,i #aacth ,,congress #b;d ,session ,h4 ,r4 #eccj ,,in ,,the ,,house ,,of ,,representatives ,july #ca1 #bjad ,mr4 ,conyers 7for himself1 ,mr4 ,rangel1 ,ms4 ,kaptur1 ,ms4 ,norton1 ,ms4 ,jackson ,lee1 ,mr4 ,meeks1 ,ms4 ,wilson of ,florida1 and ,ms4 ,lee of ,california7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to make the tax treatment for certain build ,america bonds permanent and to provide for recovery zone economic development bonds for certain cities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,bringing ,urgent ,investment to ,local ,development ,act or the ,,build ,act4 #b4 ,build ,america ,bonds made permanent2 ,recovery zone economic development bonds for certain cities 7a7 ,in general ,subparagraph 7,b7 of section #ed;,,aa7d77#a7 of the ,internal ,revenue ,code of #aihf 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 ,act1 after ,january #a1 #bjaa14 7b7 ,reduction in credit percentage to bondholders ,subsection 7b7 of section #ed;,,aa of such ,code is amended to read as follows3 7b7 ,amount of credit 7#a7 ,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 date4 7#b7 ,applicable percentage ,for purposes of paragraph 7#a71 the applicable percentage shall be determined under the following table3 ,in the case of a bond issued,the applicable during calendar year3percentage is3 #bjadce #bjaecb #bjafca #bjagcj #bjahbi #bjai and thereafter#bh4 4 7c7 ,extension of payments to issuers 7#a7 ,in general ,section #fdca of such ,code is amended-- 7,a7 by inserting or during a period beginning on or after the date of the enactment of the ,bringing ,urgent ,investment to ,local ,development ,act1 after ,january #a1 #bjaa1 in subsection 7a71 and 7,b7 by striking before ,january #a1 #bjaa in subsection 7f77#a77;,b7 and inserting during a particular period4 7#b7 ,conforming amendments ,subsection 7g7 of section #ed;,,aa of such ,code is amended-- 7,a7 by inserting or during a period beginning on or after the date of the enactment of the ,bringing ,urgent ,investment to ,local ,development ,act1 after ,january #a1 #bjaa11 and 7,b7 by striking qualified bonds issued before #bjaa in the heading and inserting certain qualified bonds4 7d7 ,reduction in percentage of payments to issuers ,subsection 7b7 of section #fdca of such ,code is amended-- 7#a7 by striking ,the ,secretary and inserting the following3 7#a7 ,in general ,the ,secretary 1 7#b7 by striking #ce percent and inserting the applicable percentage1 and 7#c7 by adding at the end the following new paragraph3 7#b7 ,applicable percentage ,for purposes of this subsection1 the term applicable percentage means the percentage determined in accordance with the following table3 ,in the case of a qualified bond ,the applicable issued during calendar year3percentage is3 #bjadce #bjaecb #bjafca #bjagcj #bjahbi #bjai and thereafter#bh4 4 7e7 ,recovery zone economic development bonds for certain cities 7#a7 ,in general ,section #ed;,,aa of such ,code is amended by redesignating subsection 7h7 as subsection 7i7 and by inserting after subsection 7g7 the following3 7h7 ,special rule for recovery zone economic development bonds for certain cities ,in the case of an economic development extension bond-- 7#a7 ,issuer allowed refundable credit ,in lieu of any credit allowed under this section with respect to such bond1 the issuer of such bond shall be allowed a credit as provided in section #fdca4 7#b7 ,applicable percentage ,the applicable percentage under subsection 7b7 shall be #ce percent4 7#c7 ,economic development extension bond ,for purposes of this subsection-- 7,a7 ,in general ,the term economic development extension bond means any build ,america bond issued as part of an issue if-- 7i7 #ajj percent of the excess of-- 7,i7 the available project proceeds 7as defined in section #ed;,a7 of such issue1 over 7,,ii7 the amounts in a reasonably required reserve 7within the meaning of section #aej7;a77#c77 with respect to such issue1 are to be used for one or more qualified purposes1 and 7ii7 the issuer makes an irrevocable election to have this subsection apply and designates such bond for purposes of this section4 7,b7 ,qualified purposes ,the term qualified purposes means-- 7i7 any qualified economic development purpose 7as defined in section #adjj,u-#b7;c71 applied by treating specified cities 7and only specified cities7 as recovery zones71 and 7ii7 any refinancing of indebtedness of a specified city which is outstanding on the date of the enactment of this subsection4 7,c7 ,specified city ,the term specified city means any principal city for a metropolitan statistical area 7as determined by the ,office of ,management and ,budget7 which-- 7i7 has an average unemployment rate of not less than #aej percent of the national average rate for the last calendar year ending before the date of the enactment of this section1 7ii7 has a poverty rate of not less that #aej percent of the national poverty rate for the last calendar year ending before the date of the enactment of this section1 or 7iii7 has lost at least #bj percent of its population between calendar year #bjjj and calendar year #bjaj4 7,d7 ,limitation on amount of bonds designated 7i7 ,in general ,the maximum aggregate face amount of bonds which may be designated under subparagraph 7,a7 with respect to any specified city shall not exceed the bond limitation allocated to such city under clause 7ii74 7ii7 ,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 #a1jjj1jjj1jjj as the population of such city 7as determined for purposes of the #bjaj census7 bears to the total population of all specified cities 7as so determined74 4 7#b7 ,payments to issuers ,section #fdca of such ,code is amended by adding at the end the following3 7g7 ,application of section to certain economic development extension bonds 7#a7 ,in general ,an economic development extension bond shall be treated as a qualified bond for purposes of this section4 7#b7 ,applicable percentage ,the applicable percentage under subsection 7b7 shall be #ce percent4 4 7f7 ,current refundings permitted ,subsection 7g7 of section #ed;,,aa of such ,code is amended by adding at the end the following new paragraph3 7#c7 ,treatment of current refunding bonds 7,a7 ,in general ,for purposes of this subsection1 the term qualified bond includes any bond 7or series of bonds7 issued to refund a qualified bond if-- 7i7 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 issue1 7ii7 the amount of the refunding bond does not exceed the outstanding amount of the refunded bond1 and 7iii7 the refunded bond is redeemed not later than #ij days after the date of the issuance of the refunding bond4 7,b7 ,applicable percentage ,in the case of a refunding bond referred to in subparagraph 7,a71 the applicable percentage with respect to such bond under section #fdca7;b7 shall be the lowest percentage specified in paragraph 7#b7 of such section4 7,c7 ,determination of average maturity ,for purposes of subparagraph 7,a77i71 average maturity shall be determined in accordance with section #adg7;b77#b77;,a74 7,d7 ,issuance restriction not applicable ,subsection 7d77#a77;,b7 shall not apply to a refunding bond referred to in subparagraph 7,a74 4 7g7 ,gross-,up of payment to issuers in case of sequestration ,in the case of any payment under section #fdca7;b7 of the ,internal ,revenue ,code of #aihf made after the date of the enactment of this ,act to which sequestration applies1 the amount of such payment shall be increased to an amount equal to-- 7#a7 such payment 7determined before such sequestration71 multiplied by 7#b7 the quotient obtained by dividing #a by the amount by which #a exceeds the percentage reduction in such payment pursuant to such sequestration4 ,for purposes of this subsection1 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 #aihe or the ,statutory ,pay-,as-,you-,go ,act of #bjaj4 7h7 ,effective date ,the amendments made by this section shall apply to obligations issued on or after the date of the enactment of this ,act4