II 

115TH CONGRESS 

1ST SESSION S. 1229 

To amend the Internal Revenue Code of 1986 to provide for Move America 

bonds and Move America credits. 

IN THE SENATE OF THE UNITED STATES 

MAY 25, 2017 

Mr. HOEVEN (for himself and Mr. WYDEN) 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 

for Move America bonds and Move America credits. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Move America Act of 

5 2017’’. 

6 SEC. 2. FINDINGS AND PURPOSE. 

7 (a) FINDINGS.—Congress makes the following find8 ings: 

9 (1) Our Nation’s infrastructure network serves 

10 as a foundation of our economic competitiveness and 


lotter on DSKBCFDHB2PROD with BILLS
2 

•S 1229 IS

1 national security. It is imperative that Congress 

2 maintain and revitalize the roads, bridges, ports, 

3 railways, airports, transit systems, water systems, 

4 and information networks of this country, enabling 

5 all industries to achieve the growth and productivity 

6 that make the United States strong and prosperous. 

7 (2) Investing in transportation, water, and in8 formation infrastructure creates long-term capital 

9 assets for the Nation that will improve economic 

10 productivity. 

11 (3) Investment in infrastructure creates jobs 

12 and spurs economic activity to put people back to 

13 work and grow the economy. 

14 (4) The cost to maintain and improve our Na15 tion’s highways, bridges, and other critical transpor16 tation infrastructure significantly exceeds what is 

17 currently being provided by all levels of government. 

18 (5) Investment in our Nation’s infrastructure 

19 must be multi-faceted, both by ensuring that there 

20 is a sustainable long-term funding source for infra21 structure and through using innovative financing 

22 mechanisms. 

23 (6) Areas that are underserved by modern 

24 broadband connections are disadvantaged, and en25 suring that those areas are connected will enable the 


lotter on DSKBCFDHB2PROD with BILLS
3 

•S 1229 IS

1 Nation to benefit from the fuller participation of 

2 previously underserved citizens in the national econ3 omy. 

4 (7) Investment in infrastructure is needed 

5 throughout the Nation, and it is essential that infra6 structure legislation, including but not limited to 

7 this legislation, benefit urban and rural areas, and 

8 large and small States. 

9 (b) PURPOSE.—The purpose of this Act is to provide 

10 tools to finance additional transportation, water, and in11 formation infrastructure capital investments, through an 

12 approach that provides assistance for financing of infra13 structure to all States, rural and urban, and large and 

14 small. 

15 SEC. 3. MOVE AMERICA BOND. 

16 (a) IN GENERAL.— 

17 (1) MOVE AMERICA BONDS.—Subpart A of part 

18 IV of subchapter B of chapter 1 of the Internal Rev19 enue Code of 1986 is amended by inserting after 

20 section 142 the following new section: 

21 ‘‘SEC. 142A. MOVE AMERICA BONDS. 

22 ‘‘(a) IN GENERAL.— 

23 ‘‘(1) TREATMENT AS EXEMPT FACILITY

24 BOND.—Except as otherwise provided in this section, 


lotter on DSKBCFDHB2PROD with BILLS
4 

•S 1229 IS

1 a Move America bond shall be treated for purposes 

2 of this part as an exempt facility bond. 

3 ‘‘(2) EXCEPTIONS.— 

4 ‘‘(A) NO GOVERNMENT OWNERSHIP RE5 QUIREMENT.—Paragraph (1) of section 142(b) 

6 shall not apply to any Move America bond. 

7 ‘‘(B) SPECIAL RULES FOR HIGH-SPEED

8 RAIL BONDS.—Paragraphs (2) and (3) of sec9 tion 142(i) shall not apply to any Move America 

10 bond described in subsection (b)(4). 

11 ‘‘(C) SPECIAL RULES FOR HIGHWAY AND

12 SURFACE TRANSPORTATION FACILITIES.—Para13 graphs (2), (3), and (4) of section 142(m) shall 

14 not apply to any Move America bond described 

15 in subsection (b)(5). 

16 ‘‘(b) MOVE AMERICA BOND.—For purposes of this 

17 part, the term ‘Move America bond’ means any bond 

18 issued as part of an issue 95 percent or more of the net 

19 proceeds of which are used to provide— 

20 ‘‘(1) airports, 

21 ‘‘(2) docks and wharves, including— 

22 ‘‘(A) waterborne mooring infrastructure, 

23 ‘‘(B) dredging in connection with a dock or 

24 wharf, and 


lotter on DSKBCFDHB2PROD with BILLS
5 

•S 1229 IS

1 ‘‘(C) any associated rail and road infra2 structure for the purpose of integrating modes 

3 of transportation, 

4 ‘‘(3) mass commuting facilities, 

5 ‘‘(4) facilities for the furnishing of water (with6 in the meaning of section 142(e)), 

