Laserfiche WebLink
aA <br />Bond) shall not be treated as federally guaranteed by reason of the refundable credit <br />allowed under § 6431. Section 54AA(d)(2)(C) provides that a bond (including, for this <br />purpose, a Recovery Zone Economic Development Bond) shall not be treated as a <br />Build America Bond under § 54AA(d)(1) if the issue price has more than a de minimis <br />amount (determined under rules similar to the rules of § 1273(a)(3)) of premium over <br />the stated principal amount of the bond. <br />SECTION 4. RECOVERY ZONE FACILITY BONDS <br />.01 RECOVERY ZONE FACILITY BONDS TREATED AS EXEMPT FACILITY <br />BONDS <br />Section 103(a) provides that, except as otherwise provided in § 103(b), interest <br />on State or local bonds is excludable from gross income for Federal income tax <br />purposes. Under § 103(b), interest on a State and local bond that is a "private activity <br />bond" under § 141(a) generally is not excludable from gross income unless the bond <br />meets the requirements for a qualified private activity bond under § 141(e). Section <br />141(e) provides that an "exempt facility bond" under § 142 is one type of qualified <br />private activity bond that may be issued with interest thereon excludable from gross <br />income under § 103(a). Section 14000-3(a) provides that, for purposes of 141 <br />through 150, the term "exempt facility bond" includes any Recovery Zone Facility Bond. <br />Section 14000-3(b) defines the term "Recovery Zone Facility Bond" to mean any bond <br />issued as part of an issue if: (A) 95 percent or more of the net proceeds (as defined in <br />§ 150(a)(3)) of such issue are to be used for recovery zone property; (B) such bond is <br />issued before January 1, 2011; and (C) the issuer designates such bond for purposes of <br />§ 14000-3. <br />7 <br />