519 
AMDT. NO. 570 
PART IX—CLARIFICATION OF REGULATIONS RE-
LATED TO LIMITATIONS ON CERTAIN BUILT- 
IN 
LOSSES 
FOLLOWING 
AN 
OWNERSHIP 
CHANGE 
SEC. 1281. CLARIFICATION OF REGULATIONS RELATED TO 
LIMITATIONS ON CERTAIN BUILT-IN LOSSES 
FOLLOWING AN OWNERSHIP CHANGE. 
(a) FINDINGS.—Congress finds as follows: 
(1) The delegation of authority to the Secretary 
of the Treasury under section 382(m) of the Inter-
nal Revenue Code of 1986 does not authorize the 
Secretary to provide exemptions or special rules that 
are restricted to particular industries or classes of 
taxpayers. 
(2) Internal Revenue Service Notice 2008–83 is 
inconsistent with the congressional intent in enact-
ing such section 382(m). 
(3) The legal authority to prescribe Internal 
Revenue Service Notice 2008–83 is doubtful. 
(4) However, as taxpayers should generally be 
able to rely on guidance issued by the Secretary of 
the Treasury legislation is necessary to clarify the 
force and effect of Internal Revenue Service Notice 
2008–83 and restore the proper application under 
the Internal Revenue Code of 1986 of the limitation 
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on built-in losses following an ownership change of 
a bank. 
(b) DETERMINATION OF FORCE AND EFFECT OF IN-
TERNAL REVENUE SERVICE NOTICE 2008–83 EXEMPT-
ING BANKS FROM LIMITATION ON CERTAIN BUILT–IN 
LOSSES FOLLOWING OWNERSHIP CHANGE.— 
(1) IN
GENERAL.—Internal Revenue Service 
Notice 2008–83— 
(A) shall be deemed to have the force and 
effect of law with respect to any ownership 
change (as defined in section 382(g) of the In-
ternal Revenue Code of 1986) occurring on or 
before January 16, 2009, and 
(B) shall have no force or effect with re-
spect to any ownership change after such date. 
(2) 
BINDING
CONTRACTS.—Notwithstanding 
paragraph (1), Internal Revenue Service Notice 
2008–83 shall have the force and effect of law with 
respect to any ownership change (as so defined) 
which occurs after January 16, 2009, if such 
change— 
(A) is pursuant to a written binding con-
tract entered into on or before such date, or 
(B) is pursuant to a written agreement en-
tered into on or before such date and such 
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agreement was described on or before such date 
in a public announcement or in a filing with the 
Securities and Exchange Commission required 
by reason of such ownership change. 
Subtitle D—Manufacturing 
Recovery Provisions 
SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF 
INDUSTRIAL DEVELOPMENT BONDS TO FA-
CILITIES 
MANUFACTURING 
INTANGIBLE 
PROPERTY. 
(a) IN GENERAL.—Subparagraph (C) of section 
144(a)(12) is amended— 
(1) by striking ‘‘For purposes of this para-
graph, the term’’ and inserting ‘‘For purposes of 
this paragraph— 
‘‘(i) IN GENERAL.—The term’’, and 
(2) by striking the last sentence and inserting 
the following new clauses: 
‘‘(ii) 
CERTAIN
FACILITIES
IN-
CLUDED.—Such term includes facilities 
which are directly related and ancillary to 
a manufacturing facility (determined with-
out regard to this clause) if— 
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‘‘(I) such facilities are located on 
the same site as the manufacturing 
facility, and 
‘‘(II) not more than 25 percent 
of the net proceeds of the issue are 
used to provide such facilities. 
‘‘(iii) SPECIAL
RULES
FOR
BONDS 
ISSUED IN 2009 AND 2010.—In the case of 
any issue made after the date of enactment 
of this clause and before January 1, 2011, 
clause (ii) shall not apply and the net pro-
ceeds from a bond shall be considered to 
be used to provide a manufacturing facility 
if such proceeds are used to provide— 
‘‘(I) a facility which is used in 
the creation or production of intan-
gible property which is described in 
section 197(d)(1)(C)(iii), or 
‘‘(II) a facility which is function-
ally related and subordinate to a man-
ufacturing facility (determined with-
out regard to this subclause) if such 
facility is located on the same site as 
the manufacturing facility.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED EN-
ERGY FACILITIES. 
