26 U.S. Code § 6431 - Credit for qualified bonds allowed to issuer
In the case of a qualified bond issued before January 1, 2011, the issuer of such bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b).
The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 35 percent of the interest payable under such bond on such date.
For purposes of section 148, the yield on a qualified bond shall be reduced by the credit allowed under this section.
For purposes of this subsection, the term “interest payment date” means each date on which interest is payable by the issuer under the terms of the bond.
For purposes of this subsection, the term “qualified bond” has the meaning given such term in section 54AA(g).
In the case of any specified tax credit bond described in clause (i) or (ii) of paragraph (3)(A), the amount determined under paragraph (1)(C)(ii) shall be 70 percent of the amount so determined without regard to this paragraph and sections 54C(b) and 54D(b).
2014—Subsec. (f)(3)(A)(iii). Pub. L. 113–295 substituted “years after 2010” for “2011” and “of any such allocation” for “of such allocation”.
2010—Subsec. (f). Pub. L. 111–147 added subsec. (f).
Subsec. (f)(3)(A)(iii). Pub. L. 111–312 inserted “determined without regard to any allocation relating to the national zone academy bond limitation for 2011 or any carryforward of such allocation” after “54E)”.
Amendment by Pub. L. 113–295 effective as if included in the provision of the American Taxpayer Relief Act of 2012, Pub. L. 112–240, to which such amendment relates, see section 202(f) of Pub. L. 113–295, set out as a note under section 55 of this title.
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