Strengthening Pensions through Investment in Infrastructure Act

Strengthening Pensions through Investment in Infrastructure Act

This bill modifies the criteria for private activity bonds to specify that the use of public infrastructure property by a public pension fund is not considered a private business use. (The private business use test is one of the tests used to determine if a bond is a taxable private activity bond rather than a tax-exempt bond.)

The bill also specifies that public infrastructure property is not considered investment-type property for the purpose of determining whether a bond is a taxable arbitrage bond. (Taxable arbitrage bonds are used to acquire higher yielding investments, or to replace funds which were used directly or indirectly to acquire higher yielding investments.)

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6276 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6276

 To amend the Internal Revenue Code of 1986 to modify the treatment of 
use of public infrastructure property for the private business use test 
          for private activity bonds, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2018

    Mr. Bishop of Michigan introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to modify the treatment of 
use of public infrastructure property for the private business use test 
          for private activity bonds, 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 ``Strengthening Pensions through 
Investment in Infrastructure Act''.

SEC. 2. TREATMENT OF USE OF PUBLIC INFRASTRUCTURE PROPERTY FOR PRIVATE 
              BUSINESS USE TEST FOR PRIVATE ACTIVITY BONDS.

    (a) Use by Public Pension Funds Treated as Government Use.--Section 
141(b) of the Internal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph:
            ``(10) Use by public pension funds not treated as private 
        business use.--
                    ``(A) In general.--For purposes of this part, use 
                by a public pension fund of public infrastructure 
                property shall not be treated as private business use.
                    ``(B) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Public pension fund.--The term 
                        `public pension fund' means a pension fund 
                        established or maintained for employees or 
                        former employees of a State, political 
                        subdivision of a State, or an agency or 
                        instrumentality thereof.
                            ``(ii) Public infrastructure property.--The 
                        term `public infrastructure property' means 
                        property with the following characteristics:
                                    ``(I) Consists of roads, bridges, 
                                tunnels, docks, wharves, ports, 
                                harbors, airports, rail stations, mass 
                                transit or commuting centers, water 
                                infrastructure (including sewage, waste 
                                water, storm water, and solid waste 
                                treatment), heating, cooling, or 
                                electric utility production, municipal 
                                buildings, or other real or tangible 
                                property that is used for an essential 
                                government function (within the meaning 
                                of section 115).
                                    ``(II) Provides services to the 
                                general public or is available for 
                                general public use.
                                    ``(III) If rates are charged for 
                                use of or services provided by such 
                                property, such rates are subject to 
                                State or local governmental regulatory 
                                or contractual control, limitation, or 
                                approval.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to use after the date of enactment of this Act.

SEC. 3. PUBLIC INFRASTRUCTURE PROPERTY NOT TREATED AS INVESTMENT 
              PROPERTY FOR ARBITRAGE BONDS.

    (a) In General.--Section 148(b) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(5) Public infrastructure property not treated as 
        investment-type property.--The term `investment-type property' 
        shall not include public infrastructure property (as defined in 
        section 141(b)(10)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to transactions after the date of the enactment of this 
Act.
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