,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #eccj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #ca1 #bjad ,mr4 
,cony]s 7= himself1 ,mr4 ,rangel1 ,ms4  
,kaptur1 ,ms4 ,norton1 ,ms4 ,jackson    
,lee1 ,mr4 ,meeks1 ,ms4 ,wilson (       
,florida1 & ,ms4 ,lee ( ,cali=nia7      
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to make ! tax treatm5t =  
c]ta9 build ,am]ica bonds p]man5t & to  
provide = recov]y zone economic         
developm5t bonds = c]ta9 cities1 & = o!r
 purposes4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,br++ ,urg5t ,inve/m5t  
to ,local ,developm5t ,act or ! ,,build 
,act4  #b4 ,build ,am]ica ,bonds made   
p]man5t2 ,recov]y zone economic         
developm5t bonds = c]ta9 cities  7a7 ,9 
g5]al ,subp>agraph 7,b7 ( section       
#ed;,,aa7d77#a7 ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$ by ins]t+ or dur+
 a p]iod beg9n+ on or aft] ! date ( !   
enactm5t ( ! ,br++ ,urg5t ,inve/m5t to  

,local ,developm5t ,act1 aft] ,janu>y   
#a1 #bjaa14  7b7 ,r$uction 9 cr$it      
p]c5tage to bondhold]s ,subsection 7b7 (
 section #ed;,,aa ( su* ,code is am5d$  
to read z foll[s3  7b7 ,am\nt ( cr$it   
7#a7 ,9 g5]al ,! am\nt ( ! cr$it det]m9$
 "u ?is subsection ) respect to any     
int]e/ paym5t date = a build ,am]ica    
bond is ! applicable p]c5tage ( ! am\nt 
( int]e/ payable by ! issu] ) respect to
 su* date4  7#b7 ,applicable p]c5tage ,=
 purposes ( p>agraph 7#a71 ! applicable 
p]c5tage %all be det]m9$ "u ! foll[+    
table3  ,9 ! case ( a bond issued,the   
applicable  dur+ cal5d> ye>3p]c5tage is3
  #bjadce #bjaecb #bjafca #bjagcj       
#bjahbi #bjai & !reaft]#bh4  4  7c7     
,ext5sion ( paym5ts to issu]s  7#a7 ,9  
g5]al ,section #fdca ( su* ,code is     
am5d$--  7,a7 by ins]t+ or dur+ a p]iod 
beg9n+ on or aft] ! date ( ! enactm5t ( 
! ,br++ ,urg5t ,inve/m5t to ,local      
,developm5t ,act1 aft] ,janu>y #a1      
#bjaa1 9 subsection 7a71 &  7,b7 by     
/rik+ be=e ,janu>y #a1 #bjaa 9          

subsection 7f77#a77;,b7 & ins]t+ dur+ a 
p>ticul> p]iod4  7#b7 ,con=m+ am5dm5ts  
,subsection 7g7 ( section #ed;,,aa ( su*
 ,code is am5d$--  7,a7 by ins]t+ or    
dur+ a p]iod beg9n+ on or aft] ! date ( 
! enactm5t ( ! ,br++ ,urg5t ,inve/m5t to
 ,local ,developm5t ,act1 aft] ,janu>y  
#a1 #bjaa11 &  7,b7 by /rik+ qualifi$   
bonds issu$ be=e #bjaa 9 ! head+ &      
ins]t+ c]ta9 qualifi$ bonds4  7d7       
,r$uction 9 p]c5tage ( paym5ts to issu]s
 ,subsection 7b7 ( section #fdca ( su*  
,code is am5d$--  7#a7 by /rik+ ,!      
,secret>y & ins]t+ ! foll[+3  7#a7 ,9   
g5]al ,! ,secret>y  1  7#b7 by /rik+ #ce
 p]c5t & ins]t+ ! applicable p]c5tage1 &
  7#c7 by add+ at ! end ! foll[+ new    
p>agraph3  7#b7 ,applicable p]c5tage ,= 
purposes ( ?is subsection1 ! t]m        
applicable p]c5tage means ! p]c5tage    
det]m9$ 9 accordance ) ! foll[+ table3  
,9 ! case ( a qualifi$ bond ,!          
applicable  issu$ dur+ cal5d>           
ye>3p]c5tage is3  #bjadce #bjaecb       
#bjafca #bjagcj #bjahbi #bjai &         