(a) IN GENERAL.—Section 46 (relating to amount of 
credit) is amended by striking ‘‘and’’ at the end of para-
graph (3), by striking the period at the end of paragraph 
(4), and by adding at the end the following new para-
graph: 
‘‘(5) the qualifying advanced energy project 
credit.’’. 
(b) AMOUNT OF CREDIT.—Subpart E of part IV of 
subchapter A of chapter 1 (relating to rules for computing 
investment credit) is amended by inserting after section 
48B the following new section: 
‘‘SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT 
CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
qualifying advanced energy project credit for any taxable 
year is an amount equal to 30 percent of the qualified 
investment for such taxable year with respect to any quali-
fying advanced energy project of the taxpayer. 
‘‘(b) QUALIFIED INVESTMENT.— 
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‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
the basis of eligible property placed in service by the 
taxpayer during such taxable year which is part of 
a qualifying advanced energy project— 
‘‘(A)(i) the construction, reconstruction, or 
erection of which is completed by the taxpayer 
after October 31, 2008, or 
‘‘(ii) which is acquired by the taxpayer if 
the original use of such eligible property com-
mences with the taxpayer after October 31, 
2008, and 
‘‘(B) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able. 
‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI-
TURES RULES MADE APPLICABLE.—Rules similar to 
the rules of subsections (c)(4) and (d) of section 46 
(as in effect on the day before the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this section. 
‘‘(3) LIMITATION.—The amount which is treat-
ed for all taxable years with respect to any quali-
fying advanced energy project shall not exceed the 
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amount designated by the Secretary as eligible for 
the credit under this section. 
‘‘(c) DEFINITIONS.— 
‘‘(1) 
QUALIFYING
ADVANCED
ENERGY 
PROJECT.— 
‘‘(A) IN GENERAL.—The term ‘qualifying 
advanced energy project’ means a project— 
‘‘(i) which re-equips, expands, or es-
tablishes a manufacturing facility for the 
production of property which is— 
‘‘(I) designed to be used to 
produce energy from the sun, wind, 
geothermal deposits (within the mean-
ing of section 613(e)(2)), or other re-
newable resources, 
‘‘(II) designed to manufacture 
fuel cells, microturbines, or an energy 
storage system for use with electric or 
hybrid-electric motor vehicles, 
‘‘(III) designed to manufacture 
electric grids to support the trans-
mission of intermittent sources of re-
newable energy, including storage of 
such energy, 
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‘‘(IV) designed to capture and se-
quester carbon dioxide emissions, 
‘‘(V) designed to refine or blend 
renewable fuels or to produce energy 
conservation technologies (including 
energy-conserving 
lighting 
tech-
nologies and smart grid technologies), 
or 
‘‘(VI) other advanced energy 
property designed to reduce green-
house gas emissions as may be deter-
mined by the Secretary, and 
‘‘(ii) any portion of the qualified in-
vestment of which is certified by the Sec-
retary under subsection (d) as eligible for 
a credit under this section. 
‘‘(B) EXCEPTION.—Such term shall not in-
clude any portion of a project for the produc-
tion of any property which is used in the refin-
ing or blending of any transportation fuel 
(other than renewable fuels). 
‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 
property’ means any property which is part of a 
qualifying advanced energy project and is necessary 
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for the production of property described in para-
graph (1)(A)(i). 
‘‘(d) QUALIFYING
ADVANCED
ENERGY
PROJECT 
PROGRAM.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of this section, 
the Secretary, in consultation with the Sec-
retary of Energy, shall establish a qualifying 
advanced energy project program to consider 
and award certifications for qualified invest-
ments eligible for credits under this section to 
qualifying advanced energy project sponsors. 
‘‘(B) LIMITATION.—The total amount of 
credits that may be allocated under the pro-
gram shall not exceed $2,000,000,000. 
‘‘(2) CERTIFICATION.— 
‘‘(A) APPLICATION PERIOD.—Each appli-
cant for certification under this paragraph shall 
submit an application containing such informa-
tion as the Secretary may require during the 3- 
year period beginning on the date the Secretary 
establishes the program under paragraph (1). 
