I 

114TH CONGRESS 

1ST SESSION H. R. 2676 

To amend the Internal Revenue Code of 1986 to permanently extend the 

tax treatment for certain build America bonds, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 4, 2015 

Mr. NEAL (for himself, Mr. CROWLEY, Ms. LINDA T. SA ́NCHEZ of California, 

Mr. BLUMENAUER, Mr. RANGEL, Mr. PASCRELL, Mr. LARSON of Connecticut, Mr. LEVIN, Mr. THOMPSON of California, Mr. BECERRA, and 

Mr. KIND) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to permanently 

extend the tax treatment for certain build America 

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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Build America Bonds 

5 Act of 2015’’. 

6 SEC. 2. BUILD AMERICA BONDS MADE PERMANENT. 

7 (a) IN GENERAL.—Section 54AA(d)(1)(B) of the In8 ternal Revenue Code of 1986 is amended by inserting ‘‘or 


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1 during a period beginning on or after the date of the en2 actment of the Build America Bonds Act of 2015,’’ after 

3 ‘‘January 1, 2011,’’. 

4 (b) REDUCTION IN CREDIT PERCENTAGE TO BOND5 HOLDERS.—Section 54AA(b) of such Code is amended to 

6 read as follows: 

7 ‘‘(b) AMOUNT OF CREDIT.— 

8 ‘‘(1) IN GENERAL.—The amount of the credit 

9 determined under this subsection with respect to any 

10 interest payment date for a build America bond is 

11 the applicable percentage of the amount of interest 

12 payable by the issuer with respect to such date. 

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

14 of paragraph (1), the applicable percentage shall be 

15 determined under the following table: 

‘‘In the case of a bond issued The applicable 

during calendar year: percentage is: 

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

2015 ................................................................................................... 32

2016 ................................................................................................... 31

2017 ................................................................................................... 30

2018 ................................................................................................... 29

2019 and thereafter ........................................................................... 28.’’. 

16 (c) SPECIAL RULES.—Section 54AA(f) of such Code 

17 is amended by adding at the end the following new para18 graph: 

19 ‘‘(3) APPLICATION OF OTHER RULES.— 

20 ‘‘(A) IN GENERAL.—Notwithstanding any 

21 other provision of law, a build America bond 


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1 shall be considered a recovery zone economic 

2 development bond (as defined in section 

3 1400U–2) for purposes of application of section 

4 1601 of title I of division B of Public Law 111– 

5 5 (26 U.S.C. 54C note). 

6 ‘‘(B) PUBLIC TRANSPORTATION

7 PROJECTS.—Recipients of any financial assist8 ance authorized under this section that funds 

9 public transportation projects, as defined in 

10 Title 49, United States Code, must comply with 

11 the grant requirements described under section 

12 5309 of such title.’’. 

13 (d) EXTENSION OF PAYMENTS TO ISSUERS.— 

14 (1) IN GENERAL.—Section 6431 of such Code 

15 is amended— 

16 (A) by inserting ‘‘or during a period begin17 ning on or after the date of the enactment of 

18 the Build America Bonds Act of 2015,’’ after 

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

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

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

22 particular period’’. 

23 (2) CONFORMING AMENDMENTS.—Section 

24 54AA(g) of such Code is amended— 


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1 (A) by inserting ‘‘or during a period begin2 ning on or after the date of the enactment of 

3 the Build America Bonds Act of 2015,’’ after 

4 ‘‘January 1, 2011,’’, and 

5 (B) by striking ‘‘QUALIFIED BONDS

6 ISSUED BEFORE 2011’’ in the heading and in7 serting ‘‘CERTAIN QUALIFIED BONDS’’. 

8 (e) REDUCTION IN PERCENTAGE OF PAYMENTS TO

9 ISSUERS.—Section 6431(b) of such Code is amended— 

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

11 the following: 

12 ‘‘(1) IN GENERAL.—The Secretary’’, 

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

14 applicable percentage’’, and 

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

16 paragraph: 

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

18 of this subsection, the term ‘applicable percentage’ 

19 means the percentage determined in accordance with 

20 the following table: 

‘‘In the case of a qualified bond The applicable 

issued during calendar year: percentage is: 

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

2015 ................................................................................................... 32

2016 ................................................................................................... 31

2017 ................................................................................................... 30

2018 ................................................................................................... 29

2019 and thereafter ........................................................................... 28.’’. 


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1 (f) CURRENT REFUNDINGS PERMITTED.—Section 

2 54AA(g) of such Code is amended by adding at the end 

3 the following new paragraph: 

4 ‘‘(3) TREATMENT OF CURRENT REFUNDING

5 BONDS.— 

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

7 subsection, the term ‘qualified bond’ includes 

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

9 a qualified bond if— 

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

11 issue of which the refunding bond is a part 

12 is not later than the average maturity date 

13 of the bonds to be refunded by such issue, 

14 ‘‘(ii) the amount of the refunding 

15 bond does not exceed the outstanding 

16 amount of the refunded bond, and 

17 ‘‘(iii) the refunded bond is redeemed 

18 not later than 90 days after the date of the 

19 issuance of the refunding bond. 

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

21 case of a refunding bond referred to in subpara22 graph (A), the applicable percentage with re23 spect to such bond under section 6431(b) shall 

24 be the lowest percentage specified in paragraph 

25 (2) of such section. 


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1 ‘‘(C) DETERMINATION OF AVERAGE MATU2 RITY.—For purposes of subparagraph (A)(i), 

3 average maturity shall be determined in accord4 ance with section 147(b)(2)(A). 

5 ‘‘(D) ISSUANCE RESTRICTION NOT APPLI6 CABLE.—Subsection (d)(1)(B) shall not apply 

7 to a refunding bond referred to in subpara8 graph (A).’’. 

9 (g) CLARIFICATION RELATED TO LEVEES AND

10 FLOOD CONTROL PROJECTS.—Section 54AA(g)(2)(A) of 

11 such Code is amended by inserting ‘‘(including capital ex12 penditures for levees and other flood control projects)’’ 

13 after ‘‘capital expenditures’’. 

14 (h) GROSS-UP OF PAYMENT TO ISSUERS IN CASE OF

15 SEQUESTRATION.—In the case of any payment under sec16 tion 6431(b) of the Internal Revenue Code of 1986 made 

17 after the date of the enactment of this Act to which se18 questration applies, the amount of such payment shall be 

19 increased to an amount equal to— 

20 (1) such payment (determined before such se21 questration), multiplied by 

22 (2) the quotient obtained by dividing 1 by the 

23 amount by which 1 exceeds the percentage reduction 

24 in such payment pursuant to such sequestration. 


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1 For purposes of this subsection, the term ‘‘sequestration’’ 

2 means any reduction in direct spending ordered in accord3 ance with a sequestration report prepared by the Director 

4 of the Office and Management and Budget pursuant to 

5 the Balanced Budget and Emergency Deficit Control Act 

6 of 1985 or the Statutory Pay-As-You-Go Act of 2010. 

7 (i) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to obligations issued on or after 

9 the date of the enactment of this Act. 

Æ 


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