the credit allowance date (as defined in section 
54A(e)(1)). 
‘‘(B) 
REPORTING
TO
CORPORATIONS, 
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in 
subparagraph (A) of this paragraph, subsection 
(b)(4) of this section shall be applied without 
regard to subparagraphs (A), (H), (I), (J), (K), 
and (L)(i). 
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may prescribe such regulations as are 
necessary or appropriate to carry out the pur-
poses of this paragraph, including regulations 
which require more frequent or more detailed 
reporting.’’. 
(c) MODIFICATION OF SECTION 1397E.— 
(1) REPEAL OF RESTRICTION ON ZONE ACAD-
EMY BOND HOLDERS.— 
(A) Section 1397E(a) is amended by strik-
ing ‘‘eligible taxpayer’’ and inserting ‘‘tax-
payer’’. 
(B) Section 1397E(d) is amended by strik-
ing paragraph (6). 
(C) Section 1397E(i) is amended by strik-
ing ‘‘which is an eligible taxpayer’’. 
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(2) CARRYOVER
OF
UNUSED
LIMITATION
TO 
SECTION 54C.— 
(A) Section 1397E(e) of such Code is 
amended by adding at the end the following 
new paragraph: 
‘‘(5) CARRYOVER OF UNUSED LIMITATION TO 
SECTION
54C
AFTER
2007.—If for calendar year 
2007— 
‘‘(A) the limitation amount for any State, 
exceeds 
‘‘(B) the amount of bonds issued during 
such year which are designated under sub-
section (d)(1) with respect to qualified zone 
academies within such State, 
the limitation amount for such State under section 
54C for calendar year 2008 shall be increased by the 
amount of such excess and such excess shall not oth-
erwise be taken into account under this section.’’. 
(B) The heading of section 1397E(e)(4) of 
such Code is amended by inserting before the 
period ‘‘FROM YEARS BEFORE 2008’’. 
(d) CLERICAL AMENDMENT.—The table of subparts 
for part IV of subchapter A of chapter 1 of such Code 
is amended by adding at the end the following new item: 
‘‘SUBPART I. PUBLIC SCHOOL MODERNIZATION BONDS.’’. 
(e) EFFECTIVE DATES.— 
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(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to obligations issued after 
December 31, 2007. 
(2) REPEAL OF RESTRICTION ON ZONE ACAD-
EMY BOND HOLDERS.—The amendments made by 
subsection (c)(1) shall apply to qualified zone acad-
emy bonds held on credit allowance dates after De-
cember 31, 2007, during taxable years ending after 
such date. 
(3) CARRYOVER OF LIMITATION.—The amend-
ments made by subsection (c)(2) shall take effect on 
the date of the enactment of this Act. 
SEC. 3. APPLICATION OF CERTAIN LABOR STANDARDS ON 
CONSTRUCTION 
PROJECTS 
FINANCED 
UNDER PUBLIC SCHOOL MODERNIZATION 
PROGRAM. 
Section 439 of the General Education Provisions Act 
(relating to labor standards) is amended— 
(1) by inserting ‘‘(a)’’ before ‘‘All laborers and 
mechanics’’, and 
(2) by adding at the end the following: 
‘‘(b)(1) For purposes of this section, the term ‘appli-
cable program’ also includes the qualified zone academy 
bond provisions enacted by section 226 of the Taxpayer 
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