1.Tax-exempt financing of
alternative motor vehicle facilities
(a)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)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)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 vehiclesFor 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)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 limitationAn 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)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)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)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 yearsTo 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 bondsParagraph (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)Section 146(g)(3) of the Internal Revenue Code of 1986
is amended by striking or (15)
and inserting (15), or
(16)
.
(d)The amendments made by
this section shall apply with respect to bonds issued after December 31, 2007,
and before January 1, 2013.