549 
AMDT. NO. 570 
tion allocated to such government under para-
graph (1).’’. 
(b) STUDY.—The Secretary of the Treasury, or the 
Secretary’s delegate, shall conduct a study of the effects 
of the amendment made by subsection (a). Not later than 
1 year after the date of the enactment of this Act, the 
Secretary of the Treasury, or the Secretary’s delegate, 
shall report to Congress on the results of the study con-
ducted under this paragraph, including the Secretary’s 
recommendations regarding such amendment. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to obligations issued after the 
date of the enactment of this Act. 
SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT. 
(a) INCREASE IN NATIONAL LIMITATION.— 
(1) IN GENERAL.—Section 45D(f)(1) is amend-
ed— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C), 
(B) by striking ‘‘, 2007, 2008, and 2009.’’ 
in subparagraph (D), and inserting ‘‘and 
2007,’’, and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(E) $5,000,000,000 for 2008, and 
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‘‘(F) $5,000,000,000 for 2009.’’. 
(2) SPECIAL
RULE
FOR
ALLOCATION
OF
IN-
CREASED 2008 LIMITATION.—The amount of the in-
crease in the new markets tax credit limitation for 
calendar year 2008 by reason of the amendments 
made by subsection (a) shall be allocated in accord-
ance with section 45D(f)(2) of the Internal Revenue 
Code of 1986 to qualified community development 
entities (as defined in section 45D(c) of such Code) 
which— 
(A) submitted an allocation application 
with respect to calendar year 2008, and 
(B)(i) did not receive an allocation for 
such calendar year, or 
(ii) received an allocation for such calendar 
year in an amount less than the amount re-
quested in the allocation application. 
(b) ALTERNATIVE MINIMUM TAX RELIEF.— 
(1) IN
GENERAL.—Section 38(c)(4)(B) is 
amended by redesignating clauses (v) through (viii) 
as clauses (vi) through (ix), respectively, and by in-
serting after clause (iv) the following new clause: 
‘‘(v) the credit determined under sec-
tion 45D to the extent that such credit is 
attributable to a qualified equity invest-
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AMDT. NO. 570 
ment which is designated as such under 
section 45D(b)(1)(C) pursuant to an allo-
cation of the new markets tax credit limi-
tation for calendar year 2009,’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to credits determined 
under section 45D of the Internal Revenue Code of 
1986 in taxable years ending after the date of the 
enactment of this Act, and to carrybacks of such 
credits. 
Subtitle F—Infrastructure 
Financing Tools 
PART I—IMPROVED MARKETABILITY FOR TAX- 
EXEMPT BONDS 
SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX- 
EXEMPT INTEREST EXPENSE OF FINANCIAL 
INSTITUTIONS. 
(a) IN GENERAL.—Subsection (b) of section 265 is 
amended by adding at the end the following new para-
graph: 
‘‘(7) DE
MINIMIS
EXCEPTION
FOR
BONDS 
ISSUED DURING 2009 OR 2010.— 
‘‘(A) IN GENERAL.—In applying paragraph 
(2)(A), there shall not be taken into account 
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AMDT. NO. 570 
tax-exempt obligations issued during 2009 or 
2010. 
‘‘(B) LIMITATION.—The amount of tax-ex-
empt obligations not taken into account by rea-
son of subparagraph (A) shall not exceed 2 per-
cent of the amount determined under para-
graph (2)(B). 
‘‘(C) REFUNDINGS.—For purposes of this 
paragraph, a refunding bond (whether a current 
or advance refunding) shall be treated as issued 
on the date of the issuance of the refunded 
bond (or in the case of a series of refundings, 
the original bond).’’. 
(b) TREATMENT AS FINANCIAL INSTITUTION PREF-
ERENCE ITEM.—Clause (iv) of section 291(e)(1)(B) is 
amended by adding at the end the following: ‘‘That por-
tion of any obligation not taken into account under para-
graph (2)(A) of section 265(b) by reason of paragraph (7) 
of such section shall be treated for purposes of this section 
as having been acquired on August 7, 1986.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2008. 
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SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION 
TO TAX-EXEMPT INTEREST EXPENSE ALLOCA-
TION RULES FOR FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Paragraph (3) of section 265(b) 
(relating to exception for certain tax-exempt obligations) 
is amended by adding at the end the following new sub-
paragraph: 
‘‘(G) SPECIAL
RULES
FOR
OBLIGATIONS 
ISSUED DURING 2009 AND 2010.— 
‘‘(i) INCREASE
IN
LIMITATION.—In 
the case of obligations issued during 2009 
or 2010, subparagraphs (C)(i), (D)(i), and 
(D)(iii)(II) shall each be applied by sub-
stituting ‘$30,000,000’ for ‘$10,000,000’. 
‘‘(ii) 
QUALIFIED
501(C)(3)
BONDS 
TREATED AS ISSUED BY EXEMPT ORGANI-
ZATION.—In the case of a qualified 
501(c)(3) bond (as defined in section 145) 
issued during 2009 or 2010, this para-
graph shall be applied by treating the 
501(c)(3) organization for whose benefit 
such bond was issued as the issuer. 
‘‘(iii) SPECIAL RULE FOR QUALIFIED 
FINANCINGS.—In the case of a qualified fi-
nancing issue issued during 2009 or 
2010— 
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‘‘(I) subparagraph (F) shall not 
apply, and 
‘‘(II) any obligation issued as a 
part of such issue shall be treated as 
a qualified tax-exempt obligation if 
the requirements of this paragraph 
are met with respect to each qualified 
portion of the issue (determined by 
treating each qualified portion as a 
separate issue which is issued by the 
qualified borrower with respect to 
which such portion relates). 
‘‘(iv) QUALIFIED FINANCING ISSUE.— 
For purposes of this subparagraph, the 
term ‘qualified financing issue’ means any 
composite, pooled, or other conduit financ-
ing issue the proceeds of which are used 
directly or indirectly to make or finance 
loans to 1 or more ultimate borrowers each 
of whom is a qualified borrower. 
‘‘(v) QUALIFIED PORTION.—For pur-
poses of this subparagraph, the term 
‘qualified portion’ means that portion of 
the proceeds which are used with respect 
to each qualified borrower under the issue. 
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