7 ‘‘(5) sewage facilities, 

8 ‘‘(6) railroads (as defined in section 20102 of 

9 title 49, United States Code) and any associated rail 

10 and road infrastructure for the purpose of inte11 grating modes of transportation, 

12 ‘‘(7) any— 

13 ‘‘(A) surface transportation project which 

14 is eligible for Federal assistance under title 23, 

15 United States Code (as in effect on the date of 

16 the enactment of this section), 

17 ‘‘(B) project for an international bridge or 

18 tunnel for which an international entity author19 ized under Federal or State law is responsible 

20 and which is eligible for Federal assistance 

21 under title 23, United States Code (as so in ef22 fect), or 

23 ‘‘(C) facility for the transfer of freight 

24 from truck to rail or rail to truck (including 

25 any temporary storage facilities directly related 


lotter on DSKBCFDHB2PROD with BILLS
6 

•S 1229 IS

1 to such transfers) which is eligible for Federal 

2 assistance under either title 23 or title 49, 

3 United States Code (as so in effect), 

4 ‘‘(8) flood diversions, 

5 ‘‘(9) inland waterways, including construction 

6 and rehabilitation expenditures for navigation on 

7 any inland or intracoastal waterways of the United 

8 States (within the meaning of section 4042(d)(2)), 

9 or 

10 ‘‘(10) rural broadband service infrastructure. 

11 ‘‘(c) DEFINITIONS.—For purposes of this section— 

12 ‘‘(1) FLOOD DIVERSIONS.—The term ‘flood di13 version’ means any flood damage risk reduction 

14 project authorized under any Act for authorizing 

15 water resources development projects. 

16 ‘‘(2) RURAL BROADBAND SERVICE INFRASTRUC17 TURE.—The term ‘rural broadband service infra18 structure’ means the construction, improvement, or 

19 acquisition of facilities and equipment for the provi20 sion of broadband services (as defined in section 601 

21 of the Rural Electrification Act of 1936) which— 

22 ‘‘(A) meet the minimum requirements in 

23 effect under section 601(e) of such Act, and 

24 ‘‘(B) will be provided in an area which— 


lotter on DSKBCFDHB2PROD with BILLS
7 

•S 1229 IS

1 ‘‘(i) is a rural area (as defined in sec2 tion 601 of such Act), and 

3 ‘‘(ii) meets the requirements of 

4 clauses (i) and (ii) of section 601(d)(2)(A) 

5 of such Act. 

6 ‘‘(d) MOVE AMERICA VOLUME CAP.— 

7 ‘‘(1) IN GENERAL.—The aggregate face amount 

8 of Move America bonds issued pursuant to an issue, 

9 when added to the aggregate face amount of Move 

10 America bonds previously issued by the issuing au11 thority during the calendar year, shall not exceed 

12 such issuing authority’s Move America volume cap 

13 for such year. 

14 ‘‘(2) MOVE AMERICA VOLUME CAP.—For pur15 poses of this subsection— 

16 ‘‘(A) IN GENERAL.—The Move America 

17 volume cap for any calendar year is an amount 

18 equal to 50 percent of the State ceiling under 

19 section 146(d) for such State for such calendar 

20 year. 

21 ‘‘(B) ALLOCATION OF VOLUME CAP.—Each 

22 State may allocate the Move America volume 

23 cap of such State among governmental units (or 

24 other authorities) in such State having author25 ity to issue private activity bonds. 


lotter on DSKBCFDHB2PROD with BILLS
8 

•S 1229 IS

1 ‘‘(3) CARRYFORWARDS.— 

2 ‘‘(A) IN GENERAL.—If— 

3 ‘‘(i) an issuing authority’s Move 

4 America volume cap, exceeds 

5 ‘‘(ii) the aggregate amount of Move 

6 America bonds issued during such calendar 

7 year by such authority, 

8 any Move America bond issued by such author9 ity during the 5-calendar-year period following 

10 such calendar year shall not be taken into ac11 count under paragraph (1) to the extent the 

12 amount of such bonds does not exceed the 

13 amount of such excess. Any excesses arising 

14 under this paragraph shall be used under this 

15 paragraph in the order of calendar years in 

16 which the excesses arose. 

17 ‘‘(B) REALLOCATION OF UNUSED

18 CARRYFORWARDS.— 

19 ‘‘(i) IN GENERAL.—The Move Amer20 ica volume cap under paragraph (2)(A) for 

21 any State for any calendar year shall be 

22 increased by any amount allocated to such 

23 State by the Secretary under clause (ii). 

24 ‘‘(ii) REALLOCATION.—The Secretary 

25 shall allocate to each qualified State for 


lotter on DSKBCFDHB2PROD with BILLS
9 

•S 1229 IS

1 any calendar year an amount which bears 

2 the same ratio to the aggregate unused 

3 carryforward amounts of all issuing au4 thorities in all States for such calendar 

5 year as the qualified State’s population for 

6 the calendar year bears to the population 

7 of all qualified States for the calendar 

8 year. For purposes of the preceding sen9 tence, population shall be determined in 

10 accordance with section 146(j). 