‘‘(B) TIME TO MEET CRITERIA FOR CER-
TIFICATION.—Each applicant for certification 
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shall have 2 years from the date of acceptance 
by the Secretary of the application during 
which to provide to the Secretary evidence that 
the requirements of the certification have been 
met. 
‘‘(C) PERIOD OF ISSUANCE.—An applicant 
which receives a certification shall have 5 years 
from the date of issuance of the certification in 
order to place the project in service and if such 
project is not placed in service by that time pe-
riod then the certification shall no longer be 
valid. 
‘‘(3) SELECTION
CRITERIA.—In determining 
which qualifying advanced energy projects to certify 
under this section, the Secretary— 
‘‘(A) shall take into consideration only 
those projects where there is a reasonable ex-
pectation of commercial viability, and 
‘‘(B) shall take into consideration which 
projects— 
‘‘(i) will provide the greatest domestic 
job creation (both direct and indirect) dur-
ing the credit period, 
‘‘(ii) will provide the greatest net im-
pact in avoiding or reducing air pollutants 
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or anthropogenic emissions of greenhouse 
gases, 
‘‘(iii) have the greatest readiness for 
commercial employment, replication, and 
further commercial use in the United 
States, 
‘‘(iv) will provide the greatest benefit 
in terms of newness in the commercial 
market, 
‘‘(v) have the lowest levelized cost of 
generated or stored energy, or of measured 
reduction in energy consumption or green-
house gas emission (based on costs of the 
full supply chain), and 
‘‘(vi) have the shortest project time 
from certification to completion. 
‘‘(4) REVIEW AND REDISTRIBUTION.— 
‘‘(A) REVIEW.—Not later than 6 years 
after the date of enactment of this section, the 
Secretary shall review the credits allocated 
under this section as of the date which is 6 
years after the date of enactment of this sec-
tion. 
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‘‘(B) 
REDISTRIBUTION.—The 
Secretary 
may reallocate credits awarded under this sec-
tion if the Secretary determines that— 
‘‘(i) there is an insufficient quantity 
of qualifying applications for certification 
pending at the time of the review, or 
‘‘(ii) any certification made pursuant 
to paragraph (2) has been revoked pursu-
ant to paragraph (2)(B) because the 
project subject to the certification has been 
delayed as a result of third party opposi-
tion or litigation to the proposed project. 
‘‘(C) REALLOCATION.—If the Secretary de-
termines that credits under this section are 
available for reallocation pursuant to the re-
quirements set forth in paragraph (2), the Sec-
retary is authorized to conduct an additional 
program for applications for certification. 
‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec-
retary shall, upon making a certification under this 
subsection, publicly disclose the identity of the appli-
cant and the amount of the credit with respect to 
such applicant. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit shall 
not be allowed under this section for any qualified invest-
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AMDT. NO. 570 
ment for which a credit is allowed under section 48, 48A, 
or 48B.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C) is amended by striking 
‘‘and’’ at the end of clause (iii), by striking the pe-
riod at the end of clause (iv) and inserting ‘‘, and’’, 
and by adding after clause (iv) the following new 
clause: 
‘‘(v) the basis of any property which 
is part of a qualifying advanced energy 
project under section 48C.’’. 
(2) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 48B the fol-
lowing new item: 
‘‘48C. Qualifying advanced energy project credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
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AMDT. NO. 570 
SEC. 1303. INCENTIVES FOR MANUFACTURING FACILITIES 
PRODUCING 
PLUG-IN 
ELECTRIC 
DRIVE 
MOTOR VEHICLES AND COMPONENTS. 
