology products relating to— 

20 ‘‘(A) wind turbines; 

21 ‘‘(B) solar energy; 

22 ‘‘(C) fuel cells; 

23 ‘‘(D) advanced batteries, battery systems, 

24 or storage devices; 

25 ‘‘(E) biomass equipment; 

26 ‘‘(F) geothermal equipment; 


smartinez on DSK4VPTVN1PROD with BILLS
4 

•S 1895 IS

1 ‘‘(G) advanced biofuels; 

2 ‘‘(H) ocean energy equipment; 

3 ‘‘(I) carbon capture and storage; 

4 ‘‘(J) such other products as the Secretary 

5 determines— 

6 ‘‘(i) relate to the production, use, 

7 transmission, storage, control, or conserva8 tion of energy; 

9 ‘‘(ii) reduce greenhouse gas concentra10 tions; 

11 ‘‘(iii) achieve the earliest and max12 imum emission reductions within a reason13 able period per dollar invested; 

14 ‘‘(iv) result in the fewest non-green15 house gas environmental impacts; and 

16 ‘‘(v)(I) reduce the need for additional 

17 energy supplies by— 

18 ‘‘(aa) using existing energy sup19 plies with greater efficiency; or 

20 ‘‘(bb) transmitting, distributing, 

21 or transporting energy with greater 

22 effectiveness through the infrastruc23 ture of the United States; or 

24 ‘‘(II) diversify the sources of energy 

25 supply of the United States— 


smartinez on DSK4VPTVN1PROD with BILLS
5 

•S 1895 IS

1 ‘‘(aa) to strengthen energy secu2 rity; and 

3 ‘‘(bb) to increase supplies with a 

4 favorable balance of environmental ef5 fects if the entire technology system is 

6 considered. 

7 ‘‘(2) ENERGY EFFICIENT PRODUCT.—The term 

8 ‘energy efficient product’ means a product that the 

9 Secretary, in consultation with the Secretary of En10 ergy, determines— 

11 ‘‘(A) consumes significantly less energy 

12 than the average amount that all similar prod13 ucts consumed on the day before the date of the 

14 enactment of this Act; or 

15 ‘‘(B) is a component, system, or group of 

16 subsystems that is designed, developed, and 

17 validated to optimize the energy efficiency of a 

18 product. 

19 ‘‘(3) PROGRAM.—The term ‘Program’ means 

20 the grant program established pursuant to sub21 section (c)(1). 

22 ‘‘(4) REVOLVING LOAN FUND.—The term ‘re23 volving loan fund’ means a revolving loan fund de24 scribed in subsection (d). 


smartinez on DSK4VPTVN1PROD with BILLS
6 

•S 1895 IS

1 ‘‘(5) SMALL OR MEDIUM-SIZED MANUFAC2 TURER.—The term ‘small or medium-sized manufac3 turer’ means a manufacturer that employs fewer 

4 than 500 full-time equivalent employees at a manu5 facturing facility that is not owned or controlled by 

6 an automobile manufacturer. 

7 ‘‘(c) GRANT PROGRAM.— 

8 ‘‘(1) ESTABLISHMENT.—Not later than 120 

9 days after the date of the enactment of this section, 

10 the Secretary shall establish a program under which 

11 the Secretary shall award grants to States to estab12 lish revolving loan funds to provide loans to small or 

13 medium-sized manufacturers to finance the cost of— 

14 ‘‘(A) reequipping, expanding, or estab15 lishing (including applicable engineering costs) 

16 a manufacturing facility in the United States to 

17 produce— 

18 ‘‘(i) clean energy technology products; 

19 ‘‘(ii) energy efficient products; or 

20 ‘‘(iii) integral component parts of 

21 clean energy technology products or energy 

22 efficient products; or 

23 ‘‘(B) reducing the energy intensity or 

24 greenhouse gas production of a manufacturing 


smartinez on DSK4VPTVN1PROD with BILLS
7 

•S 1895 IS

1 facility in the United States, including using 

2 energy intensive feedstocks. 

3 ‘‘(2) MAXIMUM AMOUNT.—The Secretary may 

4 not award a grant under the Program in an amount 

5 that exceeds $500,000,000 in any fiscal year. 

6 ‘‘(d) CRITERIA FOR AWARDING GRANTS.— 

7 ‘‘(1) MATCHING FUNDS.—The Secretary may 

8 not award a grant to a State under the Program un9 less the State ensures that not less than 20 percent 

10 of the amount of each loan provided by the State 

11 under the Program originates from non-Federal 

12 sources. 

13 ‘‘(2) ADMINISTRATIVE COSTS.—Grants under 

14 the Program may only be used for the costs of ad15 ministering the revolving loan fund, in accordance 

16 with regulations promulgated by the Secretary. 

17 ‘‘(3) APPLICATION.—Each State seeking a 

18 grant under the Program shall submit an application 

19 to the Secretary in such form, in such manner, and 

20 containing such information as the Secretary con21 siders appropriate. 

22 ‘‘(4) EVALUATION.—The Secretary shall evalu23 ate and prioritize each application submitted by a 

24 State for a grant under the Program on the basis 

25 of— 


smartinez on DSK4VPTVN1PROD with BILLS
8 

•S 1895 IS

1 ‘‘(A) the description of— 

2 ‘‘(i) the revolving loan fund to be es3 tablished with the grant; and 

4 ‘‘(ii) how such revolving loan fund is 

5 expected to achieve the purposes described 

6 in subsection (a); 

7 ‘‘(B) whether the State will be able to pro8 vide loans from the revolving loan fund to small 

9 or medium-sized manufacturers within 120 days 

10 after receiving the grant; 

11 ‘‘(C) a description of how the State is 

12 planning to coordinate the administration of the 

13 revolving loan fund with other State and Fed14 eral programs, including programs administered 

15 by the Assistant Secretary for Economic Devel16 opment; 

17 ‘‘(D) a description of the actual or poten18 tial clean energy manufacturing supply chains, 

19 including significant component parts, in the re20 gion served by the revolving loan fund; 

