Transportation and Regional Infrastructure Project Bonds Act of 2013 or TRIP Bonds Act - Amends the Internal Revenue Code to allow an income tax credit for any TRIP bond issued by or for the benefit of a state infrastructure bank as part of an issue, if 100% of the available project proceeds from such issue are to be used for expenditures incurred for one or more qualified projects. Requires proceeds from the sale of bonds issued under this Act to be held in a TRIP Bonds Trust Account (including one or more subaccounts).
Defines "qualified project" as a capital transportation infrastructure project (including roads, bridges, rail and transit systems, ports, and inland waterways) proposed and approved by a state infrastructure bank, as well as any flood damage risk reduction project with a completed Report of the Chief of Engineers of the Army Corps of Engineers.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2534 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2534
To provide $50,000,000,000 in new transportation infrastructure funding
through bonding to empower States and local governments to complete
significant infrastructure projects across all modes of transportation,
including roads, bridges, rail and transit systems, ports, and inland
waterways, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 27, 2013
Mr. Whitfield (for himself and Ms. Schwartz) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide $50,000,000,000 in new transportation infrastructure funding
through bonding to empower States and local governments to complete
significant infrastructure projects across all modes of transportation,
including roads, bridges, rail and transit systems, ports, and inland
waterways, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Transportation and Regional
Infrastructure Project Bonds Act of 2013'' or ``TRIP Bonds Act''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) Our Nation's highways, transit systems, railroads,
ports, and inland waterways drive our economy, enabling all
industries to achieve growth and productivity that makes
America strong and prosperous.
(2) The establishment, maintenance, and improvement of the
national transportation network is a national priority, for
economic, environmental, energy, security, and other reasons.
(3) The ability to move people and goods is critical to
maintaining State, metropolitan, rural, and local economies.
(4) The construction of infrastructure requires combining
skills from numerous occupations, including those in the
contracting, engineering, planning and design, materials
supply, manufacturing, distribution, and safety industries.
(5) Investing in transportation infrastructure creates
long-term capital assets for the Nation that will help the
United States address its enormous infrastructure needs and
improve its economic productivity.
(6) Investment in transportation infrastructure creates
jobs and spurs economic activity to put people back to work and
stimulate the economy.
(7) Every billion dollars in transportation investment has
the potential to create up to 30,000 jobs.
(8) Every dollar invested in the Nation's transportation
infrastructure yields at least $5.70 in economic benefits
because of reduced delays, improved safety, and reduced vehicle
operating costs.
(9) Numerous experts have noted that the estimated cost to
maintain and improve our Nation's highways, bridges, and other
critical transportation infrastructure significantly exceeds
what is currently being provided by all levels of government.
(b) Purpose.--The purpose of this Act is to provide financing for
additional transportation infrastructure capital investments.
SEC. 3. CREDIT TO HOLDERS OF TRIP BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 54G. TRIP BONDS.
``(a) TRIP Bond.--For purposes of this subpart, the term `TRIP
bond' means any bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for expenditures incurred after the date
of the enactment of this section for 1 or more qualified
projects pursuant to an allocation of such proceeds to such
project or projects by a State infrastructure bank,
``(2) the bond is issued by or for the benefit of a State
infrastructure bank and is in registered form (within the
meaning of section 149(a)),
``(3) the State infrastructure bank designates such bond
for purposes of this section,
``(4) the term of each bond which is part of such issue
does not exceed 30 years,
``(5) the issue meets the requirements of subsection (e),
``(6) the State infrastructure bank certifies that the
State meets the State contribution requirement of subsection
(h), as in effect on the date of issuance, and
``(7) the State infrastructure bank certifies the State
meets the requirement described in subsection (i).
``(b) Qualified Project.--For purposes of this section--
``(1) In general.--The term `qualified project' means a
capital transportation infrastructure project of any
governmental unit or other person, including roads, bridges,
rail and transit systems, ports, and inland waterways proposed
and approved by a State infrastructure bank, but does not
include costs of operations or maintenance with respect to such
project.
``(2) Certain projects.--Such term also includes any flood
damage risk reduction project with a completed Report of the
Chief of Engineers, with the proceeds of issued bonds available
for a State to provide to the United States Army Corps of
Engineers (under section 5 of the Act entitled `An Act
authorizing the construction of certain public works on rivers
and harbors for flood control, and for other purposes,'
approved June 22, 1936 (33 U.S.C. 701h)) funds in excess of any
required non-Federal cost share for such project.
