[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2084 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2084

    To establish the American Infrastructure Fund, to provide bond 
guarantees and make loans to States, local governments, and non-profit 
  infrastructure providers for investments in certain infrastructure 
 projects, and to provide equity investments in such projects, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2013

Mr. Delaney (for himself, Mr. Barr, Mr. Bera of California, Mr. Carney, 
Mr. Cole, Mr. Connolly, Mr. Rodney Davis of Illinois, Mr. Fitzpatrick, 
 Ms. Gabbard, Mr. Garcia, Mr. Gibson, Mr. Johnson of Ohio, Mr. Joyce, 
   Mr. Kennedy, Mr. Kind, Mr. Kinzinger of Illinois, Mr. Messer, Mr. 
Moran, Mr. Murphy of Florida, Mr. Peters of California, Mr. Pittenger, 
Mr. Polis, Mr. Ruppersberger, Ms. Sinema, Mr. Stivers, Mr. Turner, and 
  Mr. Yoho) introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
Committee on Ways and Means, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To establish the American Infrastructure Fund, to provide bond 
guarantees and make loans to States, local governments, and non-profit 
  infrastructure providers for investments in certain infrastructure 
 projects, and to provide equity investments in such projects, 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 ``Partnership to Build America Act of 
2013''.

SEC. 2. AMERICAN INFRASTRUCTURE FUND.

    (a) American Infrastructure Fund.--
            (1) In general.--There is established a wholly owned 
        Government corporation to be called the American Infrastructure 
        Fund (``AIF'')--
                    (A) which shall be headed by the Board of Trustees 
                established under subsection (b);
                    (B) which may have separate sub-accounts or 
                subsidiaries for funds used to make loans, bond 
                guarantees, and equity investments under this section 
                and funds used to make bond guarantees under this 
                section;
                    (C) which shall be available to the AIF to pay for 
                the costs of carrying out this section, including the 
                compensation of the Board and other employees of the 
                AIF; and
                    (D) the funds of which may be invested by the Board 
                in such manner as the Board determines appropriate.
            (2) Deposits to aif.--All funds received from bond 
        issuances, loan payments, bond guarantee fees, and any other 
        funds received in carrying out this section shall be held by 
        AIF.
            (3) Limitations.--The charter of the AIF shall limit its 
        activities to those activities described as the mission of the 
        Board under subsection (b)(2).
            (4) Oversight.--The AIF shall register with the Securities 
        and Exchange Commission and the Secretary shall report to 
        Congress annually as to whether the AIF is fulfilling the 
        mission of the Board under subsection (b)(2).
            (5) Treatment of aif.--Title 31, United States Code, is 
        amended in each of sections 9107(c)(3) and 9108(d)(2)--
                    (A) by inserting ``the American Infrastructure 
                Fund,'' after ``the Regional Banks for Cooperatives,''; 
                and
                    (B) by striking ``those banks'' and inserting 
                ``those entities''.
    (b) Board of Trustees.--
            (1) In general.--There is established a Board of Trustees 
        of the AIF (the ``Board''), which shall be composed of 11 
        members, of which at least 4 must be risk management experts, 
        as certified by the Board, having substantial experience in 
        bond guarantees or municipal credit.
            (2) Mission.--The Mission of the Board is--
                    (A) to operate the AIF and its subsidiaries to be a 
                low cost provider of bond guarantees, loans, and equity 
                investments to State and local governments and non-
                profit infrastructure providers for both urban and 
                rural non-profit infrastructure projects that provide a 
                positive economic impact and to meet such other 
                standards as the Board may develop;
                    (B) to operate the AIF in a self-sustaining manner 
                so as to allow the AIF to repay its infrastructure 
                bonds when due;
                    (C) to not have a profit motive, but seek at all 
                times to pursue its mission of providing low cost bond 
                guarantees and loans while covering its costs, reserves 
                as may be needed, and applying prudent underwriting 
                standards;
                    (D) to only consider projects put forth by State 
                and local governments and not to seek projects 
                directly;
                    (E) to at all times make clear that no taxpayer 
                money supports the AIF or ever will; and
                    (F) to engage in no other activities other than 
                those permitted under this section.
