HR 4213 American Jobs and Closing Tax Loopholes
July 22nd 2010 01:00
I am still discussing H.R. 4213 - American Jobs and Closing Tax Loopholes Act of 2010. This bill maybe coming up for a vote soon, here is another interesting section you should understand. Again do not find this item to be either a tax or a program to create jobs so why it is in this bill I have no idea.
SEC. 101. EXTENSION OF BUILD AMERICA BONDS.
(a) In General- Subparagraph (B) of section 54AA(d)(1) is amended by striking `January 1, 2011' and inserting `January 1, 2013'.
(b) Extension of Payments to Issuers-
(1) IN GENERAL- Section 6431 is amended--
(A) by striking `January 1, 2011' in subsection (a) and inserting `January 1, 2013'; and
(B) by striking `January 1, 2011' in subsection (f)(1)(B) and inserting `a particular date'.
(2) CONFORMING AMENDMENTS- Subsection (g) of section 54AA is amended--
(A) by striking `January 1, 2011' and inserting `January 1, 2013'; and
(B) by striking `Qualified Bonds Issued Before 2011' in the heading and inserting `Certain Qualified Bonds'.
(c) Reduction in Percentage of Payments to Issuers- Subsection (b) of section 6431 is amended--
(1) by striking `The Secretary' and inserting the following:
`(1) IN GENERAL- The Secretary';
(2) by striking `35 percent' and inserting `the applicable percentage'; and
(3) by adding at the end the following new paragraph:
`(2) APPLICABLE PERCENTAGE- For purposes of this subsection, the term `applicable percentage' means the percentage determined in accordance with the following table:
----------------------------- ----------------------------- ----------------------------- -----
`In the case of a qualified bond issued during calendar year: The applicable percentage is:
----------------------------- ----------------------------- ----------------------------- -----
2009 or 2010 35 percent
2011 32 percent
2012 30 percent.'.
----------------------------- ----------------------------- ----------------------------- -----
(d) Current Refundings Permitted- Subsection (g) of section 54AA is amended by adding at the end the following new paragraph:
`(3) TREATMENT OF CURRENT REFUNDING BONDS-
`(A) IN GENERAL- For purposes of this subsection, the term `qualified bond' includes any bond (or series of bonds) issued to refund a qualified bond if--
`(i) the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue,
`(ii) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and
`(iii) the refunded bond is redeemed not later than 90 days after the date of the issuance of the refunding bond.
`(B) APPLICABLE PERCENTAGE- In the case of a refunding bond referred to in subparagraph (A), the applicable percentage with respect to such bond under section 6431(b) shall be the lowest percentage specified in paragraph (2) of such section.
`(C) DETERMINATION OF AVERAGE MATURITY- For purposes of subparagraph (A)(i), average maturity shall be determined in accordance with section 147(b)(2)(A).'.
(e) Clarification Related to Levees and Flood Control Projects- Subparagraph (A) of section 54AA(g)(2) is amended by inserting `(including capital expenditures for levees and other flood control projects)' after `capital expenditures'.
I wasn’t sure what a build America Bond was I do know I have read about them so what are Build America Bonds and when did the public get another opportunity to purchase “Build America Bonds.” You guess it! Build America Bonds were in the American Recovery and Reinvestment Act of 2009 signed into law on February 17, 2009. “The Build America Bonds are taxable (liking them so far?) and through Federal subsidies or tax credits, are intended (okay have they planned that they will do something, have they planned for people actually wanted to purchase these bonds, or have they calculated that the American Public is clamoring to invest in its country when this administration cannot stop spending money? Just a couple of questions interjected here!
There were two types of Build America Bonds
1. Is a federal subsidy to investors that equals to 35% of interest that is payable by the issuer, so wouldn’t the issuer be the government? Wouldn’t they be paying out the 35% and whose money does the government spend? Right OURS!
2. The second bond provides a direct Federal subsidy that will be paid to state and local government that also pays out an amount equal to (what is that means)35% of interest.
