I 112th CONGRESS 1st Session H. R. 992 IN THE HOUSE OF REPRESENTATIVES March 10, 2011 Mr. Levin (for himself, Mr. Rangel, Mr. Stark, Mr. McDermott, Mr. Lewis of Georgia, Mr. Neal, Mr. Becerra, Mr. Thompson of California, Mr. Larson of Connecticut, Mr. Blumenauer, Mr. Kind, Mr. Pascrell, Ms. Berkley, and Mr. Crowley) 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 create jobs through increased investment in infrastructure, and for other purposes.
1.
Short title; amendment of 1986 Code; table of contents
(a)
Short title
This Act may be cited as the Building American Jobs Act of 2011. (b)
Amendment of 1986 Code
Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c)
Table of contents
The table of contents for this Act is as follows: Sec. 1. Short title; amendment of 1986 Code; table of contents. Sec. 2. Extension of Build America Bonds. Sec. 3. Extension and additional allocations of recovery zone bond authority. Sec. 4. Exempt-facility bonds for sewage and water supply facilities. Sec. 5. Extension of exemption from alternative minimum tax treatment for certain tax-exempt bonds. Sec. 6. Allowance of new markets tax credit against alternative minimum tax. Sec. 7. Extension of tax-exempt eligibility for loans guaranteed by Federal home loan banks. Sec. 8. Extension of temporary small issuer rules for allocation of tax-exempt interest expense by financial institutions. Sec. 9. Election for refundable low-income housing credit for 2011.
2.
Extension of Build America Bonds
(a)
In general
Subparagraph (B) of section 54AA(d)(1) is amended by inserting or during the period beginning on the date of the enactment of the Building American Jobs Act of 2011 and ending on December 31, 2012, after January 1, 2011,. (b)
Extension of payments to issuers
(1)
In general
Section 6431 is amended— (A)by inserting or during the period beginning on the date of the enactment of the Building American Jobs 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 is amended— (A)by inserting or during the period beginning on the date of the enactment of the Building American Jobs 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 is amended— (1)by striking The Secretary and inserting the following: (1)
In general
The Secretary , (2)by striking 35 percent and inserting the applicable percentage, and (3)by adding at the end the following new paragraph: (2)
Applicable percentage
For purposes of this subsection, the term applicable percentage means the percentage determined in accordance with the following table: In the case of a qualified bond issued during calendar year:The applicable percentage is: 2009 or 201035 percent 201132 percent 201231 percent.
. (d)
Current refundings permitted
Subsection (g) of section 54AA 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). . (e)
Clarification related to levees and flood control projects
Subparagraph (A) of section 54AA(g)(2) is amended by inserting (including capital expenditures for levees and other flood control projects) after capital expenditures.
3.
