What does Preamble of HR 1255 do?

This bill proposes to amend the Internal Revenue Code of 1986. The stated purpose of the bill is to reinstate advance refunding bonds.

What does SHORT TITLE. of HR 1255 do?

This bill is formally titled the Investing in Our Communities Act.

What does TREATMENT OF ADVANCE REFUNDING BONDS. of HR 1255 do?

This section amends Section 149(d) of the Internal Revenue Code of 1986 regarding the treatment of advance refunding bonds. It modifies the conditions under which an issue is described as involving advance refunding, particularly concerning private activity bonds and other bonds. New paragraphs (2) and (3) are inserted to clarify rules for advance refunding, including limitations on redemption dates and temporary periods. The rules outline specific requirements for redemptions, debt service savings, and the treatment of higher-yielding investments. The section prohibits abusive transactions designed to obtain a material financial advantage through arbitrage. Special rules apply to bonds issued before 1986, regarding advance refunding timelines and limitations on the number of times a bond can be advance refunded. Section 148(f)(4)(C) is amended to modify the determination of the initial temporary period. The amendments apply to advance refunding bonds issued after the date of enactment of this Act.

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Investing in Our Communities Act — HR. 1255

Last updated: 2/12/2025 · Introduced: 2/12/2025

Author: David Kustoff (R-TN)

TL;DR (AI)

This bill reinstates advance refunding bonds by amending the Internal Revenue Code of 1986, allowing municipalities to refinance existing debt under specific conditions.
The bill clarifies rules for advance refunding, including limitations on redemption dates, temporary periods, and debt service savings, while prohibiting abusive arbitrage transactions.
Special rules are established for bonds issued before 1986 and modify the determination of the initial temporary period for advance refunding.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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