[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1186 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1186

To amend the Internal Revenue Code of 1986 to provide for Move America 
   bonds and to allow such bonds to be converted into tax credits to 
                  support public-private partnerships.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 4, 2015

 Mr. Wyden (for himself and Mr. Hoeven) 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 for Move America 
   bonds and to allow such bonds to be converted into tax credits to 
                  support public-private partnerships.

    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 ``Move America Act of 2015''.

SEC. 2. MOVE AMERICA BOND.

    (a) In General.--
            (1) Move america bonds.--Subpart A of part IV of subchapter 
        B of chapter 1 of the Internal Revenue Code of 1986 is amended 
        by inserting after section 142 the following new section:

``SEC. 142A. MOVE AMERICA BONDS.

    ``(a) In General.--
            ``(1) Treatment as exempt facility bond.--Except as 
        otherwise provided in this section, a Move America bond shall 
        be treated for purposes of this part as an exempt facility 
        bond.
            ``(2) Exceptions.--
                    ``(A) No government ownership requirement.--
                Paragraph (1) of section 142(b) shall not apply to any 
                Move America bond.
                    ``(B) Special rules for high-speed rail bonds.--
                Paragraphs (2) and (3) of section 142(i) shall not 
                apply to any Move America bond described in subsection 
                (b)(4).
                    ``(C) Special rules for highway and surface 
                transportation facilities.--Paragraphs (2), (3), and 
                (4) of section 142(m) shall not apply to any Move 
                America bond described in subsection (b)(5).
    ``(b) Move America Bond.--For purposes of this part, the term `Move 
America bond' means any bond issued as part of an issue 95 percent or 
more of the net proceeds of which are used to provide--
            ``(1) airports,
            ``(2) docks and wharves, including--
                    ``(A) waterborne mooring infrastructure,
                    ``(B) dredging in connection with a dock or wharf, 
                and
                    ``(C) any associated rail and road infrastructure 
                for the purpose of integrating modes of transportation,
            ``(3) mass commuting facilities,
            ``(4) railroads (as defined in section 20102 of title 49, 
        United States Code) and any associated rail and road 
        infrastructure for the purpose of integrating modes of 
        transportation,
            ``(5) any--
                    ``(A) surface transportation project which is 
                eligible for Federal assistance under title 23, United 
                States Code (as in effect on the date of the enactment 
                of this section),
                    ``(B) project for an international bridge or tunnel 
                for which an international entity authorized under 
                Federal or State law is responsible and which is 
                eligible Federal assistance under title 23, United 
                States Code (as so in effect), or
                    ``(C) facility for the transfer of freight from 
                truck to rail or rail to truck (including any temporary 
                storage facilities directly related to such transfers) 
                which is eligible for Federal assistance under either 
                title 23 or title 49, United States Code (as so in 
                effect),
            ``(6) flood diversions, or
            ``(7) inland waterways, including construction and 
        rehabilitation expenditures for navigation on any inland or 
        intracoastal waterways of the United States (within the meaning 
        of section 4042(d)(2)).
    ``(c) Flood Diversions.--For purposes of this section, the term 
`flood diversion' means any flood damage risk reduction project 
authorized under any Act for authorizing water resources development 
projects.
    ``(d) Move America Volume Cap.--
            ``(1) In general.--The aggregate face amount of Move 
        America bonds issued pursuant to an issue, when added to the 
        aggregate face amount of Move America bonds previously issued 
        by the issuing authority during the calendar year, shall not 
        exceed such issuing authority's Move America volume cap for 
        such year.
            ``(2) Move america volume cap.--For purposes of this 
        subsection--
                    ``(A) In general.--The Move America volume cap 
                shall be 50 percent of the State ceiling under section 
                146(d) for such State for such year.
                    ``(B) Allocation of volume cap.--Each State may 
                allocate the Move America volume cap of such State 
                among governmental units (or other authorities) in such 
                State having authority to issue private activity bonds.
            ``(3) Carryforwards.--
                    ``(A) In general.--If--
                            ``(i) an issuing authority's Move America 
                        volume cap, exceeds
                            ``(ii) the aggregate amount of Move America 
                        bonds issued during such calendar year by such 
                        authority,
                any Move America bond issued by such authority during 
                the 3-calendar-year period following such calendar year 
                shall not be taken into account under paragraph (1) to 
                the extent the amount of such bonds does not exceed the 
                amount of such excess. Any excesses arising under this 
                paragraph shall be used under this paragraph in the 
                order of calendar years in which the excesses arose.
                    ``(B) Reallocation of unused carryforwards.--
                            ``(i) In general.--The Move America volume 
                        cap under paragraph (2)(A) for any State for 
                        any calendar year shall be increased by any 
                        amount allocated to such State by the Secretary 
                        under clause (ii).
                            ``(ii) Reallocation.--The Secretary shall 
                        allocate to each qualified State for any 
                        calendar year an amount which bears the same 
                        ratio to the aggregate unused carryforward 
                        amounts of all issuing authorities in all 
                        States for such calendar year as the qualified 
                        State's population for the calendar year bears 
                        to the population of all qualified States for 
                        the calendar year. For purposes of the 
                        preceding sentence, population shall be 
                        determined in accordance with section 146(j).
                            ``(iii) Qualified state.--For purposes of 
                        this subparagraph, the term `qualified State' 
                        means, with respect to a calendar year, any 
                        State--
                                    ``(I) which allocated its entire 
                                Move America volume cap for the 
                                preceding calendar year, and
                                    ``(II) for which a request is made 
                                (not later than May 1 of the calendar 
                                year) to receive an allocation under 
                                clause (ii).
                            ``(iv) Unused carryforward amount.--For 
                        purposes of this paragraph, the term `unused 
                        carryforward amount' means, with respect to any 
                        issuing authority for any calendar year, the 
                        excess of--
                                    ``(I) the amount of the excess 
                                described in subparagraph (A) for the 
                                fourth preceding calendar year, over
                                    ``(II) the amount of bonds issued 
                                by such issuing authority to which 
                                subparagraph (A) applied during the 3 
                                preceding calendar years.
    ``(e) Applicability of Certain Federal Laws.--An issue shall not be 
treated as an issue under subsection (b) unless the facility for which 
the proceeds of such issue are used would be subject to the 
requirements of any Federal law (including titles 23, 40, and 49 of the 
United States Code) which would otherwise apply to similar projects.
    ``(f) Special Rule for Environmental Remediation Costs for Docks 
and Wharves.--For purposes of this section, amounts used for working 
capital expenditures relating to environmental remediation required 
under State or Federal law at or near a facility described in 
subsection (b)(2) (including environmental remediation in the riverbed 
and land within or adjacent to the Federal navigation channel used to 
access such facility) shall be treated as an amount used to provide for 
such a facility.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the purposes of this section, 
including regulations requiring States to report the amount of Move 
America volume cap of the State carried forward for any calendar year 
under subsection (d)(3).''.
            (2) Conforming amendment.--The table of sections for 
        subpart A of part IV of subchapter B of chapter 1 of such Code 
        is amended by inserting after the item relating to section 142 
        the following new item:

