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‘‘(i) the administration of the provisions of 
its State law carrying out the purposes of sub-
section (f)(2) or any subparagraph of sub-
section (f)(3); 
‘‘(ii) improved outreach to individuals who 
might be eligible for regular unemployment 
compensation by virtue of any provisions of the 
State law which are described in clause (i); 
‘‘(iii) the improvement of unemployment 
benefit and unemployment tax operations; and 
‘‘(iv) staff-assisted reemployment services 
for unemployment compensation claimants; and 
‘‘(B) shall be excluded from the application of 
subsection (c). 
‘‘(4) The total additional amount made available by 
this subsection in a fiscal year shall be taken out of the 
amounts remaining in the employment security adminis-
tration account after subtracting the total amount which 
(disregarding this subsection) is otherwise required to be 
transferred from such account in such fiscal year pursuant 
to subsections (a) and (b).’’. 
(b) REGULATIONS.—The Secretary of Labor may 
prescribe any regulations necessary to carry out the 
amendment made by subsection (a). 
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SEC. 403. EXTENSION OF FUTA TAX. 
Section 3301 of the Internal Revenue Code of 1986 
(relating to rate of tax) is amended— 
(1) by striking ‘‘2007’’ in paragraph (1) and in-
serting ‘‘2010’’, and 
(2) by striking ‘‘2008’’ in paragraph (2) and in-
serting ‘‘2011’’. 
SEC. 404. SAFETY NET REVIEW COMMISSION. 
(a) ESTABLISHMENT.—The Secretary of Labor shall 
establish an advisory commission to be known as the 
‘‘Safety Net Review Commission’’ (hereinafter in this sec-
tion referred to as the ‘‘Commission’’). 
(b) FUNCTION.—It shall be the function of the Com-
mission to evaluate the unemployment compensation pro-
gram, the Trade Adjustment Assistance program, the Job 
Corps program, a program under the Workforce Invest-
ment Act, and other employment assistance programs, in-
cluding the purpose, goals, countercyclical effectiveness, 
coverage, benefit adequacy, trust fund solvency, funding 
of State administrative costs, administrative efficiency, 
and any other aspects of each such program, as well as 
any related provisions of the Internal Revenue Code of 
1986, and to make recommendations for their improve-
ment. 
(c) MEMBERS.— 
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(1) IN GENERAL.—The Commission shall con-
sist of 11 members as follows: 
(A) Five members appointed by the Presi-
dent, to include representatives of business, 
labor, State government, and the public. 
(B) Three members appointed by the 
President pro tempore of the Senate, in con-
sultation with the Chairman and ranking mem-
ber of the Committee on Finance of the Senate. 
(C) Three members appointed by the 
Speaker of the House of Representatives, in 
consultation with the Chairman and ranking 
member of the Committee on Ways and Means 
of the House of Representatives. 
(2) QUALIFICATIONS.—In appointing members 
under subparagraphs (B) and (C) of paragraph (1), 
the President pro tempore of the Senate and the 
Speaker of the House of Representatives shall each 
appoint— 
(A) one representative of the interests of 
business, 
(B) one representative of the interests of 
labor, and 
(C) one representative of the interests of 
State governments. 
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(3) VACANCIES.—A vacancy in the Commission 
shall be filled in the manner in which the original 
appointment was made. 
(4) CHAIRMAN.—The President shall appoint 
the Chairman of the Commission from among its 
members. 
(d) STAFF AND OTHER ASSISTANCE.— 
(1) IN
GENERAL.—The Commission may en-
gage any technical assistance (including actuarial 
services) required by the Commission to carry out its 
functions under this section. 
(2) 
ASSISTANCE
FROM
SECRETARY
OF 
LABOR.—The Secretary of Labor shall provide the 
Commission with any staff, office facilities, and 
other assistance, and any data prepared by the De-
partment of Labor, required by the Commission to 
carry out its functions under this section. 
