119-s1480

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1480 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1480

 To amend the Internal Revenue Code of 1986 to provide a credit to 
 issuers of American infrastructure bonds.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 April 10, 2025

 Mr. Wicker (for himself, Mr. Bennet, Mrs. Britt, and Mrs. Hyde-Smith) 
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 provide a credit to 
 issuers of American infrastructure bonds.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``American Infrastructure Bonds Act of 
2025''.

SEC. 2. 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) 28 percent of 
 the interest payable 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,
 ``
        (B) the obligation is not a private activity 
 bond, 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 ``6428B,''.
            (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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