‘‘(1) IN GENERAL.—With respect to a bond de-
scribed in paragraph (3) which is not a qualified 
501(c)(3) bond, one additional advance refunding 
after the date of the enactment of this section and 
before January 1, 2011, shall be allowed under the 
applicable rules of section 149(d) if— 
‘‘(A) the Governor of the State designates 
the advance refunding bond for purposes of this 
subsection, and 
‘‘(B) the requirements of paragraph (5) 
are met. 
‘‘(2) CERTAIN
PRIVATE
ACTIVITY
BONDS.— 
With respect to a bond described in paragraph (3) 
which is an exempt facility bond described in para-
graph (1) or (2) of section 142(a), one advance re-
funding after the date of the enactment of this sec-
tion and before January 1, 2011, shall be allowed 
under the applicable rules of section 149(d) (not-
withstanding paragraph (2) thereof) if the require-
ments of subparagraphs (A) and (B) of paragraph 
(1) are met. 
‘‘(3) BONDS DESCRIBED.—A bond is described 
in this paragraph if such bond was outstanding on 
August 28, 2005, and is issued by the State of Ala-
bama, Louisiana, or Mississippi, or a political sub-
division thereof. 
‘‘(4) AGGREGATE LIMIT.—The maximum aggre-
gate face amount of bonds which may be designated 
under this subsection by the Governor of a State 
shall not exceed— 
‘‘(A) $4,500,000,000 in the case of the 
State of Louisiana, 
‘‘(B) $2,250,000,000 in the case of the 
State of Mississippi, and 
‘‘(C) $1,125,000,000 in the case of the 
State of Alabama. 
‘‘(5) ADDITIONAL
REQUIREMENTS.—The re-
quirements of this paragraph are met with respect 
to any advance refunding of a bond described in 
paragraph (3) if— 
‘‘(A) no advance refundings of such bond 
would be allowed under this title on or after 
August 28, 2005, 
‘‘(B) the advance refunding bond is the 
only other outstanding bond with respect to the 
refunded bond, and 
‘‘(C) the requirements of section 148 are 
met with respect to all bonds issued under this 
subsection.
‘‘(c) LOW-INCOME HOUSING CREDIT.— 
‘‘(1) ADDITIONAL
HOUSING
CREDIT
DOLLAR 
AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of sec-
tion 42, in the case of calendar years 2006, 
2007, and 2008, the State housing credit ceil-
ing of each State, any portion of which is lo-
cated in the Gulf Opportunity Zone, shall be in-
creased by the lesser of— 
‘‘(i) the aggregate housing credit dol-
lar amount allocated by the State housing 
credit agency of such State to buildings lo-
cated in the Gulf Opportunity Zone for 
such calendar year, or 
‘‘(ii) the Gulf Opportunity housing 
amount for such State for such calendar 
year. 
‘‘(B) 
GULF
OPPORTUNITY
HOUSING 
AMOUNT.—For purposes of subparagraph (A), 
the term ‘Gulf Opportunity housing amount’ 
means, for any calendar year, the amount equal 
to the product of $18.00 multiplied by the por-
tion of the State population which is in the Gulf 
Opportunity Zone (as determined on the basis 
of the most recent census estimate of resident
population released by the Bureau of Census 
before August 28, 2005). 
‘‘(C) ALLOCATIONS
TREATED
AS
MADE 
FIRST FROM ADDITIONAL ALLOCATION AMOUNT 
FOR
PURPOSES
OF
DETERMINING
CARRY-
OVER.—For purposes of determining the un-
used State housing credit ceiling under section 
42(h)(3)(C) for any calendar year, any increase 
in the State housing credit ceiling under sub-
paragraph (A) shall be treated as an amount 
described in clause (ii) of such section. 
‘‘(2) DIFFICULT DEVELOPMENT AREA.— 
‘‘(A) IN GENERAL.—For purposes of sec-
tion 42, in the case of property placed in service 
during 2006, 2007, or 2008, the Gulf Oppor-
tunity Zone— 
‘‘(i) shall be treated as a difficult de-
velopment area designated under subclause 
(I) of section 42(d)(5)(C)(iii), and 
‘‘(ii) shall not be taken into account 
for purposes of applying the limitation 
under subclause (II) of such section. 
‘‘(B) APPLICATION.—Subparagraph (A) 
shall apply only to—