(e) COMPENSATION.—Each member of the Commis-
sion— 
(1) shall be entitled to receive compensation at 
the rate of pay for level V of the Executive Schedule 
under section 5316 of title 5, United States Code, 
for each day (including travel time) during which 
such member is engaged in the actual performance 
of duties vested in the Commission; and 
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HR 3920 RFS
(2) while engaged in the performance of such 
duties away from such member’s home or regular 
place of business, shall be allowed travel expenses 
(including per diem in lieu of subsistence) as author-
ized by section 5703 of such title 5 for persons in 
the Government employed intermittently. 
(f) REPORT.—Not later than 6 months after the date 
of the enactment of this Act, the Commission shall submit 
to the President and the Congress a report setting forth 
the findings and recommendations of the Commission as 
a result of its evaluation under this section. 
(g) TERMINATION.—The Commission shall terminate 
2 months after submitting its report pursuant to sub-
section (f). 
TITLE V—MANUFACTURING 
REDEVELOPMENT ZONES 
SEC. 501. MANUFACTURING REDEVELOPMENT ZONES. 
(a) IN GENERAL.—Subchapter Y of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
‘‘PART III—MANUFACTURING REDEVELOPMENT 
ZONES 
‘‘Sec. 1400U–1. Designation of manufacturing redevelopment zones. 
‘‘Sec. 1400U–2. Eligibility criteria. 
‘‘Sec. 1400U–3. Manufacturing redevelopment tax credit bonds. 
‘‘Sec. 1400U–4. Tax-exempt manufacturing zone facility bonds. 
‘‘Sec. 1400U–5. Additional low-income housing credits. 
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HR 3920 RFS
‘‘SEC. 1400U–1. DESIGNATION OF MANUFACTURING REDE-
VELOPMENT ZONES. 
‘‘(a) IN GENERAL.—From among the areas nomi-
nated for designation under this section, the Secretary 
may designate manufacturing redevelopment zones. 
‘‘(b) LIMITATIONS
ON DESIGNATIONS.—The Sec-
retary may designate in the aggregate 24 nominated areas 
as manufacturing redevelopment zones, subject to the 
availability of eligible nominated areas. The Secretary 
shall designate manufacturing redevelopment zones in 
such manner that the aggregate population of all such 
zones does not exceed 2,000,000. 
‘‘(c) PERIOD DESIGNATION MAY BE MADE.—A des-
ignation may be made under subsection (a) only during 
the 2-year period beginning on the date of the enactment 
of this section. 
‘‘(d) PERIOD FOR WHICH DESIGNATION IS IN EF-
FECT.— 
‘‘(1) IN GENERAL.—Any designation under this 
section shall remain in effect during the period be-
ginning on the date of the designation and ending 
on the earliest of— 
‘‘(A) the close of the 10th calendar year 
beginning on or after the date of the designa-
tion, 
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HR 3920 RFS
‘‘(B) the termination date designated by 
the State and local governments as provided for 
in their nomination, or 
‘‘(C) the date the Secretary revokes the 
designation. 
‘‘(2) REVOCATION OF DESIGNATION.—The Sec-
retary may revoke the designation under this section 
of an area if such Secretary determines that the 
local government or the State in which it is lo-
cated— 
‘‘(A) has modified the boundaries of the 
area, or 
‘‘(B) is not complying substantially with, 
or fails to make progress in achieving the 
benchmarks set forth in, the strategic plan in-
cluded with the application. 
‘‘(e) LIMITATIONS
ON
DESIGNATIONS; APPLICA-
TION.—Rules similar to the rules of subsections (e) and 
(f) of section 1391 shall apply for purposes of this section 
except that the rules of such subsection (f) shall be applied 
with respect to the eligibility criteria specified in section 
1400U–2. 
‘‘(f) DETERMINATIONS OF POPULATION.—Any deter-
mination of population under this part shall be made on 
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HR 3920 RFS
the basis of the most recent decennial census for which 
data are available. 
‘‘SEC. 1400U–2. ELIGIBILITY CRITERIA. 
