Bill > S4203

This bill, the American Infrastructure Bonds Act of 2020, amends the Internal Revenue Code to provide a credit to issuers of American infrastructure bonds. The bill allows the issuer of such a bond to claim a credit equal to 35% of the interest payable on the bond if it is issued before January 1, 2026, and 28% if it is issued after that date. The credits are paid by the Secretary of the Treasury contemporaneously with each interest payment. The bill defines an "American infrastructure bond" as a tax-exempt obligation, either not a private activity bond or one that is 95% or more used to finance property that meets certain criteria, where the issuer makes an irrevocable election. The bill also includes provisions to coordinate the treatment of these bonds with state income tax laws and to adjust payments to issuers in case of sequestration.