I 

115TH CONGRESS 

1ST SESSION H. R. 1669 

To establish the American Infrastructure Fund, to provide bond guarantees 

and make loans to States, local governments, and infrastructure providers 

for investments in certain infrastructure projects, and to provide equity 

investments in such projects, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 22, 2017 

Mr. DELANEY (for himself, Mr. RODNEY DAVIS of Illinois, Mr. AGUILAR, Mr. 

BARR, Mr. BERA, Mrs. BUSTOS, Ms. GABBARD, Mr. GOTTHEIMER, Ms. 

HANABUSA, Mr. HECK, Ms. KELLY of Illinois, Ms. KUSTER of New 

Hampshire, Mr. LOEBSACK, Mr. SEAN PATRICK MALONEY of New York, 

Mr. MCKINLEY, Mr. MOULTON, Mr. NORCROSS, Mr. PETERS, Mr. POLIS, 

Mr. RUPPERSBERGER, Mr. SCHNEIDER, Ms. SINEMA, Mr. SOTO, and 

Mrs. TORRES) introduced the following bill; which was referred to the 

Committee on Transportation and Infrastructure, and in addition to the 

Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To establish the American Infrastructure Fund, to provide 

bond guarantees and make loans to States, local governments, and infrastructure providers for investments in 

certain infrastructure projects, and to provide equity investments in such projects, and for other purposes. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Partnership to Build 

3 America Act of 2017’’. 

4 SEC. 2. AMERICAN INFRASTRUCTURE FUND. 

5 (a) AMERICAN INFRASTRUCTURE FUND.— 

6 (1) IN GENERAL.—There is established a wholly 

7 owned Government corporation— 

8 (A) which shall be called the American In9 frastructure Fund (referred to in this Act as 

10 the ‘‘AIF’’); 

11 (B) which shall be headed by the Board of 

12 Trustees established under subsection (b); 

13 (C) which may have separate subaccounts 

14 or subsidiaries for funds used to make loans, 

15 bond guarantees, and equity investments under 

16 this section; 

17 (D) which shall be available to the AIF to 

18 pay for the costs of carrying out this section, 

19 including the compensation of the Board and 

20 other employees of the AIF; and 

21 (E) the funds of which may be invested by 

22 the Board in such manner as the Board deter23 mines appropriate. 

24 (2) DEPOSITS TO AIF.—All funds received from 

25 bond issuances, loan payments, bond guarantee fees, 


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1 and any other funds received in carrying out this 

2 section shall be held by AIF. 

3 (3) LIMITATIONS.—The charter of the AIF 

4 shall limit its activities to those activities described 

5 as the mission of the Board under subsection (b)(2). 

6 (4) OVERSIGHT.—The AIF shall register with 

7 the Securities and Exchange Commission and the 

8 Chairman shall report to Congress annually as to 

9 whether the AIF is fulfilling the mission of the 

10 Board under subsection (b)(2). 

11 (5) TREATMENT OF AIF.— 

12 (A) ACCOUNTS.—Title 31, United States 

13 Code, is amended in each of sections 9107(c)(3) 

14 and 9108(d)(2)— 

15 (i) by inserting ‘‘the American Infra16 structure Fund,’’ after ‘‘the Regional 

17 Banks for Cooperatives,’’; and 

18 (ii) by striking ‘‘those banks’’ and in19 serting ‘‘those entities’’. 

20 (B) BONDS.—Section 149(b)(3)(A)(i) of 

21 the Internal Revenue Code of 1986 is amended 

22 by inserting ‘‘American Infrastructure Fund,’’ 

23 after ‘‘Federal Home Loan Mortgage Corpora24 tion,’’. 

25 (b) BOARD OF TRUSTEES.— 


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1 (1) IN GENERAL.—There is established a Board 

2 of Trustees of the AIF (referred to in this sub3 section as the ‘‘Board’’), which shall be composed of 

4 9 members who— 

5 (A) have substantial experience in bond 

6 guarantees or municipal credit; and 

7 (B) to the greatest extent practicable, have 

8 extensive experience working with municipal 

9 credit, risk management, and infrastructure fi10 nance. 

