123STA T . 3 59PUBLIC LA W 111 – 5 —FE B.1 7, 2 0 09 ‘ ‘ (A)forpu rpo se sofse cti o n149 ( b ) ,a bui ld A m erica bond s h all not be treated as federall yg uaranteed by reason of the credit allo w ed under subsection (a) or section 6 4 3 1, ‘‘( B ) for purposes of section 14 8 , the yield on a build America bond shall be determined without regard to the credit allowed under subsection (a), and ‘‘( C ) a bond shall not be treated as a build America bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1 27 3(a)(3)) of premium o v er the stated principal amount of the bond . ‘‘(e) INTER E S T PAYM ENT D ATE. —F or purposes of this section, the term ‘interest payment date ’ means any date on which the holder of record of the build America bond is entitled to a payment of interest under such bond. ‘‘(f) SP E CI A LRU LES.— ‘‘(1) INTEREST O N B UIL D AMERICA BONDS INCLUDIBLE IN G ROSS INCOME F OR FEDERAL INCOME TA X PURPOSES.—For pur - poses of this title, interest on any build America bond shall be includible in gross income. ‘‘(2) APPLICATION OF CERTAIN RULES.—Rules similar to the rules of subsections (f), (g), (h), and (i) of section 5 4A shall apply for purposes of the credit allowed under subsection (a). ‘‘(g) SPECIAL RULE FOR Q UALIFIED BONDS ISSUED BEFORE 2 0 11.—In the case of a q ualified bond issued before J anuary 1, 2011— ‘‘(1) ISSUER ALLO W ED REFUNDABLE CREDIT.—In lieu of any credit allowed under this section with respect to such bond, the issuer of such bond shall be allowed a credit as provided in section 6431. ‘‘(2) QUALIFIED BOND.—For purposes of this subsection, the term ‘qualified bond’ means any build America bond issued as part of an issue if— ‘‘(A) 100 percent of the e x cess of— ‘‘(i) the available pro j ect proceeds (as defined in section 54A) of such issue, over ‘‘(ii) the amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue, are to be used for capital expenditures, and ‘‘(B) the issuer ma k es an irrevocable election to have this subsection apply. ‘‘(h) REGULATIONS.— T he Secretary may prescribe such regula- tions and other guidance as may be necessary or appropriate to carry out this section and section 6431.’’. (b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE 2011.—Sub- chapter B of chapter 65 is amended by adding at the end the following new section
- ‘
‘ SEC.6431 .C R E DITFO R QUAL IFIED B O N DS ALLO W ED TO ISSUER. ‘‘(a) IN G ENERAL.—In the case of a qualified bond issued before January 1, 2011, the issuer of such bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b). ‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay (contem- poraneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such
