Bill > HR5330

This bill, known as the Bringing Urgent Investment to Local Development Act or BUILD Act, 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 and other public improvements, and to introduce new "recovery zone economic development bonds" for specific cities. The bill amends the Internal Revenue Code to extend the availability of Build America Bonds beyond January 1, 2011, and establishes a decreasing percentage for the credit that bondholders receive on the interest paid, starting at 35% in 2014 and gradually reducing to 28% by 2019 and thereafter. It also modifies the direct payments to bond issuers, aligning them with the bondholder credit percentages, and introduces special provisions for "economic development extension bonds" for cities facing significant economic hardship, defined by high unemployment, poverty rates, or population loss. These specific bonds will have a 35% applicable percentage for issuers and can be used for qualified economic development purposes or to refinance existing city debt, with limitations on the total amount of such bonds that can be issued. Additionally, the bill allows for current refundings of these bonds, meaning new bonds can be issued to pay off old ones under certain conditions, and includes a provision to gross up payments to issuers in case of sequestration, which refers to automatic budget cuts mandated by law.