Bill > S1480

This bill proposes to create a new tax credit mechanism for American Infrastructure Bonds that would provide financial incentives for infrastructure development. Specifically, the bill allows issuers of these special bonds to receive a 28% federal tax credit on each interest payment made on the bond. To qualify as an "American Infrastructure Bond", the bond must meet certain conditions: it must have interest that would normally be tax-exempt, cannot be a private activity bond, and the issuer must make an irrevocable election to participate in the program. Notably, while these bonds receive a federal tax credit, the interest on the bonds will be includible in the bondholder's gross income for federal tax purposes. The bill includes provisions to coordinate with state tax laws and provides guidance on how the credit will be calculated and administered, including provisions for potential sequestration (automatic spending reductions). The goal appears to be to make infrastructure financing more attractive by providing a direct financial benefit to bond issuers, potentially encouraging more infrastructure investment across the United States. The bill would apply to obligations issued after its enactment date.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1480/all-info