I 112th CONGRESS 1st Session H. R. 747 IN THE HOUSE OF REPRESENTATIVES February 16, 2011 Mr. Schiff 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 extend the Build America Bonds program.

1.

Short title

This Act may be cited as the Build America Bonds Extension Act of 2011.

2.

Extension of Build America Bonds

(a)

In general

Subparagraph (B) of section 54AA(d)(1) of the Internal Revenue Code of 1986 is amended by inserting or during the period beginning on the date of the enactment of the Build America Bonds Extension Act of 2011 and ending on December 31, 2012, after January 1, 2011,. (b)

Extension of payments to issuers

(1)

In general

Section 6431 of such Code is amended— (A)by inserting or during the period beginning on the date of the enactment of the Build America Bonds Extension Act of 2011 and ending on December 31, 2012, 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 the period beginning on the date of the enactment of the Build America Bonds Extension Act of 2011 and ending on December 31, 2012, after January 1, 2011,, and (B)by striking qualified bonds issued before 2011 in the heading and inserting certain qualified bonds. (c)

Reduction in percentage of payments to issuers

Subsection (b) of section 6431 of such Code is amended by striking 35 percent and inserting 28 percent. (d)

Application to qualified section 501(c)(3) bonds

Subsection (d) of section 54AA of such Code is amended— (1)by striking other than a private activity bond in paragraph (1) and inserting other than a specified private activity bond, (2)by redesignating paragraph (2) as paragraph (3), and (3)by inserting after paragraph (1) the following new paragraph: (2)

Specified private activity bond

For purposes of paragraph (1), the term specified private activity bond means any private activity bond other than a qualified section 501(c)(3) bond (as defined in section 145). . (e)

Current refundings permitted

Subsection (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 (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 subparagraph (A), the applicable percentage with respect to such bond under section 6431(b) shall be the lowest percentage specified in paragraph (2) of such section. (C)

Determination of average maturity

For purposes of subparagraph (A)(i), average maturity shall be determined in accordance with section 147(b)(2)(A). . (f)

Effective date

(1)

In general

Except as otherwise provided in this subsection, the amendments made by this section shall apply to obligations issued on or after the date of the enactment of this Act. (2)

Refundings

The amendment made by subsection (e) shall apply to refunding bonds (within the meaning of section 54AA(g)(3) of the Internal Revenue Code of 1986, as added by this section) issued on or after the date of the enactment of this Act.