,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bhff  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #ad1          
#bjai,mrs4 ,capito 7= h]self & ,ms4     
,hassan7 introduc$ ! foll[+ bill2 :i* 0 
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to all[ private   
activity bonds to be us$ = qualifi$     
broadb& projects & to provide = tax     
cr$it paym5ts to issu]s ( tax-exempt    
bonds us$ to f9ance broadb&             
infra/ructure projects4  #a4 ,%ort title
 ,?is ,act may be cit$ z ! ,rural       
,broadb& ,f9ancial ,flexibility ,act4   
#b4 ,private activity bonds = qualifi$  
broadb& projects  7a7 ,9 g5]al ,section 
#adb7;a7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by /rik+ or at ! end (   
p>agraph 7#ad71 by /rik+ ! p]iod at !   
end ( p>agraph 7#ae7 & ins]t+ 1 or1 & by
 add+ at ! end ! foll[+ new p>agraph3   
7#af7 qualifi$ broadb& projects4  4  7b7
 ,qualifi$ broadb& projects ,section    
#adb ( su* ,code is am5d$ by add+ at !  

end ! foll[+ new subsection3  7n7       
,qualifi$ broadb& project  7#a7 ,9 g5]al
 ,= purposes ( subsection 7a77#af71 !   
t]m qualifi$ broadb& project means any  
project :i*-- 7,a7 is design$ solely to 
provide broadb& s]vice to #a or m       
areas--  7i7 :i* are rural areas 7z     
def9$ 9 section #cdc7;a77#ac7 ( !       
,consolidat$ ,f>m & ,rural ,developm5t  
,act 7#g ,u4,s4,c4 #aiia7;a77#ac7 )\t   
reg>d to subp>agraph 7,b7 or 7,c7 !re(71
 &  7ii7 9 :i* m ?an #ej p]c5t (        
resid5tial h\seholds d n h access to    
fix$1 t]re/rial broadb& s]vice :i*      
deliv]s at lea/ #aj megabits p] second  
d[n/ream & at lea/ #a megabit s]vice    
up/ream1 &  7,b7 results 9 gigabit      
capable ,int]net access to resid5tial or
 comm]cial locations b only if at lea/  
#ij p]c5t ( ! resid5tial or comm]cial   
locations provid$ su* access "u !       
project are locations :]e1 be=e !       
project1 a broadb& s]vice provid]--  7i7
 did n provide s]vice1 or  7ii7 did n   
provide s]vice :i* meets ! m9imum spe$  

requirem5ts describ$ 9 subp>agraph      
7,a77ii74  7#b7 ,notice to broadb&      
provid]s ,a project %all n be treat$ z a
 qualifi$ broadb& project unless1 be=e !
 issue date ( any issue ! proce$s ( :i* 
are to be us$ to fund ! project1 !      
issu]--  7,a7 notifies ea* broadb&      
s]vice provid] provid+ broadb& s]vice 9 
! area )9 :i* broadb& s]vices are to be 
provid$ "u ! project ( ! project & its  
int5d$ scope1  7,b7 includes 9 su*      
notice a reque/ = in=mation f ea* su*   
provid] ) respect to ! provid]'s ability
 to deploy1 manage1 & ma9ta9 a broadb&  
network capable ( provid+ gigabit       
capable ,int]net access to resid5tial or
 comm]cial locations1 &  7,c7 all[s ea* 
su* provid] at lea/ #ij days to respond 
to su* notice & reque/4  4  7c7 ,p>tial 
exception f volume cap  7#a7 ,9 g5]al   
,section #adf7;g7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by /rik+ & at !  
end ( p>agraph 7#c71 by /rik+ ! p]iod at
 ! end ( p>agraph 7#d7 & ins]t+ 1 &1 &  
by ins]t+ imm$iately aft] p>agraph 7#d7 

