I 

111TH CONGRESS 

2D SESSION H. R. 6181 

To amend the Internal Revenue Code of 1986 to encourage investments 

in infrastructure, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 22, 2010 

Mr. HASTINGS of Florida (for himself, Mr. DEUTCH, and Mr. KLEIN of Florida) 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 encourage 

investments in infrastructure, 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; AMENDMENT OF 1986 CODE; 

4 TABLE OF CONTENTS. 

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

6 ‘‘American Infrastructure Investment Act of 2010’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amend9 ment or repeal is expressed in terms of an amendment 

10 to, or repeal of, a section or other provision, the reference 


emcdonald on DSK2BSOYB1PROD with BILLS
2 

•HR 6181 IH

1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 (c) TABLE OF CONTENTS.—The table of contents for 

4 this Act is as follows: 

Sec. 1. Short title; amendment of 1986 Code; table of contents. 

Sec. 2. Extension of Build America Bonds. 

Sec. 3. Exempt-facility bonds for sewage and water supply facilities. 

Sec. 4. Extension of exemption from alternative minimum tax treatment for 

certain tax-exempt bonds. 

Sec. 5. Extension and additional allocations of recovery zone bond authority. 

Sec. 6. Allowance of new markets tax credit against alternative minimum tax. 

Sec. 7. Extension of tax-exempt eligibility for loans guaranteed by Federal 

home loan banks. 

Sec. 8. Extension of temporary small issuer rules for allocation of tax-exempt 

interest expense by financial institutions. 

5 SEC. 2. EXTENSION OF BUILD AMERICA BONDS. 

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

7 54AA(d)(1) is amended by striking ‘‘January 1, 2011’’ 

8 and inserting ‘‘January 1, 2013’’. 

9 (b) EXTENSION OF PAYMENTS TO ISSUERS.— 

10 (1) IN GENERAL.—Section 6431 is amended— 

11 (A) by striking ‘‘January 1, 2011’’ in sub12 section (a) and inserting ‘‘January 1, 2013’’; 

13 and 

14 (B) by striking ‘‘January 1, 2011’’ in sub15 section (f)(1)(B) and inserting ‘‘a particular 

16 date’’. 

17 (2) CONFORMING AMENDMENTS.—Subsection 

18 (g) of section 54AA is amended— 

19 (A) by striking ‘‘January 1, 2011’’ and in20 serting ‘‘January 1, 2013’’; and 


emcdonald on DSK2BSOYB1PROD with BILLS
3 

•HR 6181 IH

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 is amended— 

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

7 the following: 

8 ‘‘(1) IN GENERAL.—The Secretary’’; 

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

10 applicable percentage’’; and 

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

12 paragraph: 

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

14 of this subsection, the term ‘applicable percentage’ 

15 means the percentage determined in accordance with 

16 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 .......................................................................... 30 percent.’’. 

17 (d) CURRENT REFUNDINGS PERMITTED.—Sub18 section (g) of section 54AA is amended by adding at the 

19 end the following new paragraph: 

20 ‘‘(3) TREATMENT OF CURRENT REFUNDING

21 BONDS.— 


emcdonald on DSK2BSOYB1PROD with BILLS
4 

•HR 6181 IH

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

2 subsection, the term ‘qualified bond’ includes 

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

4 a qualified bond if— 

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

6 issue of which the refunding bond is a part 

7 is not later than the average maturity date 

8 of the bonds to be refunded by such issue, 

9 ‘‘(ii) the amount of the refunding 

10 bond does not exceed the outstanding 

11 amount of the refunded bond, and 

12 ‘‘(iii) the refunded bond is redeemed 

13 not later than 90 days after the date of the 

14 issuance of the refunding bond. 

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

16 case of a refunding bond referred to in subpara17 graph (A), the applicable percentage with re18 spect to such bond under section 6431(b) shall 

19 be the lowest percentage specified in paragraph 

20 (2) of such section. 

