TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX LIMITATIONS ON TAX-EXEMPT BONDS.

SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX LIMITATIONS ON TAX-EXEMPT BONDS.(a) Interest on Private Activity Bonds Issued During 2009 and 2010 Not Treated as Tax Preference Item.—Subparagraph (C) of section 57(a)(5) is amended by adding at the end a new clause:“(vi) Exception for bonds issued in 2009 and 2010.—“(I) In general.—For purposes of clause (i), the term ‘private activity bond’ shall not include any bond issued after December 31, 2008, and before January 1, 2011.“(II) Treatment of refunding bonds.—For purposes of subclause (I), a refunding bond (whether a current or advance 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).“(III) Exception for certain refunding bonds.—Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.”.(b) No Adjustment to Adjusted Current Earnings for Interest on Tax-Exempt Bonds Issued During 2009 and 2010.—Subparagraph (B) of section 56(g)(4) is amended by adding at the end the following new clause:“(iv) Tax exempt interest on bonds issued in 2009 and 2010.—“(I) In general.—Clause (i) shall not apply in the case of any interest on a bond issued after December 31, 2008, and before January 1, 2011.123 STAT. 355“(II) Treatment of refunding bonds.—For purposes of subclause (I), a refunding bond (whether a current or advance 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).“(III) Exception for certain refunding bonds.—Subclause (II) shall not apply to any refunding bond which is issued to refund any bond which was issued after December 31, 2003, and before January 1, 2009.”.(c) Effective Date.—The amendments made by this section shall apply to obligations issued after December 31, 2008.