American
Recovery and Reinvestment Act of 2009 -
Build America Bonds
| PART IV - Build America Bonds SEC. 1531. BUILD AMERICA BONDS. (a) IN GENERAL.—Part IV of subchapter A of chapter 1 is amended by adding at the end the following new subpart: ‘‘Subpart J—Build America Bonds ‘‘Sec. 54AA. Build America bonds. ‘‘SEC. 54AA. BUILD AMERICA BONDS. ‘‘(a) IN GENERAL.—If a taxpayer holds a build America bond on one or more interest payment dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates. ‘‘(b) AMOUNT OF CREDIT.—The amount of the credit determined under this subsection with respect to any interest payment date for a build America bond is 35 percent of the amount of interest payable by the issuer with respect to such date . ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— ‘‘(1) IN GENERAL.—The credit allowed under subsection (a) for any taxable year shall not exceed the excess of— ‘‘(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over ‘‘(B) the sum of the credits allowable under this part (other than subpart C and this subpart). ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year). ‘‘(d) BUILD AMERICA BOND.— ‘‘(1) IN GENERAL.—For purposes of this section, the term ‘build America bond’ means any obligation (other than a private activity bond) if— ‘‘(A) the interest on such obligation would (but for this section) be excludable from gross income under section 103, ‘‘(B) such obligation is issued before January 1, 2011, and ‘‘(C) the issuer makes an irrevocable election to have this section apply. ‘‘(2) APPLICABLE RULES.—For purposes of applying para graph (1)— |
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‘‘(A) for purposes of section 149(b), a build America bond shall not be treated as federally guaranteed by reason of the credit allowed under subsection (a) or section 6431,
‘‘(B) for purposes of section 148, the yield on a build America bond shall be determined without regard to the credit allowed under subsection (a), and
‘‘(C) a bond shall not be treated as a build America bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond.
‘‘(e) INTEREST PAYMENT DATE.—For purposes of this section, the term ‘interest payment date’ means any date on which the holder of record of the build America bond is entitled to a payment of interest under such bond.
‘‘(f) SPECIAL RULES.—
‘‘(1) INTEREST ON BUILD AMERICA BONDS INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES.—For purposes of this title, interest on any build America bond shall be includible in gross income.
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules similar to the rules of subsections (f), (g), (h), and (i) of section 54A shall apply for purposes of the credit allowed under subsection (a). ‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS ISSUED BEFORE
2011.—In the case of a qualified bond issued before January 1, 2011—
‘‘(1) ISSUER ALLOWED REFUNDABLE CREDIT.—In lieu of any credit allowed under this section with respect to such bond, the issuer of such bond shall be allowed a credit as provided in section 6431.
‘‘(2) QUALIFIED BOND.—For purposes of this subsection, the term ‘qualified bond’ means any build America bond issued as part of an issue if—
‘‘(A) 100 percent of 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 such issue,
are to be used for capital expenditures, and ‘‘(B) the issuer makes an irrevocable election to have this subsection apply.
‘‘(h) REGULATIONS.—The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section 6431.’’.
(b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE 2011.—Subchapter B of chapter 65 is amended by adding at the end the following new section:
‘‘SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER.
‘‘(a) IN GENERAL.—In the case of a qualified bond issued before January 1, 2011, the issuer of such bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b).
‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such
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interest payments on behalf of the issuer) 35 percent of the interest payable under such bond on such date.
‘‘(c) APPLICATION OF ARBITRAGE RULES.—For purposes of section 148, the yield on a qualified bond shall be reduced by the credit allowed under this section.
‘‘(d) INTEREST PAYMENT DATE.—For purposes of this subsection, the term ‘interest payment date’ means each date on which interest is payable by the issuer under the terms of the bond.
‘‘(e) QUALIFIED BOND.—For purposes of this subsection, the term ‘qualified bond’ has the meaning given such term in section 54AA(g).’’.
