,i #aag? ,,congress #b;d ,session ,h4 ,r4 #iffh ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,decemb] #ba1 #bjbb,ms4 ,sewell 7= h]self & ,ms4 ,plaskett7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to provide = s*ool infra/ructure f9ance & innovation tax cr$it bonds4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,s*ool ,infra/ructure ,f9ance & ,innovation ,act or ! ,,sifia ,act4 #b4 ,,sifia bonds 7a7 ,9 g5]al ,"p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by add+ at ! end ! foll[+ new subp>t3 ,k ,,sifia ,bonds ,sec4 #ed;,,bb4 ,,sifia bonds4 #ed;,,bb4 ,,sifia bonds 7a7 ,9 g5]al ,if a taxpay] holds a ,,sifia bond on "o or m int]e/ paym5t dates ( ! bond dur+ any taxable ye>1 !re %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is *apt] = ! taxable ye> an am\nt equal to ! sum ( ! cr$its det]m9$ "u subsection 7b7 ) respect to su* dates4 7b7 ,am\nt ( cr$it ,! am\nt ( ! cr$it det]m9$ "u ?is subsection ) respect to any int]e/ paym5t date = a ,,sifia bond is #ajj p]c5t ( ! am\nt ( int]e/ payable by ! issu] ) respect to su* date4 7c7 ,limitation bas$ on am\nt ( tax 7#a7 ,9 g5]al ,! cr$it all[$ "u subsection 7a7 = any taxable ye> %all n exce$ ! excess (-- 7,a7 ! sum ( ! regul> tax liability 7z def9$ 9 section #bf7;b77 plus ! tax impos$ by section #ee1 ov] 7,b7 ! sum ( ! cr$its all[able "u ?is "p 7o!r ?an subp>t ,c & ?is subp>t74 7#b7 ,c>ryov] ( unus$ cr$it ,if ! cr$it all[able "u subsection 7a7 exce$s ! limitation impos$ by p>agraph 7#a7 = su* taxable ye>1 su* excess %all be c>ri$ to ! succe$+ taxable ye> & add$ to ! cr$it all[able "u subsection 7a7 = su* taxable ye> 7det]m9$ be=e ! application ( p>agraph 7#a7 = su* succe$+ taxable ye>74 7d7 ,int]e/ paym5t date ,= purposes ( ?is section1 ! t]m int]e/ paym5t date means any date on :i* ! hold] ( record ( ! ,,sifia bond is entitl$ to a paym5t ( int]e/ "u su* bond4 7e7 ,sifia bonds 7#a7 ,9 g5]al ,= purposes ( ?is section1 ! t]m ,,sifia bond means any bond issu$ z "p ( an issue if-- 7,a7 #ajj p]c5t ( ! available project proce$s ( su* issue are to be us$ = ! design1 con/ruction1 expansion1 r5ovation1 furni%+1 or equipp+ ( qualifi$ s*ool facilities 7z def9$ 9 p>agraph 7#e7 ( ?is subsection7 pursuant to an agreem5t "u :i* a private1 =-pr(it entity agrees ) a ,/ate or local educational ag5cy-- 7i7 to con/ruct1 exp&1 or r5ovate "o or m build+s con/itut+ ! qualifi$ s*ool facilities 7toge!r ) any relat$ design1 furni%+1 & equipp+ ( su* build+s71 7ii7 to op]ate ! facilities at lea/ until ! date ! facilities are fir/ plac$ 9 s]vice & op]at+ sub/antially at _! design level1 & 7iii7 at or be=e ! end ( ! agreem5t1 to transf] ! facilities to su* ag5cy = no additional consid]ation1 7,b7 all build+s ^: con/ruction1 expansion1 or r5ovations is includ$ 9 ! qualifi$ s*ool facilities be+ f9anc$ ) proce$s ( a ,,sifia bond are reasonably expect$ to be net-z]o en]gy build+s z def9$ 9 section #daj7bj7 ( ! ,en]gy ,indep5d5ce & ,security ,act ( #bjjg 7#db ,u4,s4,c4 #agjfa7bj71 treat+ s*ool build+s z comm]cial build+s = purposes ( t section71 7,c7 ! int]e/ on su* bond w\ld 7b = ?is section & section #ada7 be excludable f gross income "u section #ajc1 7,d7 ! issu] designates su* bond z a ,,sifia bond = purposes ( ?is subsection1 7,e7 ! bond is n issu$ ) m ?an a de m9imis am\nt ( premium 7det]m9$ "u rules simil> to ! rules ( section #abgc7;a77#c77 ov] ! /at$ pr9cipal am\nt ( ! bond1 7,f7 ! issue ( :i* su* bond is a "p satisfies ! exp5diture p]iod requirem5ts ( p>agraph 7#b71 & 7,g7 ! bond is issu$ be=e ,janu>y #a1 #bjbg4 7#b7 #f-ye> exp5diture p]iod 7,a7 ,9 g5]al ,an issue %all be treat$ z meet+ ! requirem5ts ( ?is p>agraph if1 z ( ! date ( issuance1 ! issu] reasonably expects #ajj p]c5t ( ! available project proce$s to be sp5t = purposes describ$ 9 subp>agraphs 7#a77;,a7 & 7#a77;,b7 )9 ! #f-ye> p]iod beg9n+ on su* date ( issuance4 7,b7 ,failure to sp5d requir$ am\nt ( bond proce$s )9 #f ye>s ,to ! ext5t t less ?an #ajj p]c5t ( ! available project proce$s ( ! issue are exp5d$ at ! close ( ! p]iod describ$ 9 subp>agraph 7,a7 ) respect to su* issue1 ! 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 #ada4 7#c7 ,limitation on am\nt ( sifia bonds designat$ 7,a7 ,ov]all limitation ,! maximum aggregate face am\nt ( ,,sifia bonds issu$ "u ?is subsection t may be designat$ "u subp>agraph 7#b77;,d7 is #bjj1jjj1jjj1jjj4 7,b7 ,set-aside = rural areas ,subject to ! provisions ( ?is subp>agraph1 #de1jjj1jjj1jjj ( ! ov]all limitation describ$ 9 subp>agraph 7,a7 %all be set aside = projects locat$ 9 rural areas4 ,z us$ 9 ?is section1 ! t]m rural area means any area :i* is-- 7i7 outside ( a metropolitan /ati/ical area 7z su* area is def9$ by ! ,secret>y ( ,comm]ce71 or 7ii7 det]m9$ by ! ,secret>y ( ,agriculture1 aft] consultation ) ! ,secret>y ( ,comm]ce1 to be a rural area4 7#d7 ,allocation ( limitation ,! au?ority to issue ,,sifia bonds )9 ! limitations set =? 9 p>agraph 7#c7 %all be allocat$ by ! ,secret>y to prospective issu]s on a fir/ come-fir/ s]v$ basis1 "u rules to be prescrib$ by ! ,secret>y1 provid$ t-- 7,a7 no issu] 7toge!r ) any entities t w\ld be aggregat$ ) su* issu] "u section #bfe7;b77#c77;,e77 %all be allocat$ ! au?ority to issue m ?an #ae1jjj1jjj1jjj 9 aggregate face am\nt ( ,,sifia bonds "u ?is subsection1 7,b7 an issu] apply+ = an allocation %all c]tify 7bas$ on ! c]tifications ( any conduit borr[] ( bond proce$s :]e applicable7 t x reasonably expects to comm5ce ! project to be f9anc$ ) proce$s ( ! bonds )9 #f mon?s ( ! issue date ( ! bonds1 & to exp5d all ( ! available project proce$s )9 #f ye>s ( ! issue date ( ! bonds1 7,c7 9 mak+ su* allocations1 ! ,secret>y %all give pref]5ce to ! f9anc+ ( projects t are reasonably expect$ to be comm5c$ & complet$ z e>ly z possible1 bas$ on def9ite1 non-cont+5t plans & arrangem5ts to proce$ z exp$iti\sly z possible ) ! con/ruction1 expansion1 or r5ovation ( ! project facilities ^u ! receipt ( f9anc+1 & 7,d7 9 mak+ su* allocations1 ! ,secret>y %all also give pref]5ce to ! f9anc+ ( projects = :i* ei!r 7i7 at lea/ #aj p]c5t ( ! equity inve/m5t is provid$ by "o or m pref]r$ conc]ns1 7ii7 ! g5]al contractor is a pref]r$ conc]n1 or 7iii7 at lea/ #cj p]c5t ( ! am\nts paid to build+ trade subcontractors w be paid to subcontractors t are pref]r$ conc]ns4 7#e7 ,qualifi$ s*ool facilities ,= purposes ( ?is subsection1 ! t]m qualifi$ s*ool facilities means "o or m s*ool build+s = a public elem5t>y s*ool or public second>y s*ool 7z su* t]ms are def9$ 9 section #adaja ( ! ,elem5t>y & ,second>y ,education ,act ( #aife 7#bj ,u4,s4,c4 #hhja771 or = adm9i/rative or support facilities relat+ to su* s*ool facilities1 toge!r ) relat$ furni%+s & equipm5t4 7#f7 ,pref]r$ conc]n ,= purposes ( ?is subsection1 ! t]m pref]r$ conc]n means