S.Amdt. 1692

1. Adds SEC. ____. CREDIT TO HOLDERS OF TRIP BONDS wherever appropriate

   Adds a section

   Inserted: SEC. ____. CREDIT TO HOLDERS OF TRIP BONDS.

   Inserted: (a) Short Title.--This section may be cited as the "Transportation and Regional Infrastructure Project Bonds Act of 2012" or "TRIP Bonds Act".

   Inserted: (b) In General.--Subpart I 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:

   Inserted: "SEC. 54G. TRIP BONDS.

   Inserted: "(a) TRIP Bond.--For purposes of this subpart, the term 'TRIP bond' means any bond issued as part of an issue if--

   Inserted: "(1) 100 percent of the available project proceeds of such issue are to be used for expenditures incurred after the date of the enactment of this section for 1 or more qualified projects pursuant to an allocation of such proceeds to such project or projects by a State infrastructure bank,

   Inserted: "(2) the bond is issued by a State infrastructure bank and is in registered form (within the meaning of section 149(a)),

   Inserted: "(3) the State infrastructure bank designates such bond for purposes of this section,

   Inserted: "(4) the term of each bond which is part of such issue does not exceed 30 years,

   Inserted: "(5) the issue meets the requirements of subsection (e),

   Inserted: "(6) the State infrastructure bank certifies that the State meets the State contribution requirement of subsection (h) with respect to such project, as in effect on the date of issuance, and

   Inserted: "(7) the State infrastructure bank certifies the State meets the requirement described in subsection (i).

   Show 64 more inserted paragraphsShow less

   Inserted: "(b) Qualified Project.--For purposes of this section--

   Inserted: "(1) In general.--The term 'qualified project' means the capital improvements to any transportation infrastructure project of any governmental unit or other person, including roads, bridges, rail and transit systems, ports, and inland waterways proposed and approved by a State infrastructure bank, but does not include costs of operations or maintenance with respect to such project.

   Inserted: "(2) Certain federal projects.--Such term may include the Federal share or portion thereof, of a congressionally authorized project where all environmental studies have been completed and the United States Army Corps of Engineers Chief's Report has been completed successfully.

   Inserted: "(c) Applicable Credit Rate.--In lieu of section 54A(b)(3), for purposes of section 54A(b)(2), the applicable credit rate with respect to an issue under this section is the rate equal to an average market yield (as of the day before the date of sale of the issue) on outstanding long-term corporate debt obligations (determined in such manner as the Secretary prescribes).

   Inserted: "(d) Limitation on Amount of Bonds Designated.--

   Inserted: "(1) In general.--The maximum aggregate face amount of bonds which may be designated under subsection (a) by any State infrastructure bank shall not exceed the TRIP bond limitation amount allocated to such bank under paragraph (3).

   Inserted: "(2) National limitation amount.--There is a TRIP bond limitation amount for each calendar year. Such limitation amount is--

   Inserted: "(A) $10,000,000,000 for 2013,

   Inserted: "(B) $15,000,000,000 for 2014, and

   Inserted: "(C) except as provided in paragraph (4), zero thereafter.

   Inserted: "(3) Allocations to states.--The TRIP bond limitation amount for each calendar year shall be allocated by the Secretary among the States such that each State is allocated 2 percent of such amount.

   Inserted: "(4) Carryover of unused issuance limitation.--If for any calendar year the TRIP bond limitation amount under paragraph (2) exceeds the amount of TRIP bonds issued during such year, such excess shall be carried forward to 1 or more succeeding calendar years as an addition to the TRIP bond limitation amount under paragraph (2) for such succeeding calendar year and until used by issuance of TRIP bonds.

   Inserted: "(e) Special Rules Relating to Expenditures.--

   Inserted: "(1) In general.--An issue shall be treated as meeting the requirements of this subsection if, as of the date of issuance, the State infrastructure bank reasonably expects--

   Inserted: "(A) at least 100 percent of the available project proceeds of such issue are to be spent for 1 or more qualified projects within the 5-year expenditure period beginning on such date,

   Inserted: "(B) to incur a binding commitment with a third party--

   Inserted: "(i) to spend at least 10 percent of the proceeds of such issue, or

   Inserted: "(ii) to commence construction, with respect to such projects within the 12-month period beginning on such date, and

   Inserted: "(C) to proceed with due diligence to complete such projects and to spend the proceeds of such issue.

   Inserted: "(2) Rules regarding continuing compliance after 5-year determination.--To the extent that less than 100 percent of the available project proceeds of such issue are expended by the close of the 5-year expenditure period beginning on the date of issuance, the State infrastructure bank shall redeem all of the nonqualified bonds within 90 days after the end of such period. For purposes of this paragraph, the amount of the nonqualified bonds required to be redeemed shall be determined in the same manner as under section 142.

   Inserted: "(f) Recapture of Portion of Credit Where Cessation of Compliance.--If any bond which when issued purported to be a TRIP bond ceases to be such a bond, the State infrastructure bank shall pay to the United States (at the time required by the Secretary) an amount equal to the sum of--

   Inserted: "(1) the aggregate of the credits allowable under section 54A with respect to such bond (determined without regard to section 54A(c)) for taxable years ending during the calendar year in which such cessation occurs and each succeeding calendar year ending with the calendar year in which such bond is redeemed by the bank, and

   Inserted: "(2) interest at the underpayment rate under section 6621 on the amount determined under paragraph (1) for each calendar year for the period beginning on the first day of such calendar year.

   Inserted: "(g) TRIP Bonds Trust Accounts.--

   Inserted: "(1) In general.--The following amounts shall be held in a TRIP Bonds Trust Account by each State infrastructure bank:

   Inserted: "(A) The proceeds from the sale of all bonds issued by such bank under this section.

