I 
112TH CONGRESS 
1ST SESSION 
H. R. 747 
To amend the Internal Revenue Code of 1986 to extend the Build America 
Bonds program. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 16, 2011 
Mr. SCHIFF 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 extend 
the Build America Bonds program. 
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 
Extension Act of 2011’’. 
SEC. 2. EXTENSION OF BUILD AMERICA BONDS. 
(a) IN GENERAL.—Subparagraph (B) of section 
54AA(d)(1) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘or during the period beginning on 
the date of the enactment of the Build America Bonds 
VerDate Mar 15 2010 
23:09 Feb 17, 2011
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H747.IH
H747
emcdonald on DSK2BSOYB1PROD with BILLS
Extension Act of 2011 and ending on December 31, 
2012,’’ after ‘‘January 1, 2011,’’. 
(b) EXTENSION OF PAYMENTS TO ISSUERS.— 
(1) IN GENERAL.—Section 6431 of such Code 
is amended— 
(A) by inserting ‘‘or during the period be-
ginning on the date of the enactment of the 
Build America Bonds Extension Act of 2011 
and ending on December 31, 2012,’’ 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 the period be-
ginning on the date of the enactment of the 
Build America Bonds Extension Act of 2011 
and ending on December 31, 2012,’’ after 
‘‘January 1, 2011,’’, and 
(B) 
by 
striking 
‘‘QUALIFIED
BONDS 
ISSUED BEFORE 2011’’ in the heading and in-
serting ‘‘CERTAIN QUALIFIED BONDS’’. 
(c) REDUCTION IN PERCENTAGE OF PAYMENTS TO 
ISSUERS.—Subsection (b) of section 6431 of such Code 
VerDate Mar 15 2010 
23:09 Feb 17, 2011
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H747.IH
H747
emcdonald on DSK2BSOYB1PROD with BILLS
is amended by striking ‘‘35 percent’’ and inserting ‘‘28 
percent’’. 
(d) APPLICATION TO QUALIFIED SECTION 501(C)(3) 
BONDS.—Subsection (d) of section 54AA of such Code is 
amended— 
(1) by striking ‘‘other than a private activity 
bond’’ in paragraph (1) and inserting ‘‘other than a 
specified private activity bond’’, 
(2) by redesignating paragraph (2) as para-
graph (3), and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) SPECIFIED PRIVATE ACTIVITY BOND.—For 
purposes of paragraph (1), the term ‘specified pri-
vate activity bond’ means any private activity bond 
other than a qualified section 501(c)(3) bond (as de-
fined in section 145).’’. 
(e) 
CURRENT
REFUNDINGS
PERMITTED.—Sub-
section (g) of section 54AA of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(3) TREATMENT
OF
CURRENT
REFUNDING 
BONDS.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘qualified bond’ includes 
VerDate Mar 15 2010 
23:09 Feb 17, 2011
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H747.IH
H747
emcdonald on DSK2BSOYB1PROD with BILLS
any bond (or series of bonds) issued to refund 
a qualified bond if— 
‘‘(i) the average maturity date of the 
issue of which the refunding bond is a part 
is not later than the average maturity date 
of the bonds to be refunded by such issue, 
‘‘(ii) the amount of the refunding 
bond does not exceed the outstanding 
amount of the refunded bond, and 
‘‘(iii) the refunded bond is redeemed 
not later than 90 days after the date of the 
issuance of the refunding bond. 
‘‘(B) APPLICABLE
PERCENTAGE.—In the 
case of a refunding bond referred to in subpara-
graph (A), the applicable percentage with re-
spect to such bond under section 6431(b) shall 
be the lowest percentage specified in paragraph 
(2) of such section. 
‘‘(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).’’. 
(f) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
VerDate Mar 15 2010 
23:09 Feb 17, 2011
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H747.IH
H747
emcdonald on DSK2BSOYB1PROD with BILLS
this section shall apply to obligations issued on or 
after the date of the enactment of this Act. 
(2) REFUNDINGS.—The amendment made by 
subsection (e) shall apply to refunding bonds (within 
the meaning of section 54AA(g)(3) of the Internal 
Revenue Code of 1986, as added by this section) 
issued on or after the date of the enactment of this 
Act. 
Æ 
VerDate Mar 15 2010 
23:09 Feb 17, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H747.IH
H747
emcdonald on DSK2BSOYB1PROD with BILLS