(c)
CONFORMING AMENDMENTS.—
(1)
Section 1324(b)(2) of title 31, United States Code, is amended by striking ‘‘or 6428’’ and inserting ‘‘6428, or 6431,’’.
(2)
Section 54A(c)(1)(B) is amended by striking ‘‘subpart C’’ and inserting ‘‘subparts C and J’’.
(3)
Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are each amended by striking ‘‘and I’’ and inserting ‘‘, I, and J’’.
(4)
Section 6211(b)(4)(A) is amended by striking ‘‘and 6428’’ and inserting ‘‘6428, and 6431’’.
(5)
Section 6401(b)(1) is amended by striking ‘‘and I’’ and inserting ‘‘I, and J’’.
(6)
The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
‘‘SUBPART J. BUILD AMERICA BONDS.’’.
(7) The table of section for subchapter B of chapter 65
is amended by adding at the end the following new item: ‘‘Sec. 6431. Credit for qualified bonds allowed to issuer.�����.
(d)
TRANSITIONAL COORDINATION WITH STATE LAW.—Except as otherwise provided by a State after the date of the enactment of this Act, the interest on any build America bond (as defined in section 54AA of the Internal Revenue Code of 1986, as added by this section) and the amount of any credit determined under such section with respect to such bond shall be treated for purposes of the income tax laws of such State as being exempt from Federal income tax.
(e)
EFFECTIVE DATE.—The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.
PART V—REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT BOND CREDITS
SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT BOND CREDITS.
(a) IN GENERAL.—Part I of subchapter M of chapter 1 is amended by inserting after section 853 the following new section:
‘‘SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHAREHOLDERS.
‘‘(a) GENERAL RULE.—A regulated investment company—
‘‘(1) which holds (directly or indirectly) one or more tax credit bonds on one or more applicable dates during the taxable year, and
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‘‘(2) which meets the requirements of section 852(a) for
the taxable year, may elect the application of this section with respect to credits allowable to the investment company during such taxable year with respect to such bonds.
‘‘(b) EFFECT OF ELECTION.—If the election provided in subsection (a) is in effect for any taxable year—
‘‘(1) the regulated investment company shall not be allowed any credits to which subsection (a) applies for such taxable year,
‘‘(2) the regulated investment company shall—
‘‘(A) include in gross income (as interest) for such taxable year an amount equal to the amount that such investment company would have included in gross income with respect to such credits if this section did not apply, and
‘‘(B) increase the amount of the dividends paid deduction for such taxable year by the amount of such income, and ‘‘(3) each shareholder of such investment company shall—
‘‘(A) include in gross income an amount equal to such shareholder’s proportionate share of the interest income attributable to such credits, and
‘‘(B) be allowed the shareholder’s proportionate share of such credits against the tax imposed by this chapter. ‘‘(c) NOTICE TO SHAREHOLDERS.—For purposes of subsection
(b)(3), the shareholder’s proportionate share of— ‘‘(1) credits described in subsection (a), and ‘‘(2) gross income in respect of such credits,
shall not exceed the amounts so designated by the regulated investment company in a written notice mailed to its shareholders not later than 60 days after the close of its taxable year.
‘‘(d) MANNER OF MAKING ELECTION AND NOTIFYING SHARE-HOLDERS.—The election provided in subsection (a) and the notice to shareholders required by subsection (c) shall be made in such manner as the Secretary may prescribe.
‘‘(e) DEFINITIONS AND SPECIAL RULES.— ‘‘(1) DEFINITIONS.—For purposes of this subsection— ‘‘(A) TAX CREDIT BOND.—The term ‘tax credit bond’ means— ‘‘(i) a qualified tax credit bond (as defined in section 54A(d)), ‘‘(ii) a build America bond (as defined in section 54AA(d)), and
‘‘(iii) any bond for which a credit is allowable under subpart H of part IV of subchapter A of this chapter. ‘‘(B) APPLICABLE DATE.—The term ‘applicable date’
means—
‘‘(i) in the case of a qualified tax credit bond or a bond described in subparagraph (A)(iii), any credit allowance date (as defined in section 54A(e)(1)), and
‘‘(ii) in the case of a build America bond (as defined in section 54AA(d)), any interest payment date (as defined in section 54AA(e)).
