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~I <br />expenditures for public infrastructure and construction of public facilities, and (3) <br />expenditures for job training and educational programs. This broad definition of <br />qualified economic development purpose includes capital expenditures (as defined in <br />§ 1.150-1(b) of the Income Tax Regulations) and working capital expenditures to <br />promote development or other economic activity in a recovery zone. For this purpose, <br />an eligible financing of qualified expenditures includes a reimbursement of those <br />expenditures under the reimbursement rules contained in § 1.150-2. By contrast, <br />Recovery Zone Economic Development Bonds generally may not be issued to refinance <br />expenditures in "refunding issues" (as defined in § 1.150-1). Further, for this purpose, <br />Recovery Zone Economic Development Bonds may be used to reimburse otherwise- <br />eligible expenditures under § 1.150-2 that were paid or incurred after the effective date <br />of ARRA and that were financed originally with temporary short-term financing issued <br />after the effective date of ARRA, and such reimbursement will not be treated as a <br />refunding issue under 1.150-1(d) or 1.150-2(g). <br />.04 CERTAIN OTHER APPLICABLE RULES <br />Section 6431(c) provides that for purposes of applying the arbitrage investment <br />restrictions under § 148, the yield on a qualified bond (including, for this purpose, a <br />Recovery Zone Economic Development Bond), shall be reduced by the refundable <br />credit allowed under § 6431. Section 6431(d) provides that, for purposes of § 6431, <br />"interest payment date" means each date on which interest is payable by the issuer <br />under the terms of the bond. Section 54AA(d)(2)(A) provides that, for purposes of the <br />restrictions against Federal guarantees of tax-exempt bonds under § 149(b), a Build <br />America Bond (including, for this purpose, a Recovery Zone Economic Development <br />6 <br />