HR 6206 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 6206CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to permanently extend the tax treatment for certain build America bonds, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

July 26, 2012CommentsClose CommentsPermalink

Mr. NEAL (for himself, Mr. RANGEL, Mr. CROWLEY, Mr. LEVIN, Mr. STARK, Mr. MCDERMOTT, Mr. LEWIS of Georgia, Mr. BECERRA, Mr. DOGGETT, Mr. THOMPSON of California, Mr. LARSON of Connecticut, Mr. BLUMENAUER, Mr. KIND, Mr. PASCRELL, and Ms. BERKLEY) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to permanently extend the tax treatment for certain build America bonds, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Build America Bonds Act of 2012’.CommentsClose CommentsPermalink

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 2012,’ after ‘January 1, 2011,’.CommentsClose CommentsPermalink





(b) Reduction in Credit Percentage to Bondholders- Subsection (b) of section 54AA of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(b) Amount of Credit-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the applicable percentage shall be determined under the following table:CommentsClose CommentsPermalink

‘In the case of a bond issuedCommentsClose CommentsPermalink

The applicableCommentsClose CommentsPermalink

during calendar year:CommentsClose CommentsPermalink

percentage is:CommentsClose CommentsPermalink

2009 or 2010CommentsClose CommentsPermalink

--35CommentsClose CommentsPermalink

2012CommentsClose CommentsPermalink

--32CommentsClose CommentsPermalink

2013CommentsClose CommentsPermalink

--31CommentsClose CommentsPermalink

2014CommentsClose CommentsPermalink

--30CommentsClose CommentsPermalink

2015CommentsClose CommentsPermalink

--29CommentsClose CommentsPermalink

2016 and thereafterCommentsClose CommentsPermalink

--28.’.CommentsClose CommentsPermalink

(c) Extension of Payments to Issuers-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 6431 of such Code is amended--CommentsClose CommentsPermalink





(A) by inserting ‘or during a period beginning on or after the date of the enactment of the Build America Bonds Act of 2012,’ after ‘January 1, 2011,’ in subsection (a), andCommentsClose CommentsPermalink





(B) by striking ‘before January 1, 2011’ in subsection (f)(1)(B) and inserting ‘during a particular period’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS- Subsection (g) of section 54AA of such Code is amended--CommentsClose CommentsPermalink





(A) by inserting ‘or during a period beginning on or after the date of the enactment of the Build America Bonds Act of 2012,’ after ‘January 1, 2011,’, andCommentsClose CommentsPermalink





(B) by striking ‘qualified Bonds Issued Before 2011’ in the heading and inserting ‘certain Qualified Bonds’.CommentsClose CommentsPermalink





(d) Reduction in Percentage of Payments to Issuers- Subsection (b) of section 6431 of such Code is amended--CommentsClose CommentsPermalink





(1) by striking ‘The Secretary’ and inserting the following:CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Secretary’,CommentsClose CommentsPermalink





(2) by striking ‘35 percent’ and inserting ‘the applicable percentage’, andCommentsClose CommentsPermalink





(3) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(2) APPLICABLE PERCENTAGE- For purposes of this subsection, the term ‘applicable percentage’ means the percentage determined in accordance with the following table:CommentsClose CommentsPermalink

‘In the case of a qualified bondCommentsClose CommentsPermalink

The applicableCommentsClose CommentsPermalink

issued during calendar year:CommentsClose CommentsPermalink

percentage is:CommentsClose CommentsPermalink

2009 or 2010CommentsClose CommentsPermalink

--35CommentsClose CommentsPermalink

2012CommentsClose CommentsPermalink

--32CommentsClose CommentsPermalink

2013CommentsClose CommentsPermalink

--31CommentsClose CommentsPermalink

2014CommentsClose CommentsPermalink

--30CommentsClose CommentsPermalink

2015CommentsClose CommentsPermalink

--29CommentsClose CommentsPermalink

2016 and thereafterCommentsClose CommentsPermalink

--28.’.CommentsClose CommentsPermalink

(e) Current Refundings Permitted- Subsection (g) of section 54AA of such Code is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(3) TREATMENT OF CURRENT REFUNDING BONDS-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





‘(ii) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, andCommentsClose CommentsPermalink





‘(iii) the refunded bond is redeemed not later than 90 days after the date of the issuance of the refunding bond.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(C) DETERMINATION OF AVERAGE MATURITY- For purposes of subparagraph (A)(i), average maturity shall be determined in accordance with section 147(b)(2)(A).CommentsClose CommentsPermalink





‘(D) ISSUANCE RESTRICTION NOT APPLICABLE- Subsection (d)(1)(B) shall not apply to a refunding bond referred to in subparagraph (A).’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(g) Effective Date- The amendments made by this section shall apply to obligations issued on or after the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 3. LIMITATION ON SECTION 199 DEDUCTION ATTRIBUTABLE TO OIL, NATURAL GAS, OR PRIMARY PRODUCTS THEREOF.

(a) Denial of Deduction- Paragraph (4) of section 199(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(E) SPECIAL RULE FOR CERTAIN OIL AND GAS INCOME- In the case of any taxpayer who is a major integrated oil company (as defined in section 167(h)(5)(B)) for the taxable year, the term ‘domestic production gross receipts’ shall not include gross receipts from the production, refining, processing, transportation, or distribution of oil, gas, or any primary product (within the meaning of subsection (d)(9)) thereof.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act.CommentsClose CommentsPermalink