IIB 
109TH CONGRESS 
2D SESSION 
H. R. 4337 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 17, 2005 
Received 
JANUARY 27, 2006 
Read twice and referred to the Committee on Finance 
AN ACT 
To amend the Internal Revenue Code of 1986 to provide 
for Gulf tax credit bonds and advance refundings of 
certain tax-exempt bonds, and to provide a Federal guar-
antee of certain State bonds. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Gulf Opportunity Zone 
Public Finance Relief Act of 2005’’. 
SEC. 2. GULF TAX CREDIT BONDS. 
(a) IN GENERAL.—Subpart H of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 54A. CREDIT TO HOLDERS OF GULF TAX CREDIT 
BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds 
a Gulf tax credit bond on one or more credit allowance 
dates of the bond occurring during any taxable year, there 
shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to the 
sum of the credits determined under subsection (b) with 
respect to such dates. 
‘‘(b) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
determined under this subsection with respect to any 
credit allowance date for a Gulf tax credit bond is 
25 percent of the annual credit determined with re-
spect to such bond. 
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any Gulf tax credit bond is 
the product of—
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‘‘(A) the credit rate determined by the Sec-
retary under paragraph (3) for the day on 
which such bond was sold, multiplied by 
‘‘(B) the outstanding face amount of the 
bond. 
‘‘(3) DETERMINATION.—For purposes of para-
graph (2), with respect to any Gulf tax credit bond, 
the Secretary shall determine daily or cause to be 
determined daily a credit rate which shall apply to 
the first day on which there is a binding, written 
contract for the sale or exchange of the bond. The 
credit rate for any day is the credit rate which the 
Secretary or the Secretary’s designee estimates will 
permit the issuance of Gulf tax credit bonds with a 
specified maturity or redemption date without dis-
count and without interest cost to the issuer. 
‘‘(4) CREDIT ALLOWANCE DATE.—For purposes 
of this section, the term ‘credit allowance date’ 
means March 15, June 15, September 15, and De-
cember 15. Such term also includes the last day on 
which the bond is outstanding. 
‘‘(5) SPECIAL RULE FOR ISSUANCE AND RE-
DEMPTION.—In the case of a bond which is issued 
during the 3-month period ending on a credit allow-
ance date, the amount of the credit determined
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under this subsection with respect to such credit al-
lowance date shall be a ratable portion of the credit 
otherwise determined based on the portion of the 3- 
month period during which the bond is outstanding. 
A similar rule shall apply when the bond is redeemed 
or matures. 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—The 
credit allowed under subsection (a) for any taxable year 
shall not exceed the excess of— 
‘‘(1) the sum of the regular tax liability (as de-
fined in section 26(b)) plus the tax imposed by sec-
tion 55, over 
‘‘(2) the sum of the credits allowable under this 
part (other than subpart C and this section). 
‘‘(d) GULF TAX CREDIT BOND.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘Gulf tax credit 
bond’ means any bond issued as part of an issue 
if— 
‘‘(A) the bond is issued by the State of 
Alabama, Louisiana, or Mississippi, 
‘‘(B) 95 percent or more of the proceeds of 
such issue are to be used to— 
‘‘(i) pay principal, interest, or pre-
miums on qualified bonds issued by such
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State or any political subdivision of such 
State, or 
‘‘(ii) make a loan to any political sub-
division of such State to pay principal, in-
terest, or premiums on qualified bonds 
issued by such political subdivision, 
‘‘(C) the Governor of such State designates 
such bond for purposes of this section, 
‘‘(D) the bond is a general obligation of 
such State and is in registered form (within the 
meaning of section 149(a)), 
‘‘(E) the maturity of such bond does not 
exceed 2 years, and 
‘‘(F) the bond is issued after December 31, 
2005, and before January 1, 2007. 
‘‘(2) 
STATE
MATCHING
REQUIREMENT.—A 
bond shall not be treated as a Gulf tax credit bond 
unless— 
‘‘(A) the issuer of such bond pledges as of 
the date of the issuance of the issue an amount 
equal to the face amount of such bond to be 
used for payments described in clause (i) of 
paragraph (1)(B), or loans described in clause 
(ii) of such paragraph, as the case may be, with