11 ‘‘(iii) QUALIFIED STATE.—For pur12 poses of this subparagraph, the term 

13 ‘qualified State’ means, with respect to a 

14 calendar year, any State— 

15 ‘‘(I) which allocated its entire 

16 Move America volume cap for the pre17 ceding calendar year, and 

18 ‘‘(II) for which a request is made 

19 (not later than May 1 of the calendar 

20 year) to receive an allocation under 

21 clause (ii). 

22 ‘‘(iv) UNUSED CARRYFORWARD

23 AMOUNT.—For purposes of this paragraph, 

24 the term ‘unused carryforward amount’ 


lotter on DSKBCFDHB2PROD with BILLS
10 

•S 1229 IS

1 means, with respect to any issuing author2 ity for any calendar year, the excess of— 

3 ‘‘(I) the amount of the excess de4 scribed in subparagraph (A) for the 

5 sixth preceding calendar year, over 

6 ‘‘(II) the amount of bonds issued 

7 by such issuing authority to which 

8 subparagraph (A) applied during the 

9 5 preceding calendar years. 

10 ‘‘(4) FACILITY MUST BE LOCATED WITHIN

11 STATE.— 

12 ‘‘(A) IN GENERAL.—No portion of the 

13 Move America volume cap of an issuing author14 ity for any calendar year may be used with re15 spect to financing for a facility located outside 

16 of the authority’s State. 

17 ‘‘(B) EXCEPTION FOR CERTAIN FACILITIES

18 WHERE STATE WILL GET PROPORTIONATE

19 SHARE OF BENEFIT.—Subparagraph (A) shall 

20 not apply to any Move America bond the pro21 ceeds of which are used to provide a facility de22 scribed in paragraph (4) or (5) of section 

23 142A(b) if the issuer establishes that the 

24 State’s share of the use of the facility will equal 


lotter on DSKBCFDHB2PROD with BILLS
11 

•S 1229 IS

1 or exceed the State’s share of the private activ2 ity bonds issued to finance the facility. 

3 ‘‘(e) APPLICABILITY OF CERTAIN FEDERAL LAWS.— 

4 ‘‘(1) IN GENERAL.—An issue shall not be treat5 ed as an issue under subsection (b) unless the facil6 ity for which the proceeds of such issue are used 

7 would be subject to the requirements of any Federal 

8 law (including titles 23, 40, and 49, United States 

9 Code) which would otherwise apply to similar 

10 projects. 

11 ‘‘(2) PUBLIC TRANSPORTATION CAPITAL

12 PROJECTS.—In addition to the requirements of 

13 paragraph (1), an issue the proceeds of which are 

14 used to finance a capital project (as defined in sec15 tion 5302(3) of title 49, United States Code) relat16 ing to public transportation (as defined in section 

17 5302(14) of such title) shall not be treated as an 

18 issue under subsection (b) unless such project com19 plies with the requirements of chapter 53 of title 49, 

20 United States Code. 

21 ‘‘(f) SPECIAL RULE FOR ENVIRONMENTAL REMEDI22 ATION COSTS FOR DOCKS AND WHARVES.—For purposes 

23 of this section, amounts used for working capital expendi24 tures relating to environmental remediation required 

25 under State or Federal law at or near a facility described 


lotter on DSKBCFDHB2PROD with BILLS
12 

•S 1229 IS

1 in subsection (b)(2) (including environmental remediation 

2 in the riverbed and land within or adjacent to the Federal 

3 navigation channel used to access such facility) shall be 

4 treated as an amount used to provide for such a facility. 

5 ‘‘(g) REGULATIONS.—The Secretary shall prescribe 

6 such regulations as may be necessary to carry out the pur7 poses of this section, including regulations requiring 

8 States to report the amount of Move America volume cap 

9 of the State carried forward for any calendar year under 

10 subsection (d)(3).’’. 

11 (2) CONFORMING AMENDMENT.—The table of 

12 sections for subpart A of part IV of subchapter B 

13 of chapter 1 of such Code is amended by inserting 

14 after the item relating to section 142 the following 

15 new item: 

‘‘Sec. 142A. Move America bonds.’’. 