21 ‘‘(C) DETERMINATION OF AVERAGE MATU22 RITY.—For purposes of subparagraph (A)(i), 

23 average maturity shall be determined in accord24 ance with section 147(b)(2)(A).’’. 


emcdonald on DSK2BSOYB1PROD with BILLS
5 

•HR 6181 IH

1 (e) CLARIFICATION RELATED TO LEVEES AND

2 FLOOD CONTROL PROJECTS.—Subparagraph (A) of sec3 tion 54AA(g)(2) is amended by inserting ‘‘(including cap4 ital expenditures for levees and other flood control 

5 projects)’’ after ‘‘capital expenditures’’. 

6 SEC. 3. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER 

7 SUPPLY FACILITIES. 

8 (a) BONDS FOR WATER AND SEWAGE FACILITIES

9 EXEMPT FROM VOLUME CAP ON PRIVATE ACTIVITY

10 BONDS.— 

11 (1) IN GENERAL.—Paragraph (3) of section 

12 146(g) is amended by inserting ‘‘(4), (5),’’ after 

13 ‘‘(2),’’. 

14 (2) CONFORMING AMENDMENT.—Paragraphs 

15 (2) and (3)(B) of section 146(k) are both amended 

16 by striking ‘‘(4), (5), (6),’’ and inserting ‘‘(6)’’. 

17 (b) TAX-EXEMPT ISSUANCE BY INDIAN TRIBAL GOV18 ERNMENTS.— 

19 (1) IN GENERAL.—Subsection (c) of section 

20 7871 is amended by adding at the end the following 

21 new paragraph: 

22 ‘‘(4) EXCEPTION FOR BONDS FOR WATER AND

23 SEWAGE FACILITIES.—Paragraph (2) shall not apply 

24 to an exempt facility bond 95 percent or more of the 

25 net proceeds (as defined in section 150(a)(3)) of 


emcdonald on DSK2BSOYB1PROD with BILLS
6 

•HR 6181 IH

1 which are to be used to provide facilities described 

2 in paragraph (4) or (5) of section 142(a).’’. 

3 (2) CONFORMING AMENDMENT.—Paragraph (2) 

4 of section 7871(c) is amended by striking ‘‘para5 graph (3)’’ and inserting ‘‘paragraphs (3) and (4)’’. 

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

7 this section shall apply to obligations issued after the date 

8 of the enactment of this Act. 

9 SEC. 4. EXTENSION OF EXEMPTION FROM ALTERNATIVE 

10 MINIMUM TAX TREATMENT FOR CERTAIN 

11 TAX-EXEMPT BONDS. 

12 (a) IN GENERAL.—Clause (vi) of section 57(a)(5)(C) 

13 is amended— 

14 (1) by striking ‘‘January 1, 2011’’ in subclause 

15 (I) and inserting ‘‘January 1, 2012’’; and 

16 (2) by striking ‘‘AND 2010’’ in the heading and 

17 inserting ‘‘, 2010, AND 2011’’. 

18 (b) ADJUSTED CURRENT EARNINGS.—Clause (iv) of 

19 section 56(g)(4)(B) is amended— 

20 (1) by striking ‘‘January 1, 2011’’ in subclause 

21 (I) and inserting ‘‘January 1, 2012’’; and 

22 (2) by striking ‘‘AND 2010’’ in the heading and 

23 inserting ‘‘, 2010, AND 2011’’. 


emcdonald on DSK2BSOYB1PROD with BILLS
7 

•HR 6181 IH

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

2 this section shall apply to obligations issued after Decem3 ber 31, 2010. 

4 SEC. 5. EXTENSION AND ADDITIONAL ALLOCATIONS OF RE5 COVERY ZONE BOND AUTHORITY. 

6 (a) EXTENSION OF RECOVERY ZONE BOND AUTHOR7 ITY.—Section 1400U–2(b)(1) and section 1400U– 

8 3(b)(1)(B) are each amended by striking ‘‘January 1, 

9 2011’’ and inserting ‘‘January 1, 2012’’. 

