I 
111TH CONGRESS 
2D SESSION 
H. R. 6181 
To amend the Internal Revenue Code of 1986 to encourage investments 
in infrastructure, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 22, 2010 
Mr. HASTINGS of Florida (for himself, Mr. DEUTCH, and Mr. KLEIN of Flor-
ida) 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 encourage 
investments in infrastructure, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; 
TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Infrastructure Investment Act of 2010’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
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shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; amendment of 1986 Code; table of contents. 
Sec. 2. Extension of Build America Bonds. 
Sec. 3. Exempt-facility bonds for sewage and water supply facilities. 
Sec. 4. Extension of exemption from alternative minimum tax treatment for 
certain tax-exempt bonds. 
Sec. 5. Extension and additional allocations of recovery zone bond authority. 
Sec. 6. Allowance of new markets tax credit against alternative minimum tax. 
Sec. 7. Extension of tax-exempt eligibility for loans guaranteed by Federal 
home loan banks. 
Sec. 8. Extension of temporary small issuer rules for allocation of tax-exempt 
interest expense by financial institutions. 
SEC. 2. EXTENSION OF BUILD AMERICA BONDS. 
(a) IN GENERAL.—Subparagraph (B) of section 
54AA(d)(1) is amended by striking ‘‘January 1, 2011’’ 
and inserting ‘‘January 1, 2013’’. 
(b) EXTENSION OF PAYMENTS TO ISSUERS.— 
(1) IN GENERAL.—Section 6431 is amended— 
(A) by striking ‘‘January 1, 2011’’ in sub-
section (a) and inserting ‘‘January 1, 2013’’; 
and 
(B) by striking ‘‘January 1, 2011’’ in sub-
section (f)(1)(B) and inserting ‘‘a particular 
date’’. 
(2) CONFORMING
AMENDMENTS.—Subsection 
(g) of section 54AA is amended— 
(A) by striking ‘‘January 1, 2011’’ and in-
serting ‘‘January 1, 2013’’; and 
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(B) 
by 
striking 
‘‘QUALIFIED
BONDS 
ISSUED BEFORE 2011’’ in the heading and in-
serting ‘‘CERTAIN QUALIFIED BONDS’’. 
(c) REDUCTION IN PERCENTAGE OF PAYMENTS TO 
ISSUERS.—Subsection (b) of section 6431 is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’; 
(2) by striking ‘‘35 percent’’ and inserting ‘‘the 
applicable percentage’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of this subsection, the term ‘applicable percentage’ 
means the percentage determined in accordance with 
the following table: 
‘‘In the case of a qualified bond issued during cal-
endar year: 
The applicable percentage 
is: 
2009 or 2010 ............................................................
35 percent 
2011 ..........................................................................
32 percent 
2012 ..........................................................................
30 percent.’’. 
(d) CURRENT
REFUNDINGS
PERMITTED.—Sub-
section (g) of section 54AA is amended by adding at the 
end the following new paragraph: 
‘‘(3) TREATMENT
OF
CURRENT
REFUNDING 
BONDS.— 
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‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘qualified bond’ includes 
any bond (or series of bonds) issued to refund 
a qualified bond if— 
‘‘(i) the average maturity date of the 
issue of which the refunding bond is a part 
is not later than the average maturity date 
of the bonds to be refunded by such issue, 
‘‘(ii) the amount of the refunding 
bond does not exceed the outstanding 
amount of the refunded bond, and 
‘‘(iii) the refunded bond is redeemed 
not later than 90 days after the date of the 
issuance of the refunding bond. 
‘‘(B) APPLICABLE
PERCENTAGE.—In the 
case of a refunding bond referred to in subpara-
graph (A), the applicable percentage with re-
spect to such bond under section 6431(b) shall 
be the lowest percentage specified in paragraph 
(2) of such section. 
‘‘(C) DETERMINATION OF AVERAGE MATU-
RITY.—For purposes of subparagraph (A)(i), 
average maturity shall be determined in accord-
ance with section 147(b)(2)(A).’’. 
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(e) CLARIFICATION
RELATED
TO
LEVEES
AND 
FLOOD CONTROL PROJECTS.—Subparagraph (A) of sec-
tion 54AA(g)(2) is amended by inserting ‘‘(including cap-
ital expenditures for levees and other flood control 
projects)’’ after ‘‘capital expenditures’’. 
SEC. 3. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER 
SUPPLY FACILITIES. 