16 (b) APPLICATION OF OTHER PRIVATE ACTIVITY

17 BOND RULES.— 

18 (1) TREATMENT UNDER PRIVATE ACTIVITY

19 BOND VOLUME CAP.—Subsection (g) of section 146 

20 of the Internal Revenue Code of 1986 is amended by 

21 striking ‘‘and’’ at the end of paragraph (3), by strik22 ing the period at the end of paragraph (4) and in23 serting ‘‘, and’’, and by inserting after paragraph 

24 (4) the following new paragraph: 

25 ‘‘(5) any Move America bond.’’. 


lotter on DSKBCFDHB2PROD with BILLS
13 

•S 1229 IS

1 (2) SPECIAL RULE ON USE FOR LAND ACQUISI2 TION.—Subparagraph (A) of section 147(c)(1) of 

3 the Internal Revenue Code of 1986 is amended by 

4 inserting ‘‘(50 percent in the case of any issue of 

5 Move America bonds)’’ after ‘‘25 percent’’. 

6 (3) SPECIAL RULES FOR REHABILITATION EX7 PENDITURES.— 

8 (A) INCLUSION OF CERTAIN EXPENDI9 TURES.—Subparagraph (B) of section 

10 147(d)(3) of the Internal Revenue Code of 

11 1986 is amended by inserting ‘‘, except that, in 

12 the case of any Move America bond, such term 

13 shall include any expenditure described in 

14 clause (v) thereof’’ before the period at the end. 

15 (B) PERIOD FOR EXPENDITURES.—Sub16 paragraph (C) of section 147(d)(3) of such 

17 Code is amended by inserting ‘‘(5 years, in the 

18 case of any Move America bond)’’ after ‘‘2 

19 years’’. 

20 (c) TREATMENT UNDER THE ALTERNATIVE MIN21 IMUM TAX.—Subparagraph (C) of section 57(a)(5) of the 

22 Internal Revenue Code of 1986 is amended by adding at 

23 the end the following new clause: 

24 ‘‘(vii) EXCEPTION FOR MOVE AMERICA

25 BONDS.—For purposes of clause (i), the 


lotter on DSKBCFDHB2PROD with BILLS
14 

•S 1229 IS

1 term ‘private activity bond’ shall not in2 clude any Move America bond (as defined 

3 in section 142A).’’. 

4 (d) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to obligations issued in calendar 

6 years beginning after the date of the enactment of this 

7 Act. 

8 SEC. 4. MOVE AMERICA CREDITS. 

9 (a) IN GENERAL.—Subpart D of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of 

11 1986 is amended by inserting after the section relating 

12 to section 42 the following new section: 

13 ‘‘SEC. 42A. MOVE AMERICA CREDITS. 

14 ‘‘(a) MOVE AMERICA PROJECT CREDITS.— 

15 ‘‘(1) IN GENERAL.—For purposes of section 38, 

16 the Move America project credit for any taxable year 

17 in the credit period is an amount equal to 10 per18 cent of the qualified basis of each qualified project. 

19 ‘‘(2) DEFINITIONS.—For purposes of this sec20 tion— 

21 ‘‘(A) QUALIFIED BASIS.— 

22 ‘‘(i) IN GENERAL.—The qualified 

23 basis of any qualified project is the portion 

24 of the eligible basis of such project to 

25 which the State has allocated an amount of 


lotter on DSKBCFDHB2PROD with BILLS
15 

•S 1229 IS

1 the State credit limitation under subsection 

2 (c)(3)(C)(i). 

3 ‘‘(ii) DETERMINATION.—The qualified 

4 basis of a project shall be determined as of 

5 the date of the allocation for purposes of 

6 all taxable years in the credit period. 

7 ‘‘(B) QUALIFIED PROJECT.—The term 

8 ‘qualified project’ means a project which is for 

9 the construction of a facility described in sec10 tion 142A(b), but only if such project— 

11 ‘‘(i) meets the requirements applicable 

12 to similar projects under any Federal law 

13 which would apply if the project were fi14 nanced under any other Federal program 

15 (including titles 23, 40, and 49, United 

16 States Code), 

17 ‘‘(ii) complies with the requirements 

18 of chapter 53 of title 49, United States 

19 Code, in the case of a capital project (as 

20 defined in section 5302(3) of title 49, 

21 United States Code) relating to public 

22 transportation (as defined in section 

23 5302(14) of such title), and 

24 ‘‘(iii) will be generally available for 

25 public use throughout the credit period. 


lotter on DSKBCFDHB2PROD with BILLS
16 

•S 1229 IS

1 ‘‘(C) CREDIT PERIOD.— 

2 ‘‘(i) IN GENERAL.—Except as pro3 vided in clause (ii), the credit period with 

4 respect to any qualified project is the pe5 riod of 10 taxable years beginning with the 

6 first taxable year beginning in the calendar 

7 year in which the project is placed in serv8 ice. 

9 ‘‘(ii) EARLY TERMINATION.—If at any 

10 time during the 10-taxable-year period de11 scribed in clause (i) a project ceases to be 

12 a qualified project, or ceases and then re13 commences to be a qualified project, the 

14 credit period with respect to such project 

15 shall include only the taxable years in such 

16 10-year-period in which the project was a 

17 qualified project for the entire taxable 

18 year. 

