Page:United States Statutes at Large Volume 120.djvu/2969

 120 STAT. 2938

PUBLIC LAW 109–432—DEC. 20, 2006 (f) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2005. (2) CONSOLIDATION.—The amendments made by subsections (b), (c), (d), and (e) shall apply to individuals who begin work for the employer after December 31, 2006.

26 USC 51 note.

SEC. 106. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES OF EARNED INCOME CREDIT. 26 USC 32. 26 USC 32 note.

(a) IN GENERAL.—Section 32(c)(2)(B)(vi)(II) is amended by striking ‘‘2007’’ and inserting ‘‘2008’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 2006. SEC. 107. EXTENSION AND MODIFICATION OF QUALIFIED ZONE ACADEMY BONDS.

(a) IN GENERAL.—Paragraph (1) of section 1397E(e) is amended by striking ‘‘and 2005’’ and inserting ‘‘2005, 2006, and 2007’’. (b) SPECIAL RULES RELATING TO EXPENDITURES, ARBITRAGE, AND REPORTING.— (1) IN GENERAL.—Section 1397E is amended— (A) in subsection (d)(1), by striking ‘‘and’’ at the end of subparagraph (C)(iii), by striking the period at the end of subparagraph (D) and inserting ‘‘, and’’, and by adding at the end the following new subparagraph: ‘‘(E) the issue meets the requirements of subsections (f), (g), and (h).’’, and (B) by redesignating subsections (f), (g), (h), and (i) as subsections (i), (j), (k), and (l), respectively, and by inserting after subsection (e) the following new subsections: ‘‘(f) SPECIAL RULES RELATING TO EXPENDITURES.— ‘‘(1) IN GENERAL.—An issue shall be treated as meeting the requirements of this subsection if, as of the date of issuance, the issuer reasonably expects— ‘‘(A) at least 95 percent of the proceeds from the sale of the issue are to be spent for 1 or more qualified purposes with respect to qualified zone academies within the 5year period beginning on the date of issuance of the qualified zone academy bond, ‘‘(B) a binding commitment with a third party to spend at least 10 percent of the proceeds from the sale of the issue will be incurred within the 6-month period beginning on the date of issuance of the qualified zone academy bond, and ‘‘(C) such purposes will be completed with due diligence and the proceeds from the sale of the issue will be spent with due diligence. ‘‘(2) EXTENSION OF PERIOD.—Upon submission of a request prior to the expiration of the period described in paragraph (1)(A), the Secretary may extend such period if the issuer establishes that the failure to satisfy the 5-year requirement is due to reasonable cause and the related purposes will continue to proceed with due diligence. ‘‘(3) FAILURE TO SPEND REQUIRED AMOUNT OF BOND PROCEEDS WITHIN 5 YEARS.—To the extent that less than 95 percent of the proceeds of such issue are expended by the close of the 5-year period beginning on the date of issuance (or if

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