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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1480 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1480
To amend the Internal Revenue Code of 1986 to provide a credit to
issuers of American infrastructure bonds.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 10, 2025
Mr. Wicker (for himself, Mr. Bennet, Mrs. Britt, and Mrs. Hyde-Smith)
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 provide a credit to
issuers of American infrastructure bonds.
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 ``American Infrastructure Bonds Act of
2025''.
SEC. 2. CREDIT FOR AMERICAN INFRASTRUCTURE BONDS ALLOWED TO ISSUERS.
(a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 is amended by inserting after section 6430 the following
new section:
``SEC. 6431. CREDIT TO ISSUER OF AMERICAN INFRASTRUCTURE BONDS.
``(a) In General.--The issuer of an American infrastructure bond
shall be allowed a credit with respect to each interest payment under
such bond which shall be payable by the Secretary as provided in
subsection (b).
``(b) Payment of Credit.--
``(1) In general.--The Secretary shall pay
(contemporaneously with each interest payment date under such
bond) to the issuer of such bond (or to any person who makes
such interest payments on behalf of the issuer) 28 percent of
the interest payable under such bond on such date.
``(2) Interest payment date.--For purposes of this
subsection, the term `interest payment date' means each date on
which the holder of record of the American infrastructure bond
is entitled to a payment of interest under such bond.
``(c) American Infrastructure Bond.--
``(1) In general.--For purposes of this section, the term
`American infrastructure bond' means any obligation if--
``(A) the interest on such obligation would (but
for this section) be excludable from gross income under
section 103,
``(B) the obligation is not a private activity
bond, and
``(C) the issuer makes an irrevocable election to
have this section apply.
``(2) Applicable rules.--For purposes of applying paragraph
(1)--
``(A) for purposes of section 149(b), a bond shall
not be treated as federally guaranteed by reason of the
credit allowed under this section, and
``(B) a bond shall not be treated as an American
infrastructure bond if the issue price has more than a
de minimis amount (determined under rules similar to
the rules of section 1273(a)(3)) of premium over the
stated principal amount of the bond.
``(d) Special Rules.--
``(1) Interest on american infrastructure bonds includible
in gross income for federal income tax purposes.--For purposes
of this title, interest on any American infrastructure bond
shall be includible in gross income.
``(2) Application of arbitrage rules.--For purposes of
section 148, the yield on an issue of American infrastructure
bonds shall be reduced by the credit allowed under this
section, except that no such reduction shall apply with respect
to determining the amount of gross proceeds of an issue that
qualifies as a reasonably required reserve or replacement fund.
``(e) Regulations.--The Secretary may prescribe such regulations
and other guidance as may be necessary or appropriate to carry out this
section.''.
(b) Conforming Amendments.--
(1) The table of sections for subchapter B of chapter 65 of
subtitle F of the Internal Revenue Code of 1986 is amended by
adding at the end the following new item:
``Sec. 6431. Credit to issuer of american infrastructure bonds.''.
(2) Subparagraph (A) of section 6211(b)(4) of such Code is
amended by inserting ``6431,'' after ``6428B,''.
(c) Transitional Coordination With State Law.--Except as otherwise
provided by a State after the date of the enactment of this Act, the
interest on any American infrastructure bond (as defined in section
6431 of the Internal Revenue Code of 1986 (as added by this Act)) and
the amount of any credit determined under such section with respect to
such bond shall be treated for purposes of the income tax laws of such
State as being exempt from Federal income tax.
(d) Adjustment to Payment to Issuers in Case of Sequestration.--
(1) In general.--In the case of any payment under
subsection (b) of section 6431 of the Internal Revenue Code of
1986 (as added by this Act) made after the date of enactment of
this Act to which sequestration applies, the amount of such
payment shall be increased to an amount equal to--
(A) such payment (determined before such
sequestration), multiplied by
(B) the quotient obtained by dividing the number 1
by the amount by which the number 1 exceeds the
percentage reduction in such payment pursuant to such
sequestration.
(2) Sequestration.--For purposes of this subsection, the
term ``sequestration'' means any reduction in direct spending
ordered in accordance with a sequestration report prepared by
the Director of the Office and Management and Budget pursuant
to the Balanced Budget and Emergency Deficit Control Act of
1985 or the Statutory Pay-As-You-Go Act of 2010 or future
legislation having similar effect.
(e) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of enactment of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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