Infrastructure Bank for America Act of 2017

Summary: Infrastructure Bank for America Act of 2017 This bill provides for the establishment of the Infrastructure Bank Holding Company (IBHC), which shall be the parent company of the Infrastructure Bank for America (the bank). The bank shall provide: (1) direct loans and loan guarantees to private entities for the construction or maintenance of revenue-producing infrastructure projects, and (2) indirect loans and loan guarantees to state and local governments and state infrastructure banks for the construction or maintenance of infrastructure projects. At least 7% of the dollar amount of the loans and loan guarantees shall be for infrastructure projects in rural areas. The Board of Governors of the Federal Reserve System shall have oversight and supervisory authority over the IBHC and the bank. The Department of the Treasury shall have oversight and supervisory authority over the issuance of bonds by the IBHC and the bank. The bank shall establish an Infrastructure Guarantee Fund to cover loans and loan guarantees in the event of nonpayment. The bill amends the Internal Revenue Code to: (1) extend and modify the dividends received deduction for repatriated foreign earnings used to purchase holding company bonds, and (2) allow a new infrastructure bank holding company credit.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Infrastructure Bank for America Act 
of 2017''.

SEC. 2. ESTABLISHMENT OF THE INFRASTRUCTURE BANK FOR AMERICA.

    (a) In General.--The formation agent shall, in accordance with such 
rules and regulations as the Secretary of the Treasury may prescribe, 
make and file with the Secretary at the earliest practicable date after 
the date of the enactment of this Act, an organization certificate 
which shall contain such information as the Secretary may require. Upon 
the making and filing of such organization certificate with the 
Secretary, such formation agent shall become a body corporate to be 
known as the ``Infrastructure Bank Holding Company'' (hereinafter 
referred to as the ``Holding Company''), which shall be the parent 
company of the ``Infrastructure Bank for America'' (hereinafter 
referred to as the ``Bank''), which is hereby established and which 
shall--
            (1) serve as a lender for infrastructure projects, both 
        directly and indirectly through State and local governments and 
        State infrastructure banks, as provided under this Act;
            (2) maintain its principal office in New York City or the 
        District of Columbia or the metropolitan area thereof;
            (3) be deemed, for purposes of jurisdiction and venue in 
        civil actions to be a Delaware corporation; and
            (4) have all powers, not inconsistent with the provisions 
        of this Act, as are customary and usual in corporations 
        generally.
    (b) Regional Offices.--The Bank shall establish regional offices, 
for the purpose of focusing on projects in different areas of the 
United States.
    (c) Board of Directors.--The Bank shall have a board of directors, 
which shall--
            (1) initially consist of 7 members, or such other number as 
        the Bank determines appropriate;
            (2) be elected by the Bank's shareholders;
            (3) within the limitations of law and regulation, determine 
        the general policies which shall govern the operations of the 
        Bank, and have power to adopt, amend, and repeal bylaws 
        governing the performance of the powers and duties granted to 
        or imposed upon the Bank by law; and
            (4) select and effect the appointment of qualified persons 
        to fill the office of the Chief Executive Officer and, along 
        with the Chief Executive Officer, such other offices as may be 
        provided for in the bylaws.
    (d) Treatment of Shareholders of the Formation Agent.--The Holding 
Company shall, upon establishment, issue equity securities of the 
Holding Company to each shareholder of the formation agent, in an 
amount that the Board of Directors determines has a value equal to the 
value of equity securities of the formation agent held by such 
shareholder upon the establishment of the Holding Company.
    (e) Earnings and Reserves Not Government Funds.--The earnings and 
reserves of the Holding Company and the Bank shall be the sole property 
of the Holding Company and the Bank and shall not be construed to be 
Government or public funds or appropriated money.

SEC. 3. FUNCTIONS OF THE BANK.

    (a) In General.--The Bank shall provide--
            (1) direct loans and loan guarantees to private entities 
        for the construction or maintenance of revenue-producing 
        infrastructure projects; and
            (2) indirect loans and loan guarantees to State and local 
        governments and State infrastructure banks, for the 
        construction or maintenance of infrastructure projects.
    (b) Support for Rural Projects.--At least 7 percent of the dollar 
amount of loans and loan guarantees provided by the Bank shall be with 
respect to infrastructure projects in rural areas.
    (c) No Commercial or Investment Banking Activities.--The Bank shall 
not accept customer deposits nor engage in financial or investment 
banking activities, such as trust management or underwriting 
securities.
    (d) Pledge and Credit Facilities.--
            (1) Pledge.--The Bank shall have the authority to pledge 
        its loans to the discount window of the Board of Governors of 
        the Federal Reserve System and as advances to any Federal Home 
        Loan Bank.
            (2) Line of credit.--The Secretary shall provide a line of 
        credit to the Bank in a similar manner to the facility 
        available to the Federal National Mortgage Association and the 
        Federal Home Loan Banks.

SEC. 4. HOLDING COMPANY SECURITIES.

