I 

112TH CONGRESS 

1ST SESSION H. R. 11 

To amend the Internal Revenue Code of 1986 to extend the Build America 

Bonds program. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 10, 2011 

Mr. CONNOLLY of Virginia (for himself, Ms. LORETTA SANCHEZ of California, 

and Mr. CARNEY) 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 extend 

the Build America Bonds program. 

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 to Create Jobs Now Act of 2011’’. 

6 SEC. 2. EXTENSION OF BUILD AMERICA BONDS. 

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

8 54AA(d)(1) of the Internal Revenue Code of 1986 is 

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

10 the date of the enactment of the Build America Bonds 


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

2 31, 2012,’’ after ‘‘January 1, 2011,’’. 

3 (b) EXTENSION OF PAYMENTS TO ISSUERS.— 

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

5 is amended— 

6 (A) by inserting ‘‘or during the period be7 ginning on the date of the enactment of the 

8 Build America Bonds to Create Jobs Now Act 

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

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

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

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

13 particular period’’. 

14 (2) CONFORMING AMENDMENTS.—Subsection 

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

16 (A) by inserting ‘‘or during the period be17 ginning on the date of the enactment of the 

18 Build America Bonds to Create Jobs Now Act 

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

20 after ‘‘January 1, 2011,’’, and 

21 (B) by striking ‘‘QUALIFIED BONDS

22 ISSUED BEFORE 2011’’ in the heading and in23 serting ‘‘CERTAIN QUALIFIED BONDS’’. 


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1 (c) REDUCTION IN PERCENTAGE OF PAYMENTS TO

2 ISSUERS.—Subsection (b) of section 6431 of such Code 

3 is amended— 

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

5 the following: 

6 ‘‘(1) IN GENERAL.—The Secretary’’, 

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

8 applicable percentage’’, and 

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

10 paragraph: 

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

12 of this subsection, the term ‘applicable percentage’ 

13 means the percentage determined in accordance with 

14 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.’’. 

15 (d) CURRENT REFUNDINGS PERMITTED.—Sub16 section (g) of section 54AA of such Code is amended by 

17 adding at the end the following new paragraph: 

18 ‘‘(3) TREATMENT OF CURRENT REFUNDING

19 BONDS.— 

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

21 subsection, the term ‘qualified bond’ includes 


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

2 a qualified bond if— 

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

4 issue of which the refunding bond is a part 

5 is not later than the average maturity date 

6 of the bonds to be refunded by such issue, 

7 ‘‘(ii) the amount of the refunding 

8 bond does not exceed the outstanding 

9 amount of the refunded bond, and 

10 ‘‘(iii) the refunded bond is redeemed 

11 not later than 90 days after the date of the 

12 issuance of the refunding bond. 

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

14 case of a refunding bond referred to in subpara15 graph (A), the applicable percentage with re16 spect to such bond under section 6431(b) shall 

17 be the lowest percentage specified in paragraph 

18 (2) of such section. 

19 ‘‘(C) DETERMINATION OF AVERAGE MATU20 RITY.—For purposes of subparagraph (A)(i), 

21 average maturity shall be determined in accord22 ance with section 147(b)(2)(A).’’. 

23 (e) CLARIFICATION RELATED TO LEVEES AND

24 FLOOD CONTROL PROJECTS.—Subparagraph (A) of sec25 tion 54AA(g)(2) of such Code is amended by inserting 


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1 ‘‘(including capital expenditures for levees and other flood 

2 control projects)’’ after ‘‘capital expenditures’’. 

Æ 


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