Extension and additional allocations of recovery zone bond authority
(a)
Extension of recovery zone bond authority
Section 1400U–2(b)(1) and section 1400U–3(b)(1)(B) are each amended by inserting or during the period beginning on the date of the enactment of the Building American Jobs Act of 2011 and ending on December 31, 2011, after January 1, 2011,. (b)
Additional allocations of recovery zone bond authority based on unemployment
Section 1400U–1 is amended by adding at the end the following new subsection: (c)
Allocation of 2011 recovery zone bond limitations based on unemployment
(1)
In general
The Secretary shall allocate the 2011 national recovery zone economic development bond limitation and the 2011 national recovery zone facility bond limitation among the States in the proportion that each such State’s 2009 unemployment number bears to the aggregate of the 2009 unemployment numbers for all of the States. (2)
Minimum allocation
The Secretary shall adjust the allocations under paragraph (1) for each State to the extent necessary to ensure that no State (prior to any reduction under paragraph (3)) receives less than 0.9 percent of the 2011 national recovery zone economic development bond limitation and 0.9 percent of the 2011 national recovery zone facility bond limitation. (3)
Allocations by States
(A)
In general
Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities (as defined in subsection (a)(3)(B)) in such State in the proportion that each such county’s or municipality’s 2009 unemployment number bears to the aggregate of the 2009 unemployment numbers for all the counties and large municipalities (as so defined) in such State. (B)
2011 allocation reduced by amount of previous allocation
Each State shall reduce (but not below zero)— (i)the amount of the 2011 national recovery zone economic development bond limitation allocated to each county or large municipality (as so defined) in such State by the amount of the national recovery zone economic development bond limitation allocated to such county or large municipality under subsection (a)(3)(A) (determined without regard to any waiver thereof), and (ii)the amount of the 2011 national recovery zone facility bond limitation allocated to each county or large municipality (as so defined) in such State by the amount of the national recovery zone facility bond limitation allocated to such county or large municipality under subsection (a)(3)(A) (determined without regard to any waiver thereof). (C)
Waiver of suballocations
A county or municipality may waive any portion of an allocation made under this paragraph. A county or municipality shall be treated as having waived any portion of an allocation made under this paragraph which has not been allocated to a bond issued before May 1, 2011. Any allocation waived (or treated as waived) under this subparagraph may be used or reallocated by the State. (D)
Special rule for a municipality in a county
In the case of any large municipality any portion of which is in a county, such portion shall be treated as part of such municipality and not part of such county. (4)
2009 unemployment number
For purposes of this subsection, the term 2009 unemployment number means, with respect to any State, county or municipality, the number of individuals in such State, county, or municipality who were determined to be unemployed by the Bureau of Labor Statistics for December 2009. (5)
2011 national limitations
(A)
Recovery zone economic development bonds
The 2011 national recovery zone economic development bond limitation is $10,000,000,000. Any allocation of such limitation under this subsection shall be treated for purposes of section 1400U–2 in the same manner as an allocation of national recovery zone economic development bond limitation. (B)
Recovery zone facility bonds
The 2011 national recovery zone facility bond limitation is $15,000,000,000. Any allocation of such limitation under this subsection shall be treated for purposes of section 1400U–3 in the same manner as an allocation of national recovery zone facility bond limitation. . (c)
Authority of State To waive certain 2009 allocations
Subparagraph (A) of section 1400U–1(a)(3) is amended by adding at the end the following: A county or municipality shall be treated as having waived any portion of an allocation made under this subparagraph which has not been allocated to a bond issued before May 1, 2011. Any allocation waived (or treated as waived) under this subparagraph may be used or reallocated by the State..
4.
Exempt-facility bonds for sewage and water supply facilities
(a)
Bonds for water and sewage facilities exempt from volume cap on private activity bonds
(1)
In general
Paragraph (3) of section 146(g) is amended by inserting (4), (5), after (2),. (2)
Conforming amendment
Paragraphs (2) and (3)(B) of section 146(k) are both amended by striking (4), (5), (6), and inserting (6). (b)
Tax-Exempt issuance by Indian tribal governments
(1)
In general
Subsection (c) of section 7871 is amended by adding at the end the following new paragraph: (4)
Exception for bonds for water and sewage facilities
Paragraph (2) shall not apply to an exempt facility bond 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of which are to be used to provide facilities described in paragraph (4) or (5) of section 142(a). . (2)
Conforming amendment
Paragraph (2) of section 7871(c) is amended by striking paragraph (3) and inserting paragraphs (3) and (4). (c)
Effective date
The amendments made by this section shall apply to obligations issued on or after the date of the enactment of this Act.
5.