!reaft]#bh4  4  7e7 ,recov]y zone       
economic developm5t bonds = c]ta9 cities
  7#a7 ,9 g5]al ,section #ed;,,aa ( su* 
,code is am5d$ by r$esignat+ subsection 
7h7 z subsection 7i7 & by ins]t+ aft]   
subsection 7g7 ! foll[+3  7h7 ,special  
rule = recov]y zone economic developm5t 
bonds = c]ta9 cities ,9 ! case ( an     
economic developm5t ext5sion bond--     
7#a7 ,issu] all[$ refundable cr$it ,9   
lieu ( any cr$it all[$ "u ?is section ) 
respect to su* bond1 ! issu] ( su* bond 
%all be all[$ a cr$it z provid$ 9       
section #fdca4  7#b7 ,applicable        
p]c5tage ,! applicable p]c5tage "u      
subsection 7b7 %all be #ce p]c5t4  7#c7 
,economic developm5t ext5sion bond ,=   
purposes ( ?is subsection--  7,a7 ,9    
g5]al ,! t]m economic developm5t        
ext5sion bond means any build ,am]ica   
bond issu$ z "p ( an issue if--  7i7    
#ajj p]c5t ( ! excess (--  7,i7 !       
available project proce$s 7z def9$ 9    
section #ed;,a7 ( su* issue1 ov]  7,,ii7
 ! am\nts 9 a reasonably requir$ res]ve 

7)9 ! mean+ ( section #aej7;a77#c77 )   
respect to su* issue1  are to be us$ =  
"o or m qualifi$ purposes1 &  7ii7 !    
issu] makes an irrevocable election to h
 ?is subsection apply & designates su*  
bond = purposes ( ?is section4  7,b7    
,qualifi$ purposes ,! t]m qualifi$      
purposes means--  7i7 any qualifi$      
economic developm5t purpose 7z def9$ 9  
section #adjj,u-#b7;c71 appli$ by treat+
 specifi$ cities 7& only specifi$       
cities7 z recov]y zones71 &  7ii7 any   
ref9anc+ ( indebt$ness ( a specifi$ city
 :i* is out/&+ on ! date ( ! enactm5t ( 
?is subsection4  7,c7 ,specifi$ city ,! 
t]m specifi$ city means any pr9cipal    
city = a metropolitan /ati/ical area 7z 
det]m9$ by ! ,(fice ( ,managem5t &      
,budget7 :i*--  7i7 has an av]age       
unemploym5t rate ( n less ?an #aej p]c5t
 ( ! national av]age rate = ! la/ cal5d>
 ye> end+ be=e ! date ( ! enactm5t ( ?is
 section1  7ii7 has a pov]ty rate ( n   
less t #aej p]c5t ( ! national pov]ty   
rate = ! la/ cal5d> ye> end+ be=e ! date