(a) DEDUCTION
FOR
MANUFACTURING
FACILI-
TIES.—Part VI of subchapter B of chapter 1 (relating to 
itemized deductions for individuals and corporations) is 
amended by inserting after section 179E the following new 
section: 
‘‘SEC. 179F. ELECTION TO EXPENSE MANUFACTURING FA-
CILITIES 
PRODUCING 
PLUG-IN 
ELECTRIC 
DRIVE MOTOR VEHICLES AND COMPONENTS. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the applicable percentage of the cost of any 
qualified plug-in electric drive motor vehicle manufac-
turing facility property as an expense which is not charge-
able to a capital account. Any cost so treated shall be al-
lowed as a deduction for the taxable year in which the 
qualified manufacturing facility property is placed in serv-
ice. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
subsection (a), the applicable percentage is— 
‘‘(1) 100 percent, in the case of qualified plug- 
in electric drive motor vehicle manufacturing facility 
property which is placed in service before January 1, 
2012, and 
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‘‘(2) 50 percent, in the case of qualified plug- 
in electric drive motor vehicle manufacturing facility 
property which is placed in service after December 
31, 2011, and before January 1, 2015. 
‘‘(c) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this sec-
tion for any taxable year shall be made on the tax-
payer’s return of the tax imposed by this chapter for 
the taxable year. Such election shall be made in such 
manner as the Secretary may by regulations pre-
scribe. 
‘‘(2) ELECTION
IRREVOCABLE.—Any election 
made under this section may not be revoked except 
with the consent of the Secretary. 
‘‘(d) QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLE MANUFACTURING FACILITY PROPERTY.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified plug-in 
electric drive motor vehicle manufacturing facility 
property’ means any qualified property— 
‘‘(A) the original use of which commences 
with the taxpayer, 
‘‘(B) which is placed in service by the tax-
payer after the date of the enactment of this 
section and before January 1, 2015, and 
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‘‘(C) no written binding contract for the 
construction of which was in effect on or before 
the date of the enactment of this section. 
‘‘(2) QUALIFIED PROPERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
property’ means any property which is a facility 
or a portion of a facility used for the production 
of— 
‘‘(i) any new qualified plug-in electric 
drive motor vehicle (as defined by section 
30D(c)), or 
‘‘(ii) any eligible component. 
‘‘(B) ELIGIBLE
COMPONENT.—The term 
‘eligible component’ means any battery, any 
electric motor or generator, or any power con-
trol unit which is designed specifically for use 
with a new qualified plug-in electric drive motor 
vehicle (as so defined). 
‘‘(e) SPECIAL RULE FOR DUAL USE PROPERTY.—In 
the case of any qualified plug-in electric drive motor vehi-
cle manufacturing facility property which is used to 
produce both qualified property and other property which 
is not qualified property, the amount of costs taken into 
account under subsection (a) shall be reduced by an 
amount equal to— 
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‘‘(1) the total amount of such costs (determined 
before the application of this subsection), multiplied 
by 
‘‘(2) the percentage of property expected to be 
produced which is not qualified property. 
‘‘(f) ELECTION TO RECEIVE LOAN IN LIEU OF DE-
DUCTION.— 
‘‘(1) IN GENERAL.—If a taxpayer elects to have 
this subsection apply for any taxable year— 
‘‘(A) subsection (a) shall not apply to any 
qualified plug-in electric drive motor vehicle 
manufacturing facility property placed in serv-
ice by the taxpayer, 
‘‘(B) such taxpayer shall receive a loan 
from the Secretary in an amount and under 
such terms as provided in section 1303(b) of 
the American Recovery and Reinvestment Tax 
Act of 2009, and 
‘‘(C) in the taxable year in which such 
qualified loan is repaid, each of the limitations 
described in paragraph (2) shall be increased by 
the qualified plug-in electric drive motor vehicle 
manufacturing facility amount which is— 
‘‘(i) determined under paragraph (3), 
and 
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‘‘(ii) allocated to such limitation under 
paragraph (4). 
‘‘(2) LIMITATIONS
TO
BE
INCREASED.—The 
limitations described in this paragraph are— 
‘‘(A) the limitation imposed by section 
38(c), and 
‘‘(B) the limitation imposed by section 
53(c). 
