This bill aims to reinstate advance refunding bonds by amending Section 149(d) of the Internal Revenue Code of 1986. This change would allow state and local governments to refinance existing tax-exempt debt before its call date, potentially securing lower interest rates and generating savings for taxpayers. The legislation establishes new criteria for bonds to qualify for advance refunding. It specifies conditions for certain private activity bonds and other bonds, detailing limits on the number of advance refundings allowed, such as one for bonds issued after 1985 and up to two for those issued before 1986. Additionally, it mandates specific redemption timelines for refunded bonds and sets rules for temporary periods and the investment of bond proceeds. Crucially, the bill prohibits abusive transactions designed to obtain material financial advantages based on arbitrage, separate from savings due to lower interest rates.