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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5187 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5187
To amend the Internal Revenue Code of 1986 to establish a tax credit
for Qualified Community College Bonds, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 25, 2024
Mr. Casey introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish a tax credit
for Qualified Community College 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 ``Community College Infrastructure
Financing Act''.
SEC. 2. TAX CREDIT FOR QUALIFIED COMMUNITY COLLEGE BONDS.
(a) In General.--Part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after subpart G
the following new subpart:
``Subpart H--Qualified Community College Bonds
``SEC. 54. QUALIFIED COMMUNITY COLLEGE BONDS.
``(a) Qualified Community College Bonds.--For purposes of this
subchapter, the term `qualified community college bond' means any bond
issued as part of an issue if--
``(1) 95 percent of the available project proceeds of such
issue are to be used for a qualified purpose with respect to a
qualified community college,
``(2) the bond is issued by a State, local, or Indian
tribal government in consultation with the jurisdictions of
which such college is located, and
``(3) the issuer--
``(A) designates such bond for purposes of this
section, and
``(B) certifies that it has the written approval of
the governing body and the State higher education
agency for such bond issuance.
``(b) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a national community
college bond limitation of $1,000,000,000 for each calendar
year.
``(2) Allocation of limitation.--
``(A) In general.--The national community college
bond limitation for a calendar year shall be allocated
by the Secretary to any governing body which--
``(i) has submitted an application
described in subparagraph (C), and
``(ii) pursuant to the considerations
described in subparagraphs (C) and (D), the
Secretary (in consultation with the Secretary
of Education) has approved an allocation of
such limitation under this paragraph.
``(B) Cumulative limitation per state.--For
purposes of subparagraph (A), the total amount of
allocations made to qualified community colleges
located with a State for any calendar year shall not
exceed an amount equal to 10 percent of the national
community college bond limitation for such calendar
year.
``(C) Applications.--An application described in
this subparagraph shall include such information as the
Secretary (in consultation with the Secretary of
Education) may require, including the following:
``(i) A description of--
``(I) the financial sustainability
of the proposal, including how the
governing body will leverage other
sources of funding, and
``(II) how the qualified purposes
proposed with respect to the qualified
community college will fill an unmet
need within a qualified area.
``(ii) Any relevant approvals with respect
to the proposal that have been granted by any
applicable State, local, or Indian Tribal
government or appropriate accrediting body.
``(iii) A certification that the governing
body--
``(I) has consulted with the
jurisdictions in which the qualified
community college is, or will be,
located, and
``(II) has the written approval of
the State higher education agency for
the proposal.
``(iv) In the case of an application
proposing to establish a new qualified
community college, in addition to the
requirements described in clauses (i), (ii),
and (iii)--
``(I) whether such proposal has
received approval from the State higher
education agency, and
``(II) a description of the
sustainability of such qualified
community college, including any
commitment from any State, local, or
Indian Tribal government to provide
additional funding for such college.
``(D) Priority for allocations.--For purposes of
making allocations under this paragraph, the Secretary
(in consultation with the Secretary of Education)
shall--
``(i) give highest priority to any proposed
qualified community college which will serve
the residents of--
``(I) the State's largest
metropolitan statistical area which
does not contain an institution
described in subsection (c)(5)(A), or
``(II) if subclause (I) does not
apply, the largest micropolitan
statistical area within such State
which does not contain an institution
described in such subsection,
``(ii) after application of clause (i),
give high priority to any governing body
which--
``(I) has or will have a
partnership with--
``(aa) 1 or more local high
schools (as defined in section
8101 of the Elementary and
Secondary Education Act of 1965
(20 U.S.C. 7801)), including a
dual or concurrent enrollment
program (as defined in such
section),
``(bb) a 4-year institution
of higher education that
includes a credit-transfer
agreement or articulation
agreement (as defined in
section 486A(a) of the Higher
Education Act of 1965 (20
U.S.C. 1093a(a))) for students
at the qualified community
college, or
``(cc) a State workforce
development board established
under section 101 of the
Workforce Innovation and
Opportunity Act (29 U.S.C.