! foll[+ new p>agraph3  7#e7 #ge p]c5t (
 any exempt facility bond issu$ z "p (  
an issue describ$ 9 p>agraph 7#af7 (    
section #adb7;a7 7relat+ to qualifi$    
broadb& projects74  4  7#b7             
,gov]nm5t-own$ projects ,! la/ s5t5ce ( 
section #adf7;g7 ( su* ,code is am5d$ by
 /rik+ ,p>agraph 7#d7 & ins]t+          
,p>agraphs 7#d7 & 7#e74  7d7 ,effective 
date ,! am5dm5ts made by ?is section    
%all apply to obligations issu$ 9 cal5d>
 ye>s beg9n+ aft] ! date ( ! enactm5t ( 
?is ,act4  #c4 ,cr$it = broadb&         
infra/ructure bonds all[$ to issu]s  7a7
 ,9 g5]al ,sub*apt] ,b ( *apt] #fe ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #fdcj ! foll[+   
new section3  #fdca4 ,cr$it = broadb&   
infra/ructure bonds all[$ to issu]  7a7 
,9 ,g5]al ,9 ! case ( a broadb&         
infra/ructure bond1 ! issu] ( su* bond  
%all be all[$ a cr$it ) respect to ea*  
int]e/ paym5t "u su* bond :i* %all be   
payable by ! ,secret>y z provid$ 9      
subsection 7b74  7b7 ,paym5t ( ,cr$it ,!

 ,secret>y %all pay 7contemporane\sly ) 
ea* int]e/ paym5t date "u su* bond7 to !
 issu] ( su* bond 7or to any p]son :o   
makes su* int]e/ paym5ts on behalf ( !  
issu]7 #ce p]c5t ( ! int]e/ payable "u  
su* bond on su* date4  7c7 ,broadb&     
infra/ructure bond ,= purposes ( ?is    
section-- 7#a7 ,9 g5]al ,! t]m broadb&  
infra/ructure bond means any obligation 
7o!r ?an a private activity bond7--     
7,a7 ! int]e/ on :i* w\ld 7b = ?is      
section7 be excludable f gross income "u
 section #ajc1  7,b7 :i* is issu$ by a  
qualifi$ issu]1  7,c7 :i* is issu$ z "p 
( an issue ) respect to :i*--  7i7 !    
requirem5ts ( p>agraph 7#b7 are met1    
7ii7 all ( ! prop]ty to be f9anc$ by !  
net proce$s ( ! issue is to be own$ by a
 gov]nm5tal unit 7)9 ! mean+ ( section  
#adb7;b77#a771 &  7iii7 ! aggregate face
 am\nt ( bonds issu$ pursuant to !      
issue1 :5 add$ to ! aggregate face am\nt
 ( broadb& infra/ructure bonds previ\sly
 issu$ by ! issu+ au?ority dur+ ! cal5d>
 ye>1 does n exce$ su* issu+ au?ority's 

allocation ( its ,/ate's volume cap "u  
subsection 7d7 = su* ye>1 &  7,d7 :i* ! 
issu] designates 7at su* "t & 9 su*     
mann] z ! ,secret>y may prescribe7 z an 
obligation to :i* ?is section applies4  
7#b7 ,special rules relat+ to           
exp5ditures  7,a7 ,9 g5]al ,an issue    
%all be treat$ z meet+ ! requirem5ts (  
?is p>agraph if1 z ( ! date ( issuance1 
! issu] reasonably expects--  7i7 #ajj  
p]c5t ( ! available project proce$s to  
be sp5t 9 connection ) #a or m qualifi$ 
broadb& projects )9 ! #c-ye> p]iod      
beg9n+ on su* date ( issuance1 &  7ii7 a
 b9d+ commitm5t ) a ?ird p>ty to sp5d at
 lea/ #aj p]c5t ( su* available project 
proce$s w be incurr$ )9 ! #f-mon? p]iod 
beg9n+ on su* date ( issuance4  7,b7    
,failure to sp5d requir$ am\nt ( bond   
proce$s )9 #c ye>s  7i7 ,9 g5]al ,to !  
ext5t t less ?an #ajj p]c5t ( !         
available project proce$s ( ! issue are 
exp5d$ by ! close ( ! exp5diture p]iod1 
! issu] %all r$eem all ( ! nonqualifi$  
bonds )9 #ij days aft] ! end ( su*      

