529 
AMDT. NO. 98 
‘‘(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— 
‘‘(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— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00529
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
530 
AMDT. NO. 98 
‘‘(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). 
‘‘(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: 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00530
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
531 
AMDT. NO. 98 
‘‘(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. 
‘‘(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.— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00531
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
532 
AMDT. NO. 98 
‘‘(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 
‘‘(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)). 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00532
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
533 
AMDT. NO. 98 
‘‘(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-
tion allocated to such government under para-
graph (1).’’. 
(b) STUDY.—The Secretary of the Treasury, or the 
Secretary’s delegate, shall conduct a study of the effects 
of the amendment made by subsection (a). Not later than 
1 year after the date of the enactment of this Act, the 
Secretary of the Treasury, or the Secretary’s delegate, 
shall report to Congress on the results of the study con-
ducted under this paragraph, including the Secretary’s 
recommendations regarding such amendment. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to obligations issued after the 
date of the enactment of this Act. 
SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT. 
(a) INCREASE IN NATIONAL LIMITATION.— 
(1) IN GENERAL.—Section 45D(f)(1) is amend-
ed— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C), 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00533
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
534 
AMDT. NO. 98 
(B) by striking ‘‘, 2007, 2008, and 2009.’’ 
in subparagraph (D), and inserting ‘‘and 
2007,’’, and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(E) $5,000,000,000 for 2008, and 
‘‘(F) $5,000,000,000 for 2009.’’. 
(2) SPECIAL
RULE
FOR
ALLOCATION
OF
IN-
CREASED 2008 LIMITATION.—The amount of the in-
crease in the new markets tax credit limitation for 
calendar year 2008 by reason of the amendments 
made by subsection (a) shall be allocated in accord-
ance with section 45D(f)(2) of the Internal Revenue 
Code of 1986 to qualified community development 
entities (as defined in section 45D(c) of such Code) 
which— 
(A) submitted an allocation application 
with respect to calendar year 2008, and 
(B)(i) did not receive an allocation for 
such calendar year, or 
(ii) received an allocation for such calendar 
year in an amount less than the amount re-
quested in the allocation application. 
(b) ALTERNATIVE MINIMUM TAX RELIEF.— 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00534
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
535 
AMDT. NO. 98 
(1) IN
GENERAL.—Section 38(c)(4)(B) is 
amended by redesignating clauses (v) through (viii) 
as clauses (vi) through (ix), respectively, and by in-
serting after clause (iv) the following new clause: 
‘‘(v) the credit determined under sec-
tion 45D to the extent that such credit is 
attributable to a qualified equity invest-
ment which is designated as such under 
section 45D(b)(1)(C) pursuant to an allo-
cation of the new markets tax credit limi-
tation for calendar year 2009,’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to credits determined 
under section 45D of the Internal Revenue Code of 
1986 in taxable years ending after the date of the 
enactment of this Act, and to carrybacks of such 
credits. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00535
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
536 
AMDT. NO. 98 
Subtitle F—Infrastructure 
Financing Tools 
PART I—IMPROVED MARKETABILITY FOR TAX- 
EXEMPT BONDS 
SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX- 
EXEMPT INTEREST EXPENSE OF FINANCIAL 
INSTITUTIONS. 
(a) IN GENERAL.—Subsection (b) of section 265 is 
amended by adding at the end the following new para-
graph: 
‘‘(7) DE
MINIMIS
EXCEPTION
FOR
BONDS 
ISSUED DURING 2009 OR 2010.— 
‘‘(A) IN GENERAL.—In applying paragraph 
(2)(A), there shall not be taken into account 
tax-exempt obligations issued during 2009 or 
2010. 
‘‘(B) LIMITATION.—The amount of tax-ex-
empt obligations not taken into account by rea-
son of subparagraph (A) shall not exceed 2 per-
cent of the amount determined under para-
graph (2)(B). 
‘‘(C) REFUNDINGS.—For purposes of this 
paragraph, a refunding bond (whether a current 
or advance refunding) shall be treated as issued 
on the date of the issuance of the refunded 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00536
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
537 
AMDT. NO. 98 
bond (or in the case of a series of refundings, 
the original bond).’’. 
(b) TREATMENT AS FINANCIAL INSTITUTION PREF-
ERENCE ITEM.—Clause (iv) of section 291(e)(1)(B) is 
amended by adding at the end the following: ‘‘That por-
tion of any obligation not taken into account under para-
graph (2)(A) of section 265(b) by reason of paragraph (7) 
of such section shall be treated for purposes of this section 
as having been acquired on August 7, 1986.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2008. 
SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION 
TO TAX-EXEMPT INTEREST EXPENSE ALLOCA-
TION RULES FOR FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Paragraph (3) of section 265(b) 
(relating to exception for certain tax-exempt obligations) 
is amended by adding at the end the following new sub-
paragraph: 
‘‘(G) SPECIAL
RULES
FOR
OBLIGATIONS 
ISSUED DURING 2009 AND 2010.— 
‘‘(i) INCREASE
IN
LIMITATION.—In 
the case of obligations issued during 2009 
or 2010, subparagraphs (C)(i), (D)(i), and 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00537
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
538 
AMDT. NO. 98 
(D)(iii)(II) shall each be applied by sub-
stituting ‘$30,000,000’ for ‘$10,000,000’. 
‘‘(ii) 
QUALIFIED
501(c)(3) 
BONDS 
TREATED AS ISSUED BY EXEMPT ORGANI-
ZATION.—In the case of a qualified 
501(c)(3) bond (as defined in section 145) 
issued during 2009 or 2010, this para-
graph shall be applied by treating the 
501(c)(3) organization for whose benefit 
such bond was issued as the issuer. 
‘‘(iii) SPECIAL RULE FOR QUALIFIED 
FINANCINGS.—In the case of a qualified fi-
nancing issue issued during 2009 or 
2010— 
‘‘(I) subparagraph (F) shall not 
apply, and 
‘‘(II) any obligation issued as a 
part of such issue shall be treated as 
a qualified tax-exempt obligation if 
the requirements of this paragraph 
are met with respect to each qualified 
portion of the issue (determined by 
treating each qualified portion as a 
separate issue which is issued by the 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00538
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
539 
AMDT. NO. 98 
qualified borrower with respect to 
which such portion relates). 
‘‘(iv) QUALIFIED FINANCING ISSUE.— 
For purposes of this subparagraph, the 
term ‘qualified financing issue’ means any 
composite, pooled, or other conduit financ-
ing issue the proceeds of which are used 
directly or indirectly to make or finance 
loans to 1 or more ultimate borrowers each 
of whom is a qualified borrower. 
‘‘(v) QUALIFIED PORTION.—For pur-
poses of this subparagraph, the term 
‘qualified portion’ means that portion of 
the proceeds which are used with respect 
to each qualified borrower under the issue. 
‘‘(vi) QUALIFIED
BORROWER.—For 
purposes of this subparagraph, the term 
‘qualified borrower’ means a borrower 
which is a State or political subdivision 
thereof or an organization described in sec-
tion 501(c)(3) and exempt from taxation 
under section 501(a).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to obligations issued after Decem-
ber 31, 2008. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00539
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
540 
AMDT. NO. 98 
SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE 
MINIMUM TAX LIMITATIONS ON TAX-EXEMPT 
BONDS. 
(a) INTEREST ON PRIVATE ACTIVITY BONDS ISSUED 
DURING 2009 AND 2010 NOT TREATED AS TAX PREF-
ERENCE ITEM.—Subparagraph (C) of section 57(a)(5) is 
amended by adding at the end a new clause: 
‘‘(vi) EXCEPTION FOR BONDS ISSUED 
IN 2009 AND 2010.—For purposes of clause 
(i), the term ‘private activity bond’ shall 
not include any bond issued after Decem-
ber 31, 2008, and before January 1, 2011. 
For purposes of the preceding sentence, a 
refunding bond (whether a current or ad-
vance refunding) shall be treated as issued 
on the date of the issuance of the refunded 
bond (or in the case of a series of 
refundings, the original bond).’’. 
(b) NO
ADJUSTMENT
TO
ADJUSTED
CURRENT 
EARNINGS
FOR
INTEREST
ON
TAX-EXEMPT
BONDS 
ISSUED DURING 2009 AND 2010.—Subparagraph (B) of 
section 56(g)(4) is amended by adding at the end the fol-
lowing new clause: 
‘‘(iv) TAX
EXEMPT
INTEREST
ON 
BONDS ISSUED IN 2009 AND 2010.—Clause 
(i) shall not apply in the case of any inter-
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00540
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
541 
AMDT. NO. 98 
est on a bond issued after December 31, 
2008, and before January 1, 2011. For 
purposes of the preceding sentence, a re-
funding bond (whether a current or ad-
vance refunding) shall be treated as issued 
on the date of the issuance of the refunded 
bond (or in the case of a series of 
refundings, the original bond).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2008. 
SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL 
FACILITY BONDS. 
(a) IN GENERAL.—Paragraph (1) of section 142(i) 
is amended by striking ‘‘operate at speeds in excess of’’ 
and inserting ‘‘be capable of attaining a maximum speed 
in excess of’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to bonds issued after the date of 
the enactment of this Act. 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00541
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
542 
AMDT. NO. 98 
PART II—DELAY IN APPLICATION OF WITH-
HOLDING TAX ON GOVERNMENT CONTRAC-
TORS 
SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX 
ON GOVERNMENT CONTRACTORS. 
Subsection (b) of section 511 of the Tax Increase 
Prevention and Reconciliation Act of 2005 is amended by 
striking ‘‘December 31, 2010’’ and inserting ‘‘December 
31, 2011’’. 
PART III—TAX CREDIT BONDS FOR SCHOOLS 
SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. 