            (3) Membership.--
                    (A) Presidentially-appointed members.--Except as 
                provided under subparagraph (C), 4 members of the Board 
                shall be appointed by the President, by and with the 
                advice and consent of the Senate, and serve for a term 
                of 7 years.
                    (B) Additional members.--Except as provided under 
                subparagraph (C), 7 members of the Board shall be 
                appointed by the current members of the Board appointed 
                pursuant to this subparagraph or subparagraph (C)(ii), 
                and serve for a term of 7 years.
                    (C) Initial members.--The Board shall initially 
                consist of the following members, who shall be 
                appointed not later than the end of the 60-day period 
                beginning on the date that bonds are issued under 
                subsection (e):
                            (i) Four members, appointed by the 
                        President, by and with the advice and consent 
                        of the Senate.
                            (ii) Seven additional members, appointed 
                        one each by the seven entities purchasing the 
                        largest amount of bonds (by aggregate face 
                        amount of bonds purchased) under subsection 
                        (e).
                    (D) Staggered terms.--The members of the Board 
                shall serve staggered terms, with 2 each of the initial 
                members of the Board serving for terms of 4, 5, 6, 7, 
                and 8 years, respectively, and the initial Chair 
                selected under subparagraph (E) serving for 9 years. 
                The decision of which Board members, other than the 
                Chair, serve for which initial terms shall be made by 
                the members of the Board drawing lots.
                    (E) Chair.--The members of the Board shall choose 1 
                member to serve as the Chair of the Board for a term of 
                7 years, except that the initial Chair shall serve for 
                a term of 7 years, as described under subparagraph (D).
                    (F) Vacancies.--Any member of the Board appointed 
                to fill a vacancy occurring before the expiration of 
                the term to which that member's predecessor was 
                appointed shall be appointed only for the remainder of 
                the term.
                    (G) Continuation of service.--Each member of the 
                Board may continue to serve after the expiration of the 
                term of office to which that member was appointed until 
                a successor has been appointed.
                    (H) Conflicts of interest.--No member of the Board 
                may have a financial interest in, or be employed by, a 
                Qualified Infrastructure Project (``QIP'') related to 
                assistance provided under this section or any entity 
                that has purchased bonds under subsection (e). Owning 
                municipal credit of any State or local government or 
                owning the securities of a diversified company that 
                engages in infrastructure activities, provided those 
                activities constitute less than 20 percent of the 
                company's revenues, or investing in broadly held 
                investment funds shall not be deemed to create a 
                conflict of interest. The Board may issue regulations 
                to define terms used under this subparagraph.
            (4) Compensation.--The members of the Board shall be 
        compensated at an amount to be set by the Board, but under no 
        circumstances may such compensation be higher than the rate 
        prescribed for level IV of the Executive Schedule under section 
        5315 of title 5, United States Code.
            (5) Staff.--The Board shall employ and set compensation for 
        such staff as the Board determines as is necessary to carry out 
        the activities and mission of the AIF, and such staff may be 
        paid without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53, United States Code, relating to 
        classification and General Schedule pay rates.
            (6) Procedures.--The Board shall establish such procedures 
        as are necessary to carry out this section.
            (7) Corporate governance standards.--
                    (A) Board committees generally.--The Board shall 
                maintain all of the committees required to be 
                maintained by the board of directors of an issuer 
                listed on the New York Stock Exchange as of the date of 
                the enactment of this section.