21 ‘‘(E) how the State is planning to target 

22 the provision of loans under the Program to 

23 manufacturers located in regions characterized 

24 by high unemployment and sudden and severe 

25 economic dislocation, particularly if mass layVerDate Mar 15 2010 04:41 Nov 19, 2011 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1895.IS S1895

smartinez on DSK4VPTVN1PROD with BILLS
9 

•S 1895 IS

1 offs have resulted in a precipitous increase in 

2 unemployment; 

3 ‘‘(F) the availability of a skilled manufac4 turing workforce in the region served by the re5 volving loan fund; 

6 ‘‘(G) the capacity of the region’s workforce 

7 and education systems to provide pathways for 

8 unemployed or low-income workers into skilled 

9 manufacturing employment; 

10 ‘‘(H) a description of how the State will 

11 target loans to small or medium-sized manufac12 turers that— 

13 ‘‘(i) manufacture automobile compo14 nents; and 

15 ‘‘(ii)(I) increase the energy efficiency 

16 of their manufacturing facilities; or 

17 ‘‘(II) retool to manufacture clean en18 ergy products or energy efficient products, 

19 including manufacturing components to 

20 improve the compliance of an automobile 

21 with fuel economy standards prescribed 

22 under section 32902 of title 49, United 

23 States Code; 

24 ‘‘(I) a description of how the State is plan25 ning to use the loan fund to achieve the earliest 


smartinez on DSK4VPTVN1PROD with BILLS
10 

•S 1895 IS

1 and maximum greenhouse gas emission reduc2 tions within a reasonable period of time for 

3 each dollar invested and with the fewest non4 greenhouse gas environmental impacts; and 

5 ‘‘(J) such other factors as the Secretary 

6 considers appropriate to ensure that grants 

7 awarded under the Program effectively and effi8 ciently achieve the purposes described in sub9 section (a). 

10 ‘‘(e) REVOLVING LOAN FUNDS.— 

11 ‘‘(1) IN GENERAL.—A State receiving a grant 

12 under the Program shall establish, maintain, and 

13 administer a revolving loan fund in accordance with 

14 this subsection. 

15 ‘‘(2) DEPOSITS.—A revolving loan fund shall 

16 consist of— 

17 ‘‘(A) amounts from grants awarded under 

18 this section; and 

19 ‘‘(B) all amounts held or received by the 

20 State incident to the provision of loans de21 scribed in subsection (f), including all collec22 tions of principal and interest. 

23 ‘‘(3) EXPENDITURES.—Amounts in the revolv24 ing loan fund shall be available for the provision and 


smartinez on DSK4VPTVN1PROD with BILLS
11 

•S 1895 IS

1 administration of loans in accordance with sub2 section (f). 

3 ‘‘(f) LOANS.— 

4 ‘‘(1) IN GENERAL.—A State receiving a grant 

5 under this section shall use the amount in the re6 volving loan fund to provide loans to small or me7 dium-sized manufacturers. 

8 ‘‘(2) LOAN TERMS AND CONDITIONS.— 

9 ‘‘(A) TERMS.—In determining the term of 

10 each loan provided under paragraph (1), the 

11 State shall ensure that— 

12 ‘‘(i) the term of any loan for fixed as13 sets does not exceed the useful life of the 

14 asset and is shorter than 15 years; and 

15 ‘‘(ii) the term of any loan for working 

16 capital is not longer than 3 years. 

17 ‘‘(B) INTEREST RATES.—The interest rate 

18 set by the State for each loan provided under 

19 paragraph (1)— 

20 ‘‘(i) shall enable the loan recipient to 

21 accomplish the activities described in sub22 paragraphs (A) and (B) of subsection 

23 (c)(1); 

24 ‘‘(ii) may be set at below-market in25 terest rates; 


smartinez on DSK4VPTVN1PROD with BILLS
12 

•S 1895 IS

1 ‘‘(iii) may not be lower than 0 per2 cent; and 

3 ‘‘(iv) may not be greater than 500 

4 basis points above the prime rate, as of the 

5 settlement date for such loan. 

6 ‘‘(C) DESCRIPTION AND BUDGET FOR USE

7 OF LOAN FUNDS.—Each recipient of a loan 

8 from a State under the Program shall develop 

9 and submit, to the State and to the Secretary, 

10 a description and budget for the use of loan 

11 amounts, including a description of— 

12 ‘‘(i) any new business expected to be 

13 developed with the loan; 

14 ‘‘(ii) any improvements to manufac15 turing operations to be developed with the 

16 loan; and 

17 ‘‘(iii) any technology expected to be 

18 commercialized with the loan. 

19 ‘‘(D) PRIORITY IN REVIEW AND PREF20 ERENCE IN SELECTION FOR CERTAIN LOAN AP21 PLICANTS.— 

22 ‘‘(i) REVIEW.—In reviewing applica23 tions submitted by small or medium-sized 

24 manufacturers for a loan, a recipient of a 

25 grant under the Program shall give priVerDate Mar 15 2010 04:41 Nov 19, 2011 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1895.IS S1895

smartinez on DSK4VPTVN1PROD with BILLS
13 

•S 1895 IS

1 ority to small or medium-sized manufac2 turers described in clause (iii). 

3 ‘‘(ii) SELECTION.—In selecting small 

4 or medium-sized manufacturers to receive 

5 a loan, a recipient of a grant under the 

6 Program shall give preference to small or 

7 medium-sized manufacturers described in 

8 clause (iii). 

9 ‘‘(iii) PRIORITY AND PREFERRED

10 SMALL OR MEDIUM-SIZED MANUFACTUR11 ERS.—A small or medium-sized manufac12 turer described in this clause is a manufac13 turer that— 

14 ‘‘(I) is certified by a Hollings 

15 Manufacturing Extension Center or a 

16 manufacturing-related local inter17 mediary designated by the Secretary 

18 for purposes of providing such certifi19 cation; or 

20 ‘‘(II) provides individuals em21 ployed at the manufacturing facilities 

22 of the manufacturer with— 

23 ‘‘(aa) pay that is, on aver24 age, not less than the average 

25 wage of an individual working in 


smartinez on DSK4VPTVN1PROD with BILLS
14 

•S 1895 IS

1 a manufacturing facility in the 

2 State; and 

3 ‘‘(bb) health benefits. 