19 ‘‘(iii) DISPOSITIONS OF PROPERTY OR

20 INTEREST RELATING TO QUALIFIED

21 PROJECT.—A project shall not cease to be 

22 a qualified project solely by reason of the 

23 disposition of the project (or an interest 

24 therein) if it is reasonably expected that 


lotter on DSKBCFDHB2PROD with BILLS
17 

•S 1229 IS

1 such project will otherwise continue to be 

2 a qualified project. 

3 ‘‘(iv) TREATMENT OF CREDIT IN CASE

4 OF DISPOSITION.—If at any time during 

5 the 10-taxable-year period described in 

6 clause (i) a qualified project (or an interest 

7 therein) is disposed of— 

8 ‘‘(I) the credit under paragraph 

9 (1) for any year in such period begin10 ning after the date of the disposal 

11 shall be allowed to the acquiring per12 son, and not to the person disposing 

13 of the project (or interest), and 

14 ‘‘(II) the credit under paragraph 

15 (1) for the year of the disposal shall 

16 be allocated between such persons on 

17 the basis of the number of days dur18 ing such year the project (or interest) 

19 was held by each. 

20 ‘‘(3) REALLOCATION.— 

21 ‘‘(A) IN GENERAL.—If any qualified 

22 project is not placed in service within 3 years 

23 of the date of the allocation under subsection 

24 (c)(3), the State shall rescind the allocation 

25 under subsection (c)(3)(C)(i). Any allocation so 


lotter on DSKBCFDHB2PROD with BILLS
18 

•S 1229 IS

1 rescinded may be reallocated by the State under 

2 subsection (c) (including to qualified infrastruc3 ture funds for purposes of the credit under sub4 section (b)) within the calendar year in which 

5 it is so rescinded. 

6 ‘‘(B) REVERSION.—Any rescinded alloca7 tion which is not reallocated under subpara8 graph (A) by the last day of the calendar year 

9 in which it is so rescinded shall revert to inclu10 sion in the State’s Move America volume cap 

11 under section 142A(d) as if it had never been 

12 exchanged under subsection (c)(1). 

13 ‘‘(C) NO MULTIPLE REALLOCATIONS.— 

14 Any rescinded allocation which is reallocated 

15 under subparagraph (A) and is subsequently re16 scinded shall not be further reallocated and 

17 shall immediately revert to inclusion in the 

18 Move America volume cap as provided in sub19 paragraph (B). 

20 ‘‘(4) COORDINATION WITH DEDUCTION FOR DE21 PRECIATION, ETC.— 

22 ‘‘(A) IN GENERAL.—In the case of any 

23 taxable year in the credit period with respect to 

24 a qualified project, the total deduction allowable 

25 to the taxpayer for depreciation for the taxable 


lotter on DSKBCFDHB2PROD with BILLS
19 

•S 1229 IS

1 year with respect to property which is part of 

2 such project shall be reduced (but not below 

3 zero) by the amount of the credit allowed under 

4 paragraph (1) for such taxable year. 

5 ‘‘(B) NO ADJUSTMENT TO BASIS.—No re6 duction or adjustment in basis shall be made as 

7 a result of the application of subparagraph (A). 

8 ‘‘(b) MOVE AMERICA INFRASTRUCTURE FUND CRED9 ITS.— 

10 ‘‘(1) ALLOWANCE OF CREDIT.— 

11 ‘‘(A) IN GENERAL.—For purposes of sec12 tion 38, in the case of a taxpayer who holds a 

13 Move America investment on a credit allowance 

14 date of such investment which occurs during 

15 the taxable year, the Move America infrastruc16 ture fund credit for such taxable year is an 

17 amount equal to 5 percent of the amount paid 

18 to the qualified infrastructure fund for such in19 vestment at its original issue. 

20 ‘‘(B) CREDIT ALLOWANCE DATE.—For 

21 purposes of subparagraph (A), except as pro22 vided in paragraph (3), the term ‘credit allow23 ance date’ means with respect to any Move 

24 America investment— 


lotter on DSKBCFDHB2PROD with BILLS
20 

•S 1229 IS

1 ‘‘(i) the date on which such invest2 ment is initially made, and 

3 ‘‘(ii) each of the 9 anniversary dates 

4 of such date thereafter. 

5 ‘‘(2) DEFINITIONS.—For purposes of this sec6 tion— 

7 ‘‘(A) MOVE AMERICA INVESTMENT.— 

8 ‘‘(i) IN GENERAL.—The term ‘Move 

9 America investment’ means any equity in10 vestment in a qualified infrastructure fund, 

11 if— 

12 ‘‘(I) such investment is acquired 

13 by the taxpayer at its original issue 

14 solely in exchange for cash, 

15 ‘‘(II) substantially all of such 

16 cash is used by the qualified infra17 structure fund to make qualified in18 vestments, and 

19 ‘‘(III) such investment is des20 ignated for purposes of this subsection 

21 by the qualified infrastructure fund, 

22 including a designation of the quali23 fied investment which will be made 

24 with such investment. 


lotter on DSKBCFDHB2PROD with BILLS
21 

•S 1229 IS

1 ‘‘(ii) LIMITATION.—The maximum 

2 amount of equity investments issued by a 

3 qualified infrastructure fund in a calendar 

4 year which may be designated under clause 

5 (i)(III) by such fund shall not exceed— 

6 ‘‘(I) the portion of the State 

7 credit limitation allocated under sub8 section (c)(3)(A)(ii) to such fund in 

9 such calendar year, multiplied by 

10 ‘‘(II) 2. 

