Page:United States Statutes at Large Volume 123.djvu/370

 123STA T . 3 50PUBLIC LA W 111 – 5 —FE B.1 7, 200 9theamoun to f the r e c o v er yz one econom i c d eve l o p ment b ond limitation allocated to s uch issuer under section 140 0 U– 1 .‘ ‘ ( c )QUALIF I EDECON O M IC D E V ELO P MEN TP U R PO S E. —F or pur - poses of this section , the term ‘ q ualified economic development purpose ’ means e x penditures for purposes of promotin g development or other economic activity in a recovery zone, including— ‘‘(1) capital expenditures paid or incurred w ith respect to property located in such zone, ‘‘( 2 ) expenditures for public infrastructure and construction of public facilities, and ‘‘( 3 ) expenditures for j ob training and educational programs. ‘ ‘ SEC.140 0 U–3 . R EC OV ER YZ O N E FA C IL I T Y B ON D S. ‘‘(a) I N G ENERAL.—For purposes of part I V of subchapter B (relating to tax exemption requirements for S tate and local bonds), the term ‘exempt facility bond’ includes any recovery zone facility bond. ‘‘(b) R ECOVER YZ ONE FACILITY BOND.— ‘‘(1) IN G ENERAL.—For purposes of this section, the term ‘recovery zone facility bond’ means any bond issued as part of an issue if— ‘‘( A ) 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of such issue are to be used for recovery zone property, ‘‘(B) such bond is issued before J anuary 1, 2011, and ‘‘( C ) the issuer designates such bond for purposes of this section. ‘‘(2) L IMITATION ON AMOUNT OF B ONDS DESIGNATED.— T he maximum aggregate face amount of bonds which may be des- ignated by any issuer under paragraph (1) shall not exceed the amount of recovery zone facility bond limitation allocated to such issuer under section 1400U–1. ‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of this section— ‘‘(1) IN GENERAL.—The term ‘recovery zone property’ means any property to which section 1 68 applies (or would apply but for section 1 7 9) if— ‘‘(A) such property was constructed, reconstructed, ren- ovated, or acquired by purchase (as defined in section 179(d)(2)) by the taxpayer after the date on which the designation of the recovery zone too k effect, ‘‘(B) the original use of which in the recovery zone commences with the taxpayer, and ‘‘(C) substantially all of the use of which is in the recovery zone and is in the active conduct of a qualified business by the taxpayer in such zone. ‘‘(2) QUALIFIED BUSINESS.—The term ‘qualified business’ means any trade or business except that— ‘‘(A) the rental to others of real property located in a recovery zone shall be treated as a qualified business only if the property is not residential rental property (as defined in section 168(e)(2)), and ‘‘(B) such term shall not include any trade or business consisting of the operation of any facility described in sec- tion 144(c)(6)(B). ‘‘(3) SPECIAL RULES FOR SUBSTANTIAL RENOVATIONS AND SALE-LEASEBAC K .—Rules similar to the rules of subsections Ap p licab ili ty.