‘‘(2) STRIPPED TAX CREDIT BONDS.—If the ownership of a tax credit bond is separated from the credit with respect to such bond, subsection (a) shall be applied by reference to the
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instruments evidencing the entitlement to the credit rather than the tax credit bond. ‘‘(f) REGULATIONS, ETC.—The Secretary shall prescribe such
regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including methods for determining a shareholder’s proportionate share of credits.’’.
(b)
CONFORMING AMENDMENTS.—
(1)
Section 54(l) is amended by striking paragraph (4) and by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively.
(2) Section 54A(h) is amended to read as follows:
‘‘(h) BONDS HELD BY REAL ESTATE INVESTMENT TRUSTS.—If any qualified tax credit bond is held by a real estate investment trust, the credit determined under subsection (a) shall be allowed to beneficiaries of such trust (and any gross income included under subsection (f) with respect to such credit shall be distributed to such beneficiaries) under procedures prescribed by the Secretary.’’.
(3) The table of sections for part I of subchapter M of chapter 1 is amended by inserting after the item relating to section 853 the following new item:
‘‘Sec. 853A. Credits from tax credit bonds allowed to shareholders.’’.
(c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
Subtitle G—Other Provisions
SEC. 1601. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED BONDS.
Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of—
(1)
any new clean renewable energy bond (as defined in section 54C of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act,
(2)
any qualified energy conservation bond (as defined in section 54D of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act,
(3)
any qualified zone academy bond (as defined in section 54E of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act,
(4)
any qualified school construction bond (as defined in section 54F of the Internal Revenue Code of 1986), and
(5)
any recovery zone economic development bond (as defined in section 1400U–2 of the Internal Revenue Code of 1986).
SEC. 1602. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009.
(a)
IN GENERAL.—The Secretary of the Treasury shall make a grant to the housing credit agency of each State in an amount equal to such State’s low-income housing grant election amount.
(b)
LOW-INCOME HOUSING GRANT ELECTION AMOUNT.—For purposes of this section, the term ‘‘low-income housing grant election amount’’ means, with respect to any State, such amount as the
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State may elect which does not exceed 85 percent of the product of—
(1)
the sum of—
(A)
100 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (i) and (iii) of section 42(h)(3)(C) of the Internal Revenue Code of 1986, and
(B)
40 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses
(ii)
and (iv) of such section, multiplied by
(2)
10.
(c)
SUBAWARDS FOR LOW-INCOME BUILDINGS.—
(1)
IN GENERAL.—A State housing credit agency receiving a grant under this section shall use such grant to make sub-awards to finance the construction or acquisition and rehabilitation of qualified low-income buildings. A subaward under this section may be made to finance a qualified low-income building with or without an allocation under section 42 of the Internal Revenue Code of 1986, except that a State housing credit agency may make subawards to finance qualified low-income buildings without an allocation only if it makes a determination that such use will increase the total funds available to the State to build and rehabilitate affordable housing. In complying with such determination requirement, a State housing credit agency shall establish a process in which applicants that are allocated credits are required to demonstrate good faith efforts to obtain investment commitments for such credits before the agency makes such subawards.
(2)
SUBAWARDS SUBJECT TO SAME REQUIREMENTS AS LOW-INCOME HOUSING CREDIT ALLOCATIONS.—Any such subaward with respect to any qualified low-income building shall be made in the same manner and shall be subject to the same limitations (including rent, income, and use restrictions on such building) as an allocation of housing credit dollar amount allocated by such State housing credit agency under section 42 of the Internal Revenue Code of 1986, except that such subawards shall not be limited by, or otherwise affect (except as provided in subsection (h)(3)(J) of such section), the State housing credit ceiling applicable to such agency.
