I 
112TH CONGRESS 
2D SESSION 
H. R. 6206 
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 
JULY 26, 2012 
Mr. NEAL (for himself, Mr. RANGEL, Mr. CROWLEY, Mr. LEVIN, Mr. STARK, 
Mr. MCDERMOTT, Mr. LEWIS of Georgia, Mr. BECERRA, Mr. DOGGETT, 
Mr. THOMPSON of California, Mr. LARSON of Connecticut, Mr. BLU-
MENAUER, Mr. KIND, Mr. PASCRELL, and Ms. BERKLEY) 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 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 2012’’. 
SEC. 2. BUILD AMERICA BONDS MADE PERMANENT. 
(a) IN GENERAL.—Subparagraph (B) of section 
54AA(d)(1) of the Internal Revenue Code of 1986 is 
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‘‘(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 .....................................................................................
2012 ...................................................................................................
2013 ...................................................................................................
2014 ...................................................................................................
2015 ...................................................................................................
2016 and thereafter ...........................................................................
28.’’. 
(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 
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 
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‘‘(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). 
‘‘(D) ISSUANCE RESTRICTION NOT APPLI-
CABLE.—Subsection (d)(1)(B) shall not apply 
to a refunding bond referred to in subpara-
graph (A).’’. 
(f) CLARIFICATION
RELATED
TO
LEVEES
AND 
FLOOD CONTROL PROJECTS.—Subparagraph (A) of sec-
tion 54AA(g)(2) of such Code is amended by inserting 
‘‘(including capital expenditures for levees and other flood 
control projects)’’ after ‘‘capital expenditures’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued on or after 
the date of the enactment of this Act. 
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SEC. 3. LIMITATION ON SECTION 199 DEDUCTION ATTRIB-
UTABLE TO OIL, NATURAL GAS, OR PRIMARY 
PRODUCTS THEREOF. 
(a) DENIAL OF DEDUCTION.—Paragraph (4) of sec-
tion 199(c) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subpara-
graph: 
‘‘(E) SPECIAL
RULE
FOR
CERTAIN
OIL 
AND GAS INCOME.—In the case of any taxpayer 
who is a major integrated oil company (as de-
fined in section 167(h)(5)(B)) for the taxable 
year, the term ‘domestic production gross re-
ceipts’ shall not include gross receipts from the 
production, refining, processing, transportation, 
or distribution of oil, gas, or any primary prod-
uct (within the meaning of subsection (d)(9)) 
thereof.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Æ 
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