,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #bggb  ,,in ,,the ,,house ,,of  
,,representatives  ,may #ae1 #bjai,mr4  
,ruppersberger 7for himself1 ,mr4       
,stivers1 ,ms4 ,sewell of ,alabama1 ,mr4
 ,zeldin1 ,ms4 ,norton1 ,mr4            
,krishnamoorthi1 ,mr4 ,garamendi1 ,mr4  
,kilmer1 ,mr4 ,cuellar1 and ,mr4 ,barr7 
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    
reinstate advance refunding bonds4  #a4 
,short title ,this ,act may be cited as 
the ,investing in ,our ,communities     
,act4  #b4 ,treatment of advance        
refunding bonds  7a7 ,in general        
,section #adi7;d7 of the ,internal      
,revenue ,code of #aihf is amended--    
7#a7 in paragraph 7#a71 by striking to  
advance refund another bond and         
inserting as part of an issue described 
in paragraph 7#b71 7#c71 or 7#d72  7#b7 
by redesignating paragraphs 7#b7 and    
7#c7 as paragraphs 7#f7 and 7#g71       

respectively2 and  7#c7 by inserting    
after paragraph 7#a7 the following new  
paragraphs3  7#b7 ,certain private      
activity bonds ,an issue is described in
 this paragraph if any bond 7issued as  
part of such issue7 is issued to advance
 refund a private activity bond 7other  
than a qualified #eja7;c77#c7 bond74    
7#c7 ,other bonds  7,a7 ,in general ,an 
issue is described in this paragraph if 
any bond 7issued as part of such issue71
 hereinafter in this paragraph referred 
to as the refunding bond1 is issued to  
advance refund a bond unless--  7i7 the 
refunding bond is only-- 7,i7 the #ast  
advance refunding of the original bond  
if the original bond is issued after    
#aihe1 or  7,,ii7 the #ast or #bnd      
advance refunding of the original bond  
if the original bond was issued before  
#aihf1  7ii7 in the case of refunded    
bonds issued before #aihf1 the refunded 
bond is redeemed not later than the     
earliest date on which such bond may be 
redeemed at par or at a premium of #c   

percent or less1  7iii7 in the case of  
refunded bonds issued after #aihe1 the  
refunded bond is redeemed not later than
 the earliest date on which such bond   
may be redeemed1  7iv7 the initial      
temporary period under section #adh7;c7 
ends-- 7,i7 with respect to the proceeds
 of the refunding bond not later than   
#cj days after the date of issue of such
 bond1 and  7,,ii7 with respect to the  
proceeds of the refunded bond on the    
date of issue of the refunding bond1 and
  7v7 in the case of refunded bonds to  
which section #adh7;e7 did not apply1 on
 and after the date of issue of the     
refunding bond1 the amount of proceeds  
of the refunded bond invested in higher 
yielding investments 7as defined in     
section #adh7;b77 which are nonpurpose  
investments 7as defined in section      
#adh7;f77#f77;,a77 does not exceed--    
7,i7 the amount so invested as part of a
 reasonably required reserve or         
replacement fund or during an allowable 
temporary period1 and  7,,ii7 the amount

 which is equal to the lesser of #e     
percent of the proceeds of the issue of 
which the refunded bond is a part or    
#ajj1jjj 7to the extent such amount is  
allocable to the refunded bond74  7,b7  
,special rules for redemptions  7i7     
,issuer must redeem only if debt service
 savings ,clause 7ii7 and 7iii7 of      
subparagraph 7,a7 shall apply only if   
the issuer may realize present value    
debt service savings 7determined without
 regard to administrative expenses7 in  
connection with the issue of which the  
refunding bond is a part4  7ii7         
,redemptions not required before #ijth  
day ,for purposes of clauses 7ii7 and   
7iii7 of subparagraph 7,a71 the earliest
 date referred to in such clauses shall 
not be earlier than the #ijth day after 
the date of issuance of the refunding   
bond4  7#d7 ,abusive transactions       
prohibited ,an issue is described in    
this paragraph if any bond 7issued as   
part of such issue7 is issued to advance
 refund another bond and a device is    

employed in connection with the issuance
 of such issue to obtain a material     
financial advantage 7based on arbitrage7
 apart from savings attributable to     
lower interest rates4  7#e7 ,special    
rules for purposes of paragraph 7#c7    
,for purposes of paragraph 7#c71 bonds  
issued before the date of the enactment 
of this subsection shall be taken into  
account under subparagraph 7,a77i7      
thereof except--  7,a7 a refunding which
 occurred before #aihf shall be treated 
as an advance refunding only if the     
refunding bond was issued more than #ahj
 days before the redemption of the      
refunded bond1 and  7,b7 a bond issued  
before #aihf1 shall be treated as       
advance refunded no more than once      
before ,march #ae1 #aihf4  4  7b7       
,conforming amendment ,section          
#adh7;f77#d77;,c7 of such ,code is      
amended by redesignating clauses 7xiv7  
through 7xvi7 as clauses 7xv7 through   
7xvii7 and by inserting after clause    
7xiii7 the following new clause3  7xiv7 

,determination of initial temporary     
period ,for purposes of this            
subparagraph1 the end of the initial    
temporary period shall be determined    
without regard to section               
#adi7;d77#c77;,a77iv74  4  7c7          
,effective date ,the amendments made by 
this section shall apply to advance     
refunding bonds issued after the date of
 the enactment of this ,act4