To amend the Internal Revenue Code of 1986 to provide for the tax-exempt financing of certain government-owned buildings.

This bill amends the Internal Revenue Code to permit the tax-exempt financing of certain government-owned buildings by expanding the definition of "exempt facility bond" to include bonds used for qualified government buildings.

A qualified government building is a government-owned building or facility that consists of one or more of the following:

• an elementary or secondary school;
• facilities of a state college or university used for educational purposes;
• a public library;
• a court;
• hospital, health care, laboratory, or research facilities;
• public safety facilities; or
• offices for government employees.

The bill excludes buildings or facilities that include specified recreational equipment or are used for the primary purpose of providing retail food and beverage services, recreation, or entertainment.

The bill establishes: (1) a $5 billion limit on the amount of tax-exempt financing which may be provided for government buildings, and (2) procedures for allocating and applying for the financing.

The bill exempts the bonds for government buildings from the volume cap on private activity bonds.