11 ‘‘(iii) EXPIRATION.—If the limitation 

12 determined under clause (ii) with respect 

13 to an infrastructure fund for a calendar 

14 year exceeds the amount of equity invest15 ments designated under clause (i)(III) by 

16 such fund in such year, the State shall re17 scind such excess allocation. Any allocation 

18 so rescinded may be reallocated by the 

19 State under subsection (c) (including to 

20 qualified projects for purposes of the credit 

21 under subsection (a)) within the imme22 diately succeeding calendar year. 

23 ‘‘(iv) REVERSION.—Any rescinded al24 location which is not reallocated under 

25 clause (iii) by the last day of such immeVerDate Sep 11 2014 02:36 Jun 01, 2017 Jkt 069200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S1229.IS S1229

lotter on DSKBCFDHB2PROD with BILLS
22 

•S 1229 IS

1 diately succeeding calendar year shall re2 vert to inclusion in the State’s Move Amer3 ica volume cap under section 142A(d) as if 

4 it had never been exchanged under sub5 section (c)(1). 

6 ‘‘(v) NO MULTIPLE REALLOCA7 TIONS.—Any rescinded allocation which is 

8 reallocated under clause (iii) and is subse9 quently rescinded shall not be further re10 allocated and shall immediately revert to 

11 inclusion in the Move America volume cap 

12 as provided in clause (iv). 

13 ‘‘(vi) SPECIAL RULES.—Rules similar 

14 to the rules of paragraphs (3) and (4) of 

15 section 45D(b) shall apply with respect to 

16 clause (i). 

17 ‘‘(B) QUALIFIED INFRASTRUCTURE

18 FUND.—The term ‘qualified infrastructure 

19 fund’ means— 

20 ‘‘(i) a State infrastructure bank estab21 lished under section 610 of title 23, United 

22 States Code, 

23 ‘‘(ii) a water pollution control revolv24 ing fund established under title VI of the 


lotter on DSKBCFDHB2PROD with BILLS
23 

•S 1229 IS

1 Federal Water Pollution Control Act (33 

2 U.S.C. 1381 et seq.), 

3 ‘‘(iii) a drinking water treatment re4 volving loan fund established under section 

5 1452 of the Safe Drinking Water Act (42 

6 U.S.C. 300j–12), or 

7 ‘‘(iv) an equivalent fund established or 

8 designated by the State or any instrumen9 tality thereof. 

10 In the case of a fund described in clause (ii) or 

11 (iii), the amount of any Move America invest12 ment shall not be included in determining the 

13 amount of State or other non-Federal contribu14 tions to such fund. 

15 ‘‘(C) QUALIFIED INVESTMENT.—The term 

16 ‘qualified investment’ means an investment 

17 (whether by loan, loan guarantee, or equity in18 vestment) in— 

19 ‘‘(i) qualified projects, or 

20 ‘‘(ii) in the case of a fund described in 

21 clause (i), (ii), or (iii) of subparagraph (B), 

22 projects and activities for which such funds 

23 are authorized to be used under any other 

24 provision of law. 

25 ‘‘(3) EARLY TERMINATION.— 


lotter on DSKBCFDHB2PROD with BILLS
24 

•S 1229 IS

1 ‘‘(A) IN GENERAL.—If at any time during 

2 the compliance period the fund which issued a 

3 Move America investment ceases to be a quali4 fied infrastructure fund, or ceases and then re5 commences to be a qualified infrastructure 

6 fund, any date described in paragraph (1)(B) 

7 (including the date described in clause (i) there8 of) occurring in— 

9 ‘‘(i) the taxable year in which the 

10 fund ceased to be a qualified infrastructure 

11 fund, or 

12 ‘‘(ii) any other taxable year in such 

13 period in which the fund is not a qualified 

14 infrastructure fund for the entire taxable 

15 year, 

16 shall not be treated as a credit allowance date 

17 for purposes of paragraph (1). 

18 ‘‘(B) COMPLIANCE PERIOD.—For purposes 

19 of subparagraph (A), the term ‘compliance pe20 riod’ means the 10-taxable-year period begin21 ning with the taxable year that includes the 

22 date of the original issue of the Move America 

23 investment. 


lotter on DSKBCFDHB2PROD with BILLS
25 

•S 1229 IS

1 ‘‘(C) LOSS OF QUALIFICATION.—A fund 

2 shall cease to be a qualified infrastructure fund 

3 as of the date— 

4 ‘‘(i) the fund redeems any Move 

5 America investment within the compliance 

6 period with respect to such investment, 

7 ‘‘(ii) the proceeds of any Move Amer8 ica investment cease to be used for quali9 fied investments, or 

10 ‘‘(iii) the fund makes any investment 

11 which is not a qualified investment. 

