text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Urban Recovery and Growth Act''.
  
  SEC. 2. EXTENSION OF RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS FOR 
                CERTAIN CITIES.
  
      (a) In General.--Part III of subchapter Y of chapter 1 of the 
  Internal Revenue Code of 1986 is amended by adding at the end the 
  following new section:
  
  ``SEC. 1400U-4. EXTENSION OF RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS 
                FOR CERTAIN CITIES.
  
      ``(a) In General.--In the case of an economic development extension 
  bond--
              ``(1) such bond shall be treated for purposes of section 
          6431 as a qualified bond issued before January 1, 2011,
              ``(2) subsection (b) of such section shall be applied by 
          substituting `45 percent' for `35 percent', and
              ``(3) interest on such bond shall be includible in gross 
          income.
      ``(b) Economic Development Extension Bond.--For purposes of this 
  section--
              ``(1) In general.--The term `economic development extension 
          bond' means any specified bond issued during the 1-year period 
          beginning on the date of the enactment of this section as part 
          of an issue if--
                      ``(A) 100 percent of the excess of--
                              ``(i) the available project proceeds (as 
                          defined in section 54A) of such issue, over
                              ``(ii) the amounts in a reasonably required 
                          reserve (within the meaning of section 
                          150(a)(3)) with respect to such issue,
                  are to be used for one or more qualified purposes, and
                      ``(B) the issuer designates such bond for purposes 
                  of this section.
              ``(2) Specified bond.--
                      ``(A) In general.--The term `specified bond' means 
                  any obligation (other than a private activity bond) if 
                  the interest on such obligation would (but for this 
                  section) be excludable from gross income under section 
                  103.
                      ``(B) Applicable rules.--For purposes of applying 
                  subparagraph (A)--
                              ``(i) rules similar to the rules of section 
                          54AA(d)(2) shall apply, and
                              ``(ii) section 148 shall not apply with 
                          respect to any issue with respect to which the 
                          excess described in paragraph (1)(A) is used 
                          for a qualified purpose described in paragraph 
                          (3)(B).
              ``(3) Qualified purposes.--The term `qualified purposes' 
          means--
                      ``(A) any qualified economic development purpose 
                  (as defined in section 1400U-2(c), applied by treating 
                  specified cities (and only specified cities) as 
                  recovery zones), and
                      ``(B) any refinancing of indebtedness of a 
                  specified city which is outstanding on the date of the 
                  enactment of this section.
              ``(4) Specified city.--The term `specified city' means any 
          principal city for a metropolitan statistical area (as 
          determined by the Office of Management and Budget) which--
                      ``(A) has an average unemployment rate of not less 
                  than 150 percent of the national average rate for the 
                  last calendar year ending before the date of the 
                  enactment of this section, and
                      ``(B) has lost at least 20 percent of its 
                  population between calendar year 2000 and calendar year 
                  2010.
              ``(5) Limitation on amount of bonds designated.--
                      ``(A) In general.--The maximum aggregate face 
                  amount of bonds which may be designated under paragraph 
                  (1) with respect to any specified city shall not exceed 
                  the bond limitation allocated to such city under 
                  subparagraph (B).
                      ``(B) Allocation.--The Secretary shall allocate 
                  bond limitation to each specified city such that the 
                  bond limitation allocated to such city bears the same 
                  proportion to $1,000,000,000 as the population of such 
                  city (as determined for purposes of the 2010 census) 
                  bears to the total population of all specified cities 
                  (as so determined).''.
      (b) Clerical Amendment.--The table of sections for part III of 
  subchapter Y of chapter 1 of such Code is amended by adding at the end 
  the following new item:
  
  ``Sec. 1400U-4. Extension of recovery zone economic development bonds 
                              for certain cities.''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to obligations issued after the date of the enactment of this 
  Act.
target: Urban Recovery and Growth Act - Amends the Internal Revenue Code to authorize the issuance of economic development extension bonds for the purpose of economic development or refinancing the indebtedness of a city that has an average unemployment rate of not less than 150% of the national average in the preceding calendar year and that has lost at least 20% of its population between 2000 and 2010.
feat_title: To amend the Internal Revenue Code of 1986 to extend the recovery zone economic development bonds for certain cities.