‘‘(a) IN GENERAL.—A nominated area shall be eligi-
ble for designation under section 1400U–1 only if— 
‘‘(1) it meets each of the criteria specified in 
section 1392(a), 
‘‘(2) the nominated area has experienced a sig-
nificant decline in the number of individuals em-
ployed in manufacturing or has a high concentration 
of abandoned or underutilized manufacturing facili-
ties, and 
‘‘(3) no portion of the nominated area is located 
in an empowerment zone or renewal community, un-
less the local government which nominated the area 
elects to terminate such designation as an empower-
ment zone or renewal community. 
‘‘(b) APPLICATION
OF CERTAIN RULES; DEFINI-
TIONS.—For purposes of this subchapter— 
‘‘(1) rules similar to the rules of subsections 
(b), (c), and (d) of section 1392 and paragraphs (4), 
(7), (8), and (9) of section 1393(a) shall apply, and 
‘‘(2) any term defined in section 1393 shall 
have the same meaning when used in this sub-
chapter. 
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‘‘(c) DISCRETION TO ADJUST REQUIREMENTS.—In 
determining whether a nominated area is eligible for des-
ignation as a manufacturing redevelopment zone, the Sec-
retary may, where necessary to carry out the purposes of 
this part, waive the requirement of section 1392(a)(4) if 
it is shown that the nominated area has experienced a loss 
of manufacturing jobs during the previous 20 years which 
is in excess of 25 percent. 
‘‘SEC. 1400U–3. MANUFACTURING REDEVELOPMENT TAX 
CREDIT BONDS. 
‘‘(a) IN GENERAL.—For purposes of subpart I of 
part IV of subchapter A (relating to qualified tax credit 
bonds), the term ‘manufacturing redevelopment bond’ 
means any bond issued as part of an issue if— 
‘‘(1) 100 percent of the available project pro-
ceeds of such issue are to be used for one or more 
qualified manufacturing redevelopment purposes, 
‘‘(2) the bond is not a private activity bond, 
and 
‘‘(3) the local government which nominated the 
area to which such bond relates designates such 
bond for purposes of this section. 
‘‘(b) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated under subsection (a) with 
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HR 3920 RFS
respect to any manufacturing redevelopment zone shall 
not exceed $150,000,000. 
‘‘(c) QUALIFIED MANUFACTURING REDEVELOPMENT 
PURPOSE.—For purposes of this section, the term ‘quali-
fied manufacturing redevelopment purposes’ means capital 
expenditures paid or incurred with respect to property lo-
cated in a manufacturing redevelopment zone for purposes 
of promoting development or other economic activity in 
such zone, including expenditures for environmental reme-
diation, improvements to public infrastructure, and con-
struction of public facilities. 
‘‘(d) DEFINITIONS.—For purposes of this section, 
any term used in this section which is also used in section 
54A shall have the same meaning given such term by sec-
tion 54A. 
‘‘SEC. 1400U–4. TAX-EXEMPT MANUFACTURING ZONE FACIL-
ITY 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 bond issued as part of an issue if— 
‘‘(1) 95 percent or more of the net proceeds (as 
defined in section 150(a)(3)) of such issue are to be 
used for manufacturing zone property, and 
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HR 3920 RFS
‘‘(2) the local government which nominated the 
area to which such bond relates designates such 
bond for purposes of this section. 
‘‘(b) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.— 
‘‘(1) IN GENERAL.—The aggregate face amount 
of bonds which may be designated under subsection 
(a)(2) with respect to any manufacturing redevelop-
ment zone shall not exceed $230,000,000. 
‘‘(2) CURRENT REFUNDING NOT TAKEN INTO 
ACCOUNT.—In the case of a refunding (or series of 
refundings) of a bond designated under this section, 
the refunding obligation shall be treated as des-
ignated under subsection (a)(2) (and shall not be 
taken into account in applying paragraph (1)) if— 
‘‘(A) the amount of the refunding bond 
does not exceed the outstanding amount of the 
refunded bond, and 
‘‘(B) the refunded bond is redeemed not 
later than 90 days after the date of issuance of 
the refunding bond. 