(a) BONDS FOR WATER AND SEWAGE FACILITIES 
EXEMPT FROM VOLUME CAP
ON PRIVATE ACTIVITY 
BONDS.— 
(1) IN
GENERAL.—Paragraph (3) of section 
146(g) is amended by inserting ‘‘(4), (5),’’ after 
‘‘(2),’’. 
(2) CONFORMING
AMENDMENT.—Paragraphs 
(2) and (3)(B) of section 146(k) are both amended 
by striking ‘‘(4), (5), (6),’’ and inserting ‘‘(6)’’. 
(b) TAX-EXEMPT ISSUANCE BY INDIAN TRIBAL GOV-
ERNMENTS.— 
(1) IN
GENERAL.—Subsection (c) of section 
7871 is amended by adding at the end the following 
new paragraph: 
‘‘(4) EXCEPTION FOR BONDS FOR WATER AND 
SEWAGE FACILITIES.—Paragraph (2) shall not apply 
to an exempt facility bond 95 percent or more of the 
net proceeds (as defined in section 150(a)(3)) of 
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which are to be used to provide facilities described 
in paragraph (4) or (5) of section 142(a).’’. 
(2) CONFORMING AMENDMENT.—Paragraph (2) 
of section 7871(c) is amended by striking ‘‘para-
graph (3)’’ and inserting ‘‘paragraphs (3) and (4)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
SEC. 4. EXTENSION OF EXEMPTION FROM ALTERNATIVE 
MINIMUM TAX TREATMENT FOR CERTAIN 
TAX-EXEMPT BONDS. 
(a) IN GENERAL.—Clause (vi) of section 57(a)(5)(C) 
is amended— 
(1) by striking ‘‘January 1, 2011’’ in subclause 
(I) and inserting ‘‘January 1, 2012’’; and 
(2) by striking ‘‘AND 2010’’ in the heading and 
inserting ‘‘, 2010, AND 2011’’. 
(b) ADJUSTED CURRENT EARNINGS.—Clause (iv) of 
section 56(g)(4)(B) is amended— 
(1) by striking ‘‘January 1, 2011’’ in subclause 
(I) and inserting ‘‘January 1, 2012’’; and 
(2) by striking ‘‘AND 2010’’ in the heading and 
inserting ‘‘, 2010, AND 2011’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2010. 
SEC. 5. EXTENSION AND ADDITIONAL ALLOCATIONS OF RE-
COVERY ZONE BOND AUTHORITY. 
(a) EXTENSION OF RECOVERY ZONE BOND AUTHOR-
ITY.—Section 
1400U–2(b)(1) 
and 
section 
1400U– 
3(b)(1)(B) are each amended by striking ‘‘January 1, 
2011’’ and inserting ‘‘January 1, 2012’’. 
(b) ADDITIONAL ALLOCATIONS OF RECOVERY ZONE 
BOND AUTHORITY BASED ON UNEMPLOYMENT.—Section 
1400U–1 is amended by adding at the end the following 
new subsection: 
‘‘(c) ALLOCATION OF 2010 RECOVERY ZONE BOND 
LIMITATIONS BASED ON UNEMPLOYMENT.— 
‘‘(1) IN GENERAL.—The Secretary shall allo-
cate the 2010 national recovery zone economic devel-
opment bond limitation and the 2010 national recov-
ery zone facility bond limitation among the States in 
the proportion that each such State’s 2009 unem-
ployment number bears to the aggregate of the 2009 
unemployment numbers for all of the States. 
‘‘(2) MINIMUM
ALLOCATION.—The Secretary 
shall adjust the allocations under paragraph (1) for 
each State to the extent necessary to ensure that no 
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State (prior to any reduction under paragraph (3)) 
receives less than 0.9 percent of the 2010 national 
recovery zone economic development bond limitation 
and 0.9 percent of the 2010 national recovery zone 
facility bond limitation. 
‘‘(3) ALLOCATIONS BY STATES.— 
‘‘(A) IN GENERAL.—Each State with re-
spect to which an allocation is made under 
paragraph (1) shall reallocate such allocation 
among the counties and large municipalities (as 
defined in subsection (a)(3)(B)) in such State 
in the proportion that each such county’s or 
municipality’s 2009 unemployment number 
bears to the aggregate of the 2009 unemploy-
ment numbers for all the counties and large 
municipalities (as so defined) in such State. 