12 ‘‘(D) EXPIRATION OF CREDIT.—If sub13 stantially all of the cash paid for any Move 

14 America investment is not used to make quali15 fied investments designated under paragraph 

16 (2)(A)(i)(III) within 3 years of the date of 

17 original issue of such investment, any date de18 scribed in paragraph (1)(B) occurring in a tax19 able year which ends after the date which is 3 

20 years after such date of original issue shall not 

21 be treated as a credit allowance date for pur22 poses of paragraph (1). 

23 ‘‘(c) MOVE AMERICA CREDIT ALLOCATION.— 

24 ‘‘(1) EXCHANGE OF MOVE AMERICA BOND VOL25 UME CAP.— 


lotter on DSKBCFDHB2PROD with BILLS
26 

•S 1229 IS

1 ‘‘(A) IN GENERAL.—If a State has in ef2 fect a qualified allocation plan for a calendar 

3 year, the State may exchange (in such manner 

4 as the Secretary may prescribe) all or a portion 

5 of the State’s Move America volume cap under 

6 section 142A(d) for such year for a State credit 

7 limitation. 

8 ‘‘(B) LIMITATION.—The amount of a 

9 State’s Move America volume cap for a cal10 endar year which may be exchanged under sub11 paragraph (A) shall not include any portion of 

12 such cap which is attributable to an amount of 

13 State credit limitation which has reverted under 

14 paragraph (3)(D) or subsection (a)(3)(B) or 

15 (b)(2)(A)(iv). 

16 ‘‘(2) STATE CREDIT LIMITATION.—For pur17 poses of this section, the State credit limitation with 

18 respect to any State for a calendar year is a dollar 

19 amount equal to 25 percent of the Move America 

20 volume cap exchanged under paragraph (1) for such 

21 calendar year. 

22 ‘‘(3) ALLOCATION.— 

23 ‘‘(A) IN GENERAL.—A State may allocate 

24 the State credit limitation, according to the 


lotter on DSKBCFDHB2PROD with BILLS
27 

•S 1229 IS

1 qualified allocation plan, for any calendar year 

2 among— 

3 ‘‘(i) qualified projects in the State for 

4 purposes of the Move America project 

5 credit under subsection (a), and 

6 ‘‘(ii) qualified infrastructure funds in 

7 the State for purposes of the Move Amer8 ica infrastructure fund credit under sub9 section (b). 

10 ‘‘(B) QUALIFIED ALLOCATION PLAN.— 

11 ‘‘(i) IN GENERAL.—For purposes of 

12 this subsection, the term ‘qualified alloca13 tion plan’ means any plan— 

14 ‘‘(I) which sets forth selection 

15 criteria to be used in determining in16 frastructure priorities of the State 

17 and allocating the State credit limita18 tion among projects (in accordance 

19 with clause (ii)) and infrastructure 

20 funds in the State, and 

21 ‘‘(II) which provides a procedure 

22 that the State (or an agent or other 

23 private contractor of the State) will 

24 follow in monitoring for noncompli25 ance with the provisions of this secVerDate Sep 11 2014 02:36 Jun 01, 2017 Jkt 069200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S1229.IS S1229

lotter on DSKBCFDHB2PROD with BILLS
28 

•S 1229 IS

1 tion and in notifying the Internal Rev2 enue Service of such noncompliance. 

3 ‘‘(ii) LIMITATION BASED ON PROJECT

4 FEASIBILITY FOR MOVE AMERICA PROJECT

5 CREDITS.— 

6 ‘‘(I) IN GENERAL.—In the case 

7 of an allocation with respect to any 

8 qualified project for purposes of the 

9 Move America project credit under 

10 subsection (a), such allocation shall 

11 not exceed the minimum amount 

12 which the State transportation au13 thority or other applicable agency de14 termines is required for the financial 

15 feasibility of the project and its viabil16 ity for completion and availability for 

17 public use throughout the credit pe18 riod. 

19 ‘‘(II) MINIMUM FEASIBILITY DE20 TERMINATION.—In making the deter21 mination under subclause (I), such 

22 entity shall consider the sources and 

23 uses of funds and the total financing 

24 planned for the project, any proceeds 

25 or receipts expected to be generated 


lotter on DSKBCFDHB2PROD with BILLS
29 

•S 1229 IS

1 by reason of tax benefits, the reason2 ableness of the developmental and 

3 operational costs of the project over 

4 the full expected operational life of the 

5 project, ancillary costs (including 

6 right-of-way and procurement costs), 

7 financing costs, and retained and 

8 transferred risk. 