4 ‘‘(iv) CERTIFICATION BY HOLLINGS

5 MANUFACTURING EXTENSION CENTER.—A 

6 Hollings Manufacturing Extension Center 

7 or other entity designated by the Secretary 

8 for purposes of providing certification 

9 under clause (iii)(I) may not certify appli10 cations for a loan until the Center or other 

11 entity has completed a qualitative and 

12 quantitative review of the applicant’s busi13 ness strategy, manufacturing operations, 

14 and technological ability to contribute to 

15 the purposes described in subsection (a). 

16 ‘‘(E) REPAYMENT UPON RELOCATION OUT17 SIDE UNITED STATES.— 

18 ‘‘(i) IN GENERAL.—The recipient of a 

19 loan under paragraph (1) to finance the 

20 cost of reequipping, expanding, or estab21 lishing a manufacturing facility or to re22 duce the energy intensity of a manufac23 turing facility that relocates the production 

24 activities of such manufacturing facility 

25 outside the United States during the term 


smartinez on DSK4VPTVN1PROD with BILLS
15 

•S 1895 IS

1 of the loan shall repay such loan in full in 

2 accordance with this subparagraph. 

3 ‘‘(ii) PAYMENT OF INTEREST.—The 

4 repayment of a loan under clause (i) shall 

5 bear interest at a penalty rate determined 

6 by the Secretary to deter recipients of 

7 loans under paragraph (1) from relocating 

8 production activities outside the United 

9 States. 

10 ‘‘(iii) PERIOD OF REPAYMENT.—The 

11 Secretary shall determine the duration of 

12 the repayment of a loan under clause (i). 

13 ‘‘(F) COMPLIANCE WITH WAGE RATE RE14 QUIREMENTS.—Each recipient of a loan under 

15 paragraph (1) shall incorporate, into all con16 tracts for construction, alteration, or repair, 

17 which are paid for, in whole or in part, with 

18 amounts obtained pursuant to such loan, a re19 quirement that all laborers and mechanics em20 ployed by contractors and subcontractors per21 forming construction, alteration, or repair shall 

22 be paid wages at rates not less than those de23 termined by the Secretary of Labor, in accord24 ance with subchapter IV of chapter 31 of title 

25 40, United States Code (known as the ‘DavisVerDate Mar 15 2010 04:41 Nov 19, 2011 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S1895.IS S1895

smartinez on DSK4VPTVN1PROD with BILLS
16 

•S 1895 IS

1 Bacon Act’), to be prevailing for the cor2 responding classes of laborers and mechanics 

3 employed on projects of a character similar to 

4 the contract work in the same locality in which 

5 the work is to be performed. With respect to 

6 the labor standards specified in this subpara7 graph, the Secretary of Labor shall have the 

8 authority and functions set forth in Reorganiza9 tion Plan Numbered 14 of 1950 (15 Fed. Reg. 

10 3176; 64 Stat. 1267) and section 3145 of title 

11 40, United States Code. 

12 ‘‘(G) ANNUAL REPORTS BY LOAN RECIPI13 ENTS.—Not less frequently than once each year 

14 during the term of each loan issued by a State 

15 under paragraph (1), the loan recipient shall 

16 submit a report to such State that contains 

17 such information as the Secretary may specify 

18 for purposes of the Program, including informa19 tion that the Secretary can use to determine 

20 whether a recipient of a loan is required to 

21 repay the loan under subparagraph (E). 

22 ‘‘(3) ANNUAL REPORTS BY GRANT RECIPI23 ENTS.—Not less frequently than once each year, 

24 each recipient of a grant under the Program shall 

25 submit a report to the Secretary that describes— 


smartinez on DSK4VPTVN1PROD with BILLS
17 

•S 1895 IS

1 ‘‘(A) the impact of each loan issued by the 

2 State under the Program; and 

3 ‘‘(B) the aggregate impact of all such 

4 loans, including— 

5 ‘‘(i) the sales increased or retained; 

6 ‘‘(ii) cost savings or costs avoided; 

7 ‘‘(iii) additional investment encour8 aged; and 

9 ‘‘(iv) jobs created or retained. 

10 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

11 is authorized to be appropriated $15,000,000,000 for each 

12 of fiscal years 2012 and 2013 to carry out this section.’’. 

13 SEC. 102. CLEAN ENERGY AND EFFICIENCY MANUFAC14 TURING PARTNERSHIPS. 

15 (a) HOLLINGS MANUFACTURING PARTNERSHIP PRO16 GRAM.—Section 25(b) of the National Institute of Stand17 ards and Technology Act (15 U.S.C. 278k(b)) is amend18 ed— 

19 (1) in paragraph (2), by striking ‘‘and’’ at the 

20 end; 

21 (2) in paragraph (3), by striking the period at 

22 the end and inserting ‘‘; and’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(4) the establishment of a clean energy manu25 facturing supply chain initiative— 


smartinez on DSK4VPTVN1PROD with BILLS
18 

•S 1895 IS

1 ‘‘(A) to support manufacturers in their 

2 identification of and diversification to new mar3 kets, including support for manufacturers 

4 transitioning to the use of clean energy supply 

5 chains; 

6 ‘‘(B) to assist manufacturers improve their 

7 competitiveness by reducing energy intensity 

8 and greenhouse gas production, including the 

9 use of energy intensive feedstocks; 

10 ‘‘(C) to increase adoption and implementa11 tion of innovative manufacturing technologies; 

12 ‘‘(D) to coordinate and leverage the exper13 tise of the National Laboratories and Tech14 nology Centers and the Industrial Assessment 

15 Centers of the Department of Energy to meet 

16 the needs of manufacturers; and 

17 ‘‘(E) to identify, assist, and certify manu18 facturers seeking loans under section 

19 27(e)(1).’’. 

