I 111th CONGRESS 2d Session H. R. 4606 IN THE HOUSE OF REPRESENTATIVES February 4, 2010 Ms. Eddie Bernice Johnson of Texas 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 expand the purposes for which Build America Bonds may be issued.

1.

Modification of build America bonds

(a)

In general

Section 54AA of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h)

Special rule for certain build America bonds

For purposes of this section and section 6431— (1)

In general

A bond shall be treated as a Build America bond which is a qualified bond, if— (A)the issuer makes an irrevocable election to have this subsection apply, (B)the bond is issued as part of an issue of which 100 percent of the nonreserve proceeds are to be used for a specified purpose, (C)at least 15 percent of the payment of debt service on the issue of which such bond is a part is directly or indirectly to be derived from generally applicable taxes,        (D)the issuer satisfies the requirements of section 148 with respect to the proceeds of the issue of which such bond is a part, and    (E)the issuer submits a report similar to the report required by section 149(e). (2)

Definitions

For purposes of this subsection— (A)

Nonreserve proceeds

The term nonreserve proceeds with respect to an issue means an amount equal to the excess of— (i)the available project proceeds (as defined in section 54A) of such issue, over                       (ii)the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to the issue. (B)

Specified purpose

The term specified purpose means providing a facility (including any land, building or other property functionally related and subordinate to such facility) which is located within 2,000 feet of an enclosed convention center facility that is more than 150,000 square feet and is owned by or on behalf of a governmental unit having a population (determined by using 2000 census data) of not more than 250,000. (3)

Limitation

The face amount of bonds with respect to which an issuer may make an election to have this subsection apply shall not exceed $250,000,000. Rules similar to the rules of section 265(b)(3)(E) (relating to aggregation of issuers) shall apply for purposes of the preceding sentence. . (b)

Effective date

The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.