p]iod4 ,= purposes ( ?is p>agraph1 !    
am\nt ( ! nonqualifi$ bonds requir$ to  
be r$eem$ %all be det]m9$ 9 ! same mann]
 z "u section #adb4  7ii7 ,exp5diture   
p]iod ,= purposes ( ?is section1 ! t]m  
exp5diture p]iod means1 ) respect to any
 issue1 ! #c-ye> p]iod beg9n+ on ! date 
( issuance4 ,su* t]m %all include any   
ext5sion ( su* p]iod "u clause 7iii74   
7iii7 ,ext5sion ( p]iod ,^u submission (
 a reque/ prior to ! expiration ( !     
exp5diture p]iod 7det]m9$ )\t reg>d to  
any ext5sion "u ?is clause71 ! ,secret>y
 may ext5d su* p]iod if ! issu]         
e/abli%es t ! failure to exp5d ! proce$s
 )9 ! orig9al exp5diture p]iod is due to
 reasonable cause & ! exp5ditures 9     
connection ) #a or m qualifi$ broadb&   
projects w cont9ue to proce$ ) due      
dilig5ce4  7,c7 ,reimbursem5t ,=        
purposes ( ?is subtitle1 available      
project proce$s ( an issue %all be      
treat$ z sp5t 9 connection ) #a or m    
qualifi$ broadb& projects if su* proce$s
 are us$ to reimburse ! issu] = am\nts  

paid 9 connection ) su* projects aft] ! 
date t an allocation ( a ,/ate's volume 
cap "u subsection 7d7 has be5 made )    
respect to su* issue1 b only if-  7i7   
prior to ! paym5t ( ! orig9al           
exp5diture1 ! issu] decl>$ its int5t to 
reimburse su* exp5diture ) ! proce$s (  
su* issue1  7ii7 n lat] ?an #fj days    
aft] paym5t ( ! orig9al exp5diture1 !   
issu] adopts an (ficial int5t to        
reimburse ! orig9al exp5diture ) su*    
proce$s1 &  7iii7 ! reimbursem5t is made
 n lat] ?an #ah mon?s aft] ! date !     
orig9al exp5diture is paid4  7#c7       
,limitation on issue price ,an          
obligation %all n be treat$ z a broadb& 
infra/ructure bond if ! issue price has 
m ?an a de m9imis am\nt 7det]m9$ "u     
rules simil> to ! rules ( section       
#abgc7;a77#c77 ( premium ov] ! /at$     
pr9cipal am\nt ( ! obligation4  7#d7    
,available project proce$s ,= purposes (
 ?is subsection1 ! t]m available project
 proce$s means1 ) respect to any issue1 
! sum (-- 7,a7 ! excess (--  7i7 !      

proce$s f ! sale ( an issue1 ov]  7ii7 !
 issuance co/s f9anc$ by ! issue 7to !  
ext5t t su* co/s d n exce$ #b p]c5t (   
su* proce$s71 plus  7,b7 ! proce$s f any
 inve/m5t ( ! excess describ$ 9         
subp>agraph 7,a74  7#e7 ,qualifi$       
broadb& project ,= purposes ( ?is       
subsection1 ! t]m qualifi$ broadb&      
project has ! mean+ giv5 su* t]m by     
section #adb7n74  7d7 ,limitation on    
am\nt ( bonds designat$  7#a7 ,national 
limitation ,!re is a national broadb&   
infra/ructure bond limitation = ea*     
cal5d> ye> ( #b1ejj1jjj1jjj4  7#b7 ,/ate
 volume cap2 allocation ,= purposes (   
?is subsection1 ! broadb& infra/ructure 
bonds volume cap ( a ,/ate = any cal5d> 
ye> is ! portion ( ! national broadb&   
infra/ructure bond limitation "u        
p>agraph 7#a7 equal to ! sum (--  7,a7  
#be1jjj1jjj1 plus  7,b7 ! am\nt :i* be>s
 ! same ratio to #a1bej1jjj1jjj z !--   
7i7 numb] ( individuals 9 su* ,/ate :o  
reside 9 rural areas 7z def9$ 9 section 
#cdc7;a77#ac7 ( ! ,consolidat$ ,f>m &   