20 (b) REDUCTION IN COST SHARE REQUIREMENTS.— 

21 Section 25(c) of the National Institute of Standards and 

22 Technology Act (15 U.S.C. 278k(c)) is amended— 

23 (1) in paragraph (1), by striking ‘‘six years’’ 

24 and inserting ‘‘6 years, or as provided in paragraph 

25 (5)’’; 


smartinez on DSK4VPTVN1PROD with BILLS
19 

•S 1895 IS

1 (2) in paragraph (3)(B), by striking ‘‘not less 

2 than 50 percent of the costs incurred for the first 

3 3 years and an increasing share for each of the last 

4 3 years’’ and inserting ‘‘50 percent of the costs in5 curred, or such lesser percentage of the costs in6 curred that the Secretary determines, by rule, to be 

7 appropriate’’; and 

8 (3) in paragraph (5)— 

9 (A) by striking ‘‘at declining levels’’; and 

10 (B) by striking ‘‘one third of the capital 

11 and annual operating and maintenance costs’’ 

12 and inserting ‘‘50 percent of the capital and an13 nual operating and maintenance costs, or such 

14 lesser percentage that the Secretary determines, 

15 by rule, to be appropriate’’. 

16 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to the Secretary of Com18 merce for the Hollings Manufacturing Partnership Pro19 gram authorized under sections 25 of the National Insti20 tute of Standards and Technology Act (15 U.S.C. 278k) 

21 and for the provision of assistance under section 26 of 

22 such Act (15 U.S.C. 278l)— 

23 (1) $200,000,000 for fiscal year 2012; 

24 (2) $250,000,000 for fiscal year 2013; 

25 (3) $300,000,000 for fiscal year 2014; 


smartinez on DSK4VPTVN1PROD with BILLS
20 

•S 1895 IS

1 (4) $350,000,000 for fiscal year 2015; and 

2 (5) $400,000,000 for fiscal year 2016. 

3 SEC. 103. TECHNICAL AMENDMENTS. 

4 (a) AMENDMENT TO NATIONAL INSTITUTE OF

5 STANDARDS AND TECHNOLOGY ACT.—Section 25 of the 

6 National Institute of Standards and Technology Act (15 

7 U.S.C. 278k) is amended— 

8 (1) in subsection (a), by striking ‘‘(hereafter in 

9 this Act referred to as the ‘Centers’)’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(g) DESIGNATION.— 

12 ‘‘(1) HOLLINGS MANUFACTURING PARTNERSHIP

13 PROGRAM.—For purposes of this Act, the program 

14 established under this section shall be known as the 

15 ‘Hollings Manufacturing Partnership Program’. 

16 ‘‘(2) HOLLINGS MANUFACTURING EXTENSION

17 CENTERS.—For purposes of this Act, the Regional 

18 Centers for the Transfer of Manufacturing Tech19 nology created and supported under subsection (a) 

20 shall be known as ‘Hollings Manufacturing Exten21 sion Centers’ or ‘Centers’).’’. 

22 (b) AMENDMENT TO CONSOLIDATED APPROPRIA23 TIONS ACT, 2005.—Title II of division B of the Consoli24 dated Appropriations Act, 2005 (Public Law 108–447; 

25 118 Stat. 2879; 15 U.S.C. 278k note) is amended under 


smartinez on DSK4VPTVN1PROD with BILLS
21 

•S 1895 IS

1 the heading ‘‘INDUSTRIAL TECHNOLOGY SERVICES’’ by 

2 striking ‘‘2007: Provided further, That’’ and all that fol3 lows through ‘‘Extension Centers.’’ and inserting ‘‘2007.’’. 

4 TITLE II—AGRICULTURAL PRO5 DUCERS VALUE-ADDED IN6 VESTMENT TAX CREDIT 

7 SEC. 201. CREDIT FOR FARMER INVESTMENT IN VALUE8 ADDED AGRICULTURAL PROPERTY. 

9 (a) IN GENERAL.—Subpart D of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of 

11 1986 is amended by adding at the end the following new 

12 section: 

13 ‘‘SEC. 45S. VALUE-ADDED AGRICULTURAL PROPERTY IN14 VESTMENT CREDIT. 

15 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

16 in the case of a taxpayer who is— 

17 ‘‘(1) an eligible person, or 

18 ‘‘(2) a farmer-owned entity, 

19 the value-added agricultural property investment credit 

20 determined under this section for any taxable year is 50 

21 percent of the basis of any qualified value-added agricul22 tural property placed in service during the taxable year. 

23 In the case of a farmer-owned entity, such credit shall be 

24 allocated on a pro rata basis among eligible persons holdVerDate Mar 15 2010 04:41 Nov 19, 2011 Jkt 019200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S1895.IS S1895

smartinez on DSK4VPTVN1PROD with BILLS
22 

•S 1895 IS

1 ing qualified investments in such entity as of the last day 

2 of such taxable year. 

3 ‘‘(b) MAXIMUM CREDIT.—For purposes of subsection 

4 (a)— 

5 ‘‘(1) PROPERTY PLACED IN SERVICE BY ELIGI6 BLE PERSON.—In the case of property placed in 

7 service during a taxable year by an eligible person, 

8 the credit determined under this section for such 

9 year shall not exceed $30,000, reduced by the 

10 amount of the creditable investments allowed for the 

11 taxable year under paragraph (2). 

12 ‘‘(2) PROPERTY PLACED IN SERVICE BY FARM13 ER-OWNED ENTITY.— 

14 ‘‘(A) IN GENERAL.—In the case of prop15 erty placed in service by a farmer-owned entity, 

16 the credit determined under this section shall 

17 not exceed the sum of the eligible person’s cred18 itable investments in such entity as of the date 

19 such property is placed in service. 

