I 
117TH CONGRESS 
1ST SESSION H. R. 2288 
To amend the Internal Revenue Code of 1986 to reinstate advance refunding 
bonds. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2021 
Mr. RUPPERSBERGER (for himself, Mr. STIVERS, Mr. GARAMENDI, Mr. 
ZELDIN, Mr. FITZPATRICK, Mr. BARR, Mrs. BEATTY, Ms. SEWELL, Ms. 
BROWNLEY, Ms. NORTON, Mr. BLUMENAUER, Mrs. AXNE, Mr. 
GARBARINO, Mr. KILDEE, Mr. MCGOVERN, Mr. CUELLAR, Ms. STEVENS, 
Mr. CONNOLLY, Ms. CHU, Mr. PANETTA, Mr. KILMER, Mr. PHILLIPS, 
Mr. UPTON, and Mr. KUSTOFF) 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 reinstate 
advance refunding bonds. 
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 ‘‘Investing in Our Com-
munities Act’’. 
SEC. 2. TREATMENT OF ADVANCE REFUNDING BONDS. 
(a) IN GENERAL.—Section 149(d) of the Internal 
Revenue Code of 1986 is amended— 
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(1) in paragraph (1), by striking ‘‘to advance 
refund another bond’’ and inserting ‘‘as part of an 
issue described in paragraph (2), (3), or (4)’’; 
(2) by redesignating paragraphs (2) and (3) as 
paragraphs (6) and (7), respectively; and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraphs: 
‘‘(2) CERTAIN PRIVATE ACTIVITY BONDS.—An 
issue is described in this paragraph if any bond 
(issued as part of such issue) is issued to advance 
refund a private activity bond (other than a qualified 
501(c)(3) bond). 
‘‘(3) OTHER BONDS.— 
‘‘(A) IN GENERAL.—An issue is described 
in this paragraph if any bond (issued as part of 
such issue), hereinafter in this paragraph re-
ferred to as the ‘refunding bond’, is issued to 
advance refund a bond unless— 
‘‘(i) the refunding bond is only— 
‘‘(I) the 1st advance refunding of 
the original bond if the original bond 
is issued after 1985, or 
‘‘(II) the 1st or 2nd advance re-
funding of the original bond if the 
original bond was issued before 1986, 
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‘‘(ii) in the case of refunded bonds 
issued before 1986, the refunded bond is 
redeemed not later than the earliest date 
on which such bond may be redeemed at 
par or at a premium of 3 percent or less, 
‘‘(iii) in the case of refunded bonds 
issued after 1985, the refunded bond is re-
deemed not later than the earliest date on 
which such bond may be redeemed, 
‘‘(iv) the initial temporary period 
under section 148(c) ends— 
‘‘(I) with respect to the proceeds 
of the refunding bond not later than 
30 days after the date of issue of such 
bond, and 
‘‘(II) with respect to the proceeds 
of the refunded bond on the date of 
issue of the refunding bond, and 
‘‘(v) in the case of refunded bonds to 
which section 148(e) did not apply, on and 
after the date of issue of the refunding 
bond, the amount of proceeds of the re-
funded bond invested in higher yielding in-
vestments (as defined in section 148(b)) 
which are nonpurpose investments (as de-
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fined in section 148(f)(6)(A)) does not ex-
ceed— 
‘‘(I) the amount so invested as 
part of a reasonably required reserve 
or replacement fund or during an al-
lowable temporary period, and 
‘‘(II) the amount which is equal 
to the lesser of 5 percent of the pro-
ceeds of the issue of which the re-
funded bond is a part or $100,000 (to 
the extent such amount is allocable to 
the refunded bond). 
‘‘(B) 
SPECIAL
RULES
FOR
REDEMP-
TIONS.— 
‘‘(i) ISSUER MUST REDEEM ONLY IF 
DEBT SERVICE SAVINGS.—Clause (ii) and 
(iii) of subparagraph (A) shall apply only 
if the issuer may realize present value debt 
service savings (determined without regard 
to administrative expenses) in connection 
with the issue of which the refunding bond 
is a part. 
‘‘(ii) REDEMPTIONS
NOT
REQUIRED 
BEFORE
90TH
DAY.—For purposes of 
clauses (ii) and (iii) of subparagraph (A), 
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the earliest date referred to in such clauses 
shall not be earlier than the 90th day after 
the date of issuance of the refunding bond. 
‘‘(4) ABUSIVE
TRANSACTIONS
PROHIBITED.— 
An issue is described in this paragraph if any bond 
(issued as part of such issue) is issued to advance 
refund another bond and a device is employed in 
connection with the issuance of such issue to obtain 
a material financial advantage (based on arbitrage) 
apart from savings attributable to lower interest 
rates. 
‘‘(5) SPECIAL RULES FOR PURPOSES OF PARA-
GRAPH (3).—For purposes of paragraph (3), bonds 
issued before the date of the enactment of this sub-
section shall be taken into account under subpara-
graph (A)(i) thereof except— 
‘‘(A) a refunding which occurred before 
1986 shall be treated as an advance refunding 
only if the refunding bond was issued more 
than 180 days before the redemption of the re-
funded bond, and 
‘‘(B) a bond issued before 1986, shall be 
treated as advance refunded no more than once 
before March 15, 1986.’’. 
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