S.Amdt. 299

SA 299. Mr. REID (for himself and Mr. Ensign) submitted an amendment
intended to be proposed to amendment SA 98 proposed by Mr. Inouye (for
himself and Mr. Baucus) to the bill H.R. 1, making supplemental
appropriations for job preservation and creation, infrastructure
investment, energy efficiency and science, assistance to the
unemployed, and State and local fiscal stabilization, for fiscal year
ending September 30, 2009, and for other purposes; which was ordered to
lie on the table; as follows:

Beginning on page 540, line 1, strike all through page 541,
line 11, and insert the following:

SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX
LIMITATIONS ON TAX-EXEMPT BONDS.

(a) Interest on Private Activity Bonds Issued During 2009
and 2010 Not Treated as Tax Preference Item.--Subparagraph
(C) of section 57(a)(5) is amended by adding at the end a new
clause:
``(vi) Exception for bonds issued in 2009 and 2010.--For
purposes of clause (i), the term `private activity bond'
shall not include--

``(I) any bond issued after December 31, 2008, and before
January 1, 2011, or
``(II) any interim financing refunding bond issued after
December 31, 2008, and before January 1, 2011.

For purposes of clause (I), a refunding bond (whether a
current or advance refunding), other than an interim
financing refunding bond, shall be treated as issued on the
date of the issuance of the refunded bond (or in the case of
a series of refundings, the original bond). For purposes of
this clause, the term `interim financing refunding bond'
means any refunding bond which is issued to refund another
bond which had a maturity date that was less than 5 years
after the date such other bond was issued.''.
(b) No Adjustment to Adjusted Current Earnings for Interest
on Tax-Exempt Bonds Issued During 2009 and 2010.--
Subparagraph (B) of section 56(g)(4) is amended by adding at
the end the following new clause:
``(iv) Tax exempt interest on bonds issued in 2009 and
2010.--Clause (i) shall not apply in the case of any interest
on--

``(I) a bond issued after December 31, 2008, and before
January 1, 2011, or
``(II) an interim financing refunding bond issued after
December 31, 2008, and before January 1, 2011.

For purposes of clause (I), a refunding bond (whether a
current or advance refunding), other than an interim
financing refunding bond, shall be treated as issued on the
date of the issuance of the refunded bond (or in the case of
a series of refundings, the original bond). For purposes of
this clause, the term `interim financing refunding bond'
means any refunding bond which is issued to refund another
bond which had a maturity date that was less than 5 years
after the date such other bond was issued.''.
(c) Effective Date.--The amendments made by this section
shall apply to obligations issued after December 31, 2008.
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