I 
113TH CONGRESS 
2D SESSION 
H. R. 5330 
To amend the Internal Revenue Code of 1986 to make the tax treatment 
for certain build America bonds permanent and to provide for recovery 
zone economic development bonds for certain cities, and for other pur-
poses. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 31, 2014 
Mr. CONYERS (for himself, Mr. RANGEL, Ms. KAPTUR, Ms. NORTON, Ms. 
JACKSON LEE, Mr. MEEKS, Ms. WILSON of Florida, and Ms. LEE of 
California) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to make 
the tax treatment for certain build America bonds perma-
nent and to provide for recovery zone economic develop-
ment bonds for certain cities, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Bringing Urgent In-
vestment to Local Development Act’’ or the ‘‘BUILD 
Act’’. 
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SEC. 2. BUILD AMERICA BONDS MADE PERMANENT; RECOV-
ERY ZONE ECONOMIC DEVELOPMENT BONDS 
FOR CERTAIN CITIES. 
(a) IN GENERAL.—Subparagraph (B) of section 
54AA(d)(1) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘or during a period beginning on 
or after the date of the enactment of the Bringing Urgent 
Investment to Local Development Act,’’ after ‘‘January 1, 
2011,’’. 
(b) REDUCTION IN CREDIT PERCENTAGE TO BOND-
HOLDERS.—Subsection (b) of section 54AA of such Code 
is amended to read as follows: 
‘‘(b) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
determined under this subsection with respect to any 
interest payment date for a build America bond is 
the applicable percentage of the amount of interest 
payable by the issuer with respect to such date. 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the applicable percentage shall be 
determined under the following table: 
‘‘In the case of a bond issued 
The applicable 
during calendar year: 
percentage is: 
2014 ...................................................................................................
2015 ...................................................................................................
2016 ...................................................................................................
2017 ...................................................................................................
2018 ...................................................................................................
2019 and thereafter ...........................................................................
28.’’. 
(c) EXTENSION OF PAYMENTS TO ISSUERS.— 
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(1) IN GENERAL.—Section 6431 of such Code 
is amended— 
(A) by inserting ‘‘or during a period begin-
ning on or after the date of the enactment of 
the Bringing Urgent Investment to Local De-
velopment Act,’’ after ‘‘January 1, 2011,’’ in 
subsection (a), and 
(B) by striking ‘‘before January 1, 2011’’ 
in subsection (f)(1)(B) and inserting ‘‘during a 
particular period’’. 
(2) CONFORMING
AMENDMENTS.—Subsection 
(g) of section 54AA of such Code is amended— 
(A) by inserting ‘‘or during a period begin-
ning on or after the date of the enactment of 
the Bringing Urgent Investment to Local De-
velopment Act,’’ after ‘‘January 1, 2011,’’, and 
(B) 
by 
striking 
‘‘QUALIFIED
BONDS 
ISSUED BEFORE 2011’’ in the heading and in-
serting ‘‘CERTAIN QUALIFIED BONDS’’. 
(d) REDUCTION IN PERCENTAGE OF PAYMENTS TO 
ISSUERS.—Subsection (b) of section 6431 of such Code 
is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’, 
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(2) by striking ‘‘35 percent’’ and inserting ‘‘the 
applicable percentage’’, and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of this subsection, the term ‘applicable percentage’ 
means the percentage determined in accordance with 
the following table: 
‘‘In the case of a qualified bond 
The applicable 
issued during calendar year: 
percentage is: 
2014 ...................................................................................................
2015 ...................................................................................................
2016 ...................................................................................................
2017 ...................................................................................................
2018 ...................................................................................................
2019 and thereafter ...........................................................................
28.’’. 
(e) RECOVERY
ZONE
ECONOMIC
DEVELOPMENT 
BONDS FOR CERTAIN CITIES.— 
(1) IN GENERAL.—Section 54AA of such Code 
is amended by redesignating subsection (h) as sub-
section (i) and by inserting after subsection (g) the 
following: 
‘‘(h) SPECIAL RULE
FOR RECOVERY ZONE ECO-
NOMIC DEVELOPMENT BONDS FOR CERTAIN CITIES.—In 
the case of an economic development extension bond— 
‘‘(1) ISSUER
ALLOWED
REFUNDABLE
CRED-
IT.—In lieu of any credit allowed under this section 
with respect to such bond, the issuer of such bond 
shall be allowed a credit as provided in section 6431. 
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‘‘(2) APPLICABLE PERCENTAGE.—The applica-
ble percentage under subsection (b) shall be 35 per-
cent. 
‘‘(3) ECONOMIC
DEVELOPMENT
EXTENSION 
BOND.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘economic 
development extension bond’ means any build 
America bond issued as part of an issue if— 
‘‘(i) 100 percent of the excess of— 
‘‘(I) the available project pro-
ceeds (as defined in section 54A) of 
such issue, over 
‘‘(II) the amounts in a reason-
ably required reserve (within the 
meaning of section 150(a)(3)) with re-
spect to such issue, 
are to be used for one or more qualified 
purposes, and 
‘‘(ii) the issuer makes an irrevocable 
election to have this subsection apply and 
designates such bond for purposes of this 
section. 
‘‘(B) QUALIFIED
PURPOSES.—The term 
‘qualified purposes’ means— 
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‘‘(i) any qualified economic develop-
ment purpose (as defined in section 
1400U–2(c), applied by treating specified 
cities (and only specified cities) as recovery 
zones), and 
‘‘(ii) any refinancing of indebtedness 
of a specified city which is outstanding on 
the date of the enactment of this sub-
section. 
‘‘(C) SPECIFIED CITY.—The term ‘speci-
fied city’ means any principal city for a metro-
politan statistical area (as determined by the 
Office of Management and Budget) which— 
‘‘(i) has an average unemployment 
rate of not less than 150 percent of the na-
tional average rate for the last calendar 
year ending before the date of the enact-
ment of this section, 
‘‘(ii) has a poverty rate of not less 
that 150 percent of the national poverty 
rate for the last calendar year ending be-
fore the date of the enactment of this sec-
tion, or 
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