Restoration of certain qualified tax credit bonds

(a) Allowance of credit (1) In general Section 54A of the Internal Revenue Code of 1986, as in effect on the day before repeal by Public Law 115–97, is revived. (2) Credit limited to certain bonds (A) In general Section 54A(d)(1) of such Code, as revived by paragraph (1), is amended by striking means— and all that follows through which is part and inserting means a qualified zone academy bond which is part. (B) Conforming amendment Section 54A(c)(2)(C) of such Code, as revived by paragraph (1), is amended by striking means— and all that follows and inserting a purpose specified in section 54E(a)(1). (3) Conforming amendments (A) The Internal Revenue Code of 1986 is amended by inserting before section 54A (as revived by paragraph (1)) the following: I Qualified tax credit bonds Sec. 54A. Credit to holder of qualified tax credit bonds.. (B) Section 6401(b)(1) of such Code is amended by striking and G and inserting G, and I. (C) The table of subparts for part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following: SUBPART I—Qualified tax credit bonds. (b) Credit allowed to issuer (1) In general Section 6431 of the Internal Revenue Code of 1986, as in effect on the day before repeal by Public Law 115–97, is revived. (2) Conforming amendment Section 6211(b)(4) of such Code is amended by striking and 6428A and inserting 6428A, and 6431. (c) Qualified zone academy bonds (1) In general Section 54E of the Internal Revenue Code of 1986, as in effect on the day before repeal by Public Law 115–97, is revived. (2) Extension of limitation Section 54(E)(c)(1) of such Code is amended— (A) by striking and $400,000,000 and inserting $400,000,000, and (B) by striking and, except as provided and all that follows through the period at the end and inserting, and $1,400,000,000 for 2027 and each calendar year thereafter.. (3) Removal of private business contribution requirement Section 54E of the Internal Revenue Code of 1986, as revived by paragraph (1) and amended by paragraph (2), is amended— (A) in subsection (a)(3), by inserting and at the end of subparagraph (A), by striking subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B), (B) by striking subsection (b), and (C) by redesignating subsections (c) and (d) as subsections (b) and (c), respectively. (4) Construction of a public school facility Section 54E(c)(3)(A) of the Internal Revenue Code of 1986, as revived by paragraph (1) and redesignated in paragraph (3)(C), is amended by striking rehabilitating or repairing and inserting constructing, rehabilitating, retrofitting, or repairing. (d) Conforming amendment related to application of certain labor standards (1) In general Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of any qualified zone academy bond (as defined in section 54E of the Internal Revenue Code of 1986) issued after the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009. (2) Conforming amendment Section 1601 of the American Recovery and Reinvestment Tax Act of 2009 is amended by striking paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. (e) Effective date The amendments made by this section shall apply to obligations issued after December 31, 2026.