9 ‘‘(C) SPECIAL RULES RELATING TO MOVE

10 AMERICA PROJECT CREDIT.— 

11 ‘‘(i) LIMITATION.—The amount allo12 cated to a qualified project under subpara13 graph (A)(i) shall not exceed the eligible 

14 basis of such project. 

15 ‘‘(ii) ELIGIBLE BASIS.—For purposes 

16 of this section, except as provided in clause 

17 (iii), the eligible basis of any qualified 

18 project is the lesser of— 

19 ‘‘(I) the portion of the basis of 

20 such project which is attributable to 

21 the taxpayer’s equity investment in 

22 the costs of the project which are sub23 ject to the allowance for depreciation 

24 (as estimated as of the date of the al25 location), or 


lotter on DSKBCFDHB2PROD with BILLS
30 

•S 1229 IS

1 ‘‘(II) 20 percent of the costs of 

2 the project which are subject to the 

3 allowance for depreciation (as esti4 mated as of the date of the alloca5 tion). 

6 ‘‘(iii) EXCLUSION OF GOVERNMENT

7 ASSISTANCE.—Eligible basis shall not in8 clude any portion of the basis of such 

9 project which is attributable to any assist10 ance or financing provided by a Federal, 

11 State, or local government (as estimated as 

12 of the date of the allocation). 

13 ‘‘(D) REVERSION OF UNALLOCATED LIMI14 TATION.—Any portion of the State credit limi15 tation for any calendar year which remains 

16 unallocated as of the last day of such calendar 

17 year shall revert to inclusion in the State’s 

18 Move America volume cap under section 

19 142A(d) as if it had never been exchanged 

20 under paragraph (1).’’. 

21 (b) CREDITS MADE PART OF GENERAL BUSINESS

22 CREDIT.—Subsection (b) of section 38 of the Internal 

23 Revenue Code of 1986 is amended— 

24 (1) by striking ‘‘plus’’ at the end of paragraph 

25 (35); 


lotter on DSKBCFDHB2PROD with BILLS
31 

•S 1229 IS

1 (2) by striking the period at the end of para2 graph (36) and inserting a comma; and 

3 (3) by adding at the end the following new 

4 paragraphs: 

5 ‘‘(37) the Move America project credit under 

6 section 42A(a)(1), plus 

7 ‘‘(38) the Move America infrastructure fund 

8 credit under section 42A(b)(1).’’. 

9 (c) CLERICAL AMENDMENT.—The table of sections 

10 for subpart D of part IV of subchapter A of chapter 1 

11 of the Internal Revenue Code of 1986 is amended by in12 serting after the item relating to section 42 the following 

13 new item: 

‘‘Sec. 42A. Move America credits.’’. 

14 (d) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

17 (e) REPORTING.—A State shall, at such time and in 

18 such manner as the Secretary of the Treasury shall re19 quire, report— 

20 (1) to the Secretary of the Treasury— 

21 (A) the amount of the Move America vol22 ume cap of the State for the calendar year 

23 which is exchanged under section 42A(c)(1) of 

24 the Internal Revenue Code of 1986 for a State 

25 credit limitation; 


lotter on DSKBCFDHB2PROD with BILLS
32 

•S 1229 IS

1 (B) the amount (if any) of the State credit 

2 limitation allocated under section 

3 42A(c)(3)(A)(i) of such Code to qualified 

4 projects, the amount so allocated to each such 

5 project, and the taxpayer with respect to such 

6 project (including the name of the taxpayer and 

7 any other identifying information as the Sec8 retary of the Treasury shall require); and 

9 (C) the amount (if any) of the State credit 

10 limitation allocated under section 

11 42A(c)(3)(A)(ii) of such Code to qualified infra12 structure funds, the amount so allocated to 

13 each such fund, and each taxpayer holding any 

14 Move America investment with respect to any 

15 such fund (including the name of the taxpayer 

16 and any other identifying information as the 

17 Secretary of the Treasury shall require); 

18 (2) to the Secretary of the Treasury and any 

19 taxpayer who is the project sponsor of a qualified 

20 project receiving an allocation under section 

21 42A(c)(3)(A)(i) of such Code, the date on which the 

22 qualified project is placed in service; and 

23 (3) to the Secretary of the Treasury and any 

24 taxpayer holding a Move America investment, a cer25 tification that the entity which issued the investment 


lotter on DSKBCFDHB2PROD with BILLS
33 

•S 1229 IS

1 is a qualified infrastructure fund and that the in2 vestment will be used to make qualified investments 

3 designated for purposes of section 

4 42A(b)(2)(A)(i)(III) of the Internal Revenue Code of 

5 1986. 

6 For purposes of this subsection, any term used in this sub7 section that is also used in section 42A or 142A of such 

8 Code has the same meaning as when used in such section. 

Æ 


lotter on DSKBCFDHB2PROD with BILLS