``(c) Applicable Credit Rate.--In lieu of section 54A(b)(3), for
purposes of section 54A(b)(2), the applicable credit rate with respect
to an issue under this section is the rate equal to an average market
yield (as of the day before the date of sale of the issue) on
outstanding comparable-term corporate debt obligations (determined in
such manner as the Secretary prescribes).
``(d) Limitation on Amount of Bonds Designated.--
``(1) In general.--The maximum aggregate face amount of
bonds which may be designated under subsection (a) by any State
infrastructure bank shall not exceed the TRIP bond limitation
amount allocated to such bank under paragraph (3).
``(2) National limitation amount.--There is a TRIP bond
limitation amount for each calendar year. Such limitation
amount is--
``(A) $5,000,000,000 for 2014,
``(B) $5,000,000,000 for 2015,
``(C) $10,000,000,000 for 2016,
``(D) $10,000,000,000 for 2017,
``(E) $10,000,000,000 for 2018,
``(F) $10,000,000,000 for 2019, and
``(G) except as provided in paragraph (4), zero
thereafter.
``(3) Allocations to states.--
``(A) In general.--The TRIP bond limitation amount
for each calendar year shall be allocated by the
Secretary among the States such that each State is
allocated 2 percent of such amount.
``(B) Return of unused allocations.--Any allocation
to a State under subparagraph (A) which remains unused
on the last day of the calendar year for which the
allocation was made shall be relinquished by the State
and reallocated by the Secretary proportionally among
participating States.
``(4) Carryover of unused issuance limitation.--If for any
calendar year the TRIP bond limitation amount under paragraph
(2) exceeds the amount of TRIP bonds issued during such year,
such excess shall be carried forward to 1 or more succeeding
calendar years as an addition to the TRIP bond limitation
amount under paragraph (2) for such succeeding calendar year
and until used by issuance of TRIP bonds.
``(e) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of issuance,
the State infrastructure bank reasonably expects--
``(A) at least 100 percent of the available project
proceeds of such issue are to be spent for 1 or more
qualified projects within the 5-year expenditure period
beginning on such date,
``(B) within the 12-month period beginning on such
date, to incur a binding commitment with a third party
for such third party--
``(i) to spend at least 10 percent of the
proceeds of such issue within the 12-month
period following the date of entering into such
commitment, or
``(ii) to commence construction within the
12-month period following the date of entering
into such commitment with respect to any
qualified project or combination of qualified
projects the costs of which account for at
least 10 percent of the proceeds of such issue,
and
``(C) to proceed with due diligence to complete
such projects and to spend the proceeds of such issue.
``(2) Rules regarding continuing compliance after 5-year
determination.--To the extent that less than 100 percent of the
available project proceeds of such issue are expended by the
close of the 5-year expenditure period beginning on the date of
issuance, the State infrastructure bank shall redeem all of the
nonqualified bonds within 90 days after the end of such period.
For purposes of this paragraph, the amount of the nonqualified
bonds required to be redeemed shall be determined in the same
manner as under section 142.
``(f) Recapture of Portion of Credit Where Cessation of
Compliance.--If any bond which when issued purported to be a TRIP bond
ceases to be such a bond, the State infrastructure bank shall pay to
the United States (at the time required by the Secretary) an amount
equal to the sum of--
``(1) the aggregate of the credits allowable under section
54A with respect to such bond (determined without regard to
section 54A(c)) for taxable years ending during the calendar
year in which such cessation occurs and each succeeding
calendar year ending with the calendar year in which such bond
is redeemed by the bank, and
``(2) interest at the underpayment rate under section 6621
on the amount determined under paragraph (1) for each calendar
year for the period beginning on the first day of such calendar
year.
``(g) TRIP Bonds Trust Accounts.--
``(1) In general.--The following amounts shall be held in a
TRIP Bonds Trust Account (including 1 or more subaccounts) by
each State infrastructure bank:
``(A) The proceeds from the sale of all bonds
issued by or for the benefit of such bank under this
section.
``(B) The amounts described in subsection (h).
``(C) Any earnings on any amounts described in
subparagraph (A) or (B).
