[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 992 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 992
To amend the Internal Revenue Code of 1986 to create jobs through
increased investment in infrastructure, and for other purposes.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 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.
SEC. 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 2010............................................... 35 percent
2011....................................................... 32 percent
2012....................................................... 31 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''.
SEC. 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.''.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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,''.
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