### Question
What is the definition of recovery zone economic development bond?


### Answer
The definition of **recovery zone economic development bond** is as follows in *26 U.S.C. § 1400U*:

> any build America bond (as defined in section 54AA(d)) issued before January 1, 2011, as part of 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 economic development purposes, and


(B) the issuer designates such bond for purposes of this section

#### Citation:
  - *26 U.S.C. § 1400U*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter Y-Short-Term Regional Benefits > PART III-RECOVERY ZONE BONDS**