,rural ,developm5t ,act 7#g ,u4,s4,c4   
#aiia7;a77#ac7 )\t reg>d to subp>agraph 
7,b7 or 7,c7 !re(71 be>s to  7ii7 !     
total numb] ( individuals liv+ 9 su*    
rural areas 9 all ,/ates4  7#c7         
,allocation ( volume cap  7,a7 ,9 g5]al 
,= purposes ( ?is section--  7i7 except 
z provid$ 9 subp>agraph 7,c71 #ej p]c5t 
( ! ,/ate broadb& infra/ructure bonds   
volume cap ( a ,/ate = any cal5d> ye>   
%all be allocat$ to qualifi$ issu]s t   
are n ag5cies ( ! ,/ate 9 ! am\nt       
det]m9$ "u subp>agraph 7,b71 &  7ii7 !  
rema9+ #ej p]c5t ( su* volume cap %all  
be allocat$ to qualifi$ issu]s 9 su*    
mann] z ! ,/ate provides4  7,b7 ,am\nt (
 allocation  7i7 ,9 g5]al ,! am\nt ( !  
,/ate broadb& infra/ructure bonds volume
 cap = any cal5d> ye> allocat$ "u ?is   
subp>agraph to any qualifi$ issu]       
describ$ 9 subp>agraph 7,a77i7 %all be  
equal to ! am\nt :i* be>s ! same ratio  
to ! am\nt describ$ 9 subp>agraph       
7,a77i7 = su* cal5d> ye> z--  7,i7 !    
numb] ( individuals 9 su* ,/ate :o      

reside 9 rural areas 7z def9$ 9 section 
#cdc7;a77#ac7 ( ! ,consolidat$ ,f>m &   
,rural ,developm5t ,act 7#g ,u4,s4,c4   
#aiia7;a77#ac7 )\t reg>d to subp>agraph 
7,b7 or 7,c7 !re(7 )9 ! jurisdiction (  
su* qualifi$ issu]1 be>s to  7,,ii7 !   
total numb] ( individuals liv+ 9 su*    
rural areas 9 ! ,/ate4  7ii7 ,special   
rule = ov]lapp+ jurisdictions ,=        
purposes ( clause 7i77,i71 if an area is
 )9 ! jurisdiction ( #b or m gov]nm5tal 
units1 su* area %all be treat$ z only )9
 ! jurisdiction ( ! unit hav+           
jurisdiction ov] ! smalle/ geographical 
area unless su* unit agrees to surr5d]  
all or "p ( su* jurisdiction = su*      
cal5d> ye> to ! unit ) ov]lapp+         
jurisdiction :i* has ! next smalle/     
geographical area4  7,c7 ,reallocation  
,! am\nt allocat$ "u ?is p>agraph to any
 qualifi$ issu] may be reallocat$ by su*
 issu] to ! ,/ate = reallocation to o!r 
qualifi$ issu]s 7includ+ ag5cies ( !    
,/ate74  7#d7 ,c>ryov] ( unus$          
limitation  7,a7 ,9 g5]al ,if1 = any    