                    (B) Risk management committee.--The Board shall 
                maintain a risk management committee, which shall--
                            (i) consist of 4 members of the Board, with 
                        the initial 4 members consisting of 2 members 
                        appointed under paragraph (3)(C)(i) and 2 
                        members appointed under paragraph (3)(C)(ii);
                            (ii) employ additional staff who are 
                        certified by the Board as having significant 
                        and relevant experience in insurance 
                        underwriting and credit risk management; and
                            (iii) establish the risk management 
                        policies used by the Board.
                    (C) Standards.--The Board shall, to the extent 
                practicable, follow all standards with respect to 
                corporate governance that are required to be followed 
                by the board of directors of an issuer listed on the 
                New York Stock Exchange as of the date of the enactment 
                of this section.
    (c) Infrastructure Investment.--
            (1) In general.--The AIF shall provide bond guarantees to 
        debt issued by State and local governments and non-profit 
        infrastructure providers, make loans to States, local 
        governments, and non-profit infrastructure providers, and make 
        equity investments in projects sponsored by State and local 
        governments and non-profit infrastructure provider to help 
        Qualified Infrastructure Projects (``QIPs''). The AIF may not 
        make any loans or provide bond guaranties to for-profit 
        entities.
            (2) Qualified infrastructure projects.--A project qualifies 
        as a QIP under this section if--
                    (A) the project involves the construction, 
                maintenance, improvement, or repair of a 
                transportation, energy, water, communications, or 
                educational facility; and
                    (B) the recipient of bond guarantees, loans, equity 
                investments, or any other financing technique 
                authorized under this Act provides written assurances 
                prescribed by the AIF that the project will be 
                performed in compliance with the requirements of all 
                Federal laws that would otherwise apply to similar 
                projects to which the United States is a party.
            (3) Application for assistance.--
                    (A) In general.--A State or local government that 
                wishes to receive a loan or bond guarantee under this 
                section shall submit an application to the Board in 
                such form and manner and containing such information as 
                the Board may require.
                    (B) Requirement for non-profit infrastructure 
                providers to apply through state or local 
                governments.--A non-profit infrastructure provider may 
                only receive a bond guarantee, loan, or equity 
                investment under this section if the State or local 
                government for the jurisdiction in which the non-profit 
                infrastructure provider is located submits an 
                application pursuant to subparagraph (A) on behalf of 
                such non-profit infrastructure provider.
            (4) Limitations on single state awards.--
                    (A) Annual limitation.--The Board shall set an 
                annual limit, as a percentage of total assistance 
                provided under this section during a year, on the 
                amount of assistance a single State (including local 
                governments and other non-profit infrastructure 
                providers within such State) may receive in assistance 
                provided under this section.
                    (B) Cumulative limitation.--The Board shall set a 
                limit, as a percentage of total assistance provided 
                under this section outstanding at any one time, on the 
                amount of assistance a single State (including local 
                governments and other non-profit infrastructure 
                providers within such State) may receive in assistance 
                provided under this section.
            (5) Loan specifications.--Loans made under this section 
        shall have such maturity and carry such interest rate as the 
        Board determines appropriate.
            (6) Bond guarantee.--The Board shall charge such fees for 
        Bond guarantees made under this section as the Board determines 
        appropriate.
            (7) Equity investments.--With respect to a QIP, the amount 
        of an equity investment made by the AIF in such QIP may not 
        exceed 20 percent of the total cost of the QIP.
            (8) Public-private partnership requirements.--At least 25 
        percent of the assistance provided under this section shall be 
        provided to QIPs for which at least 20 percent of the financing 
        for such QIPs comes from private debt or equity.
            (9) Prohibition on principal forgiveness.--With respect to 
        a loan made under this section, the Board may not forgive any 
        amount of principal on such loan.
    (d) American Infrastructure Bonds.--
            (1) In general.--The Secretary shall, not later than the 
        end of the 90-day period following the date of the enactment of 
        this section and acting through the AIF, issue bonds, to be 
        called ``American Infrastructure Bonds'', the proceeds from 
        which shall be deposited into the AIF.