20 ‘‘(B) CREDITABLE INVESTMENTS.—For 

21 purposes of subparagraph (A), the term ‘cred22 itable investments’ means, with respect to any 

23 property placed in service by a farmer-owned 

24 entity, the aggregate qualified investments 


smartinez on DSK4VPTVN1PROD with BILLS
23 

•S 1895 IS

1 made by the eligible person in such entity, re2 duced (but not below zero) by the sum of— 

3 ‘‘(i) the amount of the aggregate 

4 qualified investments made by such person 

5 in such entity which were taken into ac6 count under this section with respect to 

7 property previously placed in service by 

8 such entity, and 

9 ‘‘(ii) the amount of the aggregate 

10 qualified investments made by such person 

11 in all other farmer-owned entities which 

12 were taken into account under this section 

13 with respect to property previously placed 

14 in service by such other entities. 

15 ‘‘(C) LIMITATION.—For purposes of this 

16 paragraph, the aggregate qualified investments 

17 made by the eligible person which may be taken 

18 into account for any taxable year shall not ex19 ceed $30,000. 

20 ‘‘(c) DEFINITIONS.—For purposes of this section— 

21 ‘‘(1) QUALIFIED VALUE-ADDED AGRICULTURAL

22 PROPERTY.—The term ‘qualified value-added agri23 cultural property’ means property— 

24 ‘‘(A) which is used to add value to a good 

25 or product, suitable for food or nonfood use, deVerDate Mar 15 2010 04:41 Nov 19, 2011 Jkt 019200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S1895.IS S1895

smartinez on DSK4VPTVN1PROD with BILLS
24 

•S 1895 IS

1 rived in whole or in part from organic matter 

2 which is available on a renewable basis, includ3 ing agricultural crops and agricultural wastes 

4 and residues, wood wastes and residues, and 

5 domesticated animal wastes, 

6 ‘‘(B)(i) to which section 168 applies with7 out regard to any useful life, or 

8 ‘‘(ii) with respect to which depreciation (or 

9 amortization in lieu of depreciation) is allowable 

10 and having a useful life (determined as of the 

11 time such property is placed in service) of 3 

12 years or more, and 

13 ‘‘(C) which is owned and operated by an 

14 eligible person or a farmer-owned entity. 

15 ‘‘(2) ELIGIBLE PERSON.— 

16 ‘‘(A) IN GENERAL.—The term ‘eligible per17 son’ means a person who materially participates 

18 during the taxable year in an eligible farming 

19 business. 

20 ‘‘(B) MATERIAL PARTICIPATION.—For 

21 purposes of subparagraph (A), the determina22 tion of whether a person materially participates 

23 in the trade or business of farming shall be 

24 made in a manner similar to the manner in 

25 which such determination is made under section 


smartinez on DSK4VPTVN1PROD with BILLS
25 

•S 1895 IS

1 2032A(e)(6). In the case that the person is a 

2 corporation, cooperative, partnership, estate, or 

3 trust, such determination shall be made at the 

4 shareholder, partner, or beneficial interests level 

5 (as the case may be). 

6 ‘‘(C) ELIGIBLE FARMING BUSINESS.—For 

7 purposes of subparagraph (A), the term ‘eligible 

8 farming business’ means a farming business (as 

9 defined in section 263A(e)(4)) which is not a 

10 passive activity (within the meaning of section 

11 469(c)). 

12 ‘‘(3) FARMER-OWNED ENTITY.— 

13 ‘‘(A) IN GENERAL.—The term ‘farmer14 owned entity’ means— 

15 ‘‘(i) a corporation (including an S cor16 poration) in which eligible persons own 50 

17 percent or more of the total voting power 

18 of the stock and 50 percent or more (in 

19 value) of the stock, 

20 ‘‘(ii) a partnership in which eligible 

21 persons own 50 percent or more of the 

22 total voting power of the profits interest 

23 and 50 percent or more (in value) of the 

24 profits interest, and 


smartinez on DSK4VPTVN1PROD with BILLS
26 

•S 1895 IS

1 ‘‘(iii) a cooperative in which eligible 

2 persons own 50 percent or more of the 

3 total voting power of the member patron4 age interests and 50 percent or more (in 

5 value) of the member patronage interests. 

6 ‘‘(B) CONSTRUCTIVE OWNERSHIP

7 RULES.—For purposes of subparagraph (A), 

8 rules similar to the rules of section 

9 263A(e)(2)(B) shall apply; except that, in ap10 plying such rules, the members of an individ11 ual’s family shall be the individuals described in 

12 subparagraph (C). 

13 ‘‘(C) MEMBERS OF FAMILY.—The family 

14 of any individual shall include only his spouse 

15 and children, grandchildren, and great grand16 children (whether by the whole or half blood), 

17 and the spouses of his children, grandchildren, 

18 and great grandchildren, who reside in the 

19 same household or jointly operate farming busi20 nesses (as defined in section 263A(e)(4)). For 

21 purposes of the preceding sentence, a child who 

22 is legally adopted, or who is placed with the 

23 taxpayer by an authorized placement agency for 

24 adoption by the taxpayer, shall be treated as a 

25 child by blood. 


smartinez on DSK4VPTVN1PROD with BILLS
27 

•S 1895 IS

1 ‘‘(4) QUALIFIED INVESTMENTS.— 

2 ‘‘(A) IN GENERAL.—The term ‘qualified 

3 investments’ means a payment of cash for the 

4 purchase of a qualified equity interest in a 

5 farmer-owned entity. 

6 ‘‘(B) QUALIFIED EQUITY INTEREST.—The 

7 term ‘qualified equity interest’ means— 

8 ‘‘(i) any stock in a domestic corpora9 tion if such stock is acquired by the tax10 payer after December 31, 2009, and before 

11 January 1, 2016, at its original issue (di12 rectly or through an underwriter) from the 

13 corporation solely in exchange for cash, 

14 ‘‘(ii) any capital or profits interest in 

15 a domestic partnership if such interest is 

16 acquired by the taxpayer after December 

17 31, 2009, and before January 1, 2016, and 

18 ‘‘(iii) any patronage interest in a co19 operative if such interest is acquired by the 

20 taxpayer after December 31, 2009, and be21 fore January 1, 2016. 

