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lG <br />Part 111- Administrative, Procedural, and Miscellaneous <br />Recovery Zone Bond Volume Cap Allocations <br />Notice 2009-50 <br />SECTION 1. PURPOSE <br />This notice provides guidance regarding the maximum face amount of recovery <br />zone economic development bonds ("Recovery Zone Economic Development Bonds") <br />and recovery zone facility bonds ("Recovery Zone Facility Bonds') (together, "Recovery <br />Zone Bonds"), that may be issued by each State and counties and large municipalities <br />within each State before January 1, 2011 under 14000-2 and 14000-3, respectively, <br />of the Internal Revenue Code ("Code"), as provided in § 14000-1 of the Code. As <br />applicable to 14000-1 through 14000-3, § 103(c)(2) provides that the term "State" <br />includes the District of Columbia and any possession of the United States. This notice <br />also provides certain interim guidance for Recovery Zone Bonds. In general, Recovery <br />Zone Bonds provide tax incentives for State and local governmental borrowing at lower <br />borrowing costs to promote job creation and economic recovery that is targeted to areas <br />particularly affected by employment declines. <br />SECTION 2. BACKGROUND <br />.01 INTRODUCTION <br />Section 1401 of Title I of Division B of the American Recovery and Reinvestment <br />Act of 2009, Pub. L. No. 111-5, 123 Stat. 115 (2009) ("ARRA"), added 14000-1 <br />