123STA T . 3 54PUBLIC LA W 111 – 5 —FE B.1 7, 2 0 0 9obligat io n i f t her e qu ire m ent s of this p aragraph are met w ith respe c t to each qualifie d portion of the issue ( determined b y treating each qualified portion as a separate issue which is issued by the qualified borrower with respect to which such portion relates ).‘ ‘(i v ) QUALIF I ED FI N AN C IN G I S SUE. —F or purposes of this subparagraph , the term ‘qualified financing issue ’ means any composite, pooled, or other conduit financing issue the proceeds of which are used directly or indirectly to ma k e or finance loans to 1 or more ultimate borrowers each of whom is a qualified bor - rower. ‘‘(v) QUALIFIED PORT ION.—For purposes of this subparagraph, the term ‘qualified portion’ means that portion of the proceeds which are used with respect to each qualified borrower under the issue. ‘‘(vi) QUALIFIED B ORRO W ER.—For purposes of this subparagraph, the term ‘qualified borrower’ means a borrower which is a S tate or political subdivision thereof or an organi z ation described in section 50 1(c)( 3 ) and e x empt from taxation under section 501(a).’’. (b) E FFECTI V E D ATE.— T he amendment made by this section shall apply to obligations issued after December 31, 2 00 8 . SEC.1503 . T E MPORA R Y MO DIF ICATIO N OFA L TERNATI V E MINIM U M TA X LIMITATIONS ON TAX - EXEMPT B ONDS. (a) I NTEREST ON P RIVATE A CTIVIT YB ONDS ISSUED DURING 200 9 AND 2010 N OT TREATED AS TA X PREFERENCE ITE M .—Subparagraph ( C ) of section 5 7 (a)(5) is amended by adding at the end a new clause
‘‘(vi) EXCEPTION FOR BONDS ISSUED IN 20 0 9 AND 20 1 0.— ‘‘(I) IN GENERAL.—For purposes of clause (i), the term ‘private activity bond’ shall not include any bond issued after December 31, 2008, and before J anuary 1, 2011. ‘‘(II) TREATMENT OF REFUNDING BONDS.—For purposes of subclause (I), a refunding bond (whether a current or advance refunding) 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). ‘‘(III) EXCEPTION FOR CERTAIN REFUNDING BONDS.—Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.’’. (b) NO AD J USTMENT TO ADJUSTED CURRENT EARNINGS FOR INTEREST ON TAX-EXEMPT BONDS ISSUED DURING 2009 AND 2010.— Subparagraph (B) of section 5 6 (g)( 4 ) is amended by adding at the end the following new clause: ‘‘(iv) TAX EXEMPT INTEREST ON BONDS ISSUED IN 2009 AND 2010.— ‘‘(I) IN GENERAL.—Clause (i) shall not apply in the case of any interest on a bond issued after December 31, 2008, and before January 1, 2011. 26USC57. 26 USC 265 note .