cal5d> ye>1 a ,/ate's broadb&           
infra/ructure bonds volume cap exce$s ! 
am\nt ( bonds issu$ dur+ su* ye> :i* are
 designat$ z broadb& infra/ructure bonds
 "u subsection 7c77#a77;,d7 ) respect to
 broadb& projects )9 su* ,/ate1 !       
broadb& infra/ructure bonds volume cap =
 su* ,/ate = ! foll[+ cal5d> ye> %all be
 increas$ by ! am\nt ( su* excess4  7,b7
 ,limitation on c>ryov] ,any c>ry=w>d ( 
an excess am\nt may be c>ri$ only to !  
fir/ #b ye>s foll[+ ! unus$ volume cap  
ye>4 ,= purposes ( ! prec$+ s5t5ce1 a   
volume cap am\nt %all be treat$ z us$ on
 a fir/-9 fir/-out basis4  7e7 ,o!r     
rules & def9itions  7#a7 ,int]e/        
includible 9 income ,= purposes ( ?is   
title1 int]e/ on any broadb&            
infra/ructure bond %all be includible 9 
gross income4  7#b7 ,cr$it n a ,f$]al   
gu>antee ,= purposes ( section #adi7;b71
 a broadb& infra/ructure bond %all n be 
treat$ z ,f$]ally gu>ante$ by reason ( !
 cr$it all[$ "u ?is section4  7#c7      
,coord9ation ) section #adh  7,a7 ,yield

 r$uc$ by cr$it ,= purposes ( section   
#adh1 ! yield on a broadb& infra/ructure
 bond %all be det]m9$ by r$uc+ ! o!rwise
 effective yield by ! am\nt ( ! cr$it   
all[$ to ! issu] "u ?is section4  7,b7  
,inve/m5t dur+ ext5sion p]iod ,an issue 
%all n be treat$ z fail+ to meet !      
requirem5ts ( section #adh by reason (  
any inve/m5t ( available project proce$s
 dur+ ! exp5diture p]iod4  7#d7 ,rural  
populations ,= purposes ( ?is section1 !
 det]m9ation ( ! numb] ( individuals    
liv+ 9 rural areas %all be made 9       
consultation ) ! ,secret>y (            
,agriculture4  7#e7 ,def9itions ,=      
purposes ( ?is section-- 7,a7 ,qualifi$ 
issu] ,! t]m qualifi$ issu] means a     
,/ate or any political subdivision or   
in/rum5tality !re( hav+ au?ority to     
issue private activity bonds4  7,b7     
,/ate ,not)/&+ section #ggja7;a77#aj71 !
 t]m ,/ate only includes ! #ej ,/ates4  
7f7 ,regulations ,! ,secret>y may       
prescribe su* regulations & o!r guidance
 z may be necess>y or appropriate to    

c>ry out ?is section4  4  7b7 ,con=m+   
am5dm5ts  7#a7 ,section #fdja7;b77#a7 ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by /rik+ "u subp>ts ,a1 ,b1 ,d1 & 
,g ( su* "p ,,iv & ins]t+ "u all subp>ts
 ( su* "p ,,iv o!r ?an su* subp>t ,c4   
7#b7 ,! table ( sections = sub*apt] ,b (
 *apt] #fe ( su* ,code is am5d$ by      
ins]t+ aft] ! item relat$ to section    
#fdcj ! foll[+ new section3  ,sec4      
#fdca4 ,cr$it = broadb& infra/ructure   
bonds all[$ to issu]4  4  7c7 ,gross-,up
 ( paym5t to issu]s 9 case (            
seque/ration ,! am\nt ( any paym5t "u   
section #fdca7;b7 ( ! ,int]nal ,rev5ue  
,code ( #aihf made aft] ! date ( !      
enactm5t ( ?is ,act to :i* seque/ration 
applies %all be increas$ by ! am\nt     
necess>y to pres]ve ! full am\nt ( su*  
paym5t payable to ! issu] be=e          
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  7d7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to bonds issu$ 9     
cal5d> ye>s beg9n+ aft] ! date ( !      
enactm5t ( ?is ,act4