``Sec. 142A. Move America bonds.''.
    (b) Application of Other Private Activity Bond Rules.--
            (1) Treatment under private activity bond volume cap.--
        Subsection (g) of section 146 of the Internal Revenue Code of 
        1986 is amended by striking ``and'' at the end of paragraph 
        (3), by striking the period at the end of paragraph (4) and 
        inserting ``, and'', and by inserting after paragraph (4) the 
        following new paragraph:
            ``(5) any Move America bond.''.
            (2) Rule for facilities located outside the state.--
        Paragraph (2) of section 146(k) of the Internal Revenue Code of 
        1986 is amended by inserting ``or to any Move America bond'' 
        after ``section 142(a)''.
            (3) Special rule on use for land acquisition.--Subparagraph 
        (A) of section 147(c)(1) of the Internal Revenue Code of 1986 
        is amended by inserting ``(50 percent in the case of any issue 
        of Move America bonds)'' after ``25 percent''.
            (4) Special rules for rehabilitation expenditures.--
                    (A) Inclusion of certain expenditures.--
                Subparagraph (B) of section 147(d)(3) of the Internal 
                Revenue Code of 1986 is amended by inserting ``, except 
                that, in the case of any Move America bond, such term 
                shall include any expenditure described in clause (iii) 
                or (v) thereof'' before the period at the end.
                    (B) Period for expenditures.--Subparagraph (C) of 
                section 147(d)(3) of such Code is amended by inserting 
                ``(5 years, in the case of any Move America bond)'' 
                after ``2 years''.
    (c) Treatment Under the Alternative Minimum Tax.--Subparagraph (C) 
of section 57(a)(5) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new clause:
                            ``(vii) Exception for move america bonds.--
                        For purposes of clause (i), the term `private 
                        activity bond' shall not include any Move 
                        America bond (as defined in section 142A).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued in calendar years beginning after the date 
of the enactment of this Act.

