[Congressional Record Volume 166, Number 140 (Thursday, August 6, 2020)]
[Senate]
[Page S5332]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2634. Mr. WICKER submitted an amendment intended to be proposed by
him to the bill S. 178, to condemn gross human rights violations of
ethnic Turkic Muslims in Xinjiang, and calling for an end to arbitrary
detention, torture, and harassment of these communities inside and
outside China; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. 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) the
applicable percentage of the interest payable under such bond
on such date.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage shall be equal to--
``(A) in the case of any American infrastructure bond
issued before January 1, 2026, 35 percent, and
``(B) in the case of any American infrastructure bond
issued after December 31, 2025, 28 percent.
``(3) 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) either--
``(i) the obligation is not a private activity bond, or
``(ii) the obligation is a private activity bond, but it is
issued as part of an issue 95 percent or more of the net
proceeds of which are to be used to finance or refinance
property that meets the ownership test in section 145(a)(1),
as applied by substituting `95 percent of the property' for
`all property', 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 ``36B,''.
(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.
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