I 

113TH CONGRESS 

1ST SESSION H. R. 535 

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

Build America Bonds program. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 6, 2013 

Mr. CONNOLLY 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 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 ‘‘Put America Back to 

5 Work Act’’. 

6 SEC. 2. PERMANENT EXTENSION OF BUILD AMERICA 

7 BONDS. 

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

9 54AA(d)(1) of the Internal Revenue Code of 1986 is 

10 amended by inserting ‘‘or after the date of the enactment 


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1 of the Put America Back to Work Act,’’ after ‘‘January 

2 1, 2011,’’. 

3 (b) REDUCTION IN BOND HOLDER CREDIT PER4 CENTAGE.—Subsection (b) of 54AA of such Code is 

5 amended by striking ‘‘35 percent’’ and inserting ‘‘25 per6 cent (35 percent in the case of bonds issued before Janu7 ary 1, 2011)’’. 

8 (c) PAYMENTS TO ISSUERS.— 

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

10 is amended— 

11 (A) by striking ‘‘issued before January 1, 

12 2011,’’ in subsection (a), and 

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

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

15 particular period’’. 

16 (2) CONFORMING AMENDMENTS.—Subsection 

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

18 (A) by striking ‘‘before January 1, 2011’’ 

19 in the matter preceding paragraph (1), and 

20 (B) by striking ‘‘QUALIFIED BONDS

21 ISSUED BEFORE 2011’’ in the heading and in22 serting ‘‘CERTAIN QUALIFIED BONDS’’. 

23 (d) REDUCTION IN PERCENTAGE OF PAYMENTS TO

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

25 is amended by striking ‘‘35 percent’’ and inserting ‘‘28 


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1 percent (35 percent in the case of bonds issued before Jan2 uary 1, 2011)’’. 

3 (e) CURRENT REFUNDINGS PERMITTED.—Sub4 section (g) of section 54AA of such Code is amended by 

5 adding at the end the following new paragraph: 

6 ‘‘(3) TREATMENT OF CURRENT REFUNDING

7 BONDS.— 

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

9 subsection, the term ‘qualified bond’ includes 

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

11 a qualified bond if— 

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

13 issue of which the refunding bond is a part 

14 is not later than the average maturity date 

15 of the bonds to be refunded by such issue, 

16 ‘‘(ii) the amount of the refunding 

17 bond does not exceed the outstanding 

18 amount of the refunded bond, and 

19 ‘‘(iii) the refunded bond is redeemed 

20 not later than 90 days after the date of the 

21 issuance of the refunding bond. 

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

23 case of a refunding bond referred to in subpara24 graph (A), the applicable percentage with re25 spect to such bond under section 6431(b) shall 


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1 be the lowest percentage specified in paragraph 

2 (2) of such section. 

3 ‘‘(C) DETERMINATION OF AVERAGE MATU4 RITY.—For purposes of subparagraph (A)(i), 

5 average maturity shall be determined in accord6 ance with section 147(b)(2)(A).’’. 

7 (f) ADDITIONAL PURPOSES.—Subsection (g) of sec8 tion 54AA of such Code, as amended by subsection (e), 

9 is amended by adding at the end the following new para10 graphs: 

11 ‘‘(4) WORKING CAPITAL FINANCINGS.—For 

12 purposes of this subsection, the term ‘qualified bond’ 

13 includes any bond (or series of bonds) that is rea14 sonably expected to be used for the issuer’s oper15 ating expenses as long as the issue is limited to a 

16 maturity of 13 months or less. 

17 ‘‘(5) QUALIFIED 501(c)(3) BOND.—For pur18 poses of this subsection, the term ‘qualified bond’ in19 cludes any bond (or series of bonds) that is a quali20 fied 501(c)(3) bond (as defined in section 145).’’. 

21 (g) CLARIFICATION RELATED TO LEVEES AND

22 FLOOD CONTROL PROJECTS.—Subparagraph (A) of sec23 tion 54AA(g)(2) of such Code is amended by inserting 

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

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


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

2 this section shall apply to obligations issued after the date 

3 of the enactment of this Act. 

Æ 


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