22 Rules similar to the rules of section 1202(c)(3) 

23 shall apply for purposes of this paragraph. 

24 ‘‘(d) SPECIAL RULES.—For purposes of this sec25 tion— 


smartinez on DSK4VPTVN1PROD with BILLS
28 

•S 1895 IS

1 ‘‘(1) TREATMENT OF MARRIED INDIVIDUALS.— 

2 In the case of a separate return by a married indi3 vidual (as defined in section 7703), subsection 

4 (b)(3)(A) shall be applied by substituting ‘$15,000’ 

5 for ‘$30,000’. 

6 ‘‘(2) APPLICABLE RULES.—Under regulations 

7 prescribed by the Secretary— 

8 ‘‘(A) ALLOCATION OF CREDIT IN THE CASE

9 OF ESTATES AND TRUSTS.—Rules similar to the 

10 rules of subsection (d) of section 52 shall apply. 

11 ‘‘(B) CERTAIN PROPERTY NOT ELIGI12 BLE.—Rules similar to the rules of section 

13 50(b) shall apply. 

14 ‘‘(3) BASIS ADJUSTMENT.—For purposes of 

15 this subtitle, if a credit is allowed under this section 

16 to any eligible person with respect to qualified value17 added agricultural property, the basis of such prop18 erty shall be reduced by the amount of the credit so 

19 allowed and increased by the amount of recapture 

20 under subsection (e). 

21 ‘‘(e) RECAPTURE IN THE CASE OF CERTAIN DISPOSI22 TIONS.— 

23 ‘‘(1) IN GENERAL.—Under regulations pre24 scribed by the Secretary, rules similar to the rules 

25 of section 50(a) shall apply with respect to an eligiVerDate Mar 15 2010 04:41 Nov 19, 2011 Jkt 019200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S1895.IS S1895

smartinez on DSK4VPTVN1PROD with BILLS
29 

•S 1895 IS

1 ble person if, within the 5-year period beginning on 

2 the date qualified value-added agricultural property 

3 with respect to which such person was allowed a 

4 credit under subsection (a) is originally placed in 

5 service— 

6 ‘‘(A) such property ceases to be qualified 

7 for purposes of this section, 

8 ‘‘(B) the eligible person or the farmer9 owned entity (as the case may be) disposes of 

10 all or part of such property, or 

11 ‘‘(C) the eligible person or the farmer12 owned entity (as the case may be) ceases to be 

13 an eligible person or farmer-owned entity for 

14 purposes of this section. 

15 ‘‘(2) SPECIAL RULES IN EVENT OF DEATH.— 

16 ‘‘(A) IN GENERAL.—The period in para17 graph (1) shall be suspended with respect to an 

18 eligible person for the 2-year period beginning 

19 on the date of death of such person. 

20 ‘‘(B) HEIRS WHO ARE ELIGIBLE PER21 SONS.—In the case that an heir of an eligible 

22 person is also an eligible person, neither para23 graph (1) nor subparagraph (A) of this para24 graph (unless elected by such heir) shall apply 


smartinez on DSK4VPTVN1PROD with BILLS
30 

•S 1895 IS

1 with respect to the transfer of property to such 

2 heir. 

3 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

4 such regulations as may be necessary to carry out the pur5 poses of this section. 

6 ‘‘(g) TERMINATION.—This section shall not apply to 

7 property placed in service after December 31, 2013.’’. 

8 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI9 NESS CREDIT.—Section 38(b) of the Internal Revenue 

10 Code of 1986 is amended by striking ‘‘plus’’ at the end 

11 of paragraph (35), by striking the period at the end of 

12 paragraph (36) and inserting ‘‘, plus’’, and by adding at 

13 the end the following new paragraph: 

14 ‘‘(37) in the case of an eligible person (as de15 fined in section 45S(c)(2)) or farmer-owned entity 

16 (as defined in section 45S(c)(3)), the value-added 

17 agricultural property investment credit determined 

18 under section 45S(a).’’. 

19 (c) CREDIT ALLOWABLE AGAINST MINIMUM TAX.— 

20 Subparagraph (B) of section 38(c)(4) of the Internal Rev21 enue Code of 1986 is amended by redesignating clauses 

22 (vii) through (ix) as clauses (viii) through (x), respectively, 

23 and by inserting after clause (vi) the following new clause: 


smartinez on DSK4VPTVN1PROD with BILLS
31 

•S 1895 IS

1 ‘‘(vii) the credit determined under sec2 tion 45S (relating to value-added agricul3 tural property investment credit).’’. 

4 (d) DEDUCTION FOR CERTAIN UNUSED BUSINESS

5 CREDITS.—Subsection (c) of section 196 of the Internal 

6 Revenue Code of 1986 is amended by striking ‘‘and’’ at 

7 the end of paragraph (13), by striking the period at the 

8 end of paragraph (14) and inserting ‘‘, and’’, and by add9 ing at the end the following new paragraph: 

10 ‘‘(15) the value-added agricultural property in11 vestment credit determined under section 45S.’’. 

12 (e) BASIS ADJUSTMENT.—Subsection (a) of section 

13 1016 of the Internal Revenue Code of 1986 is amended 

14 by striking ‘‘and’’ at the end of paragraph (36), by strik15 ing the period at the end of paragraph (37) and inserting 

16 ‘‘, and’’, and by adding at the end the following new para17 graph: 

18 ‘‘(38) to the extent provided in section 

19 45S(d)(3), in the case of payments with respect to 

20 which a credit has been allowed under section 38.’’. 

21 (f) CLERICAL AMENDMENT.—The table of sections 

22 for subpart D of part IV of subchapter A of chapter 1 

23 of the Internal Revenue Code of 1986 is amended by add24 ing at the end thereof the following new item: 

‘‘Sec. 45S. Value-added agricultural property investment credit.’’. 


smartinez on DSK4VPTVN1PROD with BILLS
32 

•S 1895 IS

1 (g) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to qualified investments (as defined 

3 in section 45S(c)(4) of the Internal Revenue Code of 

4 1986, as added by this section) made, and property placed 

5 in service, after December 31, 2011. 