ei!r a small bus9ess conc]n1 a m9ority own$ conc]n1 or a woman own$ conc]n4 7#g7 ,small bus9ess conc]n ,= purposes ( ?is subsection1 ! t]m small bus9ess conc]n means an entity det]m9$ to be a small bus9ess conc]n "u #ae ,u4,s4,c4 #fcb7;a74 7#h7 ,m9ority own$ ,= purposes ( ?is subsection1 ! t]m m9ority own$ ) respect to an entity means an entity n less ?an #ea p]c5t ( :i* is own$ by #a or m individuals :o are citiz5s ( ! ,unit$ ,/ates & :o are ,asian ,am]ican1 ,native ,hawaiian1 ,pacific ,isl&]1 ,african ,am]ican1 ,hispanic1 ,pu]to ,rican1 ,native ,am]ican1 or ,alaska ,native4 7#i7 ,woman own$ ,= purposes ( ?is subsection1 ! t]m woman own$ ) respect to an entity means an entity n less ?an #ea p]c5t ( :i* is own$ by #a or m wom54 7f7 ,o!r applicable rules 7#a7 ,int]e/ includible 9 gross income ,= purposes ( ?is title1 int]e/ on any ,,sifia bond %all be includible 9 gross income4 7#b7 ,cr$it treat$ z int]e/ ,= purposes ( ?is subtitle1 ! cr$it det]m9$ "u subsection 7a7 %all be treat$ z int]e/ :i* is includible 9 gross income4 7#c7 ,s corporations & p>tn]%ips ,9 ! case ( a tax cr$it bond held by an ,s corporation or p>tn]%ip1 ! allocation ( cr$it all[$ by ?is section to ! %>ehold]s ( su* corporation or p>tn]s ( su* p>tn]%ip %all be treat$ z a di/ribution4 7#d7 ,bonds held by real e/ate inve/m5t tru/s ,if any qualifi$ tax cr$it bond is held by a real e/ate inve/m5t tru/ ! cr$it det]m9$ "u subsection 7a7 %all be all[$ to b5efici>ies ( su* tru/ 7& any gross income includ$ "u p>agraph 7#b7 ) respect to su* cr$it %all be di/ribut$ to su* b5efici>ies7 "u proc$ures prescrib$ by ! ,secret>y 7simil> to ! proc$ures prescrib$ by ! ,secret>y "u section #ed;,a7h7 7z 9 effect be=e its repeal by ,public ,law #aae-ig774 7#e7 ,cr$its may be /ripp$ ,"u regulations prescrib$ by ! ,secret>y 7simil> to regulations prescrib$ "u section #ed;,a7i7 7z 9 effect be=e its repeal by ,public ,law #aae-ig77-- 7,a7 ,9 g5]al ,!re may be a sep>ation 7includ+ at issuance7 ( ! own]%ip ( a qualifi$ tax cr$it bond & ! entitlem5t to ! cr$it "u ?is section ) respect to su* bond4 ,9 case ( any su* sep>ation1 ! cr$it "u ?is section %all be all[$ to ! p]son :o on ! cr$it all[ance date holds ! in/rum5t evid5c+ ! entitlem5t to ! cr$it & n to ! hold] ( ! bond4 7,b7 ,c]ta9 rules to apply ,9 ! case ( a sep>ation describ$ 9 subp>agraph 7,a71 ! rules ( section #abhf %all apply to ! qualifi$ tax cr$it bond z if x 7 a /ripp$ bond & to ! cr$it "u ?is section z if x 7 a /ripp$ c\pon4 7#f7 ,n treat$ z f$]ally gu>ante$ ,= purposes ( section #adi7;b71 a ,,sifia bond %all n be treat$ z f$]ally gu>ante$ by reason ( ! cr$it all[$ "u subsection 7g74 7#g7 ,yield det]m9ation ,= purposes ( section #adh1 ! yield on a ,,sifia bond %all be det]m9$ )\t reg>d to ! cr$it all[$ "u subsection 7a74 7#h7 ,maximum int]e/ rate ,an issue %all be treat$ z meet+ ! requirem5ts ( ?is section if ! rate ( int]e/ payable on any bond :i* is "p ( su* issue is no great] ?an ! rate :i* ! ,secret>y e/imates w p]mit ! issuance ( ea* su* bond ) a specifi$ maturity or r$emption date )\t disc\nt & )\t int]e/ co/ to ! issu]4 ,! applicable int]e/ rate ) respect to any su* bond %all be det]m9$ z ( ! fir/ day on :i* !re is a b9d+1 writt5 contract = ! sale or ex*ange ( ! bond4 7#i7 ,maturity limitation 7,a7 ,9 g5]al ,an issue %all be treat$ z meet+ ! requirem5ts ( ?is section if ! maturity ( any bond :i* is "p ( su* issue does n exce$ ! maximum t]m det]m9$ by ! ,secret>y "u subp>agraph 7,b74 7,b7 ,maximum t]m ,dur+ ea* cal5d> mon?1 ! ,secret>y %all det]m9e ! maximum t]m p]mitt$ "u ?is p>agraph = bonds issu$ dur+ ! foll[+ cal5d> mon?4 ,su* maximum t]m %all be ! t]m :i* ! ,secret>y e/imates w result 9 ! pres5t value ( ! obligation to repay ! pr9cipal on ! bond be+ equal to #bj p]c5t ( ! face am\nt ( su* bond4 ,su* pres5t value %all be det]m9$ us+ z a disc\nt rate ! av]age annual int]e/ rate ( tax-exempt obligations hav+ a t]m ( #aj ye>s or m :i* are issu$ dur+ ! mon?4 ,if ! t]m z s det]m9$ is n a multiple ( a :ole ye>1 su* t]m %all be r\nd$ to ! next highe/ :ole ye>4 7#aj7 ,depreciation ,if ! s*ool facilities f9anc$ ) proce$s ( ,,sifia bonds are own$ by a p]son o!rwise entitl$ to all[ance = depreciation ) respect to su* facility1 t p]son may make an irrevocable election 7b9d+ on any successors 9 int]e/7 n to claim depreciation ) respect to ! prop]ty f9anc$ ) proce$s ( ! ,,sifia bonds = s long z ! issue ( :i* su* bonds are a "p is out/&+4 ,su* election %all be deem$ to h be5 made if ! p]son fails to claim depreciation ) respect to ! prop]ty 9 ! fir/ tax return fil$ by ! p]son 9 :i* su* depreciation c\ld h be5 claim$4 ,to ! ext5t ! p]son elects n to claim depreciation "u ?is p>agraph1 ! basis ( ! f9anc$ prop]ty %all n be r$uc$ "u section #ajaf or o!rwise = ! depreciation t c\ld h be5 claim$4 7g7 ,direct-,pay cr$it paym5ts 7#a7 ,election ,9 lieu ( ! tax cr$its o!rwise provid$ = "u ?is section1 ! issu] ( a ,,sifia bond may elect to be all[$ a cr$it ) respect to ea* int]e/ paym5t "u su* bond1 :i* %all be payable by ! ,secret>y 9 ! am\nts & at ! times set =? 9 p>agraph 7#b74 7#b7 ,am\nt & tim+ ( cr$it paym5ts ,! ,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 int]e/ paym5ts on behalf ( ! issu]7 #ajj p]c5t ( ! int]e/ payable "u su* bond on su* date4 7#c7 ,election ,! election "u p>agraph 7#a7 %all be made 9 writ+ be=e ! fir/ int]e/ paym5t date ) respect to ! bond 9 su* =m & mann] z ! ,secret>y %all prescribe4 ,su* election1 once made1 %all be irrevocable4 7#d7 ,o!r applicable rules ,9 ! case ( a ,,sifia bond ) respect to :i* an election is made "u ?is subsection1 ! foll[+ rules %all apply3 7,a7 ,int]e/ on any su* bond %all be includible 9 gross income = purposes ( ?is title4 7,b7 ,any paym5ts made "u ?is subsection %all n be includible z income = purposes ( ?is title4 7,c7 ,! d$uction o!rwise all[able "u ?is title ) respect to int]e/ paid "u su* bond %all be r$uc$ by ! am\nt ( ! paym5t made "u ?is subsection ) respect to t int]e/4 7,d7 ,= purposes ( section #adh1 ! yield on a ,,sifia bond = :i* cr$it paym5ts h be5 elect$ "u ?is subsection %all be r$uc$ by ! am\nt ( su* cr$it paym5ts4 4 7b7 ,cl]ical am5dm5ts ,! table ( subp>ts = "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by add+ at ! end ! foll[+3 ,subp>t ,k--,,sifia ,bonds 4 7c7 ,direct pur*ases ( ,,sifia bonds ,! ,secret>y %all pur*ase ,,sifia bonds t ! issu] is o!rwise unable to sell1 subject to proc$ures & cr$it /&>ds to be e/abli%$ by ! ,secret>y1 :i* /&>ds & proc$ures %all be simil> to ^? applicable to loans made "u l9es ( cr$it "u section #aejc ( ! ,transportation ,infra/ructure ,f9ance & ,innovation ,act ( #aiih 7#bc ,u4,s4,c4 #ahd74 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to obligations issu$ aft] ,decemb] #ca1 #bjba4