‘‘(B) 2010 
ALLOCATION
REDUCED
BY 
AMOUNT
OF
PREVIOUS
ALLOCATION.—Each 
State shall reduce (but not below zero)— 
‘‘(i) the amount of the 2010 national 
recovery zone economic development bond 
limitation allocated to each county or large 
municipality (as so defined) in such State 
by the amount of the national recovery 
zone economic development bond limitation 
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allocated to such county or large munici-
pality under subsection (a)(3)(A) (deter-
mined without regard to any waiver there-
of), and 
‘‘(ii) the amount of the 2010 national 
recovery zone facility bond limitation allo-
cated to each county or large municipality 
(as so defined) in such State by the 
amount of the national recovery zone facil-
ity bond limitation allocated to such county 
or large municipality under subsection 
(a)(3)(A) (determined without regard to 
any waiver thereof). 
‘‘(C) WAIVER
OF
SUBALLOCATIONS.—A 
county or municipality may waive any portion 
of an allocation made under this paragraph. A 
county or municipality shall be treated as hav-
ing waived any portion of an allocation made 
under this paragraph which has not been allo-
cated to a bond issued before May 1, 2011. Any 
allocation waived (or treated as waived) under 
this subparagraph may be used or reallocated 
by the State. 
‘‘(D) SPECIAL RULE FOR A MUNICIPALITY 
IN A COUNTY.—In the case of any large munici-
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pality any portion of which is in a county, such 
portion shall be treated as part of such munici-
pality and not part of such county. 
‘‘(4) 2009 
UNEMPLOYMENT
NUMBER.—For 
purposes of this subsection, the term ‘2009 unem-
ployment number’ means, with respect to any State, 
county or municipality, the number of individuals in 
such State, county, or municipality who were deter-
mined to be unemployed by the Bureau of Labor 
Statistics for December 2009. 
‘‘(5) 2010 NATIONAL LIMITATIONS.— 
‘‘(A) RECOVERY ZONE ECONOMIC DEVEL-
OPMENT BONDS.—The 2010 national recovery 
zone economic development bond limitation is 
$10,000,000,000. Any allocation of such limita-
tion under this subsection shall be treated for 
purposes of section 1400U–2 in the same man-
ner as an allocation of national recovery zone 
economic development bond limitation. 
‘‘(B) RECOVERY ZONE FACILITY BONDS.— 
The 2010 national recovery zone facility bond 
limitation is $15,000,000,000. Any allocation of 
such limitation under this subsection shall be 
treated for purposes of section 1400U–3 in the 
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same manner as an allocation of national recov-
ery zone facility bond limitation.’’. 
(c) AUTHORITY OF STATE TO WAIVE CERTAIN 2009 
ALLOCATIONS.—Subparagraph (A) of section 1400U– 
1(a)(3) is amended by adding at the end the following: 
‘‘A county or municipality shall be treated as having 
waived any portion of an allocation made under this sub-
paragraph which has not been allocated to a bond issued 
before May 1, 2011. Any allocation waived (or treated as 
waived) under this subparagraph may be used or reallo-
cated by the State.’’. 
SEC. 6. ALLOWANCE OF NEW MARKETS TAX CREDIT 
AGAINST ALTERNATIVE MINIMUM TAX. 
(a) IN GENERAL.—Subparagraph (B) of section 
38(c)(4) is amended by redesignating clauses (v) through 
(ix) as clauses (vi) through (x), respectively, and by insert-
ing after clause (iv) the following new clause: 
‘‘(v) the credit determined under sec-
tion 45D, but only with respect to credits 
determined with respect to qualified equity 
investments (as defined in section 45D(b)) 
initially made before January 1, 2012,’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to credits determined with respect 
to qualified equity investments (as defined in section 
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45D(b) of the Internal Revenue Code of 1986) initially 
made after March 15, 2010. 
SEC. 7. EXTENSION OF TAX-EXEMPT ELIGIBILITY FOR 
LOANS GUARANTEED BY FEDERAL HOME 
LOAN BANKS. 
Clause (iv) of section 149(b)(3)(A) is amended by 
striking ‘‘December 31, 2010’’ and inserting ‘‘December 
31, 2011’’. 
SEC. 8. EXTENSION OF TEMPORARY SMALL ISSUER RULES 
FOR ALLOCATION OF TAX-EXEMPT INTEREST 
EXPENSE BY FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Clauses (i), (ii), and (iii) of sec-
tion 265(b)(3)(G) are each amended by striking ‘‘or 
2010’’ and inserting ‘‘, 2010, or 2011’’. 
(b) CONFORMING AMENDMENT.—Subparagraph (G) 
of section 265(b)(3) is amended by striking ‘‘AND 2010’’ 
in the heading and inserting ‘‘, 2010, AND 2011’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2010. 
Æ 
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