SEC. 3. MOVE AMERICA TAX CREDITS.

    (a) In General.--Subpart B 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. 30E. MOVE AMERICA CREDIT.

    ``(a) Allowance of Credit.--In the case of a Move America credit 
certificate purchased by the taxpayer, there shall be allowed as a 
credit against the tax imposed by this chapter for any taxable year in 
the credit period an amount equal to 10 percent of the value of such 
certificate.
    ``(b) Credit Period.--For purposes of this section, the term 
`credit period' means, with respect to any Move America credit 
certificate, the period of 10 taxable years beginning with the first 
taxable year that begins in the calendar year in which the qualified 
project to which such certificate relates is placed in service.
    ``(c) Move America Credit Certificate.--For purposes of this 
section--
            ``(1) Move america credit certificate.--The term `Move 
        America credit certificate' means any certificate that--
                    ``(A) is sold to the taxpayer under a qualified 
                Move America credit program by a State or by a project 
                sponsor to whom the State has allocated such 
                certificate for sale under paragraph (2)(B)(ii)(I),
                    ``(B) is designated by the State as relating to a 
                qualified project,
                    ``(C) the proceeds of the sale of which are used to 
                finance the qualified project designated under 
                subparagraph (B),
                    ``(D) specifies--
                            ``(i) the value of the certificate and the 
                        purchase price, and
                            ``(ii) the qualified project to which it 
                        relates,
                    ``(E) is sold no later than the end of the calendar 
                year in which the project is placed in service, and
                    ``(F) is in such form as the Secretary may 
                prescribe.
            ``(2) Qualified move america credit program.--
                    ``(A) In general.--The term `qualified Move America 
                credit program' means any program--
                            ``(i) which is established by a State for 
                        any calendar year for which it is authorized to 
                        issue Move America bonds (as defined in section 
                        145A),
                            ``(ii) under which the State exchanges (in 
                        such manner as the Secretary may prescribe) an 
                        amount of the Move America bonds (as so 
                        defined) which it may otherwise issue during 
                        such calendar year for the ability to sell Move 
                        America credit certificates, and
                            ``(iii) under which the State is obligated 
                        to repay to the Secretary an amount equal to 
                        the recapture amount, if applicable, with 
                        respect to any Move America credit certificate.
                    ``(B) Allocation of certificates to project 
                sponsors.--
                            ``(i) In general.--A State that has 
                        established a qualified Move America credit 
                        program under subparagraph (A) may allocate any 
                        Move America credit certificate that is 
                        eligible to be sold by such State to the 
                        project sponsor of the qualified project to 
                        which such certificate relates.
                            ``(ii) Sale or use.--A project sponsor to 
                        whom any Move America certificate is allocated 
                        under clause (i) may--
                                    ``(I) sell such certificate, or
                                    ``(II) claim the credit under this 
                                section with respect to such 
                                certificate as if the project sponsor 
                                had purchased the certificate from the 
                                State.
            ``(3) Value.--
                    ``(A) In general.--The aggregate value of the Move 
                America credit certificates sold or allocated by a 
                State in a calendar year shall equal 25 percent of the 
                value of Move America bonds exchanged by the State 
                under paragraph (2)(A)(ii).
                    ``(B) Limitation relating to qualified project 
                cost.--The aggregate value of the Move America credit 
                certificates sold or allocated by a State and 
                designated by the State as relating to any qualified 
                project shall not exceed the lesser of--
                            ``(i) 20 percent of the estimated cost of 
                        the project, or
                            ``(ii) 50 percent of the total amount of 
                        private equity invested in the project.
            ``(4) Certificate nontransferable.--A Move America credit 
        certificate, once purchased from a State or a project sponsor 
        to whom the State has allocated such certificate for sale under 
        paragraph (2)(B)(ii)(I), may not be sold or transferred to any 
        other person.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified project.--The term `qualified project' 
