IRS Help on ARRA Bonds

The IRS has released guidance on ARRA bond provisions, especially Build America Bonds and Recovery Zone Economic Development Bonds.

Among other information, this page details Davis-Bacon requirements for certain bonds. There have been questions about this, so here's the bulk of what the IRS has to say on this page:

"Pursuant to the American Recovery and Reinvestment Act, Division B, section 1601, Davis-Bacon labor standards must be applied to projects financed with the proceeds of the following tax-favored bonds:

1. Any new clean renewable energy bond (as defined in section 54C of the Internal Revenue Code of 1986) issued after February 17, 2009,
2. Any qualified energy conservation bond (as defined in section 54D of the Internal Revenue Code of 1986) issued after February 17, 2009,
3. Any qualified zone academy bond (as defined in section 54E of the Internal Revenue Code of 1986) issued after February 17, 2009,
4. Any qualified school construction bond (as defined in section 54F of the Internal Revenue Code of 1986), and
5. Any recovery zone economic development bond (as defined in section 1400U–2 of the Internal Revenue Code of 1986).

The Davis-Bacon contract clauses stated in 29 CFR 5.5(a)(1) through (10) must be incorporated into covered contracts for construction, alteration, or repair work.