‘‘(3) QUALIFIED
PLUG-IN
ELECTRIC
DRIVE 
MOTOR
VEHICLE
MANUFACTURING
FACILITY 
AMOUNT.—For purposes of this paragraph— 
‘‘(A) IN GENERAL.—The qualified plug-in 
electric drive motor vehicle manufacturing facil-
ity amount is an amount equal to the applicable 
percentage of any qualified plug-in electric drive 
motor vehicle manufacturing facility which is 
placed in service during the taxable year. 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes of subparagraph (A), the applicable 
percentage is— 
‘‘(i) 35 percent, in the case of quali-
fied plug-in electric drive motor vehicle 
manufacturing facility property which is 
placed in service before January 1, 2012, 
and 
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‘‘(ii) 17.5 percent, in the case of 
qualified plug-in electric drive motor vehi-
cle manufacturing facility property which 
is placed in service after December 31, 
2011, and before January 1, 2015. 
‘‘(C) SPECIAL RULE FOR DUAL USE PROP-
ERTY.—In the case of any qualified plug-in 
electric drive motor vehicle manufacturing facil-
ity property which is used to produce both 
qualified property and other property which is 
not qualified property, the amount of costs 
taken into account under subparagraph (A) 
shall be reduced by an amount equal to— 
‘‘(i) the total amount of such costs 
(determined before the application of this 
subparagraph), multiplied by 
‘‘(ii) the percentage of property ex-
pected to be produced which is not quali-
fied property. 
‘‘(4) ALLOCATION
OF
QUALIFIED
PLUG-IN 
ELECTRIC DRIVE MOTOR VEHICLE MANUFACTURING 
FACILITY
AMOUNT.—The taxpayer shall, at such 
time and in such manner as the Secretary may pre-
scribe, specify the portion (if any) of the qualified 
plug-in electric drive motor vehicle manufacturing 
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facility amount for the taxable year which is to be 
allocated to each of the limitations described in 
paragraph (2) for such taxable year. 
‘‘(5) ELECTION.— 
‘‘(A) IN GENERAL.—An election under this 
subsection for any taxable year shall be made 
on the taxpayer’s return of the tax imposed by 
this chapter for the taxable year. Such election 
shall be made in such manner as the Secretary 
may by regulations prescribe. 
‘‘(B) ELECTION IRREVOCABLE.—Any elec-
tion made under this subsection may not be re-
voked except with the consent of the Sec-
retary.’’. 
(b) LOAN PROGRAM.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury (or the Secretary’s delegate) shall provide a loan 
to any person who is allowed a deduction under sec-
tion 179F of the Internal Revenue Code and who 
makes an election under section 179F(f) of such 
Code in an amount equal to the qualified plug-in 
electric drive motor vehicle manufacturing facility 
amount (as defined in such section 179F(f)). 
(2) TERM.—Such loan shall be in the form of 
a senior note issued by the taxpayer to the Secretary 
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of the Treasury, secured by the qualified plug-in 
electric drive motor vehicle manufacturing facility 
property (as defined in section 179F of the Internal 
Revenue Code of 1986) of the taxpayer, and having 
a term of 20 years and interest payable at the appli-
cable Federal rate (as determined under section 
1274(d) of the Internal Revenue Code of 1986). 
(3) APPROPRIATIONS.—There is hereby appro-
priated to the Secretary of the Treasury such sums 
as may be necessary to carry out this subsection. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 is amended by 
adding at the end the following new item: 
‘‘Sec. 179F. Election to expense manufacturing facilities producing plug-in elec-
tric drive motor vehicle and components.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Subtitle E—Economic Recovery 
Tools 
SEC. 1401. RECOVERY ZONE BONDS. 
(a) IN GENERAL.—Subchapter Y of chapter 1 is 
amended by adding at the end the following new part: 
‘‘PART III—RECOVERY ZONE BONDS 
‘‘Sec. 1400U–1. Allocation of recovery zone bonds. 
‘‘Sec. 1400U–2. Recovery zone economic development bonds. 
‘‘Sec. 1400U–3. Recovery zone facility bonds. 
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‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 
‘‘(a) ALLOCATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall allo-
cate the national recovery zone economic develop-
ment bond limitation and the national recovery zone 
facility bond limitation among the States— 
‘‘(A) by allocating 1 percent of each such 
limitation to each State, and 
‘‘(B) by allocating the remainder of each 
such limitation among the States in the propor-
tion that each State’s 2008 State employment 
decline bears to the aggregate of the 2008 
State employment declines for all of the States. 
‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 
purposes of this subsection, the term ‘2008 State 
employment decline’ means, with respect to any 
State, the excess (if any) of— 
‘‘(A) the number of individuals employed 
in such State determined for December 2007, 
over 
‘‘(B) the number of individuals employed 
in such State determined for December 2008. 
‘‘(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 
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541 
AMDT. NO. 570 
among the counties and large municipalities in 
such State in the proportion the each such 
county’s or municipality’s 2008 employment de-
cline bears to the aggregate of the 2008 em-
ployment declines for all the counties and mu-
nicipalities in such State. 
‘‘(B) LARGE
MUNICIPALITIES.—For pur-
poses of subparagraph (A), the term ‘large mu-
nicipality’ means a municipality with a popu-
lation of more than 100,000. 
‘‘(C) DETERMINATION OF LOCAL EMPLOY-
MENT DECLINES.—For purposes of this para-
graph, the employment decline of any munici-
pality or county shall be determined in the 
same manner as determining the State employ-
ment decline under paragraph (2), except that 
in the case of a municipality any portion of 
which is in a county, such portion shall be 
treated as part of such municipality and not 
part of such county. 
‘‘(4) NATIONAL LIMITATIONS.— 
‘‘(A) RECOVERY ZONE ECONOMIC DEVEL-
OPMENT BONDS.—There is a national recovery 
zone economic development bond limitation of 
$5,000,000,000. 
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542 
AMDT. NO. 570 
‘‘(B) RECOVERY ZONE FACILITY BONDS.— 
There is a national recovery zone facility bond 
limitation of $10,000,000,000. 
‘‘(b) RECOVERY ZONE.—For purposes of this part, 
the term ‘recovery zone’ means— 
‘‘(1) any area designated by the issuer as hav-
ing significant poverty, unemployment, rate of home 
foreclosures, or general distress, and 
‘‘(2) any area for which a designation as an em-
powerment zone or renewal community is in effect. 
‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT 
BONDS. 
‘‘(a) IN GENERAL.—In the case of a recovery zone 
economic development bond— 
‘‘(1) such bond shall be treated as a qualified 
bond for purposes of section 6431, and 
‘‘(2) subsection (b) of such section shall be ap-
plied by substituting ‘40 percent’ for ‘35 percent’. 
‘‘(b) RECOVERY ZONE ECONOMIC DEVELOPMENT 
BOND.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘recovery zone economic development 
bond’ means any build America bond (as defined in 
section 54AA(d)) issued before January 1, 2011, as 
part of issue if— 
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AMDT. NO. 570 
‘‘(A) 100 percent of the available project 
proceeds (as defined in section 54A) of such 
issue are to be used for one or more qualified 
economic development purposes, and 
‘‘(B) the issuer designates such bond for 
purposes of this section. 
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated by any issuer under 
paragraph (1) shall not exceed the amount of the re-
covery zone economic development bond limitation 
allocated to such issuer under section 1400U–1. 
‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT PUR-
POSE.—For purposes of this section, the term ‘qualified 
economic development purpose’ means expenditures for 
purposes of promoting development or other economic ac-
tivity in a recovery zone, including— 
‘‘(1) capital expenditures paid or incurred with 
respect to property located in such zone, 
‘‘(2) expenditures for public infrastructure and 
construction of public facilities, and 
‘‘(3) expenditures for job training and edu-
cational programs. 
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544 
AMDT. NO. 570 
‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 
‘‘(a) IN GENERAL.—For purposes of part IV of sub-
chapter B (relating to tax exemption requirements for 
State and local bonds), the term ‘exempt facility bond’ in-
cludes any recovery zone facility bond. 
‘‘(b) RECOVERY ZONE FACILITY BOND.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘recovery zone facility bond’ means 
any bond issued as part of an issue if— 
‘‘(A) 95 percent or more of the net pro-
ceeds (as defined in section 150(a)(3)) of such 
issue are to be used for recovery zone property, 
‘‘(B) such bond is issued before January 1, 
2011, and 
‘‘(C) the issuer designates such bond for 
purposes of this section. 
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated by any issuer under 
paragraph (1) shall not exceed the amount of recov-
ery zone facility bond limitation allocated to such 
issuer under section 1400U–1. 
‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of 
this section— 
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545 
AMDT. NO. 570 
‘‘(1) IN
GENERAL.—The term ‘recovery zone 
property’ means any property to which section 168 
applies (or would apply but for section 179) if— 
‘‘(A) such property was acquired by the 
taxpayer by purchase (as defined in section 
179(d)(2)) after the date on which the designa-
tion of the recovery zone took effect, 
‘‘(B) the original use of which in the recov-
ery zone commences with the taxpayer, and 
‘‘(C) substantially all of the use of which 
is in the recovery zone and is in the active con-
duct of a qualified business by the taxpayer in 
such zone. 
‘‘(2) QUALIFIED BUSINESS.—The term ‘quali-
fied business’ means any trade or business except 
that— 
‘‘(A) the rental to others of real property 
located in a recovery zone shall be treated as a 
qualified business only if the property is not 
residential rental property (as defined in section 
168(e)(2)), and 
‘‘(B) such term shall not include any trade 
or business consisting of the operation of any 
facility described in section 144(c)(6)(B). 
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546 
AMDT. NO. 570 
‘‘(3) SPECIAL RULES FOR SUBSTANTIAL REN-
OVATIONS AND SALE-LEASEBACK.—Rules similar to 
the rules of subsections (a)(2) and (b) of section 
1397D shall apply for purposes of this subsection. 
‘‘(d) NONAPPLICATION OF CERTAIN RULES.—Sec-
tions 146 (relating to volume cap) and 147(d) (relating 
to acquisition of existing property not permitted) shall not 
apply to any recovery zone facility bond.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter Y of chapter 1 of such Code is amended by 
adding at the end the following new item: 
‘‘PART III. RECOVERY ZONE BONDS.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS. 
(a) IN GENERAL.—Section 7871 is amended by add-
ing at the end the following new subsection: 
‘‘(f) TRIBAL ECONOMIC DEVELOPMENT BONDS.— 
‘‘(1) ALLOCATION OF LIMITATION.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
allocate the national tribal economic develop-
ment bond limitation among the Indian tribal 
governments in such manner as the Secretary, 
in consultation with the Secretary of the Inte-
rior, determines appropriate. 
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547 
AMDT. NO. 570 
‘‘(B) NATIONAL LIMITATION.—There is a 
national tribal economic development bond limi-
tation of $2,000,000,000. 
‘‘(2) BONDS
TREATED
AS
EXEMPT
FROM 
TAX.—In the case of a tribal economic development 
bond— 
‘‘(A) notwithstanding subsection (c), such 
bond shall be treated for purposes of this title 
in the same manner as if such bond were issued 
by a State, 
‘‘(B) the Indian tribal government issuing 
such bond and any instrumentality of such In-
dian tribal government shall be treated as a 
State for purposes of section 141, and 
‘‘(C) section 146 shall not apply. 
‘‘(3) 
TRIBAL
ECONOMIC
DEVELOPMENT 
BOND.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘tribal economic development 
bond’ means any bond issued by an Indian trib-
al government— 
‘‘(i) the interest on which would be ex-
empt from tax under section 103 if issued 
by a State or local government, and 
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AMDT. NO. 570 
‘‘(ii) which is designated by the In-
dian tribal government as a tribal eco-
nomic development bond for purposes of 
this subsection. 
‘‘(B) EXCEPTIONS.—The term tribal eco-
nomic development bond shall not include any 
bond issued as part of an issue if any portion 
of the proceeds of such issue are used to fi-
nance— 
‘‘(i) any portion of a building in which 
class II or class III gaming (as defined in 
section 4 of the Indian Gaming Regulatory 
Act) is conducted or housed or any other 
property actually used in the conduct of 
such gaming, or 
‘‘(ii) any facility located outside the 
Indian reservation (as defined in section 
168(j)(6)). 
‘‘(C) LIMITATION ON AMOUNT OF BONDS 
DESIGNATED.—The maximum aggregate face 
amount of bonds which may be designated by 
any Indian tribal government under subpara-
graph (A) shall not exceed the amount of na-
tional tribal economic development bond limita-
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