            (2) Forms and denominations; interest.--American 
        Infrastructure Bonds shall--
                    (A) be in such forms and denominations as 
                determined by the Secretary, and shall have a 50-year 
                maturity; and
                    (B) bear interest of 1 percent.
            (3) No full faith and credit.--Interest and principal 
        payments paid to holders of American Infrastructure Bonds shall 
        be paid from the AIF, to the extent funds are available, and 
        shall not be backed by the full faith and credit of the United 
        States.
            (4) Amount of bonds.--The aggregate face amount of the 
        bonds issued under this subsection shall be $50,000,000,000.
            (5) Sale of american infrastructure bonds.--
                    (A) Competitive bidding process.--The Secretary 
                shall sell the $50,000,000,000 of American 
                Infrastructure Bonds--
                            (i) through a competitive bidding process 
                        that encourages aggressive bidding;
                            (ii) in a manner so as to ensure that there 
                        are at least 7 different un-affiliated 
                        purchasers; and
                            (iii) with prospective purchasers bidding 
                        on how low of a multiplier they will accept 
                        (for purposes of subsection (b)(1) of section 
                        966 of the Internal Revenue Code of 1986) when 
                        purchasing the American Infrastructure Bonds, 
                        for purposes of applying the foreign earnings 
                        exclusion described under that section.
                    (B) Limitation.--The multiplier described under 
                subparagraph (A)(iii) may not be greater than 6.
            (6) Reimbursement of costs.--The Board shall repay the 
        Secretary, from funds in the AIF, for the costs to the 
        Secretary in carrying out this subsection.
    (e) Additional Bonds.--
            (1) In general.--The Board may issue such other bonds as 
        the Board determines appropriate, the proceeds from which shall 
        be deposited into the AIF.
            (2) No full faith and credit.--Interest and principal 
        payments paid to holders of bonds issued pursuant to paragraph 
        (1) shall be paid from the AIF, to the extent funds are 
        available, and shall not be backed by the full faith and credit 
        of the United States.
    (f) Definitions.--For purposes of this section:
            (1) Bond guarantee.--The term ``bond guarantee'' has the 
        meaning given the term ``loan guarantee'' under section 502 of 
        the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
            (2) Cost.--With respect to a loan or a bond guarantee, the 
        term ``cost'' has the meaning given such term under section 502 
        of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
            (3) Non-profit infrastructure provider.--The term ``non-
        profit infrastructure provider'' means a non-profit entity that 
        seeks to finance a QIP.
            (4) Loan.--The term ``loan'' has the meaning given the term 
        ``direct loan'' under section 502 of the Federal Credit Reform 
        Act of 1990 (2 U.S.C. 661a).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (6) State.--The term ``State'' means each of the several 
        States, the District of Columbia, any territory or possession 
        of the United States, and each federally recognized Indian 
        tribe.

SEC. 3. FOREIGN EARNINGS EXCLUSION FOR PURCHASE OF INFRASTRUCTURE 
              BONDS.

    (a) In General.--Subpart F of part III of subchapter N of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 966. FOREIGN EARNINGS EXCLUSION FOR PURCHASE OF INFRASTRUCTURE 
              BONDS.

    ``(a) Exclusion.--In the case of a corporation which is a United 
States shareholder and for which the election under this section is in 
effect for the taxable year, gross income does not include an amount 
equal to the qualified cash dividend amount.
    ``(b) Qualified Cash Dividend Amount.--For purposes of this 
section, the term `qualified cash dividend amount' means an amount of 
the cash dividends which are received during a taxable year by such 
shareholder from controlled foreign corporations equal to--
            ``(1) the multiplier determined under section 2(d)(5) of 
        the Partnership to Build America Act of 2013 for such 
        shareholder, multiplied by
            ``(2) the face amount of qualified infrastructure bonds 
        acquired at its original issue (directly or through an 
        underwriter) by such shareholder.
