26 U.S. Code § 1400U–1 - Allocation of recovery zone bonds
(1) In general
(A) General allocation
The Secretary shall allocate the national recovery zone economic development bond limitation and the national recovery zone facility bond limitation among the States in the proportion that each such State’s 2008 State employment decline bears to the aggregate of the 2008 State employment declines for all of the States.
(B) Minimum allocation
The Secretary shall adjust the allocations under subparagraph (A) for any calendar year for each State to the extent necessary to ensure that no State receives less than 0.9 percent of the national recovery zone economic development bond limitation and 0.9 percent of the national recovery zone facility bond limitation.
(2) 2008 State employment decline
For purposes of this subsection, the term “2008 State employment decline” means, with respect to any State, the excess (if any) of—
(3) Allocations by States
(A) In general
Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities in such State in the proportion to  each such county’s or municipality’s 2008 employment decline bears to the aggregate of the 2008 employment declines for all the counties and municipalities in such State. A county or municipality may waive any portion of an allocation made under this subparagraph.
(B) Large municipalities
For purposes of subparagraph (A), the term “large municipality” means a municipality with a population of more than 100,000.
(C) Determination of local employment declines
For purposes of this paragraph, the employment decline of any municipality or county shall be determined in the same manner as determining the State employment decline under paragraph (2), except that in the case of a municipality any portion of which is in a county, such portion shall be treated as part of such municipality and not part of such county.
(b) Recovery zone
For purposes of this part, the term “recovery zone” means—
(1) any area designated by the issuer as having significant poverty, unemployment, rate of home foreclosures, or general distress,
(2) any area designated by the issuer as economically distressed by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990, and
 So in original.
Source(Added Pub. L. 111–5, div. B, title I, § 1401(a),Feb. 17, 2009, 123 Stat. 348.)
References in Text
The Defense Base Closure and Realignment Act of 1990, referred to in subsec. (b)(2), is part A of title XXIX of div. B of Pub. L. 101–510, Nov. 5, 1990, 104 Stat. 1808, which is set out as a note under section 2687 of Title 10, Armed Forces. For complete classification of this Act to the Code, see Tables.