The Build America Bonds must comply with all requirements applicable to the issuance of tax-exempt government bonds.
My next question is with the investment advocate that was signed into law today, are they going to advise you to purchase Build America Bonds?
References
Really Long Link
:
http://www.senate.gov/
Really Long Link
Really Long Link
SEC. 101. EXTENSION OF BUILD AMERICA BONDS.
(a) In General- Subparagraph (B) of section 54AA(d)(1) is amended by striking `January 1, 2011' and inserting `January 1, 2013'.
(b) Extension of Payments to Issuers-
(1) IN GENERAL- Section 6431 is amended--
(A) by striking `January 1, 2011' in subsection (a) and inserting `January 1, 2013'; and
(2) CONFORMING AMENDMENTS- Subsection (g) of section 54AA is amended--
(A) by striking `January 1, 2011' and inserting `January 1, 2013'; and
(B) by striking `Qualified Bonds Issued Before 2011' in the heading and inserting `Certain Qualified Bonds'.
(c) Reduction in Percentage of Payments to Issuers- Subsection (b) of section 6431 is amended--
(1) by striking `The Secretary' and inserting the following:
`(1) IN GENERAL- The Secretary';
(2) by striking `35 percent' and inserting `the applicable percentage'; and
(3) by adding at the end the following new paragraph:
`(2) APPLICABLE PERCENTAGE- For purposes of this subsection, the term `applicable percentage' means the percentage determined in accordance with the following table:
----------------------------- ----------------------------- ----------------------------- -----
`In the case of a qualified bond issued during calendar year: The applicable percentage is:
----------------------------- ----------------------------- ----------------------------- -----
2011 32 percent
2012 30 percent.'.
----------------------------- ----------------------------- ----------------------------- -----
(d) Current Refundings Permitted- Subsection (g) of section 54AA is amended by adding at the end the following new paragraph:
`(3) TREATMENT OF CURRENT REFUNDING BONDS-
`(A) IN GENERAL- For purposes of this subsection, the term `qualified bond' includes any bond (or series of bonds) issued to refund a qualified bond if--
`(i) the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue,
`(ii) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and
`(iii) the refunded bond is redeemed not later than 90 days after the date of the issuance of the refunding bond.
`(B) APPLICABLE PERCENTAGE- In the case of a refunding bond referred to in subparagraph (A), the applicable percentage with respect to such bond under section 6431(b) shall be the lowest percentage specified in paragraph (2) of such section.
`(C) DETERMINATION OF AVERAGE MATURITY- For purposes of subparagraph (A)(i), average maturity shall be determined in accordance with section 147(b)(2)(A).'.
(e) Clarification Related to Levees and Flood Control Projects- Subparagraph (A) of section 54AA(g)(2) is amended by inserting `(including capital expenditures for levees and other flood control projects)' after `capital expenditures'.
I wasn’t sure what a build America Bond was I do know I have read about them so what are Build America Bonds and when did the public get another opportunity to purchase “Build America Bonds.” You guess it! Build America Bonds were in the American Recovery and Reinvestment Act of 2009 signed into law on February 17, 2009. “The Build America Bonds are taxable (liking them so far?) and through Federal subsidies or tax credits, are intended (okay have they planned that they will do something, have they planned for people actually wanted to purchase these bonds, or have they calculated that the American Public is clamoring to invest in its country when this administration cannot stop spending money? Just a couple of questions interjected here!
There were two types of Build America Bonds
1. Is a federal subsidy to investors that equals to 35% of interest that is payable by the issuer, so wouldn’t the issuer be the government? Wouldn’t they be paying out the 35% and whose money does the government spend? Right OURS!
2. The second bond provides a direct Federal subsidy that will be paid to state and local government that also pays out an amount equal to (what is that means)35% of interest.
The Build America Bonds must comply with all requirements applicable to the issuance of tax-exempt government bonds.
My next question is with the investment advocate that was signed into law today, are they going to advise you to purchase Build America Bonds?
References
Really Long Link
:
http://www.senate.gov/
Really Long Link
Really Long Link
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