‘‘(c) LIMITATION ON AMOUNT OF BONDS ALLOCABLE 
TO ANY PERSON.— 
‘‘(1) IN
GENERAL.—Subsection (a) shall not 
apply to any issue if the aggregate amount of out-
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HR 3920 RFS
standing manufacturing zone facility bonds allocable 
to any person (taking into account such issue) ex-
ceeds— 
‘‘(A) $15,000,000 with respect to any 1 
manufacturing redevelopment zone, or 
‘‘(B) $20,000,000 with respect to all man-
ufacturing redevelopment zones. 
‘‘(2) AGGREGATE ENTERPRISE ZONE FACILITY 
BOND
BENEFIT.—For purposes of paragraph (1), 
the aggregate amount of outstanding manufacturing 
zone facility bonds allocable to any person shall be 
determined under rules similar to the rules of sec-
tion 144(a)(10), taking into account only bonds to 
which subsection (a) applies. 
‘‘(d) MANUFACTURING ZONE PROPERTY.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘manufacturing 
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 manufacturing redevelopment zone 
took effect, 
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HR 3920 RFS
‘‘(B) the original use of which in the man-
ufacturing redevelopment zone commences with 
the taxpayer, and 
‘‘(C) substantially all of the use of which 
is in the manufacturing redevelopment zone and 
is in the active conduct 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 manufacturing redevelopment 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). 
‘‘(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. 
‘‘(e) NONAPPLICATION OF CERTAIN RULES.—Sec-
tions 57(a)(5) (relating to tax-exempt interest), 146 (re-
lating to volume cap), and 147(d) (relating to acquisition 
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HR 3920 RFS
of existing property not permitted) shall not apply to any 
manufacturing zone facility bond. 
‘‘SEC. 1400U–5. ADDITIONAL LOW-INCOME HOUSING CRED-
ITS. 
‘‘(a) IN GENERAL.—For purposes of section 42, in 
the case of each calendar year during which the designa-
tion of a manufacturing redevelopment zone is in effect, 
the State housing credit ceiling of the State which includes 
such manufacturing redevelopment zone shall be increased 
by the lesser of— 
‘‘(1) the aggregate housing credit dollar amount 
allocated by the State housing credit agency of such 
State to buildings located in such manufacturing re-
development zone for such calendar year, or 
‘‘(2) the excess of— 
‘‘(A) the manufacturing zone housing 
amount with respect to such manufacturing re-
development zone, over 
‘‘(B) the aggregate increases under this 
subsection with respect to such zone for all pre-
ceding calendar years. 
‘‘(b) MANUFACTURING ZONE HOUSING AMOUNT.— 
For purposes of subsection (a), the term ‘manufacturing 
zone housing amount’ means, with respect to any manu-
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HR 3920 RFS
facturing redevelopment zone, the product of $20 multi-
plied by the population of such zone. 
‘‘(c) OTHER RULES.— 
‘‘(1) CARRYOVERS.—Rules similar to the rules 
of section 1400N(c)(1)(C) shall apply for purposes 
of this section. 
‘‘(2) RETURNED AMOUNTS.—If any amount of 
State housing credit ceiling which was taken into ac-
count under subsection (a)(1) is returned within the 
meaning of section 42(h)(3)(C)(iii)— 
‘‘(A) such amount shall not be taken into 
account under such section, and 
‘‘(B) such allocation shall cease to be 
treated as an increase under this subsection for 
purposes of subsection (a)(2)(B) until reallo-
cated.’’. 
(b) APPLICATION
OF WORK OPPORTUNITY TAX 
CREDIT
TO
MANUFACTURING
REDEVELOPMENT 
ZONES.—Subparagraphs (A) and (B) of section 51(d)(5) 
of such Code are each amended by inserting ‘‘manufac-
turing redevelopment zone,’’ after ‘‘renewal community,’’. 
