I 

111TH CONGRESS 

2D SESSION H. R. 4606 

To amend the Internal Revenue Code of 1986 to expand the purposes for 

which Build America Bonds may be issued. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 4, 2010 

Ms. EDDIE BERNICE JOHNSON of Texas 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 expand 

the purposes for which Build America Bonds may be issued. 

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

3 SECTION 1. MODIFICATION OF BUILD AMERICA BONDS. 

4 (a) IN GENERAL.—Section 54AA of the Internal Rev5 enue Code of 1986 is amended by redesignating subsection 

6 (h) as subsection (i) and by inserting after subsection (g) 

7 the following new subsection: 

8 ‘‘(h) SPECIAL RULE FOR CERTAIN BUILD AMERICA

9 BONDS.—For purposes of this section and section 6431— 


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1 ‘‘(1) IN GENERAL.—A bond shall be treated as 

2 a Build America bond which is a qualified bond, if— 

3 ‘‘(A) the issuer makes an irrevocable elec4 tion to have this subsection apply, 

5 ‘‘(B) the bond is issued as part of an issue 

6 of which 100 percent of the nonreserve proceeds 

7 are to be used for a specified purpose, 

8 ‘‘(C) at least 15 percent of the payment of 

9 debt service on the issue of which such bond is 

10 a part is directly or indirectly to be derived 

11 from generally applicable taxes,

12 ‘‘(D) the issuer satisfies the requirements 

13 of section 148 with respect to the proceeds of 

14 the issue of which such bond is a part, and

15 ‘‘(E) the issuer submits a report similar to 

16 the report required by section 149(e). 

17 ‘‘(2) DEFINITIONS.—For purposes of this sub18 section— 

19 ‘‘(A) NONRESERVE PROCEEDS.—The term 

20 ‘nonreserve proceeds’ with respect to an issue 

21 means an amount equal to the excess of— 

22 ‘‘(i) the available project proceeds (as 

23 defined in section 54A) of such issue, over


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1 ‘‘(ii) the amounts in a reasonably re2 quired reserve (within the meaning of sec3 tion 150(a)(3)) with respect to the issue. 

4 ‘‘(B) SPECIFIED PURPOSE.—The term 

5 ‘specified purpose’ means providing a facility 

6 (including any land, building or other property 

7 functionally related and subordinate to such fa8 cility) which is located within 2,000 feet of an 

9 enclosed convention center facility that is more 

10 than 150,000 square feet and is owned by or on 

11 behalf of a governmental unit having a popu12 lation (determined by using 2000 census data) 

13 of not more than 250,000. 

14 ‘‘(3) LIMITATION.—The face amount of bonds 

15 with respect to which an issuer may make an elec16 tion to have this subsection apply shall not exceed 

17 $250,000,000. Rules similar to the rules of section 

18 265(b)(3)(E) (relating to aggregation of issuers) 

19 shall apply for purposes of the preceding sentence.’’. 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to obligations issued after the date 

22 of the enactment of this Act. 

Æ 


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