3111), or
``(II) is the governing body of, or
has or will have a partnership with, an
institution which is--
``(aa) a part B institution
(as defined in section 322 of
the Higher Education Act of
1965 (20 U.S.C. 1061)),
``(bb) a Historically Black
Graduate Professional School
(as identified in section
326(e) of such Act (20 U.S.C.
1063b(e))),
``(cc) a Hispanic-serving
institution (as defined in
section 502(a) of such Act (20
U.S.C. 1101a(a))),
``(dd) a Tribal College or
University (as defined in
section 316(b) of such Act (20
U.S.C. 1059c(b))),
``(ee) an Alaska Native-
serving institution or a Native
Hawaiian-serving institution
(as such terms are defined in
section 317(b) of such Act (20
U.S.C. 1059d(b))),
``(ff) a Predominantly
Black institution (as defined
in section 371(c) of such Act
(20 U.S.C. 1067q(c))),
``(gg) an Asian American
and Native American Pacific
Islander-serving institution
(as defined in section 371(c)
of such Act (20 U.S.C.
1067q(c))), or
``(hh) a Native American-
serving nontribal institution
(as defined in section 371(c)
of such Act (20 U.S.C.
1067q(c))), and
``(iii) after application of clauses (i)
and (ii), give priority to any governing body
which, in carrying out a new construction or
renovation project using any available project
proceeds from the issuance of any qualified
community college bond, plans to use not less
than 80 percent of such proceeds for
construction or renovation that is certified,
verified, or consistent with the applicable
provisions of--
``(I) the Leadership in Energy and
Environmental Design green building
rating standard of the United States
Green Building Council,
``(II) the Living Building
Challenge green building certification
program developed by the International
Living Future Institute,
``(III) a green building rating
program developed by the Collaborative
for High-Performance Schools that is
designated as CHPS Verified, or
``(IV) a green building program
that--
``(aa) has standards that
are equivalent to or more
stringent than the standards of
a program described in
subclause (I), (II), or (III),
``(bb) is adopted by the
State or another jurisdiction
with authority over the
qualified community college,
and
``(cc) includes a
verifiable method to
demonstrate compliance with the
program.
``(3) Designation subject to limitation amount.--The
maximum aggregate face amount of bonds issued during any
calendar year which may be designated under subsection (a) with
respect to any qualified community college shall not exceed the
limitation amount allocated to the governing body of such
college under paragraph (2) for such calendar year.
``(c) Definitions.--For purposes of this section--
``(1) Governing body.--The term `governing body' means--
``(A) the board of trustees or other governing
organization of a qualified community college, or
``(B) a State, local, or Indian Tribal government
(or any political subdivision thereof), or any
combination of local educational agencies or
municipalities, that participates or proposes to
participate in the establishment and operation of a
qualified community college.
``(2) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)).
``(3) Local educational agency.--The term `local
educational agency' has the meaning given the term in section
8101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801), except such term shall include any elementary
school or secondary school funded by the Bureau of Indian
Education, notwithstanding section 8101(30)(C) of such Act.
``(4) Qualified area.--The term `qualified area' means any
of the following:
``(A) A city, metropolitan statistical area, or
county that does not contain any institution described
in paragraph (5)(A).
``(B) A low-income community (as defined in section
45D(e)).
``(5) Qualified community college.--The term `qualified
community college' means a public institution of higher
education--
``(A) at which the highest degree that is
predominantly awarded to students is an associate
degree (including 2-year tribally controlled colleges
under section 316 of the Higher Education Act of 1965
(20 U.S.C. 1059c) and public 2-year institutions of
higher education),
``(B) that is established by and operated under the
supervision of a governing body in conjunction with the
State, local, and Indian tribal governments whose
residents will be served by such institution, and
``(C) that is located within a qualified area.