(c) CONFORMING AMENDMENTS RELATED TO MANU-
FACTURING REDEVELOPMENT TAX CREDIT BONDS.— 
(1) GENERAL RULES.—Part IV of subchapter A 
of chapter 1 of such Code (relating to credits 
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HR 3920 RFS
against tax) is amended by adding at the end the 
following new subpart: 
‘‘Subpart I—Qualified Tax Credit Bonds 
‘‘Sec. 54A. Credit to holders of qualified tax credit bonds. 
‘‘SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CRED-
IT BONDS. 
‘‘(a) ALLOWANCE OF CREDIT.—If a taxpayer holds 
a qualified tax credit bond on one or more credit allowance 
dates of the bond 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 qualified tax credit bond 
is 25 percent of the annual credit determined with 
respect to such bond. 
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified tax credit 
bond is the product of— 
‘‘(A) the applicable credit rate, multiplied 
by 
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HR 3920 RFS
‘‘(B) the outstanding face amount of the 
bond. 
‘‘(3) APPLICABLE CREDIT RATE.—For purposes 
of paragraph (2), the applicable credit rate is the 
rate which the Secretary estimates will permit the 
issuance of qualified tax credit bonds with a speci-
fied maturity or redemption date without discount 
and without interest cost to the qualified issuer. The 
applicable credit rate with respect to any qualified 
tax credit bond shall be determined as of the first 
day on which there is a binding, written contract for 
the sale or exchange of the bond. 
‘‘(4) 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 
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.— 
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HR 3920 RFS
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this part (other than subpart C and this 
subpart). 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) exceeds the 
limitation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year (determined be-
fore the application of paragraph (1) for such suc-
ceeding taxable year). 
‘‘(d) QUALIFIED TAX CREDIT BOND.—For purposes 
of this section— 
‘‘(1) QUALIFIED TAX CREDIT BOND.—The term 
‘qualified tax credit bond’ means a manufacturing 
redevelopment bond (as defined in section 1400U–3) 
which is part of an issue that meets the require-
ments of paragraphs (2), (3), (4), (5), and (6). 
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HR 3920 RFS
‘‘(2) SPECIAL RULES RELATING TO EXPENDI-
TURES.— 
‘‘(A) IN
GENERAL.—An issue shall be 
treated as meeting the requirements of this 
paragraph if, as of the date of issuance, the 
issuer reasonably expects— 
‘‘(i) 100 percent or more of the avail-
able project proceeds to be spent for 1 or 
more qualified purposes within the 3-year 
period beginning on such date of issuance, 
and 
‘‘(ii) a binding commitment with a 
third party to spend at least 10 percent of 
such available project proceeds will be in-
curred within the 6-month period begin-
ning on such date of issuance. 
‘‘(B) 
FAILURE
TO
SPEND
REQUIRED 
AMOUNT
OF
BOND
PROCEEDS
WITHIN
YEARS.— 
‘‘(i) IN GENERAL.—To the extent that 
less than 100 percent of the available 
project proceeds of the issue are expended 
by the close of the expenditure period for 
1 or more qualified purposes, the issuer 
shall redeem all of the nonqualified bonds 
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HR 3920 RFS
within 90 days after the end of such pe-
riod. For purposes of this paragraph, the 
amount of the nonqualified bonds required 
to be redeemed shall be determined in the 
same manner as under section 142. 
‘‘(ii) 
EXPENDITURE
PERIOD.—For 
purposes of this subpart, the term ‘expend-
iture period’ means, with respect to any 
issue, the 3-year period beginning on the 
date of issuance. Such term shall include 
any extension of such period under clause 
(iii). 
‘‘(iii) EXTENSION OF PERIOD.—Upon 
submission of a request prior to the expira-
tion of the expenditure period (determined 
without regard to any extension under this 
clause), the Secretary may extend such pe-
riod if the issuer establishes that the fail-
ure to expend the proceeds within the 
original expenditure period is due to rea-
sonable cause and the expenditures for 
qualified purposes will continue to proceed 
with due diligence. 
‘‘(C) QUALIFIED PURPOSE.—For purposes 
of this paragraph, the term ‘qualified purpose’ 
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means a purpose specified in section 1400U– 
3(a)(1). 
