‘‘(B) public utility property (as defined in 
section 168(i)(10)) located in the Gulf Oppor-
tunity Zone. 
‘‘(5) SPECIAL RULES.—In applying this title to 
any qualified Gulf Opportunity Zone Bond, the fol-
lowing modifications shall apply: 
‘‘(A) Section 142(d)(1) (defining qualified 
residential rental project) shall be applied— 
‘‘(i) by substituting ‘60 percent’ for 
‘50 percent’ in subparagraph (A) thereof, 
and 
‘‘(ii) by substituting ‘70 percent’ for 
‘60 percent’ in subparagraph (B) thereof. 
‘‘(B) Section 143 (relating to mortgage 
revenue bonds: qualified mortgage bond and 
qualified veterans’ mortgage bond) shall be ap-
plied— 
‘‘(i) by treating only residences in the 
Gulf Opportunity Zone as owner-occupied 
residences, 
‘‘(ii) by treating any residence in the 
Gulf Opportunity Zone as a targeted area 
residence, and 
‘‘(iii) by substituting ‘$150,000’ for 
‘$15,000’ in subsection (k)(4) thereof.
‘‘(C) Except as provided in section 143, re-
payments of principal on financing provided by 
the issue of which such bond is a part may not 
be used to provide financing. 
‘‘(D) Section 146 (relating to volume cap) 
shall not apply. 
‘‘(E) Section 147(d)(2) (relating to acqui-
sition of existing property not permitted) shall 
be applied by substituting ‘50 percent’ for ‘15 
percent’ each place it appears. 
‘‘(F) Section 148(f)(4)(C) (relating to ex-
ception from rebate for certain proceeds to be 
used to finance construction expenditures) shall 
apply to the available construction proceeds of 
bonds which are part of an issue described in 
paragraph (2)(A)(i). 
‘‘(G) Section 57(a)(5) (relating to tax-ex-
empt interest) shall not apply. 
‘‘(6) SEPARATE
ISSUE
TREATMENT
OF
POR-
TIONS
OF
AN
ISSUE.—This subsection shall not 
apply to the portion of an issue which (if issued as 
a separate issue) would be treated as a qualified 
bond or as a bond that is not a private activity bond 
(determined without regard to paragraph (1)), if the 
issuer elects to so treat such portion.
‘‘(b) ADVANCE REFUNDINGS OF CERTAIN TAX-EX-
EMPT BONDS.— 
‘‘(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