I 
115TH CONGRESS 
1ST SESSION H. R. 1080 
To amend the Securities Act of 1933 and the Internal Revenue Code of 
1986 to provide an exemption and payments from taxation for 501(c)(3) 
bonds issued on behalf of a historically Black college or university. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 15, 2017 
Mr. ELLISON (for himself, Mr. SCOTT of Virginia, Ms. ADAMS, Mr. CONYERS, 
Ms. LEE, Mr. PAYNE, and Ms. MOORE) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Securities Act of 1933 and the Internal Rev-
enue Code of 1986 to provide an exemption and pay-
ments from taxation for 501(c)(3) bonds issued on behalf 
of a historically Black college or university. 
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 ‘‘HBCU Investment Ex-
pansion Act’’. 
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SEC. 2. TAX EXEMPTION FOR HBCU BONDS. 
The Securities Act of 1933 (15 U.S.C. 77aa et seq.) 
is amended by inserting after section 28 the following: 
‘‘SEC. 29. TAX EXEMPTION FOR HBCU BONDS. 
‘‘(a) IN GENERAL.—A qualified 501(c)(3) bond (as 
defined in section 145 of the Internal Revenue Code of 
1986) issued after the date of the enactment of the HBCU 
Investment Expansion Act on behalf of a historically 
Black college or university shall be exempt from taxation 
by any State, Territory, or possession, or by any county, 
municipality, or other municipal subdivision of any State, 
territory, or possession of the United States, or by the 
District of Columbia. 
‘‘(b) HISTORICALLY BLACK COLLEGE OR UNIVER-
SITY DEFINED.—For purposes of this section, the term 
‘historically Black college or university’ means a part B 
institution (as defined in section 322(2) of the Higher 
Education Act of 1965 (20 U.S.C. 1061(2)).’’. 
SEC. 3. CREDIT WITH RESPECT TO 501(c)(3) BONDS ISSUED 
ON BEHALF OF HISTORICALLY BLACK COL-
LEGES AND UNIVERSITIES. 
(a) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following: 
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‘‘SEC. 6433. CREDIT WITH RESPECT TO 501(c)(3) BONDS 
ISSUED 
ON 
BEHALF 
OF 
HISTORICALLY 
BLACK COLLEGES AND UNIVERSITIES. 
‘‘(a) IN GENERAL.—In the case of a qualified bond 
issued after the date of the enactment of the HBCU In-
vestment Expansion Act, a credit shall be allowed to a ju-
risdiction specified in subsection (c)(3) that forgoes tax 
pursuant to section 29 of the Securities Act of 1933 with 
respect to each interest payment under such bond. The 
credit shall be payable by the Secretary as provided in sub-
section (b). 
‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 
(as soon as practicable after the return of income tax for 
a taxable year is filed with the qualified jurisdiction by 
the recipient of such interest payment under such bond) 
an amount equal to the total amount of interest paid 
under such bond during the taxable year. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED
BOND.—The term ‘qualified 
bond’ means a qualified 501(c)(3) bond (as defined 
in section 145) issued on behalf of a historically 
Black college or university. 
‘‘(2) HISTORICALLY BLACK COLLEGE OR UNI-
VERSITY.—The term ‘historically Black college or 
university’ means a part B institution (as defined in 
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section 322(2) of the Higher Education Act of 1965 
(20 U.S.C. 1061(2)). 
‘‘(3) JURISDICTION SPECIFIED.—A jurisdiction 
is specified in this paragraph if the jurisdiction is— 
‘‘(A) a State, territory, or possession of the 
United States, 
‘‘(B) a political jurisdiction of a State, ter-
ritory, or possession of the United States, or 
‘‘(C) the District of Columbia. 
‘‘(d) APPLICATION OF ARBITRAGE RULES.—For pur-
poses of section 148, the yield on a qualified bond shall 
be reduced by the credit allowed under this section. 
‘‘(e) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary to carry 
out this section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1324(b)(2) of title 31, United 
States Code, is amended by striking ‘‘or 6431’’ and 
inserting ‘‘6431, or 6433’’. 
(2) Section 6211(b)(4)(A) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘and 
6431’’ and inserting ‘‘6431, and 6433’’. 
(3) The table of sections for subchapter B of 
chapter 65 of the Internal Revenue Code of 1986 is 
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amended by adding at the end the following new 
item: 
‘‘Sec. 6433. Credit with respect to 501(c)(3) bonds issued on behalf of histori-
cally Black colleges and universities.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
Æ 
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