(3)
COMPLIANCE AND ASSET MANAGEMENT.—The State housing credit agency shall perform asset management functions to ensure compliance with section 42 of the Internal Revenue Code of 1986 and the long-term viability of buildings funded by any subaward under this section. The State housing credit agency may collect reasonable fees from a subaward recipient to cover expenses associated with the performance of its duties under this paragraph. The State housing credit agency may retain an agent or other private contractor to satisfy the requirements of this paragraph.
(4)
RECAPTURE.—The State housing credit agency shall impose conditions or restrictions, including a requirement providing for recapture, on any subaward under this section so as to assure that the building with respect to which such subaward is made remains a qualified low-income building during the compliance period. Any such recapture shall be payable to the Secretary of the Treasury for deposit in the general fund of the Treasury and may be enforced by means
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of liens or such other methods as the Secretary of the Treasury determines appropriate.
(d)
RETURN OF UNUSED GRANT FUNDS.—Any grant funds not used to make subawards under this section before January 1, 2011, shall be returned to the Secretary of the Treasury on such date. Any subawards returned to the State housing credit agency on or after such date shall be promptly returned to the Secretary of the Treasury. Any amounts returned to the Secretary of the Treasury under this subsection shall be deposited in the general fund of the Treasury.
(e)
DEFINITIONS.—Any term used in this section which is also used in section 42 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 42. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate.
(f)
APPROPRIATIONS.—There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section.
SEC. 1603. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.
(a)
IN GENERAL.—Upon application, the Secretary of the Treasury shall, subject to the requirements of this section, provide a grant to each person who places in service specified energy property to reimburse such person for a portion of the expense of such property as provided in subsection (b). No grant shall be made under this section with respect to any property unless such property— (1) is placed in service during 2009 or 2010, or
(2)
is placed in service after 2010 and before the credit termination date with respect to such property, but only if the construction of such property began during 2009 or 2010.
(b)
GRANT AMOUNT.— (1) IN GENERAL.—The amount of the grant under subsection
(a)
with respect to any specified energy property shall be the applicable percentage of the basis of such property.
(2)
APPLICABLE PERCENTAGE.—For purposes of paragraph (1), the term ‘‘applicable percentage’’ means— (A) 30 percent in the case of any property described in paragraphs (1) through (4) of subsection (d), and (B) 10 percent in the case of any other property.
(3)
DOLLAR LIMITATIONS.—In the case of property described in paragraph (2), (6), or (7) of subsection (d), the amount of any grant under this section with respect to such property shall not exceed the limitation described in section 48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, respectively, with respect to such property.
(c)
TIME FOR PAYMENT OF GRANT.�����The Secretary of the Treasury shall make payment of any grant under subsection (a) during the 60-day period beginning on the later of— (1) the date of the application for such grant, or (2) the date the specified energy property for which the grant is being made is placed in service.
(d)
SPECIFIED ENERGY PROPERTY.—For purposes of this section, the term ‘‘specified energy property’’ means any of the following:
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(1)
QUALIFIED FACILITIES.—Any qualified property (as defined in section 48(a)(5)(D) of the Internal Revenue Code of 1986) which is part of a qualified facility (within the meaning of section 45 of such Code) described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code.
(2)
QUALIFIED FUEL CELL PROPERTY.—Any qualified fuel cell property (as defined in section 48(c)(1) of such Code). (3) SOLAR PROPERTY.—Any property described in clause
(i)
or (ii) of section 48(a)(3)(A) of such Code.
(4)
QUALIFIED SMALL WIND ENERGY PROPERTY.—Any qualified small wind energy property (as defined in section 48(c)(4) of such Code).
(5)
GEOTHERMAL PROPERTY.—Any property described in clause (iii) of section 48(a)(3)(A) of such Code.
(6)
QUALIFIED MICROTURBINE PROPERTY.—Any qualified microturbine property (as defined in section 48(c)(2) of such Code).
(7)
COMBINED HEAT AND POWER SYSTEM PROPERTY.—Any combined heat and power system property (as defined in section 48(c)(3) of such Code).