10 (b) ADDITIONAL ALLOCATIONS OF RECOVERY ZONE

11 BOND AUTHORITY BASED ON UNEMPLOYMENT.—Section 

12 1400U–1 is amended by adding at the end the following 

13 new subsection: 

14 ‘‘(c) ALLOCATION OF 2010 RECOVERY ZONE BOND

15 LIMITATIONS BASED ON UNEMPLOYMENT.— 

16 ‘‘(1) IN GENERAL.—The Secretary shall allo17 cate the 2010 national recovery zone economic devel18 opment bond limitation and the 2010 national recov19 ery zone facility bond limitation among the States in 

20 the proportion that each such State’s 2009 unem21 ployment number bears to the aggregate of the 2009 

22 unemployment numbers for all of the States. 

23 ‘‘(2) MINIMUM ALLOCATION.—The Secretary 

24 shall adjust the allocations under paragraph (1) for 

25 each State to the extent necessary to ensure that no 


emcdonald on DSK2BSOYB1PROD with BILLS
8 

•HR 6181 IH

1 State (prior to any reduction under paragraph (3)) 

2 receives less than 0.9 percent of the 2010 national 

3 recovery zone economic development bond limitation 

4 and 0.9 percent of the 2010 national recovery zone 

5 facility bond limitation. 

6 ‘‘(3) ALLOCATIONS BY STATES.— 

7 ‘‘(A) IN GENERAL.—Each State with re8 spect to which an allocation is made under 

9 paragraph (1) shall reallocate such allocation 

10 among the counties and large municipalities (as 

11 defined in subsection (a)(3)(B)) in such State 

12 in the proportion that each such county’s or 

13 municipality’s 2009 unemployment number 

14 bears to the aggregate of the 2009 unemploy15 ment numbers for all the counties and large 

16 municipalities (as so defined) in such State. 

17 ‘‘(B) 2010 ALLOCATION REDUCED BY

18 AMOUNT OF PREVIOUS ALLOCATION.—Each 

19 State shall reduce (but not below zero)— 

20 ‘‘(i) the amount of the 2010 national 

21 recovery zone economic development bond 

22 limitation allocated to each county or large 

23 municipality (as so defined) in such State 

24 by the amount of the national recovery 

25 zone economic development bond limitation 


emcdonald on DSK2BSOYB1PROD with BILLS
9 

•HR 6181 IH

1 allocated to such county or large munici2 pality under subsection (a)(3)(A) (deter3 mined without regard to any waiver there4 of), and 

5 ‘‘(ii) the amount of the 2010 national 

6 recovery zone facility bond limitation allo7 cated to each county or large municipality 

8 (as so defined) in such State by the 

9 amount of the national recovery zone facil10 ity bond limitation allocated to such county 

11 or large municipality under subsection 

12 (a)(3)(A) (determined without regard to 

13 any waiver thereof). 

14 ‘‘(C) WAIVER OF SUBALLOCATIONS.—A 

15 county or municipality may waive any portion 

16 of an allocation made under this paragraph. A 

17 county or municipality shall be treated as hav18 ing waived any portion of an allocation made 

19 under this paragraph which has not been allo20 cated to a bond issued before May 1, 2011. Any 

21 allocation waived (or treated as waived) under 

22 this subparagraph may be used or reallocated 

23 by the State. 

24 ‘‘(D) SPECIAL RULE FOR A MUNICIPALITY

25 IN A COUNTY.—In the case of any large municiVerDate Mar 15 2010 22:57 Sep 23, 2010 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H6181.IH H6181

emcdonald on DSK2BSOYB1PROD with BILLS
10 

•HR 6181 IH

1 pality any portion of which is in a county, such 

2 portion shall be treated as part of such munici3 pality and not part of such county. 

