A bill to amend the Internal Revenue Code of 1986 to provide for alternative motor vehicle facility bonds.

SECTION 1. TAX-EXEMPT FINANCING OF ALTERNATIVE MOTOR VEHICLE 
              FACILITIES.

    (a) In General.--Subsection (a) of section 142 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``or'' at the end of paragraph (14),
            (2) by striking the period at the end of paragraph (15) and 
        inserting ``, or'', and
            (3) by inserting at the end the following new paragraph:
            ``(16) alternative motor vehicle facility.''.
    (b) Definition.--Section 142 of the Internal Revenue Code of 1986 
is amended by inserting at the end the following new subsection:
    ``(n) Alternative Motor Vehicle Facility.--
            ``(1) In general.--For purposes of subsection (a)(16), the 
        term `alternative motor vehicle facility' means an automobile 
        development and production facility which was built before 1981 
        and which through financing by the net proceeds of the issue is 
        retrofitted or reconstructed to make such facility compatible 
        for the development and production of qualified alternative 
        motor vehicles or of qualified alternative motor vehicles and 
        component parts for such vehicles.
            ``(2) Qualified alternative motor vehicles.--For purposes 
        of paragraph (1), the term `qualified alternative motor 
        vehicle' means any vehicle described in section 30B or 30D.
            ``(3) National limitation on amount of bonds.--
                    ``(A) National limitation.--The aggregate amount 
                allocated by the Secretary under subparagraph (C) shall 
                not exceed $12,000,000,000, of which not more than 
                $4,000,000,000 may be allocated to any single taxpayer 
                (determined under rules similar to the rules in 
                paragraphs (6), (7), and (8) of section 179(d)).
                    ``(B) Enforcement of national limitation.--An issue 
                shall not be treated as an issue described in 
                subsection (a)(16) if the aggregate face amount of 
                bonds issued pursuant to such issue for any alternative 
                motor vehicle facility (when added to the aggregate 
                face amount of bonds previously so issued for such 
                facility) exceeds the amount allocated to such facility 
                under subparagraph (C).
                    ``(C) Allocation by secretary.--The Secretary shall 
                allocate the amount described in subparagraph (A) among 
                State or local governments to finance alternative motor 
                vehicle facilities located within the jurisdictions of 
                such governments in such manner as the Secretary 
                determines appropriate.
            ``(4) Special rules relating to expenditures.--
                    ``(A) In general.--An issue shall not be treated as 
                an issue described in subsection (a)(16) unless at 
                least 95 percent of the proceeds from the sale of the 
                issue are to be spent for 1 or more facilities within 
                the 5-year period beginning on the date of issuance.
                    ``(B) Extension of period.--Upon submission of a 
                request prior to the expiration of the period described 
                in subparagraph (A)(i), the Secretary may extend such 
                period if the issuer establishes that the failure to 
                satisfy the 5-year requirement is due to reasonable 
                cause and the related facilities will continue to 
                proceed with due diligence.
                    ``(C) Failure to spend required amount of bond 
                proceeds within 5 years.--To the extent that less than 
                95 percent of the proceeds of such issue are expended 
                by the close of the 5-year period beginning on the date 
                of issuance (or if an extension has been obtained under 
                subparagraph (B), by the close of the extended period), 
                the issuer shall use all unspent proceeds of such issue 
                to redeem bonds of the issue within 90 days after the 
                end of such period.
            ``(5) Exception for current refunding bonds.--Paragraph (3) 
        shall not apply to any bond (or series of bonds) issued to 
        refund a bond issued under subsection (a)(16) if--
                    ``(A) 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,
                    ``(B) the amount of the refunding bond does not 
                exceed the outstanding amount of the refunded bond, and
                    ``(C) the refunded bond is redeemed not later than 
                90 days after the date of the issuance of the refunding 
                bond.
        For purposes of subparagraph (A), average maturity shall be 
        determined in accordance with section 147(b)(2)(A).''.
    (c) Conforming Amendment.--Section 146(g)(3) of the Internal 
Revenue Code of 1986 is amended by striking ``or (15)'' and inserting 
``(15), or (16)''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to bonds issued after December 31, 2007, and before 
January 1, 2013.

Summary: Amends the Internal Revenue Code to allow the issuance of tax-exempt facility bonds through 2012 to make automobile development and production facilities built before 1981 compatible for the development and production of qualified alternative motor vehicles and component parts.