6 TITLE III—TRAINING GRANTS 

7 FOR EMPLOYEES 

8 SEC. 301. DEFINITION OF SECRETARY. 

9 In this title, the term ‘‘Secretary’’ means the Sec10 retary of Labor. 

11 SEC. 302. AUTHORIZATION. 

12 (a) IN GENERAL.—The Secretary, in consultation 

13 with the Secretary of Commerce, shall award grants to 

14 eligible entities described in subsection (b) to assist the 

15 entities to improve the job skills necessary for employment 

16 in specific industries. In making such awards, special con17 sideration should be given by the Secretary of Commerce 

18 to eligible areas experiencing high unemployment, under19 employment, and outmigration or population loss. 

20 (b) ELIGIBLE ENTITIES DESCRIBED.— 

21 (1) IN GENERAL.—An eligible entity described 

22 in this subsection is a consortium that— 

23 (A) shall consist of representatives from 

24 not less than 5 businesses, or a lesser number 

25 of businesses if such lesser number of busiVerDate Mar 15 2010 04:41 Nov 19, 2011 Jkt 019200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S1895.IS S1895

smartinez on DSK4VPTVN1PROD with BILLS
33 

•S 1895 IS

1 nesses employs at least 30 percent of the em2 ployees in the industry involved in the region 

3 (or a nonprofit organization that represents 

4 such businesses); 

5 (B) may consist of representatives from— 

6 (i) labor organizations; 

7 (ii) State and local government; and 

8 (iii) educational institutions; 

9 (C) is established to serve 1 or more par10 ticular industries; and 

11 (D) is established to serve an eligible area. 

12 (2) ELIGIBLE AREA.—The term ‘‘eligible area’’ 

13 means any county that, based on information con14 tained in the most recent decennial census, has a 

15 population of not more than 1,000,000 residents. 

16 (3) MAJORITY OF REPRESENTATIVES.—A ma17 jority of the representatives comprising the consor18 tium shall be representatives described in paragraph 

19 (1)(A). 

20 (c) PRIORITY FOR SMALL BUSINESSES.—In pro21 viding grants under subsection (a), the Secretary shall 

22 give priority to an eligible entity if a majority of represent23 atives forming the entity represent small-business con24 cerns (as defined in section 3(a) of the Small Business 

25 Act (15 U.S.C. 632(a)). 


smartinez on DSK4VPTVN1PROD with BILLS
34 

•S 1895 IS

1 (d) MAXIMUM AMOUNT OF GRANT.—The amount of 

2 a grant awarded to an eligible entity under subsection (a) 

3 may not exceed $1,000,000 for any fiscal year. 

4 SEC. 303. USE OF AMOUNTS. 

5 (a) IN GENERAL.—The Secretary may not award a 

6 grant under section 402 to an eligible entity unless the 

7 entity agrees to use amounts received from the grant to 

8 improve the job skills necessary for employment by busi9 nesses in the industry with respect to which the entity was 

10 established. 

11 (b) CONDUCT OF PROGRAM.— 

12 (1) IN GENERAL.—In carrying out the program 

13 described in subsection (a), the eligible entity may 

14 provide for— 

15 (A) an assessment of training and job skill 

16 needs for the industry; 

17 (B) the development of a sequence of skill 

18 standards that are benchmarked to advanced 

19 industry practices; 

20 (C) the development of curriculum and 

21 training methods, including, where appropriate, 

22 e-learning or technology-based training; 

23 (D) the purchase, lease, or receipt of dona24 tions of training equipment; 


smartinez on DSK4VPTVN1PROD with BILLS
35 

•S 1895 IS

1 (E) the identification of training providers 

2 and the development of partnerships between 

3 the industry and educational institutions, in4 cluding community colleges; 

5 (F) the development of apprenticeship pro6 grams; 

7 (G) the development of training programs 

8 for workers, including dislocated workers; 

9 (H) the development of training plans for 

10 businesses; and 

11 (I) the development of the membership of 

12 the entity. 

13 (2) ADDITIONAL REQUIREMENT.—In carrying 

14 out the program described in subsection (a), the eli15 gible entity shall provide for the development and 

16 tracking of performance outcome measures for the 

17 program and the training providers involved in the 

18 program. 

19 (c) ADMINISTRATIVE COSTS.—The eligible entity 

20 may use not more than 10 percent of the amount of a 

21 grant to pay for administrative costs associated with the 

22 program described in subsection (a). 

23 SEC. 304. REQUIREMENT OF MATCHING FUNDS. 

24 (a) IN GENERAL.—The Secretary may not award a 

25 grant under section 402 to an eligible entity unless the 


smartinez on DSK4VPTVN1PROD with BILLS
36 

•S 1895 IS

1 entity agrees that the entity will make available non-Fed2 eral contributions toward the costs of carrying out activi3 ties under the grant in an amount that is not less than 

4 $2 for each $1 of Federal funds provided under the grant, 

5 of which— 

6 (1) $1 shall be provided by the businesses par7 ticipating in the entity; and 

8 (2) $1 shall be provided by the State or local 

9 government involved. 

10 (b) OTHER CONTRIBUTIONS.— 

11 (1) EQUIPMENT.—Equipment donations to fa12 cilities that are not owned or operated by the mem13 bers of the eligible entity involved and that are 

14 shared by the members may be included in deter15 mining compliance with subsection (a). 

16 (2) LIMITATION.— 

17 (A) IN GENERAL.—An eligible entity may 

18 not include in-kind contributions in complying 

19 with the requirement of subsection (a). 

20 (B) CONSIDERATION.—The Secretary may 

21 consider donations described in subparagraph 

22 (A) in ranking applications. 

23 SEC. 305. LIMIT ON ADMINISTRATIVE EXPENSES. 

24 The Secretary may use not more than 5 percent of 

25 the amounts made available to carry out this title to pay 


smartinez on DSK4VPTVN1PROD with BILLS
37 

•S 1895 IS

1 the Federal administrative costs associated with awarding 

2 grants under this title. 

