I 
112TH CONGRESS 
1ST SESSION 
H. R. 992 
To amend the Internal Revenue Code of 1986 to create jobs through increased 
investment in infrastructure, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 10, 2011 
Mr. LEVIN (for himself, Mr. RANGEL, Mr. STARK, Mr. MCDERMOTT, Mr. 
LEWIS of Georgia, Mr. NEAL, Mr. BECERRA, Mr. THOMPSON of Cali-
fornia, Mr. LARSON of Connecticut, Mr. BLUMENAUER, Mr. KIND, Mr. 
PASCRELL, Ms. BERKLEY, and Mr. CROWLEY) 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 create 
jobs through increased investment 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 
‘‘Building American Jobs Act of 2011’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
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ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
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. Extension and additional allocations of recovery zone bond authority. 
Sec. 4. Exempt-facility bonds for sewage and water supply facilities. 
Sec. 5. Extension of exemption from alternative minimum tax treatment for 
certain tax-exempt bonds. 
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. 9. Election for refundable low-income housing credit for 2011. 
SEC. 2. EXTENSION OF BUILD AMERICA BONDS. 
(a) IN GENERAL.—Subparagraph (B) of section 
54AA(d)(1) is amended by inserting ‘‘or during the period 
beginning on the date of the enactment of the Building 
American Jobs Act of 2011 and ending on December 31, 
2012,’’ after ‘‘January 1, 2011,’’. 
(b) EXTENSION OF PAYMENTS TO ISSUERS.— 
(1) IN GENERAL.—Section 6431 is amended— 
(A) by inserting ‘‘or during the period be-
ginning on the date of the enactment of the 
Building American Jobs Act of 2011 and end-
ing on December 31, 2012,’’ after ‘‘January 1, 
2011,’’ in subsection (a), and 
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(B) by striking ‘‘before January 1, 2011’’ 
in subsection (f)(1)(B) and inserting ‘‘during a 
particular period’’. 
(2) CONFORMING
AMENDMENTS.—Subsection 
(g) of section 54AA is amended— 
(A) by inserting ‘‘or during the period be-
ginning on the date of the enactment of the 
Building American Jobs Act of 2011 and end-
ing on December 31, 2012,’’ after ‘‘January 1, 
2011,’’, and 
(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’ 
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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 ..........................................................................
31 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.— 
‘‘(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. 
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‘‘(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).’’. 
(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. 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 inserting ‘‘or during the 
period beginning on the date of the enactment of the 
Building American Jobs Act of 2011 and ending on De-
cember 31, 2011,’’ after ‘‘January 1, 2011,’’. 
(b) ADDITIONAL ALLOCATIONS OF RECOVERY ZONE 
BOND AUTHORITY BASED ON UNEMPLOYMENT.—Section 
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1400U–1 is amended by adding at the end the following 
new subsection: 
‘‘(c) ALLOCATION OF 2011 RECOVERY ZONE BOND 
LIMITATIONS BASED ON UNEMPLOYMENT.— 
‘‘(1) IN GENERAL.—The Secretary shall allo-
cate the 2011 national recovery zone economic devel-
opment bond limitation and the 2011 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 
State (prior to any reduction under paragraph (3)) 
receives less than 0.9 percent of the 2011 national 
recovery zone economic development bond limitation 
and 0.9 percent of the 2011 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 
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(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-
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) 2011 NATIONAL LIMITATIONS.— 
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‘‘(A) RECOVERY ZONE ECONOMIC DEVEL-
OPMENT BONDS.—The 2011 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 2011 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 
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.’’. 
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SEC. 4. 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 
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)’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued on or after 
the date of the enactment of this Act. 
SEC. 5. 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 inserting ‘‘or during the period beginning 
on the date of the enactment of the Building Amer-
ican Jobs Act of 2011 and ending on December 31, 
2011,’’ after ‘‘January 1, 2011,’’, and 
(2) by striking ‘‘EXCEPTION
FOR
BONDS 
ISSUED IN 2009 AND 2010’’ in the heading and insert-
ing ‘‘TEMPORARY EXCEPTION’’. 
