Build America Bonds Act of 2013 - Amends the Internal Revenue Code to: (1) make permanent the issuance authority for Build America Bonds and the authority for payments to issuers of such bonds, (2) make phased reductions in the credit percentage to bondholders and the percentage of payments to issuers of such bonds, (3) allow refundings of currently issued bonds, and (4) allow the use of Build America bonds to fund capital expenditures for levees and flood control projects.
Provides for an increase in payments to issuers of Build America bonds to compensate for reductions in the amount of such payments due to sequestration.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 789 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 789
To amend the Internal Revenue Code of 1986 to permanently extend the
tax treatment for certain build America bonds, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 15, 2013
Mr. Neal (for himself, Mr. Levin, Mr. Rangel, Mr. McDermott, Mr. Lewis,
Mr. Becerra, Mr. Thompson of California, Mr. Larson of Connecticut, Mr.
Blumenauer, Mr. Kind, Mr. Pascrell, Mr. Crowley, Ms. Schwartz, Mr.
Danny K. Davis of Illinois, and Ms. Linda T. Sanchez of California)
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 permanently extend the
tax treatment for certain build America bonds, and for other purposes.
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 ``Build America Bonds Act of 2013''.
SEC. 2. BUILD AMERICA BONDS MADE PERMANENT.
(a) In General.--Subparagraph (B) of section 54AA(d)(1) of the
Internal Revenue Code of 1986 is amended by inserting ``or during a
period beginning on or after the date of the enactment of the Build
America Bonds Act of 2013,'' after ``January 1, 2011,''.
(b) Reduction in Credit Percentage to Bondholders.--Subsection (b)
of section 54AA of such Code is amended to read as follows:
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any interest payment date
for a build America bond is the applicable percentage of the
amount of interest payable by the issuer with respect to such
date.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage shall be determined under the
following table:
``In the case of a bond issued The applicable
during calendar year: percentage is:
2009 or 2010........................................... 35
2013................................................... 32
2014................................................... 31
2015................................................... 30
2016................................................... 29
2017 and thereafter.................................... 28.''.
(c) Extension of Payments to Issuers.--
(1) In general.--Section 6431 of such Code is amended--
(A) by inserting ``or during a period beginning on
or after the date of the enactment of the Build America
Bonds Act of 2013,'' after ``January 1, 2011,'' in
subsection (a), and
(B) by striking ``before January 1, 2011'' in
subsection (f)(1)(B) and inserting ``during a
particular period''.
(2) Conforming amendments.--Subsection (g) of section 54AA
of such Code is amended--
(A) by inserting ``or during a period beginning on
or after the date of the enactment of the Build America
Bonds Act of 2013,'' after ``January 1, 2011,'', and
(B) by striking ``Qualified Bonds Issued Before
2011'' in the heading and inserting ``Certain Qualified
Bonds''.
(d) Reduction in Percentage of Payments to Issuers.--Subsection (b)
of section 6431 of such Code is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'',
(2) by striking ``35 percent'' and inserting ``the
applicable percentage'', and
(3) by adding at the end the following new paragraph:
``(2) Applicable percentage.--For purposes of this
subsection, the term `applicable percentage' means the
percentage determined in accordance with the following table:
``In the case of a qualified bond The applicable
issued during calendar year: percentage is:
2009 or 2010........................................... 35
2013................................................... 32
2014................................................... 31
2015................................................... 30
2016................................................... 29
2017 and thereafter.................................... 28.''.
(e) Current Refundings Permitted.--Subsection (g) of section 54AA
of such Code is amended by adding at the end the following new
paragraph:
``(3) Treatment of current refunding bonds.--
``(A) In general.--For purposes of this subsection,
the term `qualified bond' includes any bond (or series
of bonds) issued to refund a qualified bond if--
``(i) the average maturity date of the
issue of which the refunding bond is a part is
not later than the average maturity date of the
bonds to be refunded by such issue,
``(ii) the amount of the refunding bond
does not exceed the outstanding amount of the
refunded bond, and
``(iii) the refunded bond is redeemed not
later than 90 days after the date of the
issuance of the refunding bond.
``(B) Applicable percentage.--In the case of a
refunding bond referred to in subparagraph (A), the
applicable percentage with respect to such bond under
section 6431(b) shall be the lowest percentage
specified in paragraph (2) of such section.
``(C) Determination of average maturity.--For
purposes of subparagraph (A)(i), average maturity shall
be determined in accordance with section 147(b)(2)(A).
``(D) Issuance restriction not applicable.--
Subsection (d)(1)(B) shall not apply to a refunding
bond referred to in subparagraph (A).''.
(f) Clarification Related to Levees and Flood Control Projects.--
Subparagraph (A) of section 54AA(g)(2) of such Code is amended by
inserting ``(including capital expenditures for levees and other flood
control projects)'' after ``capital expenditures''.
(g) Gross-Up of Payment to Issuers in Case of Sequestration.--In
the case of any payment under section 6431(b) of the Internal Revenue
Code of 1986 made after the date of the enactment of this Act to which
sequestration applies, the amount of such payment shall be increased to
an amount equal to--
(1) such payment (determined before such sequestration),
multiplied by
(2) the quotient obtained by dividing 1 by the amount by
which 1 exceeds the percentage reduction in such payment
pursuant to such sequestration.
For purposes of this subsection, the term ``sequestration'' means any
reduction in direct spending ordered in accordance with a sequestration
report prepared by the Director of the Office and Management and Budget
pursuant to the Balanced Budget and Emergency Deficit Control Act of
1985 or the Statutory Pay-As-You-Go Act of 2010.
(h) Effective Date.--The amendments made by this section shall
apply to obligations issued on or after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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