   Inserted: "(B) The investment earnings on proceeds from the sale of such bonds.

   Inserted: "(C) 2 percent of the amount described in paragraph (2).

   Inserted: "(D) The amounts described in subsection (h).

   Inserted: "(E) Any earnings on any amounts described in subparagraph (A), (B), (C), or (D).

   Inserted: "(2) Appropriation of revenues.--There is hereby transferred to each TRIP Bonds Trust Account an amount equal to 2 percent of the lesser of--

   Inserted: "(A) the revenues resulting from the imposition of fees pursuant to section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c) for fiscal years beginning after September 30, 2021, or

   Inserted: "(B) $25,000,000,000.

   Inserted: "(3) Use of funds.--Amounts in each TRIP Bonds Trust Account may be used only to pay costs of qualified projects and redeem TRIP bonds, except that amounts withdrawn from the TRIP Bonds Trust Account to pay costs of qualified projects may not exceed the proceeds from the sale of TRIP bonds described in subsection (a)(1).

   Inserted: "(4) Use of remaining funds in trip bonds trust account.--Upon the redemption of all TRIP bonds issued by the State infrastructure bank under this section, any remaining amounts in the TRIP Bonds Trust Account held by such bank shall be available to pay the costs of any qualified project in such State.

   Inserted: "(5) Applicability of federal law.--The requirements of any Federal law, including titles 23, 40, and 49 of the United States Code, which would otherwise apply to projects to which the United States is a party or to funds made available under such law and projects assisted with those funds shall apply to--

   Inserted: "(A) funds made available under each TRIP Bonds Trust Account for similar qualified projects, other than contributions required under subsection (h), and

   Inserted: "(B) similar qualified projects assisted through the use of such funds.

   Inserted: "(6) Investment.--Subject to subsections (e) and (f), it shall be the duty of the State infrastructure bank to invest in investment grade obligations such portion of the TRIP Bonds Trust Account held by such Bank as is not, in the judgment of such bank, required to meet current withdrawals. To the maximum extent practicable, investments should be made in securities that support infrastructure investment at the State and local level.

   Inserted: "(h) State Contribution Requirements.--

   Inserted: "(1) In general.--For purposes of subsection (a)(6), the State contribution requirement of this subsection is met with respect to any qualified project if the State infrastructure bank has received for deposit into the TRIP Bonds Trust Account held by such bank from 1 or more States, not later than the date of issuance of the bond, the first of 10 equal annual installments constituting one-tenth of the contributions of not less than 20 percent (or such smaller percentage as determined under title 23, United States Code, for such State) of the cost of the qualified project.

   Inserted: "(2) State contributions may not include federal funds.--For purposes of this subsection, State contributions shall not be derived, directly or indirectly, from Federal funds, including any transfers from the Highway Trust Fund under section 9503.

   Inserted: "(i) Utilization of Updated Construction Technology for Qualified Projects.--For purposes of subsection (a)(7), the requirement of this subsection is met if the appropriate State agency relating to the qualified project is utilizing updated construction technologies.

   Inserted: "(j) Other Definitions and Special Rules.--For purposes of this section--

   Inserted: "(1) State infrastructure bank.--

   Inserted: "(A) In general.--The term 'State infrastructure bank' means a State infrastructure bank established under section 610 of title 23, United States Code, and includes a joint venture among 2 or more State infrastructure banks.

   Inserted: "(B) Special authority.--Notwithstanding any other provision of law, a State infrastructure bank shall be authorized to perform any of the functions necessary to carry out the purposes of this section, including the making of direct grants to qualified projects from available project proceeds of TRIP bonds issued by such bank.

   Inserted: "(2) Credits may be transferred.--Nothing in any law or rule of law shall be construed to limit the transferability of the credit or bond allowed by this section through sale and repurchase agreements.

   Inserted: "(3) Prohibition on use of highway trust fund.--Notwithstanding any other provision of law, no funds derived from the Highway Trust Fund established under section 9503 shall be used to pay for credits under this section.".

   Inserted: (c) Conforming Amendments.--

   Inserted: (1) Paragraph (1) of section 54A(d) of the Internal Revenue Code of 1986 is amended--

   Inserted: (A) by striking "or" at the end of subparagraph (D),

   Inserted: (B) by inserting "or" at the end of subparagraph (E),

   Inserted: (C) by inserting after subparagraph (E) the following new subparagraph:

   Inserted: "(F) a TRIP bond,", and

   Inserted: (D) by inserting "(paragraphs (3), (4), and (6), in the case of a TRIP bond)" after "and (6)".

   Inserted: (2) Subparagraph (C) of section 54A(d)(2) of such Code is amended by striking "and" at the end of clause (iv), by striking the period at the end of clause (v) and inserting ", and", and by adding at the end the following new clause:

   Inserted: "(vi) in the case of a TRIP bond, a purpose specified in section 54G(a)(1).".

   Inserted: (d) Clerical Amendment.--The table of sections for subpart I 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:

   Inserted: "Sec. 54G. TRIP bonds.".

   Inserted: (e) Effective Date.--The amendments made by this section shall apply to bonds issued after December 31, 2012.

   Inserted: (f) Extension of Customs User Fees.--Section 13031(j)(3) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended by adding at the end the following:

   Inserted: "(E)(i) Notwithstanding subparagraph (A), fees may be charged under paragraphs (9) and (10) of subsection (a) during the period beginning on October 1, 2021, and ending on October 1, 2029.

   Inserted: "(ii) Notwithstanding subparagraph (B)(i), fees may be charged under paragraphs (1) through (8) of subsection (a) during the period beginning on October 1, 2021, and ending on October 1, 2029.".

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed