S.Amdt. 2129

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,

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``(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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