    ``(c) Limitations.--
            ``(1) In general.--The amount of dividends taken into 
        account under subsection (a) for a taxable year shall not 
        exceed the lesser of--
                    ``(A) the cash dividends received by the taxpayer 
                for such taxable year, or
                    ``(B) the amount shown on the applicable financial 
                statement as earnings permanently reinvested outside 
                the United States.
            ``(2) Dividends must be extraordinary.--The amount of 
        dividends taken into account under subsection (a) shall not 
        exceed the excess (if any) of--
                    ``(A) the cash dividends received during the 
                taxable year by such shareholder from controlled 
                foreign corporations, over
                    ``(B) the annual average for the base period years 
                of the cash dividends received during each base period 
                year by such shareholder from controlled foreign 
                corporations.
            ``(3) Reduction of benefit if increase in related party 
        indebtedness.--The amount of dividends which would (but for 
        this paragraph) be taken into account under subsection (a) 
        shall be reduced by the excess (if any) of--
                    ``(A) the amount of indebtedness of the controlled 
                foreign corporation to any related person (as defined 
                in section 954(d)(3)) as of the close of the taxable 
                year for which the election under this section is in 
                effect, over
                    ``(B) the amount of indebtedness of the controlled 
                foreign corporation to any related person (as so 
                defined) as of the close of the preceding taxable year.
        All controlled foreign corporations with respect to which the 
        taxpayer is a United States shareholder shall be treated as 1 
        controlled foreign corporation for purposes of this subsection. 
        The Secretary may prescribe such regulations as may be 
        necessary or appropriate to prevent the avoidance of the 
        purposes of this subsection, including regulations which 
        provide that cash dividends shall not be taken into account 
        under subsection (a) to the extent such dividends are 
        attributable to the direct or indirect transfer (including 
        through the use of intervening entities or capital 
        contributions) of cash or other property from a related person 
        (as so defined) to a controlled foreign corporation.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified infrastructure bonds.--The term `qualified 
        infrastructure bond' means a bond issued under section 2(d) of 
        the Partnership to Build America Act of 2013.
            ``(2) Applicable financial statement.--The term `applicable 
        financial statement' means, with respect to a taxable year--
                    ``(A) with respect to a United States shareholder 
                which is required to file a financial statement with 
                the Securities and Exchange Commission (or which is 
                included in such a statement so filed by another 
                person), the most recent audited annual financial 
                statement (including the notes which form an integral 
                part of such statement) of such shareholder (or which 
                includes such shareholder)--
                            ``(i) which was so filed for such taxable 
                        year, and
                            ``(ii) which is certified as being prepared 
                        in accordance with generally accepted 
                        accounting principles, and
                    ``(B) with respect to any other United States 
                shareholder, the most recent audited financial 
                statement (including the notes which form an integral 
                part of such statement) of such shareholder (or which 
                includes such shareholder)--
                            ``(i) which is certified as being prepared 
                        in accordance with generally accepted 
                        accounting principles, and
                            ``(ii) which is used for the purposes of a 
                        statement or report--
                                    ``(I) to creditors,
                                    ``(II) to shareholders, or
                                    ``(III) for any other substantial 
                                nontax purpose.
            ``(3) Base period years.--
                    ``(A) In general.--The base period years are the 3 
                taxable years--
                            ``(i) which are among the 5 most recent 
                        preceding taxable years ending before the 
                        taxable year, and
                            ``(ii) which are determined by 
                        disregarding--
                                    ``(I) 1 taxable year for which the 
                                amount described in subsection 
                                (c)(2)(B) is the largest, and
                                    ``(II) 1 taxable year for which 
                                such amount is the smallest.
                    ``(B) Shorter period.--If the taxpayer has fewer 
                than 5 taxable years ending before the taxable year, 
                then in lieu of applying subparagraph (A), the base 
                period years shall include all the taxable years of the 
                taxpayer ending before such taxable year.
