I 
113TH CONGRESS 
1ST SESSION 
H. R. 789 
To amend the Internal Revenue Code of 1986 to permanently extend the 
tax treatment for certain build America bonds, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 15, 2013 
Mr. NEAL (for himself, Mr. LEVIN, Mr. RANGEL, Mr. MCDERMOTT, Mr. 
LEWIS, Mr. BECERRA, Mr. THOMPSON of California, Mr. LARSON of Con-
necticut, Mr. BLUMENAUER, Mr. KIND, Mr. PASCRELL, Mr. CROWLEY, 
Ms. SCHWARTZ, Mr. DANNY K. DAVIS of Illinois, and Ms. LINDA T. 
SA´NCHEZ of California) 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 permanently 
extend the tax treatment for certain build America 
bonds, 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. 
This Act may be cited as the ‘‘Build America Bonds 
Act of 2013’’. 
SEC. 2. BUILD AMERICA BONDS MADE PERMANENT. 
(a) IN GENERAL.—Subparagraph (B) of section 
54AA(d)(1) of the Internal Revenue Code of 1986 is 
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amended by inserting ‘‘or during a period beginning on 
or after the date of the enactment of the Build America 
Bonds Act of 2013,’’ after ‘‘January 1, 2011,’’. 
(b) REDUCTION IN CREDIT PERCENTAGE TO BOND-
HOLDERS.—Subsection (b) of section 54AA of such Code 
is amended to read as follows: 
‘‘(b) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
determined under this subsection with respect to any 
interest payment date for a build America bond is 
the applicable percentage of the amount of interest 
payable by the issuer with respect to such date. 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the applicable percentage shall be 
determined under the following table: 
‘‘In the case of a bond issued 
The applicable 
during calendar year: 
percentage is: 
2009 or 2010 .....................................................................................
2013 ...................................................................................................
2014 ...................................................................................................
2015 ...................................................................................................
2016 ...................................................................................................
2017 and thereafter ...........................................................................
28.’’. 
(c) EXTENSION OF PAYMENTS TO ISSUERS.— 
(1) IN GENERAL.—Section 6431 of such Code 
is amended— 
(A) by inserting ‘‘or during a period begin-
ning on or after the date of the enactment of 
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the Build America Bonds Act of 2013,’’ after 
‘‘January 1, 2011,’’ in subsection (a), and 
(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 of such Code is amended— 
(A) by inserting ‘‘or during a period begin-
ning on or after the date of the enactment of 
the Build America Bonds Act of 2013,’’ after 
‘‘January 1, 2011,’’, and 
(B) 
by 
striking 
‘‘QUALIFIED
BONDS 
ISSUED BEFORE 2011’’ in the heading and in-
serting ‘‘CERTAIN QUALIFIED BONDS’’. 
(d) REDUCTION IN PERCENTAGE OF PAYMENTS TO 
ISSUERS.—Subsection (b) of section 6431 of such Code 
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: 
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‘‘(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 
The applicable 
issued during calendar year: 
percentage is: 
2009 or 2010 .....................................................................................
2013 ...................................................................................................
2014 ...................................................................................................
2015 ...................................................................................................
2016 ...................................................................................................
2017 and thereafter ...........................................................................
28.’’. 
(e) 
CURRENT
REFUNDINGS
PERMITTED.—Sub-
section (g) of section 54AA of such Code 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 
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‘‘(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). 
‘‘(D) ISSUANCE RESTRICTION NOT APPLI-
CABLE.—Subsection (d)(1)(B) shall not apply 
to a refunding bond referred to in subpara-
graph (A).’’. 
(f) CLARIFICATION
RELATED
TO
LEVEES
AND 
FLOOD CONTROL PROJECTS.—Subparagraph (A) of sec-
tion 54AA(g)(2) of such Code is amended by inserting 
‘‘(including capital expenditures for levees and other flood 
control projects)’’ after ‘‘capital expenditures’’. 
(g) GROSS-UP OF PAYMENT TO ISSUERS IN CASE OF 
SEQUESTRATION.—In the case of any payment under sec-
tion 6431(b) of the Internal Revenue Code of 1986 made 
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after the date of the enactment of this Act to which se-
questration applies, the amount of such payment shall be 
increased to an amount equal to— 
(1) such payment (determined before such se-
questration), multiplied by 
(2) the quotient obtained by dividing 1 by the 
amount by which 1 exceeds the percentage reduction 
in such payment pursuant to such sequestration. 
For purposes of this subsection, the term ‘‘sequestration’’ 
means any reduction in direct spending ordered in accord-
ance with a sequestration report prepared by the Director 
of the Office and Management and Budget pursuant to 
the Balanced Budget and Emergency Deficit Control Act 
of 1985 or the Statutory Pay-As-You-Go Act of 2010. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued on or after 
the date of the enactment of this Act. 
Æ 
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