(8) GEOTHERMAL HEAT PUMP PROPERTY.—Any property
described in clause (vii) of section 48(a)(3)(A) of such Code. Such term shall not include any property unless depreciation (or amortization in lieu of depreciation) is allowable with respect to such property.
(e) CREDIT TERMINATION DATE.—For purposes of this section, the term ‘‘credit termination date’’ means—
(1)
in the case of any specified energy property which is part of a facility described in paragraph (1) of section 45(d) of the Internal Revenue Code of 1986, January 1, 2013,
(2)
in the case of any specified energy property which is part of a facility described in paragraph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of such Code, January 1, 2014, and
(3) in the case of any specified energy property described
in section 48 of such Code, January 1, 2017. In the case of any property which is described in paragraph (3) and also in another paragraph of this subsection, paragraph (3) shall apply with respect to such property.
(f)
APPLICATION OF CERTAIN RULES.—In making grants under this section, the Secretary of the Treasury shall apply rules similar to the rules of section 50 of the Internal Revenue Code of 1986. In applying such rules, if the property is disposed of, or otherwise ceases to be specified energy property, the Secretary of the Treasury shall provide for the recapture of the appropriate percentage of the grant amount in such manner as the Secretary of the Treasury determines appropriate.
(g)
EXCEPTION FOR CERTAIN NON-TAXPAYERS.—The Secretary of the Treasury shall not make any grant under this section to—
(1)
any Federal, State, or local government (or any political subdivision, agency, or instrumentality thereof),
(2)
any organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code,
(3)
any entity referred to in paragraph (4) of section 54(j) of such Code, or H. R. 1—252
(4)
any partnership or other pass-thru entity any partner (or other holder of an equity or profits interest) of which is described in paragraph (1), (2) or (3).
(h)
DEFINITIONS.—Terms used in this section which are also used in section 45 or 48 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 45 or 48. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate.
(i)
APPROPRIATIONS.—There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section.
(j)
TERMINATION.—The Secretary of the Treasury shall not make any grant to any person under this section unless the application of such person for such grant is received before October 1, 2011.
SEC. 1604. INCREASE IN PUBLIC DEBT LIMIT.
Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting ‘‘$12,104,000,000,000’’.
Subtitle H—Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000
SEC. 1701. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE UNDER THE CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000.
(a)
IN GENERAL.—Notwithstanding any other provision of law, neither the Secretary of Homeland Security nor any other person may—
(1)
require repayment of, or attempt in any other way to recoup, any payments described in subsection (b); or
(2)
offset any past, current, or future distributions of antidumping or countervailing duties assessed with respect to imports from countries that are not parties to the North American Free Trade Agreement in an attempt to recoup any payments described in subsection (b).
(b)
PAYMENTS DESCRIBED.—Payments described in this subsection are payments of antidumping or countervailing duties made pursuant to the Continued Dumping and Subsidy Offset Act of 2000 (section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title VII of the Deficit Reduction Act of 2005 (Public Law 109–171; 120 Stat. 154))) that were—
(1)
assessed and paid on imports of goods from countries that are parties to the North American Free Trade Agreement; and
(2)
distributed on or after January 1, 2001, and before January 1, 2006.
(c)
PAYMENT OF FUNDS COLLECTED OR WITHHELD.—Not later than the date that is 60 days after the date of the enactment of this Act, the Secretary of Homeland Security shall—
(1)
refund any repayments, or any other recoupment, of payments described in subsection (b); and
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(2)
fully distribute any antidumping or countervailing duties that the U.S. Customs and Border Protection is withholding as an offset as described in subsection (a)(2).
(d)
LIMITATION.—Nothing in this section shall be construed to prevent the Secretary of Homeland Security, or any other person, from requiring repayment of, or attempting to otherwise recoup, any payments described in subsection (b) as a result of—
(1)
a finding of false statements or other misconduct by a recipient of such a payment; or
(2)
the reliquidation of an entry with respect to which such a payment was made.