11 (2) MISSION.—The mission of the Board is— 

12 (A) to operate the AIF and its subsidiaries 

13 to be a low cost provider of bond guarantees, 

14 loans, and equity investments to State and local 

15 governments and infrastructure providers for 

16 urban and rural infrastructure projects that— 

17 (i) provide a positive economic impact; 

18 and 

19 (ii) meet such other standards as the 

20 Board may develop; 

21 (B) to operate the AIF in a self-sustaining 

22 manner so as to allow the AIF to repay its in23 frastructure bonds when such bonds are due; 


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1 (C) to not have a profit motive, but to seek 

2 at all times to pursue its mission of providing 

3 low cost bond guarantees and loans while— 

4 (i) covering its costs; 

5 (ii) maintaining such reserves as may 

6 be needed; and 

7 (iii) applying prudent underwriting 

8 standards; 

9 (D) to only consider projects put forth by 

10 State and local governments and not to seek 

11 projects directly; 

12 (E) to always make clear that no taxpayer 

13 money supports the AIF or ever will support 

14 the AIF; and 

15 (F) to engage in no other activities other 

16 than those permitted under this section. 

17 (3) MEMBERSHIP.— 

18 (A) INITIAL MEMBERS.— 

19 (i) APPOINTMENT.—Not later than 

20 150 days after the date on which bonds 

21 are first issued under subsection (d), the 

22 President shall appoint, with the advice 

23 and consent of the Senate, as members of 

24 the Board— 


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1 (I) 2 individuals from a list of at 

2 least 5 individuals selected by the 

3 Speaker of the House of Representa4 tives; 

5 (II) 2 individuals from a list of 

6 at least 5 individuals selected by the 

7 Minority Leader of the House of Rep8 resentatives; 

9 (III) 2 individuals from a list of 

10 at least 5 individuals selected by the 

11 Majority Leader of the Senate; 

12 (IV) 2 individuals from a list of 

13 at least 5 individuals selected by the 

14 Minority Leader of the Senate; and 

15 (V) 1 individual selected at will 

16 by the President. 

17 (ii) SUBMISSION OF LISTS.—Each of 

18 the lists described in clause (i) shall be 

19 submitted to the President not later than 

20 90 days after the date on which bonds are 

21 first issued under subsection (d). If any of 

22 such lists are submitted after the date re23 quired under this clause, the President 

24 may appoint the 2 members of the Board 


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1 who were to be selected from such list at 

2 will. 

3 (B) STAGGERED TERMS.—The members of 

4 the Board appointed pursuant to subparagraph 

5 (A)(i) shall serve staggered terms, with 2 each 

6 of the initial members of the Board serving for 

7 terms of 5, 6, 7, and 8 years, respectively, and 

8 the initial Chair selected under subparagraph 

9 (D) serving for 9 years. The decision of which 

10 Board members, other than the Chair, serve for 

11 which initial terms shall be made by the mem12 bers of the Board drawing lots. 

13 (C) ADDITIONAL MEMBERS.— 

14 (i) IN GENERAL.—Except as provided 

15 in subparagraph (A), if the term of a 

16 member of the Board expires or otherwise 

17 becomes vacant, the President shall ap18 point a replacement for such member, with 

19 the advice and consent of the Senate, from 

20 among a list of at least 5 individuals sub21 mitted by the Board. 

22 (ii) TERM OF SERVICE.— 

23 (I) IN GENERAL.—Each member 

24 of the Board appointed to replace a 


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1 member whose term is expiring shall 

2 serve for a 7-year term. 

3 (II) VACANCIES.—Any member 

4 of the Board appointed to fill a va5 cancy occurring before the expiration 

6 of the term to which that member’s 

7 predecessor was appointed shall be ap8 pointed only for the remainder of the 

9 term. 