``(6) Qualified purpose.--The term `qualified purpose'
means--
``(A) establishing and operating a qualified
community college,
``(B) expanding an existing qualified community
college to a qualified area,
``(C) constructing, rehabilitating, repairing,
upgrading, enhancing, or expanding any facility owned
or to be used by a qualified community college to carry
out the educational purposes (including instructional
and research purposes) of such college,
``(D) providing equipment for use by students at a
qualified community college,
``(E) investing in online resources or broadband
access projects to deliver community college services
to qualified areas, or developing course materials for
education to be provided by a qualified community
college, provided that such uses do not collectively
account for more than 10 percent of the amount
allocated under subsection (b)(2) to the governing body
for such college,
``(F) training professors and other school
personnel at a qualified community college, provided
that such use does not account for more than 5 percent
of the amount allocated under subsection (b)(2) to the
governing body for such college,
``(G) constructing, rehabilitating, repairing,
upgrading, enhancing, or expanding any on-campus
facility to be used by a qualified community college
to--
``(i) provide childcare to students and
staff, provided that such use does not account
for more than 10 percent of the amount
allocated under subsection (b)(2) to the
governing body for such college, or
``(ii) provide affordable housing, with a
priority given to students and staff, and
``(H) connecting students with transportation to a
qualified community college, including partnering with
public transit providers to--
``(i) add bus, rail, or paratransit stops
at or within walking distances of the campus,
``(ii) add bus, rail, or paratransit routes
to allow for transportation between the campus
and surrounding areas and other cities,
``(iii) increase the frequency of service
or adjust the schedules for bus, rail, or
paratransit routes to allow students to get to
and from their classes, and
``(iv) subsidize bus, rail, or paratransit
costs for students.
``(7) State.--The term `State' includes the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern
Mariana Islands.
``(8) State higher education agency.--The term `State
higher education agency' means the officer or agency primarily
responsible for the State supervision of higher education.
``(d) Application of Certain Labor Standards to Projects Financed
With Qualified Community Bonds.--
``(1) In general.--Each laborer and mechanic employed by a
contractor or subcontractor in the performance of construction,
alteration, or repair work financed in whole, or in part, with
the proceeds of any qualified community college bond issued
after the date of enactment of the Community College
Infrastructure Financing Act shall be paid wages at rates not
less than those prevailing on work of a similar character in
the locality, as determined by the Secretary of Labor in
accordance with subchapter IV of chapter 31 of title 40, United
States Code.
``(2) Authority.--The Secretary of Labor shall have, with
respect to the labor standards described in paragraph (1), the
authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section
3145 of title 40, United States Code.''.
(b) Conforming Amendment.--The table of subparts for part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after the item relating to subpart G the
following:
``subpart h--qualified community college bonds''.
SEC. 3. CREDIT TO HOLDERS AND ISSUERS OF QUALIFIED COMMUNITY COLLEGE
BONDS.
(a) Allowance of Credit.--
(1) In general.--Section 54A of the Internal Revenue Code
of 1986, as in effect on the day before repeal by Public Law
115-97, is revived.
(2) Credit limited to qualified community college bonds.--
Section 54A(d) of such Code is amended--
(A) by striking paragraph (1) and inserting the
following:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means a qualified community college bond which is
part of an issue that meets requirements of paragraphs (2),
(3), (4), (5), and (6).'', and
(B) in paragraph (2), by striking subparagraph (C)
and inserting the following:
``(C) Qualified purpose.--For purposes of this
paragraph, the term `qualified purpose' means a purpose
specified in section 54(c)(3).''.
(b) Credit Allowed to Issuer.--
(1) In general.--Section 6431 of the Internal Revenue Code
of 1986, as in effect on the day before repeal by Public Law
115-97, is revived.
(2) Conforming amendments.--
(A) Section 6431(f) of such Code, as revived by
paragraph (1), is amended by striking paragraphs (2)
and (3) and inserting the following:
``(2) Specified tax credit bond.--For purposes of this
subsection, the term `specified tax credit bond' means any
qualified tax credit bond (as defined in section 54A(d)(1)) if
the issuer of such bond makes an irrevocable election to have
this subsection apply.''.
(B) Subparagraph (A) of section 6211(b)(4) of the
Internal Revenue Code of 1986 is amended by striking
``and 6428A'' and inserting ``6428A, and 6431''.
SEC. 4. EFFECTIVE DATE.
The amendments made by this Act shall apply to obligations issued
after the date of the enactment of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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