Extension of exemption from alternative minimum tax treatment for certain tax-exempt bonds
(a)
In general
Clause (vi) of section 57(a)(5)(C) is amended— (1)by inserting or during the period beginning on the date of the enactment of the Building American Jobs Act of 2011 and ending on December 31, 2011, after January 1, 2011,, and (2)by striking Exception for bonds issued in 2009 and 2010 in the heading and inserting Temporary exception. (b)
Adjusted current earnings
Clause (iv) of section 56(g)(4)(B) is amended— (1)by inserting or during the period beginning on the date of the enactment of the Building American Jobs Act of 2011 and ending on December 31, 2011, after January 1, 2011,, and (2)by striking Tax exempt interest on bonds issued in 2009 and 2010 in the heading and inserting Temporary exclusion of tax exempt bond interest. (c)
Effective date
The amendments made by this section shall apply to obligations issued on or after the date of the enactment of this Act.
6.
Allowance of new markets tax credit against alternative minimum tax
(a)
In general
Subparagraph (B) of section 38(c)(4) is amended by redesignating clauses (v) through (ix) as clauses (vi) through (x), respectively, and by inserting after clause (iv) the following new clause: (v)the credit determined under section 45D, but only with respect to credits determined with respect to qualified equity investments (as defined in section 45D(b)) initially made before January 1, 2012, . (b)
Effective date
The amendments made by this section shall apply to credits determined with respect to qualified equity investments (as defined in section 45D(b) of the Internal Revenue Code of 1986) initially made after the date of the enactment of this Act.
7.
Extension of tax-exempt eligibility for loans guaranteed by Federal home loan banks
(a)
In general
Clause (iv) of section 149(b)(3)(A) is amended by inserting or during the period beginning on the date of the enactment of the Building American Jobs Act of 2011 and ending on December 31, 2011, after December 31, 2010. (b)
Effective date
The amendment made by this section shall apply to obligations issued on or after the date of the enactment of this Act.
8.
Extension of temporary small issuer rules for allocation of tax-exempt interest expense by financial institutions
(a)
In general
Clauses (i), (ii), and (iii) of section 265(b)(3)(G) are each amended by striking or 2010 and inserting , 2010, or 2011. (b)
Conforming amendment
Subparagraph (G) of section 265(b)(3) is amended by striking and 2010 in the heading and inserting , 2010, and 2011. (c)
Effective date
The amendments made by this section shall apply to obligations issued after December 31, 2010.
9.
Election for refundable low-income housing credit for 2011
(a)
In general
Section 42 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection: (n)
Election for refundable credits
(1)
In general
The housing credit agency of each State shall be allowed a credit in an amount equal to such State’s 2011 low-income housing refundable credit election amount which shall be payable by the Secretary as provided in paragraph (5). (2)
2011 low-income housing refundable credit election amount
For purposes of this subsection, the term 2011 low-income housing refundable credit election amount means, with respect to any State, such amount as the State may elect which does not exceed 85 percent of the product of— (A)the sum of— (i)100 percent of the State housing credit ceiling for 2011 which is attributable to amounts described in clauses (i) and (iii) of subsection (h)(3)(C), and (ii)40 percent of the State housing credit ceiling for 2011 which is attributable to amounts described in clauses (ii) and (iv) of such subsection, multiplied by (B)10. (3)
Coordination with non-refundable credit
For purposes of this section, the amounts described in clauses (i) through (iv) of subsection (h)(3)(C) with respect to any State for 2011 shall each be reduced by so much of such amount as is taken into account in determining the amount of the credit allowed with respect to such State under paragraph (1). (4)
Special rule for basis
Basis of a qualified low-income building shall not be reduced by the amount of any payment made under this subsection. (5)
Payment of credit; use to finance low-income buildings
The Secretary shall pay to the housing credit agency of each State an amount equal to the credit allowed under paragraph (1). Rules similar to the rules of subsections (c) and (d) of section 1602 of the American Recovery and Reinvestment Tax Act of 2009 shall apply with respect to any payment made under this paragraph, except that such subsection (d) shall be applied by substituting January 1, 2013 for January 1, 2011. . (b)
Conforming amendment
Section 1324(b)(2) of title 31, United States Code, is amended by inserting 42(n), after 36A,.