4 ‘‘(4) 2009 UNEMPLOYMENT NUMBER.—For 

5 purposes of this subsection, the term ‘2009 unem6 ployment number’ means, with respect to any State, 

7 county or municipality, the number of individuals in 

8 such State, county, or municipality who were deter9 mined to be unemployed by the Bureau of Labor 

10 Statistics for December 2009. 

11 ‘‘(5) 2010 NATIONAL LIMITATIONS.— 

12 ‘‘(A) RECOVERY ZONE ECONOMIC DEVEL13 OPMENT BONDS.—The 2010 national recovery 

14 zone economic development bond limitation is 

15 $10,000,000,000. Any allocation of such limita16 tion under this subsection shall be treated for 

17 purposes of section 1400U–2 in the same man18 ner as an allocation of national recovery zone 

19 economic development bond limitation. 

20 ‘‘(B) RECOVERY ZONE FACILITY BONDS.— 

21 The 2010 national recovery zone facility bond 

22 limitation is $15,000,000,000. Any allocation of 

23 such limitation under this subsection shall be 

24 treated for purposes of section 1400U–3 in the 


emcdonald on DSK2BSOYB1PROD with BILLS
11 

•HR 6181 IH

1 same manner as an allocation of national recov2 ery zone facility bond limitation.’’. 

3 (c) AUTHORITY OF STATE TO WAIVE CERTAIN 2009 

4 ALLOCATIONS.—Subparagraph (A) of section 1400U– 

5 1(a)(3) is amended by adding at the end the following: 

6 ‘‘A county or municipality shall be treated as having 

7 waived any portion of an allocation made under this sub8 paragraph which has not been allocated to a bond issued 

9 before May 1, 2011. Any allocation waived (or treated as 

10 waived) under this subparagraph may be used or reallo11 cated by the State.’’. 

12 SEC. 6. ALLOWANCE OF NEW MARKETS TAX CREDIT 

13 AGAINST ALTERNATIVE MINIMUM TAX. 

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

15 38(c)(4) is amended by redesignating clauses (v) through 

16 (ix) as clauses (vi) through (x), respectively, and by insert17 ing after clause (iv) the following new clause: 

18 ‘‘(v) the credit determined under sec19 tion 45D, but only with respect to credits 

20 determined with respect to qualified equity 

21 investments (as defined in section 45D(b)) 

22 initially made before January 1, 2012,’’. 

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

24 this section shall apply to credits determined with respect 

25 to qualified equity investments (as defined in section 


emcdonald on DSK2BSOYB1PROD with BILLS
12 

•HR 6181 IH

1 45D(b) of the Internal Revenue Code of 1986) initially 

2 made after March 15, 2010. 

3 SEC. 7. EXTENSION OF TAX-EXEMPT ELIGIBILITY FOR 

4 LOANS GUARANTEED BY FEDERAL HOME 

5 LOAN BANKS. 

6 Clause (iv) of section 149(b)(3)(A) is amended by 

7 striking ‘‘December 31, 2010’’ and inserting ‘‘December 

8 31, 2011’’. 

9 SEC. 8. EXTENSION OF TEMPORARY SMALL ISSUER RULES 

10 FOR ALLOCATION OF TAX-EXEMPT INTEREST 

11 EXPENSE BY FINANCIAL INSTITUTIONS. 

12 (a) IN GENERAL.—Clauses (i), (ii), and (iii) of sec13 tion 265(b)(3)(G) are each amended by striking ‘‘or 

14 2010’’ and inserting ‘‘, 2010, or 2011’’. 

15 (b) CONFORMING AMENDMENT.—Subparagraph (G) 

16 of section 265(b)(3) is amended by striking ‘‘AND 2010’’ 

17 in the heading and inserting ‘‘, 2010, AND 2011’’. 

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

19 this section shall apply to obligations issued after Decem20 ber 31, 2010. 

Æ 


emcdonald on DSK2BSOYB1PROD with BILLS