                    ``(C) Mergers, acquisitions, etc.--
                            ``(i) In general.--Rules similar to the 
                        rules of subparagraphs (A) and (B) of section 
                        41(f)(3) shall apply for purposes of this 
                        paragraph.
                            ``(ii) Spin-offs, etc.--If there is a 
                        distribution to which section 355 (or so much 
                        of section 356 as relates to section 355) 
                        applies during the 5-year period referred to in 
                        subparagraph (A)(i) and the controlled 
                        corporation (within the meaning of section 355) 
                        is a United States shareholder--
                                    ``(I) the controlled corporation 
                                shall be treated as being in existence 
                                during the period that the distributing 
                                corporation (within the meaning of 
                                section 355) is in existence, and
                                    ``(II) for purposes of applying 
                                subsection (c)(2) to the controlled 
                                corporation and the distributing 
                                corporation, amounts described in 
                                subsection (c)(2)(B) which are received 
                                or includible by the distributing 
                                corporation or controlled corporation 
                                (as the case may be) before the 
                                distribution referred to in subclause 
                                (I) from a controlled foreign 
                                corporation shall be allocated between 
                                such corporations in proportion to 
                                their respective interests as United 
                                States shareholders of such controlled 
                                foreign corporation immediately after 
                                such distribution.
                        Subclause (II) shall not apply if neither the 
                        controlled corporation nor the distributing 
                        corporation is a United States shareholder of 
                        such controlled foreign corporation immediately 
                        after such distribution.
            ``(4) Dividend.--The term `dividend' shall not include 
        amounts includible in gross income as a dividend under section 
        78, 367, or 1248. In the case of a liquidation under section 
        332 to which section 367(b) applies, the preceding sentence 
        shall not apply to the extent the United States shareholder 
        actually receives cash as part of the liquidation.
            ``(5) Coordination with dividend received deduction.--No 
        deduction shall be allowed under section 243 or 245 for any 
        dividend which is excluded from income by subsection (a).
            ``(6) Controlled groups.--All United States shareholders 
        which are members of an affiliated group filing a consolidated 
        return under section 1501 shall be treated as one United States 
        shareholder.
            ``(7) Reporting.--The Secretary shall require by regulation 
        or other guidance the reporting of such information as the 
        Secretary may require to carry out this section.
    ``(e) Denial of Foreign Tax Credit; Denial of Certain Expenses.--
            ``(1) Foreign tax credit.--
                    ``(A) In general.--No credit shall be allowed under 
                section 901 for any taxes paid or accrued (or treated 
                as paid or accrued) with respect to the excluded 
                portion of any dividend.
                    ``(B) Denial of deduction of related tax.--No 
                deduction shall be allowed under this chapter for any 
                tax for which credit is not allowable by reason of the 
                preceding sentence.
            ``(2) Expenses.--No deduction shall be allowed for expenses 
        directly allocable to the excludable portion described in 
        paragraph (1).
            ``(3) Excludable portion.--For purposes of paragraph (1), 
        unless the taxpayer otherwise specifies, the excludable portion 
        of any dividend or other amount is the amount which bears the 
        same ratio to the amount of such dividend or other amount as 
        the amount excluded from income under subsection (a) for the 
        taxable year bears to the amount described in subsection 
        (c)(2)(A) for such year.
            ``(4) Coordination with section 78.--Section 78 shall not 
        apply to any tax which is not allowable as a credit under 
        section 901 by reason of this subsection.
    ``(f) Election To Have Section Apply.--A taxpayer may elect to have 
this section apply for any taxable year.''.
    (b) Clerical Amendment.--The table of sections for subpart F of 
part III of subchapter N of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 966. Foreign earnings exclusion for purchase of infrastructure 
                            bonds.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to dividends received for taxable years ending after the date of 
the enactment of this Act.
                                 <all>