        means a project which--
                    ``(A) would be subject to the same requirements of 
                any Federal law (including titles 23, 40, and 49 of the 
                United States Code) which would otherwise apply to 
                similar projects, and
                    ``(B) is for the construction of a facility 
                described in section 142A(b), but only if such project, 
                upon completion, will be generally available for public 
                use.
            ``(2) Recapture amount.--
                    ``(A) In general.--In the case of any Move America 
                credit certificate, if the project to which the 
                certificate is designated under subsection (c)(1)(B) as 
                relating--
                            ``(i) is never placed in service, or
                            ``(ii) ceases to be a qualified project at 
                        any time during the credit period,
                the recapture amount is the amount determined under 
                subparagraph (B).
                    ``(B) Amount determined.--The amount determined 
                under this subparagraph is--
                            ``(i) in the case of a project to which 
                        subparagraph (A)(i) applies, the value of the 
                        Move America credit certificate, and
                            ``(ii) in the case of a project to which 
                        subparagraph (A)(ii) applies, the product of--
                                    ``(I) an amount equal to 10 percent 
                                of the value of the Move America credit 
                                certificate, and
                                    ``(II) the number of calendar years 
                                in the credit period beginning with the 
                                calendar year in which the project 
                                ceases to be a qualified project.
            ``(3) Special rule for projects not placed in service.--For 
        purposes of subsection (a), if the project to which a Move 
        America credit certificate is designated under subsection 
        (c)(1)(B) as relating is never placed in service, the first 
        taxable year that begins in the calendar year in which the 
        State certifies (at such time and in such manner as may be 
        prescribed by the Secretary) that the project will not be 
        placed in service shall be treated as the year in which the 
        project was placed in service.
    ``(e) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--Except as provided in paragraph (2), the credit which 
        would be allowed under subsection (a) for any taxable year 
        (determined without regard to this subsection) shall be treated 
        as a credit listed in section 38(b) for such taxable year (and 
        not allowed under subsection (a)).
            ``(2) Personal credit.--For purposes of this title, in the 
        case of an individual, the credit allowed under subsection (a) 
        for any taxable year shall be treated as a credit allowable 
        under subpart A for such taxable year.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``plus'' at the end of paragraph (35),
            (2) by striking the period at the end of paragraph (36) and 
        inserting ``, plus'', and
            (3) by adding at the end the following new paragraph:
            ``(37) the portion of the Move America credit to which 
        section 30E(e)(1) applies.''.
    (c) Clerical Amendment.--The table of sections for subpart B 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. 30E. Move America credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
    (e) Reporting.--A State that sells any Move America credit 
certificate shall report, at such time and in such manner as the 
Secretary of the Treasury shall require--
            (1) to the Secretary of the Treasury--
                    (A) the value of the Move America bonds otherwise 
                allowed to be issued by the State which are exchanged 
                under section 30E(c)(2)(A)(ii) of the Internal Revenue 
                Code of 1986 for the ability to sell such Move America 
                credit certificates, and
                    (B) the number of Move America credit certificates 
                sold by the State or allocated to project sponsors, the 
                value of each such certificate, and to whom it was sold 
                (including the name of the purchaser and any other 
                identifying information as the Secretary of the 
                Treasury shall require), and
            (2) to the Secretary of the Treasury and the purchaser of 
        any Move America credit certificate--
                    (A) the placed in service date of the qualified 
                project to which the certificate is designated under 
                section 30E(c)(1)(B) of the Internal Revenue Code of 
                1986 as relating, or
                    (B) that the State has made a certification under 
                section 30E(d)(3) of such Code that such project will 
                not be placed in service.
For purposes of this subsection, any term used in this subsection that 
is also used in section 30E or 142A of the Internal Revenue Code of 
1986 has the same meaning as when used in such section.
                                 <all>