Bringing Urgent Investment to Local Development Act or the BUILD Act - Amends the Internal Revenue Code, with respect to the tax credit for investment in Build America bonds, to: (1) make permanent the authority for issuance of such bonds, (2) phase in an annual reduction in the credit rate for bondholders and issuers between 2014 and 2019, and (3) allow an issuer a refundable credit amount for investment in economic development bonds in cities with specified unemployment and poverty rates and population loss.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5330 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5330
To amend the Internal Revenue Code of 1986 to make the tax treatment
for certain build America bonds permanent and to provide for recovery
zone economic development bonds for certain cities, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 31, 2014
Mr. Conyers (for himself, Mr. Rangel, Ms. Kaptur, Ms. Norton, Ms.
Jackson Lee, Mr. Meeks, Ms. Wilson of Florida, and Ms. Lee of
California) 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 make the tax treatment
for certain build America bonds permanent and to provide for recovery
zone economic development bonds for certain cities, 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.
This Act may be cited as the ``Bringing Urgent Investment to Local
Development Act'' or the ``BUILD Act''.
SEC. 2. BUILD AMERICA BONDS MADE PERMANENT; RECOVERY ZONE ECONOMIC
DEVELOPMENT BONDS FOR CERTAIN CITIES.
(a) In General.--Subparagraph (B) of section 54AA(d)(1) of the
Internal Revenue Code of 1986 is amended by inserting ``or during a
period beginning on or after the date of the enactment of the Bringing
Urgent Investment to Local Development Act,'' after ``January 1,
2011,''.
(b) Reduction in Credit Percentage to Bondholders.--Subsection (b)
of section 54AA of such Code is amended to read as follows:
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any interest payment date
for a build America bond is the applicable percentage of the
amount of interest payable by the issuer with respect to such
date.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage shall be determined under the
following table:
``In the case of a bond issued The applicable
during calendar year: percentage is:
2014................................................... 35
2015................................................... 32
2016................................................... 31
2017................................................... 30
2018................................................... 29
2019 and thereafter.................................... 28.''.
(c) Extension of Payments to Issuers.--
(1) In general.--Section 6431 of such Code is amended--
(A) by inserting ``or during a period beginning on
or after the date of the enactment of the Bringing
Urgent Investment to Local Development Act,'' 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 a period beginning on
or after the date of the enactment of the Bringing
Urgent Investment to Local Development Act,'' after
``January 1, 2011,'', and
(B) by striking ``Qualified Bonds Issued Before
2011'' in the heading and inserting ``Certain Qualified
Bonds''.
(d) Reduction in Percentage of Payments to Issuers.--Subsection (b)
of section 6431 of such Code 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 The applicable
issued during calendar year: percentage is:
2014................................................... 35
2015................................................... 32
2016................................................... 31
2017................................................... 30
2018................................................... 29
2019 and thereafter.................................... 28.''.
(e) Recovery Zone Economic Development Bonds for Certain Cities.--
(1) In general.--Section 54AA of such Code is amended by
redesignating subsection (h) as subsection (i) and by inserting
after subsection (g) the following:
``(h) Special Rule for Recovery Zone Economic Development Bonds for
Certain Cities.--In the case of an economic development extension
bond--
``(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) Applicable percentage.--The applicable percentage
under subsection (b) shall be 35 percent.
``(3) Economic development extension bond.--For purposes of
this subsection--
``(A) In general.--The term `economic development
extension bond' means any build America bond issued as
part of an issue if--
``(i) 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 one or more qualified
purposes, and
``(ii) the issuer makes an irrevocable
election to have this subsection apply and
designates such bond for purposes of this
section.
``(B) Qualified purposes.--The term `qualified
purposes' means--
``(i) any qualified economic development
purpose (as defined in section 1400U-2(c),
applied by treating specified cities (and only
specified cities) as recovery zones), and
``(ii) any refinancing of indebtedness of a
specified city which is outstanding on the date
of the enactment of this subsection.
``(C) Specified city.--The term `specified city'
means any principal city for a metropolitan statistical
area (as determined by the Office of Management and
Budget) which--
``(i) has an average unemployment rate of
not less than 150 percent of the national
average rate for the last calendar year ending
before the date of the enactment of this
section,
``(ii) has a poverty rate of not less that
150 percent of the national poverty rate for
the last calendar year ending before the date
of the enactment of this section, or
``(iii) has lost at least 20 percent of its
population between calendar year 2000 and
calendar year 2010.
``(D) Limitation on amount of bonds designated.--
``(i) In general.--The maximum aggregate
face amount of bonds which may be designated
under subparagraph (A) with respect to any
specified city shall not exceed the bond
limitation allocated to such city under clause
(ii).
``(ii) Allocation.--The Secretary shall
allocate bond limitation to each specified city
such that the bond limitation allocated to such
city bears the same proportion to
$1,000,000,000 as the population of such city
(as determined for purposes of the 2010 census)
bears to the total population of all specified
cities (as so determined).''.
(2) Payments to issuers.--Section 6431 of such Code is
amended by adding at the end the following:
``(g) Application of Section to Certain Economic Development
Extension Bonds.--
``(1) In general.--An economic development extension bond
shall be treated as a qualified bond for purposes of this
section.
``(2) Applicable percentage.--The applicable percentage
under subsection (b) shall be 35 percent.''.
(f) 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).
``(D) Issuance restriction not applicable.--
Subsection (d)(1)(B) shall not apply to a refunding
bond referred to in subparagraph (A).''.
(g) Gross-Up of Payment to Issuers in Case of Sequestration.--In
the case of any payment under section 6431(b) of the Internal Revenue
Code of 1986 made after the date of the enactment of this Act to which
sequestration applies, the amount of such payment shall be increased to
an amount equal to--
(1) such payment (determined before such sequestration),
multiplied by
(2) the quotient obtained by dividing 1 by the amount by
which 1 exceeds the percentage reduction in such payment
pursuant to such sequestration.
For purposes of this subsection, the term ``sequestration'' means any
reduction in direct spending ordered in accordance with a sequestration
report prepared by the Director of the Office and Management and Budget
pursuant to the Balanced Budget and Emergency Deficit Control Act of
1985 or the Statutory Pay-As-You-Go Act of 2010.
(h) Effective Date.--The amendments made by this section shall
apply to obligations issued on or after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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