    (a) Equity Securities.--
            (1) In general.--The Holding Company shall issue such 
        equity securities as the Holding Company determines 
        appropriate.
            (2) Dividends.--The Holding Company may make such dividend 
        payments on the equity securities of the Holding Company as the 
        Holding Company determines appropriate.
            (3) Initial issuance amount.--The Holding Company shall 
        have the goal of raising $100,000,000,000 in the initial 
        issuance of equity securities, the purpose of which is to fund 
        the Bank.
    (b) Bonds.--
            (1) Standard bonds.--The Holding Company shall issue 
        standard bonds, with maturities up to 30 years, or longer as 
        needed.
            (2) Repatriated cash bonds.--
                    (A) In general.--The Holding Company shall issue 
                special bonds, named ``Repatriation Bonds'', with 
                maturities up to 30 years or longer as needed, that are 
                only purchasable using dividends to which section 
                965(g) of the Internal Revenue Code of 1986 applied.
                    (B) Use of repatriated cash to purchase 
                securities.--For treatment of dividends used to 
                purchased special bonds under this paragraph, see 
                section 965(g) of the Internal Revenue Code of 1986.
                    (C) 5-year limitation.--The Holding Company may not 
                issue any new Repatriation Bonds after the end of the 
                5-year period beginning on the date the Bank is 
                established.
            (3) Other bonds.--The Holding Company may issue such other 
        bonds, notes, and marketable securities with maturities and 
        interest rates as the Holding Company determines appropriate.
            (4) Initial issuance amount.--The Holding Company shall 
        have the goal of making initial bond sales in an aggregate 
        amount of $1,000,000,000,000 or more.
            (5) Treasury oversight and authority to purchase bonds.--
                    (A) Approval required.--Before issuing any bonds, 
                the Holding Company shall submit a proposal for such 
                bond issuance to the Secretary, and the Holding Company 
                may only issue such bonds if the Secretary approves the 
                proposal.
                    (B) Authority to purchase bonds.--
                            (i) In general.--The Secretary may purchase 
                        bonds issued under this subsection.
                            (ii) Limitation.--The aggregate amount of 
                        outstanding bonds purchased by the Secretary 
                        under this subsection may not exceed 5 percent 
                        of the total amount of the Holding Company's 
                        outstanding bonds.
    (c) Leverage Limitation.--The Holding Company and the Bank shall 
seek to maintain risk based capital at no less than 10 percent.

SEC. 5. OVERSIGHT AND REGULATION.

    (a) Board of Governors of the Federal Reserve System.--The Board of 
Governors of the Federal Reserve System shall have oversight and 
supervisory authority over the Infrastructure Bank Holding Company and 
the Bank in order to ensure the safe and sound operations of the 
Infrastructure Bank Holding Company and the Bank.
    (b) Secretary of the Treasury.--The Secretary shall establish an 
office, which shall report to the Assistant Secretary of the Treasury 
for Financial Institutions, which shall have oversight and supervisory 
authority over the issuance of bonds by the Infrastructure Bank Holding 
Company and the Bank in order to ensure the safe and sound financing of 
the Infrastructure Bank Holding Company and the Bank.

SEC. 6. INFRASTRUCTURE GUARANTEE FUND.

    (a) Establishment.--The Bank shall establish an Infrastructure 
Guarantee Fund, which shall be available for State and local 
governments and other persons who wish to deposit funds to be used with 
respect to specific loans or loan guarantees made by the Bank, in the 
event of any non-payment by the recipient of such loan or loan 
guarantee.
    (b) Return of Funds.--Any funds described under subsection (a) that 
are remaining at the time such loans or guaranteed loans are repaid 
shall be returned to the State or local government or other person who 
deposited the funds.

SEC. 7. HOLDING COMPANY AND BANK EXEMPTION FROM TAXATION.

    The Holding Company and the Bank, including its franchise, its 
capital, reserves, and surplus, its advances, and its income shall be 
exempt from all taxation now or hereafter imposed by the United States, 
by any territory, dependency, or possession thereof, or by any State, 
county, municipal, or local taxing authority, except that any real 
property of the Holding Company and the Bank shall be subject to State, 
territorial, county, municipal, or local taxation to the same extent 
according to its value as other real property is taxed.

SEC. 8. EXTENSION AND MODIFICATION OF DIVIDENDS RECEIVED DEDUCTION FOR 
              REPATRIATED FOREIGN EARNINGS USED TO PURCHASE HOLDING 
              COMPANY BONDS.

