I 
114TH CONGRESS 
1ST SESSION H. R. 2676 
To amend the Internal Revenue Code of 1986 to permanently extend the 
tax treatment for certain build America bonds, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 4, 2015 
Mr. NEAL (for himself, Mr. CROWLEY, Ms. LINDA T. SA´NCHEZ of California, 
Mr. BLUMENAUER, Mr. RANGEL, Mr. PASCRELL, Mr. LARSON of Con-
necticut, Mr. LEVIN, Mr. THOMPSON of California, Mr. BECERRA, and 
Mr. KIND) 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 permanently 
extend the tax treatment for certain build America 
bonds, 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 ‘‘Build America Bonds 
Act of 2015’’. 
SEC. 2. BUILD AMERICA BONDS MADE PERMANENT. 
(a) IN GENERAL.—Section 54AA(d)(1)(B) of the In-
ternal Revenue Code of 1986 is amended by inserting ‘‘or 
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during a period beginning on or after the date of the en-
actment of the Build America Bonds Act of 2015,’’ after 
‘‘January 1, 2011,’’. 
(b) REDUCTION IN CREDIT PERCENTAGE TO BOND-
HOLDERS.—Section 54AA(b) 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: 
2009 or 2010 .....................................................................................
2015 ...................................................................................................
2016 ...................................................................................................
2017 ...................................................................................................
2018 ...................................................................................................
2019 and thereafter ...........................................................................
28.’’. 
(c) SPECIAL RULES.—Section 54AA(f) of such Code 
is amended by adding at the end the following new para-
graph: 
‘‘(3) APPLICATION OF OTHER RULES.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, a build America bond 
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shall be considered a recovery zone economic 
development bond (as defined in section 
1400U–2) for purposes of application of section 
1601 of title I of division B of Public Law 111– 
5 (26 U.S.C. 54C note). 
‘‘(B) 
PUBLIC
TRANSPORTATION 
PROJECTS.—Recipients of any financial assist-
ance authorized under this section that funds 
public transportation projects, as defined in 
Title 49, United States Code, must comply with 
the grant requirements described under section 
5309 of such title.’’. 
(d) EXTENSION OF PAYMENTS TO ISSUERS.— 
(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 Build America Bonds Act of 2015,’’ 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.—Section 
54AA(g) of such Code is amended— 
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(A) by inserting ‘‘or during a period begin-
ning on or after the date of the enactment of 
the Build America Bonds Act of 2015,’’ after 
‘‘January 1, 2011,’’, and 
(B) 
by 
striking 
‘‘QUALIFIED
BONDS 
ISSUED BEFORE 2011’’ in the heading and in-
serting ‘‘CERTAIN QUALIFIED BONDS’’. 
(e) REDUCTION IN PERCENTAGE OF PAYMENTS TO 
ISSUERS.—Section 6431(b) of such Code is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’, 
(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: 
2009 or 2010 .....................................................................................
2015 ...................................................................................................
2016 ...................................................................................................
2017 ...................................................................................................
2018 ...................................................................................................
2019 and thereafter ...........................................................................
28.’’. 
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‘‘(C) DETERMINATION OF AVERAGE MATU-
RITY.—For purposes of subparagraph (A)(i), 
average maturity shall be determined in accord-
ance with section 147(b)(2)(A). 
‘‘(D) ISSUANCE RESTRICTION NOT APPLI-
CABLE.—Subsection (d)(1)(B) shall not apply 
to a refunding bond referred to in subpara-
graph (A).’’. 
(g) CLARIFICATION
RELATED
TO
LEVEES
AND 
FLOOD CONTROL PROJECTS.—Section 54AA(g)(2)(A) of 
such Code is amended by inserting ‘‘(including capital ex-
penditures for levees and other flood control projects)’’ 
after ‘‘capital expenditures’’. 
(h) GROSS-UP OF PAYMENT TO ISSUERS IN CASE OF 
SEQUESTRATION.—In the case of any payment under sec-
tion 6431(b) of the Internal Revenue Code of 1986 made 
after the date of the enactment of this Act to which se-
questration applies, the amount of such payment shall be 
increased to an amount equal to— 
(1) such payment (determined before such se-
questration), multiplied by 
(2) the quotient obtained by dividing 1 by the 
amount by which 1 exceeds the percentage reduction 
in such payment pursuant to such sequestration. 
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For purposes of this subsection, the term ‘‘sequestration’’ 
means any reduction in direct spending ordered in accord-
ance with a sequestration report prepared by the Director 
of the Office and Management and Budget pursuant to 
the Balanced Budget and Emergency Deficit Control Act 
of 1985 or the Statutory Pay-As-You-Go Act of 2010. 
(i) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued on or after 
the date of the enactment of this Act. 
Æ 
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