S.Amdt. 4779

SA 4779. Ms. CANTWELL submitted an amendment intended to be proposed
to amendment SA 4753 proposed by Mr. Reid (for himself and Mr.
McConnell) to the bill H.R. 4853, to amend the Internal Revenue Code of
1986 to extend the funding and expenditure authority of the Airport and
Airway Trust Fund to amend title 49, United States Code, to extend
authorizations for the airport improvement program, and for other
purposes; which was ordered to lie on the table; as follows:

On page 28, between lines 3 and 4, insert:

SEC. ___. EXTENSION OF BUILD AMERICA BONDS.

(a) In General.--Subparagraph (B) of section 54AA(d)(1) is
amended by striking ``January 1, 2011'' and inserting
``January 1, 2012''.
(b) Extension of Payments to Issuers.--
(1) In general.--Section 6431 is amended--
(A) by striking ``January 1, 2011'' in subsection (a) and
inserting ``January 1, 2012''; and
(B) by striking ``January 1, 2011'' in subsection (f)(1)(B)
and inserting ``a particular date''.
(2) Conforming amendments.--Subsection (g) of section 54AA
is amended--
(A) by striking ``January 1, 2011'' and inserting ``January
1, 2012''; and
(B) by striking ``Qualified Bonds Issued Before 2011'' in
the heading and inserting ``Certain Qualified Bonds''.
(c) Reduction in Percentage of Payments to Issuers.--
Subsection (b) of section 6431 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 issued     The applicable percentage
during calendar year:                         is:
------------------------------------------------------------------------
2009 or 2010..............................  35 percent
2011......................................  32 percent.''.
------------------------------------------------------------------------

(d) Current Refundings Permitted.--Subsection (g) of
section 54AA 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).''.
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