123STA T . 3 58PUBLIC LA W 111 – 5 —FE B.1 7, 2 0 0 9SEC.152 2.E XT E N S IO N A N D EX P ANSION O FQU A L IFIED Z ONE ACADE MYB ONDS. (a)INGE NE RAL.—Section54E (c)( 1 )i s a m en d ed by st r i k in g‘ ‘and 20 0 9’ ’ and inserting ‘‘and $ 1 , 400,000,000 f or 2009 and 2010’’. (b) E F FE CTIV E D ATE.— Th e amendment made by this section sha l la p ply to obligations iss u ed after December 3 1, 200 8 . PARTIV—BU I LD A ME RI C AB ON D S SEC. 15 3 1. BUILD AME R ICA BONDS. (a) IN GENERAL.— P art I V of subchapter A of chapter 1 is amended by adding at the end the follo w ing new subpart
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‘S ubpartJ —Bu ild A me ri c aB on d s‘ ‘ Sec.54A A. Build A m e r ic abon d s . ‘ ‘SEC. 5 4 AA. BUILD AMERICA BONDS. ‘‘(a) IN GENERAL.—If a ta x payer holds a build America bond on one or more interest payment dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount e q ual to the sum of the credits determined under subsection (b) with respect to such dates. ‘‘(b) A MOU NT OF C RE D IT.—The amount of the credit determined under this subsection with respect to any interest payment date for a build America bond is 35 percent of the amount of interest payable by the issuer with respect to such date . ‘‘(c) L IMITATION B A S ED ON AMOUNT OF TA X .— ‘‘(1) IN G ENERAL.—The credit allowed under subsection (a) for any taxable year shall not exceed the excess of— ‘‘(A) the sum of the regular tax liability (as defined in section 2 6 (b)) plus the tax imposed by section 55, o v er ‘‘(B) the sum of the credits allowable under this part (other than subpart C and this subpart). ‘‘(2) CARR Y OVER OF UNUSED CREDIT.—If the credit allowable under subsection (a) exceeds the limitation imposed by para - graph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year). ‘‘(d) BUILD AMERICA BOND.— ‘‘(1) IN GENERAL.— F or purposes of this section, the term ‘build America bond’ means any obligation (other than a private activity bond) if— ‘‘(A) the interest on such obligation would (but for this section) be excludable from gross income under section 103, ‘‘(B) such obligation is issued before J anuary 1, 2011, and ‘‘(C) the issuer makes an irrevocable election to have this section apply. ‘‘(2) A P PLICA B LE RULES.—For purposes of applying para- graph (1)— 26USC54Enote. 26 USC 54.
