Bill > HR789

This bill, the Build America Bonds Act of 2013, aims to make permanent the tax treatment for certain Build America Bonds, which are a type of bond issued by state and local governments to finance infrastructure projects. The bill amends the Internal Revenue Code of 1986 to extend the period during which these bonds can be issued and to adjust the credit percentage provided to bondholders and the payment percentage to issuers. Specifically, it establishes a new table for determining the applicable percentage for Build America Bonds issued from 2013 onwards, with the percentage gradually decreasing from 32% in 2013 to 28% in 2017 and thereafter. The bill also permits current refundings of qualified bonds, meaning bonds issued to pay off existing qualified bonds under certain conditions, and clarifies that capital expenditures for levees and flood control projects are eligible. Additionally, it includes provisions to ensure that payments to issuers are not reduced due to sequestration, which refers to automatic spending cuts mandated by budget control acts. The amendments made by this bill apply to obligations issued on or after its enactment date.