    (a) In General.--Section 965 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(g) Temporary Extension and Modification.--
            ``(1) In general.--In the case of an election under this 
        subsection, subsection (f)(1) shall be applied by substituting 
        `the date of the enactment of subsection (g)' for `the date of 
        the enactment of this section'.
            ``(2) Percentage deductible.--In the case of an election 
        under this subsection, subsection (a)(1) shall be applied by 
        substituting `100 percent' for `85 percent'.
            ``(3) Requirement to invest in bonds.--In the case of an 
        election under this subsection--
                    ``(A) subsection (b)(4) shall not apply, and
                    ``(B) subsection (a) shall only apply to so much of 
                the portion dividends received by a United States 
                shareholder during the taxable year as does not exceed 
                the amount paid by the shareholder during such taxable 
                year for bonds issued under section 4(b)(2) of the 
                Infrastructure Bank for America Act of 2017.
            ``(4) Special rules.--
                    ``(A) Recapture in case of bonds sold during 
                recapture period.--The Secretary shall, by regulations, 
                provide for recapturing the applicable percentage of 
                the benefit under any deduction allowable by this 
                subsection if before the end of the 10-year period 
                beginning on the date of the purchase of the bond to 
                which this subsection applies the taxpayer disposes of 
                such bond.
                    ``(B) Applicable percentage.--For purposes of this 
                paragraph, the applicable percentage shall be 
                determined under the following table:

``In the case of a disposition                                         
   in the following year of                             The applicable 
  such 10-year period:                             percentage shall be:
        First year...................................      100 percent 
        Second year..................................       90 percent 
        Third year...................................       80 percent 
        Fourth year..................................       70 percent 
        Fifth year...................................       60 percent 
        Sixth year...................................       50 percent 
        Seventh year.................................       40 percent 
        Eighth year..................................       30 percent 
        Ninth year...................................       20 percent 
        Tenth year...................................    10 percent.''.
    (b) Conforming Amendment.--
            (1) Section 965 of such Code is amended by striking ``June 
        30, 2003'' each place it occurs and inserting ``June 30, 
        2016''.
            (2) Subparagraph (B) of section 965(b)(3) of such Code is 
        amended by striking ``October 3, 2004'' and inserting 
        ``September 1, 2017''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years ending on or after the date of the enactment of this 
Act.

SEC. 9. INFRASTRUCTURE BANK HOLDING COMPANY CREDIT.

    (a) In General.--Subpart D 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:

``SEC. 45S. INFRASTRUCTURE BANK HOLDING COMPANY CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of a 
taxpayer who holds a qualified Holding Company equity investment on a 
credit allowance date of such investment which occurs during the 
taxable year, the Infrastructure Bank Holding Company credit determined 
under this section for such taxable year is an amount equal to 16 
percent of the amount paid to the Holding Company for such investment 
at its original issue.
    ``(b) Credit Allowance Date.--For purposes of this section, credit 
allowance date with respect to any qualified Holding Company equity 
investment is--
            ``(1) the date on which such investment is initially made, 
        and
            ``(2) each of the 4 anniversary dates of such date 
        thereafter.
    ``(c) Qualified Holding Company Equity Investment.--For purposes of 
this section, the term `qualified Holding Company equity investment' 
means any equity investment originally issued by the Holding Company to 
the taxpayer under section 4(a)(1) of the Infrastructure Bank for 
America Act of 2017 not later than 3 years after the date of the 
enactment of such Act.
    ``(d) Holding Company.--For purposes of this section, the term 
`Holding Company' means the Infrastructure Bank Holding Company 
established under the Infrastructure Bank for America Act of 2017.
    ``(e) Basis Reduction.--The basis of any qualified Holding Company 
equity investment shall be reduced by the amount of any credit 
determined under this section with respect to such investment.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (35), by striking the period 
        at the end of paragraph (36) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(37) the Infrastructure Bank Holding Company credit 
        determined under section 45S.''.
            (2) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(38) to the extent provided in section 45S(e).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 10. DEFINITIONS.

    For purposes of this Act:
            (1) Bank.--The term ``Bank'' means the Infrastructure Bank 
        for America established under section 2.
            (2) Formation agent.--The term ``formation agent'' means an 
        entity selected by the Secretary.
            (3) Infrastructure bank holding company.--The term 
        ``Infrastructure Bank Holding Company'' means the company--
                    (A) by that name incorporated by the formation 
                agent; and
                    (B) acting as the parent company of the Bank after 
                the establishment of the Bank.
            (4) Revenue-producing infrastructure project.--The term 
        ``revenue-producing infrastructure project'' means an 
        infrastructure project that, when complete, generates revenue 
        from user fees.
            (5) Risk based capital.--The term ``risk based capital'' 
        shall have the meaning given that term by the Board of 
        Governors of the Federal Reserve System.
            (6) Rural.--The term ``rural'' means a county that is 
        neither in a metropolitan statistical area nor in a 
        micropolitan statistical area that is adjacent to a 
        metropolitan statistical area, as those terms are defined by 
        the U.S. Office of Management and Budget and as they are 
        applied under currently applicable Urban Influence Codes, 
        established by the United States Department of Agriculture's 
        Economic Research Service.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (8) State.--The term ``State'' means each of the several 
        States, the District of Columbia, each territory or possession 
        of the United States, and each federally recognized Indian 
        tribe.
            (9) State infrastructure bank.--The term ``State 
        infrastructure bank'' means a State infrastructure bank or 
        multistate infrastructure bank established pursuant to--
                    (A) section 350 of the National Highway System 
                Designation Act of 1995;
                    (B) section 1511(l) of the Transportation Equity 
                Act for the 21st Century; or
                    (C) section 610 of title 23, United States Code.
            (10) State or local government.--The term ``State or local 
        government'' means a State or local government or any agency or 
        instrumentality of a State or local government.