S. 1523Senate118th Congress (2023-2025)In Committee

School Infrastructure Modernization Act of 2023

Sponsored by Tim KaineSen. Tim Kaine (D-VA)
Introduced May 10, 2023

AI-Generated Summary

Updated January 20, 2026 at 7:19 AM UTC

The School Infrastructure Modernization Act of 2023 changes the tax code so that money spent on renovating public school buildings can qualify for the federal rehabilitation tax credit. It lets school districts claim the credit for eligible rehab projects, and requires the Treasury to report on how many schools and students benefit. The law applies to projects placed in service after December 31, 2023 and affects public schools and the students who use them.

Key Provisions

  • Amends the Internal Revenue Code to add a new subclause that excludes public school buildings from the limitation that normally prevents them from receiving the rehabilitation credit.
  • Requires the Treasury Secretary, after consulting other agencies, to report to Congress within five years on the number of schools and students benefiting, especially in low‑income areas, and on the amount of qualified expenditures.
  • Sets the effective date so the credit applies only to property placed in service after December 31, 2023.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S1606)

May 10, 2023

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SenateIntro Referral

Introduced in Senate

May 10, 2023

SenateIntro Referral

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S1606)

May 10, 2023

Floor Debate

4 members

What members said about S. 1523 on the floor

2 Republicans2 Democrats
Susan M. Collins
Sen. Susan M. CollinsR-ME · May 10, 2023

Madam President, I rise today to introduce the Reach Every Mother and Child Act of 2023, known as the Reach Act. This bipartisan legislation would strengthen the United States' efforts to end…

Jack Reed
Sen. Jack ReedD-RI · May 10, 2023

Madam President, today I am introducing the Rhode Island Fishermen's Fairness Act along with my colleague Senator Whitehouse. I am also pleased that my colleague Representative Magaziner will be…

Tim Kaine
Sen. Tim KaineD-VA · May 10, 2023

Madam President, today I want to discuss legislation I am introducing, the School Infrastructure Modernization Act, with my colleague Senator Warner. To claim the Federal tax credit for historic…

Tim Kaine
Sen. Tim KaineD-VA · May 10, 2023

Madam President, today I want to discuss legislation I am introducing, the School Infrastructure Modernization Act, with my colleague Senator Warner. To claim the Federal tax credit for historic…

John Thune
Sen. John ThuneR-SD · May 10, 2023

Madam President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued May 10, 2023

II

118th CONGRESS

1st Session

S. 1523

IN THE SENATE OF THE UNITED STATES

May 10, 2023

Mr. Kaine (for himself and Mr. Warner) 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 allow rehabilitation expenditures for public school buildings to qualify for rehabilitation credit.

1.

Short title

This Act may be cited as the School Infrastructure Modernization Act of 2023.

2.

Qualification of rehabilitation expenditures for public school buildings for rehabilitation credit

(a)

In general

Section 47(c)(2)(B)(v) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subclause:

(III)

Clause not to apply to public schools

This clause shall not apply in the case of the rehabilitation of any building which was used as a qualified public educational facility (as defined in section 142(k)(1), determined without regard to subparagraph (B) thereof) at any time during the 5-year period ending on the date that such rehabilitation begins and which is used as such a facility immediately after such rehabilitation.

.

(b)

Report

Not later than the date which is 5 years after the date of the enactment of this Act, the Secretary of the Treasury, after consultation with the heads of appropriate Federal agencies, shall report to Congress on the effects resulting from the amendment made by subsection (a), including—

(1)

the number of qualified public education facilities rehabilitated (stated separately with respect to each State) and the number of students using such facilities (stated separately with respect to each such State),

(2)

the number of qualified public education facilities rehabilitated in low income communities (as defined in section 45D(e)(1) of the Internal Revenue Code of 1986) and the number of students using such facilities,

(3)

the amount of qualified rehabilitation expenditures for each qualified public education facility rehabilitated, and

(4)

and any other data determined by the Secretary to be useful in evaluating the impact of such amendment.

(c)

Effective date

The amendment made by this section shall apply to property placed in service after December 31, 2023.