Sec. 3004. Tax-exempt facility bonds
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/bill/115/hr/3275/ih/section-3004·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 146 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: Only for purposes of this section, the term private activity bond shall not include any exempt facility bond issued as part of an issue described in paragraph
(4)or
(5)of section 142(a) if not less than 95 percent of the net proceeds of such bond are used to provide property located— in an area that is, at any time during the 5-year period ending on the date of enactment of this subsection, rated by the U.S. Drought Monitor as having at least a D2 intensity, and in a State that is under a gubernatorial drought declaration. Paragraph
(1)shall not apply to any bond issued more than 10 years after the date of the enactment of this subsection. . Section 142(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following flush sentence: For purposes of this subsection, the term water includes recycled water. . The amendments made by this subsection shall apply with respect to bonds issued after the date of the enactment of this Act.