 ( ! enactm5t ( ?is section1 or  7iii7  
has lo/ at lea/ #bj p]c5t ( its         
population betwe5 cal5d> ye> #bjjj &    
cal5d> ye> #bjaj4  7,d7 ,limitation on  
am\nt ( bonds designat$  7i7 ,9 g5]al ,!
 maximum aggregate face am\nt ( bonds   
:i* may be designat$ "u subp>agraph 7,a7
 ) respect to any specifi$ city %all n  
exce$ ! bond limitation allocat$ to su* 
city "u clause 7ii74  7ii7 ,allocation  
,! ,secret>y %all allocate bond         
limitation to ea* specifi$ city su* t ! 
bond limitation allocat$ to su* city    
be>s ! same proportion to #a1jjj1jjj1jjj
 z ! population ( su* city 7z det]m9$ = 
purposes ( ! #bjaj c5sus7 be>s to !     
total population ( all specifi$ cities  
7z s det]m9$74  4  7#b7 ,paym5ts to     
issu]s ,section #fdca ( su* ,code is    
am5d$ by add+ at ! end ! foll[+3  7g7   
,application ( section to c]ta9 economic
 developm5t ext5sion bonds  7#a7 ,9     
g5]al ,an economic developm5t ext5sion  
bond %all be treat$ z a qualifi$ bond = 
purposes ( ?is section4  7#b7           

,applicable p]c5tage ,! applicable      
p]c5tage "u subsection 7b7 %all be #ce  
p]c5t4  4  7f7 ,curr5t refund+s p]mitt$ 
,subsection 7g7 ( section #ed;,,aa ( su*
 ,code is am5d$ by add+ at ! end !      
foll[+ new p>agraph3  7#c7 ,treatm5t (  
curr5t refund+ bonds  7,a7 ,9 g5]al ,=  
purposes ( ?is subsection1 ! t]m        
qualifi$ bond includes any bond 7or     
s]ies ( bonds7 issu$ to refund a        
qualifi$ bond if--  7i7 ! av]age        
maturity date ( ! issue ( :i* ! refund+ 
bond is a "p is n lat] ?an ! av]age     
maturity date ( ! bonds to be refund$ by
 su* issue1  7ii7 ! am\nt ( ! refund+   
bond does n exce$ ! out/&+ am\nt ( !    
refund$ bond1 &  7iii7 ! refund$ bond is
 r$eem$ n lat] ?an #ij days aft] ! date 
( ! issuance ( ! refund+ bond4  7,b7    
,applicable p]c5tage ,9 ! case ( a      
refund+ bond ref]r$ to 9 subp>agraph    
7,a71 ! applicable p]c5tage ) respect to
 su* bond "u section #fdca7;b7 %all be !
 l[e/ p]c5tage specifi$ 9 p>agraph 7#b7 
( su* section4  7,c7 ,det]m9ation (     

av]age maturity ,= purposes (           
subp>agraph 7,a77i71 av]age maturity    
%all be det]m9$ 9 accordance ) section  
#adg7;b77#b77;,a74  7,d7 ,issuance      
re/riction n applicable ,subsection     
7d77#a77;,b7 %all n apply to a refund+  
bond ref]r$ to 9 subp>agraph 7,a74  4   
7g7 ,gross-,up ( paym5t to issu]s 9 case
 ( seque/ration ,9 ! case ( any paym5t  
"u section #fdca7;b7 ( ! ,int]nal       
,rev5ue ,code ( #aihf made aft] ! date (
 ! enactm5t ( ?is ,act to :i*           
seque/ration applies1 ! am\nt ( su*     
paym5t %all be increas$ to an am\nt     
equal to--  7#a7 su* paym5t 7det]m9$    
be=e su* seque/ration71 multipli$ by    
7#b7 ! quoti5t obta9$ by divid+ #a by ! 
am\nt by :i* #a exce$s ! p]c5tage       
r$uction 9 su* paym5t pursuant to su*   
seque/ration4  ,= purposes ( ?is        
subsection1 ! t]m seque/ration means any
 r$uction 9 direct sp5d+ ord]$ 9        
accordance ) a seque/ration report      
prep>$ by ! ,director ( ! ,(fice &      
,managem5t & ,budget pursuant to !      

,balanc$ ,budget & ,em]g5cy ,deficit    
,control ,act ( #aihe or ! ,/atutory    
,pay-,z-,y-,g ,act ( #bjaj4  7h7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to obligations issu$ 
on or aft] ! date ( ! enactm5t ( ?is    
,act4