(b) ADJUSTED CURRENT EARNINGS.—Clause (iv) of 
section 56(g)(4)(B) is amended— 
(1) by inserting ‘‘or during the period beginning 
on the date of the enactment of the Building Amer-
ican Jobs Act of 2011 and ending on December 31, 
2011,’’ after ‘‘January 1, 2011,’’, and 
(2) by striking ‘‘TAX
EXEMPT
INTEREST
ON 
BONDS ISSUED IN 2009 AND 2010’’ in the heading and 
inserting ‘‘TEMPORARY EXCLUSION OF TAX EXEMPT 
BOND INTEREST’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued on or after 
the date of the enactment of this Act. 
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 
45D(b) of the Internal Revenue Code of 1986) initially 
made after the date of the enactment of this Act. 
SEC. 7. EXTENSION OF TAX-EXEMPT ELIGIBILITY FOR 
LOANS GUARANTEED BY FEDERAL HOME 
LOAN BANKS. 
(a) 
IN
GENERAL.—Clause 
(iv) 
of 
section 
149(b)(3)(A) is amended by inserting ‘‘or during the pe-
riod beginning on the date of the enactment of the Build-
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ing American Jobs Act of 2011 and ending on December 
31, 2011,’’ after ‘‘December 31, 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to obligations issued on or after 
the date of the enactment of this Act. 
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. 
SEC. 9. ELECTION FOR REFUNDABLE LOW-INCOME HOUS-
ING CREDIT FOR 2011. 
(a) IN GENERAL.—Section 42 is amended by redesig-
nating subsection (n) as subsection (o) and by inserting 
after subsection (m) the following new subsection: 
‘‘(n) ELECTION FOR REFUNDABLE CREDITS.— 
‘‘(1) IN GENERAL.—The housing credit agency 
of each State shall be allowed a credit in an amount 
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equal to such State’s 2011 low-income housing re-
fundable credit election amount which shall be pay-
able by the Secretary as provided in paragraph (5). 
‘‘(2) 2011 LOW-INCOME HOUSING REFUNDABLE 
CREDIT ELECTION AMOUNT.—For purposes of this 
subsection, the term ‘2011 low-income housing re-
fundable credit election amount’ means, with respect 
to any State, such amount as the State may elect 
which does not exceed 85 percent of the product 
of— 
‘‘(A) the sum of— 
‘‘(i) 100 percent of the State housing 
credit ceiling for 2011 which is attrib-
utable to amounts described in clauses (i) 
and (iii) of subsection (h)(3)(C), and 
‘‘(ii) 40 percent of the State housing 
credit ceiling for 2011 which is attrib-
utable to amounts described in clauses (ii) 
and (iv) of such subsection, multiplied by 
‘‘(B) 10. 
‘‘(3) COORDINATION
WITH
NON-REFUNDABLE 
CREDIT.—For purposes of this section, the amounts 
described in clauses (i) through (iv) of subsection 
(h)(3)(C) with respect to any State for 2011 shall 
each be reduced by so much of such amount as is 
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taken into account in determining the amount of the 
credit allowed with respect to such State under para-
graph (1). 
‘‘(4) SPECIAL
RULE
FOR
BASIS.—Basis of a 
qualified low-income building shall not be reduced by 
the amount of any payment made under this sub-
section. 
‘‘(5) PAYMENT OF CREDIT; USE TO FINANCE 
LOW-INCOME BUILDINGS.—The Secretary shall pay 
to the housing credit agency of each State an 
amount equal to the credit allowed under paragraph 
(1). Rules similar to the rules of subsections (c) and 
(d) of section 1602 of the American Recovery and 
Reinvestment Tax Act of 2009 shall apply with re-
spect to any payment made under this paragraph, 
except that such subsection (d) shall be applied by 
substituting ‘January 1, 2013’ for ‘January 1, 
2011’.’’. 
(b) CONFORMING AMENDMENT.—Section 1324(b)(2) 
of title 31, United States Code, is amended by inserting 
‘‘42(n),’’ after ‘‘36A,’’. 
Æ 
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