``(2) Use of funds.--Amounts in each TRIP Bonds Trust
Account may be used only to pay costs of qualified projects,
pay interest (if any) on TRIP bonds, and redeem TRIP bonds,
except that amounts withdrawn from the TRIP Bonds Trust Account
to pay costs of qualified projects may not exceed the proceeds
from the sale of TRIP bonds described in subsection (a)(1).
``(3) Use of remaining funds in trip bonds trust account.--
Upon the redemption of all TRIP bonds issued by the State
infrastructure bank under this section, any remaining amounts
in the TRIP Bonds Trust Account held by such bank shall be
available to pay the costs of any qualified project in such
State.
``(4) Applicability of federal law.--The requirements of
any Federal law, including titles 23, 40, and 49 of the United
States Code, which would otherwise apply to projects to which
the United States is a party or to funds made available under
such law and projects assisted with those funds shall apply
to--
``(A) funds made available under each TRIP Bonds
Trust Account for similar qualified projects, other
than contributions required under subsection (h), and
``(B) similar qualified projects assisted through
the use of such funds.
``(5) Investment.--Subject to subsections (e) and (f), it
shall be the duty of the State infrastructure bank to invest in
investment grade obligations such portion of the TRIP Bonds
Trust Account held by such Bank as is not, in the judgment of
such bank, required to meet current withdrawals. To the extent
cost-effective, investments should be made in securities that
support infrastructure investment at the State and local level.
``(h) State Contribution Requirements.--
``(1) In general.--For purposes of subsection (a)(6), the
State contribution requirement of this subsection is met if the
State infrastructure bank has obtained a commitment, not later
than the date of issuance of the bond, for deposit into the
TRIP Bonds Trust Account equal annual installments sufficient,
together with earnings thereon, to repay the principal of the
TRIP bond at maturity.
``(2) State contributions may not include federal funds.--
For purposes of this subsection, State contributions shall not
be derived, directly or indirectly, from Federal funds,
including any transfers from the Highway Trust Fund under
section 9503.
``(3) Requirements in lieu of any other matching
contribution requirements.--For purposes of subsection (g)(4),
the TRIP bond proceeds may be applied toward any State matching
contribution requirement under any other Federal law.
``(i) Utilization of Updated Construction Technology for Qualified
Projects.--For purposes of subsection (a)(7), the requirement of this
subsection is met if the appropriate State agency relating to the
qualified project is utilizing updated construction technologies.
``(j) Other Definitions and Special Rules.--For purposes of this
section--
``(1) State infrastructure bank.--
``(A) In general.--The term `State infrastructure
bank' means a State infrastructure bank established
under section 610 of title 23, United States Code, and
includes a joint venture among 2 or more State
infrastructure banks. Such term also includes, with
respect to any State that has not established a State
infrastructure bank prior to the date of the enactment
of this section, the State Department of Transportation
of such State, or such other public instrumentality
designated by the State to issue bonds under this
section.
``(B) Special authority.--Notwithstanding any other
provision of law, a State infrastructure bank shall be
authorized to perform any of the functions necessary to
carry out the purposes of this section, including the
making of direct grants to qualified projects from
available project proceeds of TRIP bonds issued by such
bank.
``(2) Prohibition on use of highway trust fund.--
Notwithstanding any other provision of law, no funds derived
from the Highway Trust Fund established under section 9503
shall be used to pay for credits under this section.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) of the Internal Revenue
Code of 1986 is amended--
(A) by striking ``or'' at the end of subparagraph
(D),
(B) by inserting ``or'' at the end of subparagraph
(E),
(C) by inserting after subparagraph (E) the
following new subparagraph:
``(F) a TRIP bond,'', and
(D) by inserting ``(paragraphs (3), (4), and (6),
in the case of a TRIP bond)'' after ``and (6)''.
(2) Subparagraph (C) of section 54A(d)(2) of such Code is
amended by striking ``and'' at the end of clause (iv), by
striking the period at the end of clause (v) and inserting ``,
and'', and by adding at the end the following new clause:
``(vi) in the case of a TRIP bond, a
purpose specified in section 54G(a)(1).''.
(c) Clerical Amendment.--The table of sections for subpart I of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 54G. TRIP bonds.''.
(d) Effective Date.--The amendments made by this Act shall apply to
bonds issued after December 31, 2013.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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