[Congressional Record Volume 167, Number 134 (Friday, July 30, 2021)]
[Senate]
[Pages S5222-S5223]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2129. Mr. WICKER (for himself and Mr. Bennet) submitted an 
amendment intended to be proposed by him to the bill H.R. 3684, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; 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, at the direction of the 
     issuer, to any person who makes such interest payments on 
     behalf of the issuer) 28 percent of the interest paid 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,

[[Page S5223]]

       ``(B) the obligation is not a private activity bond,
       ``(C) the issuer makes an irrevocable election to have this 
     section apply,
       ``(D) the obligation is issued during the 8-year period 
     beginning on the date of enactment of this section, and
       ``(E) 100 percent of the excess of the available project 
     proceeds of such issue over the amounts in a reasonably 
     required reserve (within the meaning of section 150(a)(3)) 
     with respect to such issue are to be used for capital 
     expenditures.
       ``(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.
       ``(3) Available project proceeds.--For purposes of this 
     subsection, the term `available project proceeds' means--
       ``(A) the excess of--
       ``(i) the proceeds from the sale of an issue, over
       ``(ii) the issuance costs financed by the issue (to the 
     extent that such costs do not exceed 2 percent of such 
     proceeds), and
       ``(B) the proceeds from any investment of the excess 
     described in subparagraph (A).
       ``(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 striking ``and 6428A'' and inserting ``6428A, and 
     6431''.
       (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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