(a) IN GENERAL.—Subpart I of part IV of sub-
chapter A of chapter 1 is amended by adding at the end 
the following new section: 
‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. 
‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.— 
For purposes of this subchapter, the term ‘qualified school 
construction 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 the construc-
tion, rehabilitation, or repair of a public school facil-
ity or for the acquisition of land on which such a fa-
cility is to be constructed with part of the proceeds 
of such issue, 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00542
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
543 
AMDT. NO. 98 
‘‘(2) the bond is issued by a State or local gov-
ernment within the jurisdiction of which such school 
is located, and 
‘‘(3) the issuer designates such bond for pur-
poses of this section. 
‘‘(b) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds issued during any calendar year which may be des-
ignated under subsection (a) by any issuer shall not exceed 
the limitation amount allocated under subsection (d) for 
such calendar year to such issuer. 
‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS 
DESIGNATED.—There is a national qualified school con-
struction bond limitation for each calendar year. Such lim-
itation is— 
‘‘(1) $5,000,000,000 for 2009, 
‘‘(2) $5,000,000,000 for 2010, and 
‘‘(3) except as provided in subsection (e), zero 
after 2010. 
‘‘(d) LIMITATION ALLOCATED AMONG STATES.— 
‘‘(1) IN
GENERAL.—The limitation applicable 
under subsection (c) for any calendar year shall be 
allocated by the Secretary among the States in pro-
portion to the respective numbers of children in each 
State who have attained age 5 but not age 18 for 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00543
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
544 
AMDT. NO. 98 
the most recent fiscal year ending before such cal-
endar year. The limitation amount allocated to a 
State under the preceding sentence shall be allocated 
by the State to issuers within such State. 
‘‘(2) MINIMUM ALLOCATIONS TO STATES.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
adjust the allocations under this subsection for 
any calendar year for each State to the extent 
necessary to ensure that the amount allocated 
to such State under this subsection for such 
year is not less than an amount equal to such 
State’s adjusted minimum percentage of the 
amount to be allocated under paragraph (1) for 
the calendar year. 
‘‘(B) MINIMUM
PERCENTAGE.—A State’s 
minimum percentage for any calendar year is 
equal to the product of— 
‘‘(i) the quotient of— 
‘‘(I) the amount the State is eli-
gible to receive under section 1124(d) 
of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 
6333(d)) for the most recent fiscal 
year ending before such calendar year, 
divided by 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00544
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
545 
AMDT. NO. 98 
‘‘(II) the amount all States are 
eligible to receive under section 1124 
of such Act (20 U.S.C. 6333) for such 
fiscal year, multiplied by 
‘‘(ii) 100. 
‘‘(3) 
ALLOCATIONS
TO
CERTAIN
POSSES-
SIONS.—The amount to be allocated under para-
graph (1) to any possession of the United States 
other than Puerto Rico shall be the amount which 
would have been allocated if all allocations under 
paragraph (1) were made on the basis of respective 
populations of individuals below the poverty line (as 
defined by the Office of Management and Budget). 
In making other allocations, the amount to be allo-
cated under paragraph (1) shall be reduced by the 
aggregate amount allocated under this paragraph to 
possessions of the United States. 
‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In 
addition to the amounts otherwise allocated under 
this subsection, $200,000,000 for calendar year 
2009, and $200,000,000 for calendar year 2010, 
shall be allocated by the Secretary of the Interior for 
purposes of the construction, rehabilitation, and re-
pair of schools funded by the Bureau of Indian Af-
fairs. In the case of amounts allocated under the 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00545
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS
546 
AMDT. NO. 98 
preceding sentence, Indian tribal governments (as 
defined in section 7701(a)(40)) shall be treated as 
qualified issuers for purposes of this subchapter. 
‘‘(e) CARRYOVER OF UNUSED LIMITATION.—If for 
any calendar year— 
‘‘(1) the amount allocated under subsection (d) 
to any State, exceeds 
‘‘(2) the amount of bonds issued during such 
year which are designated under subsection (a) pur-
suant to such allocation, 
the limitation amount under such subsection for such 
State for the following calendar year shall be increased 
by the amount of such excess. A similar rule shall apply 
to the amounts allocated under subsection (d)(4).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 54A(d) is amended 
by striking ‘‘or’’ at the end of subparagraph (C), by 
inserting ‘‘or’’ at the end of subparagraph (D), and 
by inserting after subparagraph (D) the following 
new subparagraph: 
‘‘(E) 
a 
qualified 
school 
construction 
bond,’’. 
(2) Subparagraph (C) of section 54A(d)(2) is 
amended by striking ‘‘and’’ at the end of clause (iii), 
by striking the period at the end of clause (iv) and 
VerDate Nov 24 2008 
02:17 Jan 31, 2009
Jkt 079200
PO 00000
Frm 00546
Fmt 6654
Sfmt 6201
E:\BILLS\H1.AS
H1
smartinez on PROD1PC64 with BILLS