3 SEC. 306. AUTHORIZATION OF APPROPRIATIONS. 

4 There are authorized to be appropriated to carry out 

5 this title— 

6 (1) $50,000,000 for each of fiscal years 2012 

7 through 2016; and 

8 (2) such sums as are necessary for each fiscal 

9 year thereafter. 

10 TITLE IV—FEDERAL INVEST11 MENT TO EXPAND 

12 BROADBAND ACCESS 

13 SEC. 401. ADDITIONAL AUTHORIZATION OF APPROPRIA14 TIONS TO EXTEND ACCESS TO BROADBAND 

15 TELECOMMUNICATIONS SERVICES IN RURAL 

16 AREAS. 

17 Section 601(k)(1) of the Rural Electrification Act of 

18 1936 (7 U.S.C. 950bb) is amended by striking ‘‘2012’’ 

19 and inserting ‘‘2017’’. 

20 TITLE V—BUILD AMERICA 

21 BONDS TO CREATE JOBS NOW 

22 SEC. 501. SHORT TITLE. 

23 This title may be cited as the ‘‘Build America Bonds 

24 to Create Jobs Now Act of 2011’’. 


smartinez on DSK4VPTVN1PROD with BILLS
38 

•S 1895 IS

1 SEC. 502. EXTENSION OF BUILD AMERICA BONDS. 

2 (a) IN GENERAL.—Subparagraph (B) of section 

3 54AA(d)(1) of the Internal Revenue Code of 1986 is 

4 amended by inserting ‘‘or during the period beginning on 

5 the date of the enactment of the Build America Bonds 

6 to Create Jobs Now Act of 2011 and ending on December 

7 31, 2012,’’ after ‘‘January 1, 2011,’’. 

8 (b) EXTENSION OF PAYMENTS TO ISSUERS.— 

9 (1) IN GENERAL.—Section 6431 of the Internal 

10 Revenue Code of 1986 is amended— 

11 (A) by inserting ‘‘or during the period be12 ginning on the date of the enactment of the 

13 Build America Bonds to Create Jobs Now Act 

14 of 2011 and ending on December 31, 2012,’’ 

15 after ‘‘January 1, 2011,’’ in subsection (a), and 

16 (B) by striking ‘‘before January 1, 2011’’ 

17 in subsection (f)(1)(B) and inserting ‘‘during a 

18 particular period’’. 

19 (2) CONFORMING AMENDMENTS.—Subsection 

20 (g) of section 54AA of such Code is amended— 

21 (A) by inserting ‘‘or during the period be22 ginning on the date of the enactment of the 

23 Build America Bonds to Create Jobs Now Act 

24 of 2011 and ending on December 31, 2012,’’ 

25 after ‘‘January 1, 2011,’’, and 


smartinez on DSK4VPTVN1PROD with BILLS
39 

•S 1895 IS

1 (B) by striking ‘‘QUALIFIED BONDS

2 ISSUED BEFORE 2011’’ in the heading and in3 serting ‘‘CERTAIN QUALIFIED BONDS’’. 

4 (c) REDUCTION IN PERCENTAGE OF PAYMENTS TO

5 ISSUERS.—Subsection (b) of section 6431 of the Internal 

6 Revenue Code of 1986 is amended— 

7 (1) by striking ‘‘The Secretary’’ and inserting 

8 the following: 

9 ‘‘(1) IN GENERAL.—The Secretary’’, 

10 (2) by striking ‘‘35 percent’’ and inserting ‘‘the 

11 applicable percentage’’, and 

12 (3) by adding at the end the following new 

13 paragraph: 

14 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

15 of this subsection, the term ‘applicable percentage’ 

16 means the percentage determined in accordance with 

17 the following table: 

‘‘In the case of a qualified bond issued during calendar year: The applicable percentage 

is: 

2009 or 2010 ............................................................ 35 percent 

2011 .......................................................................... 32 percent 

2012 .......................................................................... 31 percent.’’. 

18 (d) CURRENT REFUNDINGS PERMITTED.—Sub19 section (g) of section 54AA of the Internal Revenue Code 

20 of 1986 is amended by adding at the end the following 

21 new paragraph: 


smartinez on DSK4VPTVN1PROD with BILLS
40 

•S 1895 IS

1 ‘‘(3) TREATMENT OF CURRENT REFUNDING

2 BONDS.— 

3 ‘‘(A) IN GENERAL.—For purposes of this 

4 subsection, the term ‘qualified bond’ includes 

5 any bond (or series of bonds) issued to refund 

6 a qualified bond if— 

7 ‘‘(i) the average maturity date of the 

8 issue of which the refunding bond is a part 

9 is not later than the average maturity date 

10 of the bonds to be refunded by such issue, 

11 ‘‘(ii) the amount of the refunding 

12 bond does not exceed the outstanding 

13 amount of the refunded bond, and 

14 ‘‘(iii) the refunded bond is redeemed 

15 not later than 90 days after the date of the 

16 issuance of the refunding bond. 

17 ‘‘(B) APPLICABLE PERCENTAGE.—In the 

18 case of a refunding bond referred to in subpara19 graph (A), the applicable percentage with re20 spect to such bond under section 6431(b) shall 

21 be the lowest percentage specified in paragraph 

22 (2) of such section. 

23 ‘‘(C) DETERMINATION OF AVERAGE MATU24 RITY.—For purposes of subparagraph (A)(i), 


smartinez on DSK4VPTVN1PROD with BILLS
41 

•S 1895 IS

1 average maturity shall be determined in accord2 ance with section 147(b)(2)(A).’’. 

3 (e) CLARIFICATION RELATED TO LEVEES AND

4 FLOOD CONTROL PROJECTS.—Subparagraph (A) of sec5 tion 54AA(g)(2) of the Internal Revenue Code of 1986 

6 is amended by inserting ‘‘(including capital expenditures 

7 for levees and other flood control projects)’’ after ‘‘capital 

8 expenditures’’. 

Æ 


smartinez on DSK4VPTVN1PROD with BILLS