‘‘(D) REIMBURSEMENT.—For purposes of 
this subtitle, available project proceeds of an 
issue shall be treated as spent for a qualified 
purpose if such proceeds are used to reimburse 
the issuer for amounts paid for a qualified pur-
pose after the date that the Secretary makes an 
allocation of bond limitation with respect to 
such issue, but only if— 
‘‘(i) prior to the payment of the origi-
nal expenditure, the issuer declared its in-
tent to reimburse such expenditure with 
the proceeds of a qualified tax credit bond, 
‘‘(ii) not later than 60 days after pay-
ment of the original expenditure, the issuer 
adopts an official intent to reimburse the 
original expenditure with such proceeds, 
and 
‘‘(iii) the reimbursement is made not 
later than 18 months after the date the 
original expenditure is paid. 
‘‘(3) REPORTING.—An issue shall be treated as 
meeting the requirements of this paragraph if the 
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issuer of qualified tax credit bonds submits reports 
similar to the reports required under section 149(e). 
‘‘(4) SPECIAL
RULES
RELATING
TO
ARBI-
TRAGE.— 
‘‘(A) IN
GENERAL.—An issue shall be 
treated as meeting the requirements of this 
paragraph if the issuer satisfies the require-
ments of section 148 with respect to the pro-
ceeds of the issue. 
‘‘(B) SPECIAL
RULE
FOR
INVESTMENTS 
DURING EXPENDITURE PERIOD.—An issue shall 
not be treated as failing to meet the require-
ments of subparagraph (A) by reason of any in-
vestment of available project proceeds during 
the expenditure period. 
‘‘(C) 
SPECIAL
RULE
FOR
RESERVE 
FUNDS.—An issue shall not be treated as fail-
ing to meet the requirements of subparagraph 
(A) by reason of any fund which is expected to 
be used to repay such issue if— 
‘‘(i) such fund is funded at a rate not 
more rapid than equal annual installments, 
‘‘(ii) such fund is funded in a manner 
that such fund will not exceed the amount 
necessary to repay the issue if invested at 
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the maximum rate permitted under clause 
(iii), and 
‘‘(iii) the yield on such fund is not 
greater than the discount rate determined 
under paragraph (5)(B) with respect to the 
issue. 
‘‘(5) MATURITY LIMITATION.— 
‘‘(A) IN GENERAL.—An issue shall not be 
treated as meeting the requirements of this 
paragraph if the maturity of any bond which is 
part of such issue exceeds the maximum term 
determined by the Secretary under subpara-
graph (B). 
‘‘(B) MAXIMUM TERM.—During each cal-
endar month, the Secretary shall determine the 
maximum term permitted under this paragraph 
for bonds issued during the following calendar 
month. Such maximum term shall be the term 
which the Secretary estimates will result in the 
present value of the obligation to repay the 
principal on the bond being equal to 50 percent 
of the face amount of such bond. Such present 
value shall be determined using as a discount 
rate the average annual interest rate of tax-ex-
empt obligations having a term of 10 years or 
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more which are issued during the month. If the 
term as so determined is not a multiple of a 
whole year, such term shall be rounded to the 
next highest whole year. 
‘‘(e) OTHER DEFINITIONS.—For purposes of this 
subchapter— 
‘‘(1) CREDIT
ALLOWANCE
DATE.—The term 
‘credit allowance date’ means— 
‘‘(A) March 15, 
‘‘(B) June 15, 
‘‘(C) September 15, and 
‘‘(D) December 15. 
Such term includes the last day on which the bond 
is outstanding. 
‘‘(2) BOND.—The term ‘bond’ includes any ob-
ligation. 
‘‘(3) STATE.—The term ‘State’ includes the 
District of Columbia and any possession of the 
United States. 
‘‘(4) AVAILABLE
PROJECT
PROCEEDS.—The 
term ‘available project proceeds’ means— 
‘‘(A) the excess of— 
‘‘(i) the proceeds from the sale of an 
issue, over 
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