I 
111TH CONGRESS 
2D SESSION 
H. R. 4606 
To amend the Internal Revenue Code of 1986 to expand the purposes for 
which Build America Bonds may be issued. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 4, 2010 
Ms. EDDIE BERNICE JOHNSON of Texas 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 expand 
the purposes for which Build America Bonds may be issued. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. MODIFICATION OF BUILD AMERICA BONDS. 
(a) IN GENERAL.—Section 54AA of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(h) as subsection (i) and by inserting after subsection (g) 
the following new subsection: 
‘‘(h) SPECIAL RULE FOR CERTAIN BUILD AMERICA 
BONDS.—For purposes of this section and section 6431— 
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‘‘(1) IN GENERAL.—A bond shall be treated as 
a Build America bond which is a qualified bond, if— 
‘‘(A) the issuer makes an irrevocable elec-
tion to have this subsection apply, 
‘‘(B) the bond is issued as part of an issue 
of which 100 percent of the nonreserve proceeds 
are to be used for a specified purpose, 
‘‘(C) at least 15 percent of the payment of 
debt service on the issue of which such bond is 
a part is directly or indirectly to be derived 
from generally applicable taxes,
‘‘(D) the issuer satisfies the requirements 
of section 148 with respect to the proceeds of 
the issue of which such bond is a part, and
‘‘(E) the issuer submits a report similar to 
the report required by section 149(e). 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) NONRESERVE PROCEEDS.—The term 
‘nonreserve proceeds’ with respect to an issue 
means an amount equal to the excess of— 
‘‘(i) the available project proceeds (as 
defined in section 54A) of such issue, over
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‘‘(ii) the amounts in a reasonably re-
quired reserve (within the meaning of sec-
tion 150(a)(3)) with respect to the issue. 
‘‘(B) SPECIFIED
PURPOSE.—The term 
‘specified purpose’ means providing a facility 
(including any land, building or other property 
functionally related and subordinate to such fa-
cility) which is located within 2,000 feet of an 
enclosed convention center facility that is more 
than 150,000 square feet and is owned by or on 
behalf of a governmental unit having a popu-
lation (determined by using 2000 census data) 
of not more than 250,000. 
‘‘(3) LIMITATION.—The face amount of bonds 
with respect to which an issuer may make an elec-
tion to have this subsection apply shall not exceed 
$250,000,000. Rules similar to the rules of section 
265(b)(3)(E) (relating to aggregation of issuers) 
shall apply for purposes of the preceding sentence.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
Æ 
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