123STA T . 3 5 3 PUBLIC LA W 111 – 5 —FE B.1 7, 2 0 0 9Subti t leF—Infras tru c ture Financin gTo ols PARTI— I M PR OVED MAR K ETA B I L IT YF OR TA X- EXEMPT BO N D SSEC.150 1. D E MIN IMIS S AF E H A RBO RE X CE PT ION FOR TAX - EXEMPT INTEREST EXPENSE OF FINANCIA L INSTIT U TIONS. (a)INGE NE RAL.—Subsection (b) o f section 265 isa m en d ed b y addin g att h eendthefo l lo w ing new p a r agraph
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‘( 7 ) D E MI NIMI S E XC E PT I O N F OR B ON D S ISS U ED DURIN G20 0 9 OR 20 1 0.— ‘‘( A ) IN GENERAL.—In applying paragraph (2)(A) , there shall not be ta k en into account ta x- exempt obligations issued during 2 0 0 9 or 20 1 0. ‘‘( B ) L IMITATION.— T he amount of tax-exempt obliga- tions not taken into account by reason of subparagraph (A) shall not exceed 2 percent of the amount determined under paragraph (2)(B). ‘‘( C ) R EFUNDINGS.— F or purposes of this paragraph, a refunding bond (whether a current or ad v ance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond). ’ ’. (b) TREATMENT AS FINANCIAL INSTITUTION P REFERENCE ITEM.— Clause (iv) of section 291(e)(1)(B) is amended by adding at the end the following: ‘‘That portion of any obligation not taken into account under paragraph (2)(A) of section 265(b) by reason of para- graph (7) of such section shall be treated for purposes of this section as having been ac q uired on August 7, 19 8 6.’’. (c) E FFECTI V E DATE.—The amendments made by this section shall apply to obligations issued after December 3 1, 2008. SEC. 150 2 . MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX- EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL INSTITUTIONS. (a) IN GENERAL.—Paragraph (3) of section 265(b) (relating to exception for certain tax-exempt obligations) is amended by adding at the end the following new subparagraph: ‘‘(G) SPECIAL RULES FOR OBLIGATIONS ISSUED DURING 2009 AND 2010.— ‘‘(i) INCREASE IN LIMITATION.—In the case of obliga- tions issued during 2009 or 2010, subparagraphs (C)(i), (D)(i), and (D)(iii)(II) shall each be applied by sub- stituting ‘ $ 30,000,000’ for ‘$10,000,000’. ‘‘(ii) Q UALIFIED 5 01 ( C ) ( 3 ) BONDS TREATED AS ISSUED B Y EXEMPT ORGANI Z ATION.—In the case of a qualified 501(c)(3) bond (as defined in section 1 4 5) issued during 2009 or 2010, this paragraph shall be applied by treating the 501(c)(3) organi z ation for whose benefit such bond was issued as the issuer. ‘‘(iii) SPECIAL RULE FOR Q UALIFIED FINANCINGS.— In the case of a qualified financing issue issued during 2009 or 2010— ‘‘(I) subparagraph (F) shall not apply, and ‘‘(II) any obligation issued as a part of such issue shall be treated as a qualified tax-exempt Ap p licab ili ty. Applicability. 26USC 26 5no t e . 26 USC 265.
