Urban Recovery and Growth Act - Amends the Internal Revenue Code to authorize the issuance of economic development extension bonds for the purpose of economic development or refinancing the indebtedness of a city that has an average unemployment rate of not less than 150% of the national average in the preceding calendar year and that has lost at least 20% of its population between 2000 and 2010.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6659 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6659
To amend the Internal Revenue Code of 1986 to extend the recovery zone
economic development bonds for certain cities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 13, 2012
Mr. Clarke of Michigan (for himself and Mr. Conyers) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend the recovery zone
economic development bonds for certain cities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Urban Recovery and Growth Act''.
SEC. 2. EXTENSION OF RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS FOR
CERTAIN CITIES.
(a) In General.--Part III of subchapter Y of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 1400U-4. EXTENSION OF RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS
FOR CERTAIN CITIES.
``(a) In General.--In the case of an economic development extension
bond--
``(1) such bond shall be treated for purposes of section
6431 as a qualified bond issued before January 1, 2011,
``(2) subsection (b) of such section shall be applied by
substituting `45 percent' for `35 percent', and
``(3) interest on such bond shall be includible in gross
income.
``(b) Economic Development Extension Bond.--For purposes of this
section--
``(1) In general.--The term `economic development extension
bond' means any specified bond issued during the 1-year period
beginning on the date of the enactment of this section as part
of an issue if--
``(A) 100 percent of the excess of--
``(i) the available project proceeds (as
defined in section 54A) of such issue, over
``(ii) the amounts in a reasonably required
reserve (within the meaning of section
150(a)(3)) with respect to such issue,
are to be used for one or more qualified purposes, and
``(B) the issuer designates such bond for purposes
of this section.
``(2) Specified bond.--
``(A) In general.--The term `specified bond' means
any obligation (other than a private activity bond) if
the interest on such obligation would (but for this
section) be excludable from gross income under section
103.
``(B) Applicable rules.--For purposes of applying
subparagraph (A)--
``(i) rules similar to the rules of section
54AA(d)(2) shall apply, and
``(ii) section 148 shall not apply with
respect to any issue with respect to which the
excess described in paragraph (1)(A) is used
for a qualified purpose described in paragraph
(3)(B).
``(3) Qualified purposes.--The term `qualified purposes'
means--
``(A) any qualified economic development purpose
(as defined in section 1400U-2(c), applied by treating
specified cities (and only specified cities) as
recovery zones), and
``(B) any refinancing of indebtedness of a
specified city which is outstanding on the date of the
enactment of this section.
``(4) Specified city.--The term `specified city' means any
principal city for a metropolitan statistical area (as
determined by the Office of Management and Budget) which--
``(A) has an average unemployment rate of not less
than 150 percent of the national average rate for the
last calendar year ending before the date of the
enactment of this section, and
``(B) has lost at least 20 percent of its
population between calendar year 2000 and calendar year
2010.
``(5) Limitation on amount of bonds designated.--
``(A) In general.--The maximum aggregate face
amount of bonds which may be designated under paragraph
(1) with respect to any specified city shall not exceed
the bond limitation allocated to such city under
subparagraph (B).
``(B) 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 $1,000,000,000 as the population of such
city (as determined for purposes of the 2010 census)
bears to the total population of all specified cities
(as so determined).''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter Y of chapter 1 of such Code is amended by adding at the end
the following new item:
``Sec. 1400U-4. Extension of recovery zone economic development bonds
for certain cities.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
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Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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