123STA T . 3 5 1 PUBLIC LA W 111 – 5 —FE B.1 7, 2 0 0 9(a) ( 2 )a nd ( b ) ofsecti on 1397D s h a l la p pl y fo r p u rposes of this subsection .‘ ‘(d) NONAP P LIC A T ION O FCER TAIN RU LE S . —S ections 1 46 (relatin g to v olu m e cap) and 147(d) (relating to ac q uisition of e x isting property not permitted) shall not apply to any recovery z one facility bond. ’ ’. (b) CLERICAL AM EN D MENT.— T he table of parts for subchapter Y of chapter 1 of such Code is amended by adding at the end the follo w ing new item
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‘ PARTI II .RECOV ER YZ O N E B ON DS . ’ ’. (c) E FFECTI V E DATE.—The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. SEC.1402 . TRIBAL EC ON O M IC D E V ELO P MENT BONDS. (a) I N G ENERAL.—Section 7 8 71 is amended by adding at the end the following new subsection: ‘‘(f) TRI B AL ECONOMIC DEVELOPMENT B ONDS.— ‘‘(1) ALLOCATION OF LIMITATION.— ‘‘(A) IN G ENERAL.—The Secretary shall allocate the national tribal economic development bond limitation among the Indian tribal governments in such manner as the Secretary , in consultation with the Secretary of the Interior, determines appropriate. ‘‘(B) NATIONAL LIMITATION.—There is a national tribal economic development bond limitation of $ 2, 0 00,000,000. ‘‘(2) BONDS TREATED AS E X EMPT FROM TAX.—In the case of a tribal economic development bond— ‘‘(A) notwithstanding subsection (c), such bond shall be treated for purposes of this title in the same manner as if such bond were issued by a State, ‘‘(B) the Indian tribal government issuing such bond and any instrumentality of such Indian tribal government shall be treated as a State for purposes of section 141, and ‘‘(C) section 146 shall not apply. ‘‘(3) TRIBAL ECONOMIC DEVELOPMENT BOND.— ‘‘(A) IN GENERAL.— F or purposes of this section, the term ‘tribal economic development bond’ means any bond issued by an Indian tribal government— ‘‘(i) the interest on which would be exempt from tax under section 103 if issued by a State or local government, and ‘‘(ii) which is designated by the Indian tribal government as a tribal economic development bond for purposes of this subsection. ‘‘(B) EXCEPTIONS.—Such term shall not include any bond issued as part of an issue if any portion of the proceeds of such issue are used to finance— ‘‘(i) any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed or any other property actually used in the conduct of such gaming, or ‘‘(ii) any facility located outside the Indian reserva - tion (as defined in section 168( j )(6)). 26USC78 7 1. 26USC1 40 0U – 1 note .