10 (D) CHAIR.—The members of the Board 

11 shall choose 1 member to serve as the Chair of 

12 the Board for a term of 7 years, except that the 

13 initial Chair shall serve for a term of 9 years, 

14 pursuant to subsection (B). 

15 (E) CONTINUATION OF SERVICE.—Each 

16 member of the Board may continue to serve 

17 after the expiration of the term of office to 

18 which that member was appointed until a suc19 cessor has been appointed. 

20 (F) CONFLICTS OF INTEREST.—No mem21 ber of the Board may have a financial interest 

22 in, or be employed by, a Qualified Infrastruc23 ture Project (‘‘QIP’’) related to assistance pro24 vided under this section or any entity that has 

25 purchased bonds under subsection (d). Owning 


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1 municipal credit of any State or local govern2 ment or owning the securities of a diversified 

3 company that engages in infrastructure activi4 ties, provided those activities constitute less 

5 than 20 percent of the company’s revenues, or 

6 investing in broadly held investment funds shall 

7 not be deemed to create a conflict of interest. 

8 The Board may issue regulations to define 

9 terms used under this subparagraph. 

10 (4) COMPENSATION.—The members of the 

11 Board shall be compensated at an amount to be set 

12 by the Board, but under no circumstances may such 

13 compensation be higher than the rate prescribed for 

14 level IV of the Executive Schedule under section 

15 5315 of title 5, United States Code. 

16 (5) STAFF.—The Board shall employ and set 

17 compensation for such staff as the Board determines 

18 as is necessary to carry out the activities and mis19 sion of the AIF, and such staff may be paid without 

20 regard to the provisions of chapter 51 and sub21 chapter III of chapter 53, United States Code, relat22 ing to classification and General Schedule pay rates. 

23 (6) PROCEDURES.—The Board shall establish 

24 such procedures as are necessary to carry out this 

25 section. 


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1 (7) CORPORATE GOVERNANCE STANDARDS.— 

2 (A) BOARD COMMITTEES GENERALLY.— 

3 The Board shall maintain all of the committees 

4 required to be maintained by the board of direc5 tors of an issuer listed on the New York Stock 

6 Exchange as of the date of the enactment of 

7 this section. 

8 (B) RISK MANAGEMENT COMMITTEE.—The 

9 Board shall maintain a risk management com10 mittee, which shall— 

11 (i) employ additional staff who are 

12 certified by the Board as having significant 

13 and relevant experience in insurance un14 derwriting and credit risk management; 

15 and 

16 (ii) establish the risk management 

17 policies used by the Board. 

18 (C) STANDARDS.—The Board shall, to the 

19 extent practicable, follow all standards with re20 spect to corporate governance that are required 

21 to be followed by the board of directors of an 

22 issuer listed on the New York Stock Exchange 

23 as of the date of the enactment of this section. 

24 (8) BIENNIAL REPORTS.—Not less frequently 

25 than once every 2 years, the Board shall produce a 


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1 report that describes, of the materials, goods, and 

2 products that were used to construct, or to support 

3 the construction of, qualified infrastructure projects 

4 (as described in subsection (c)) and received financ5 ing from the American Infrastructure Fund within 

6 the most recent 2 calendar years, the percentage of 

7 such materials, goods, and products that were cre8 ated, sourced, or manufactured in the United States. 

9 (c) INFRASTRUCTURE INVESTMENT.— 

10 (1) ENTITIES ELIGIBLE FOR ASSISTANCE.—The 

11 AIF may provide assistance to State and local gov12 ernment entities, nonprofit infrastructure providers, 

13 private parties, and public-private partnerships (re14 ferred to in this section as ‘‘eligible entities’’) to help 

15 finance qualified infrastructure projects (referred to 

16 in this subsection as ‘‘QIPs’’). 

17 (2) FORMS OF ASSISTANCE.—The AIF may— 

18 (A) provide bond guarantees to debt issued 

19 by eligible entities; 

20 (B) make loans, including subordinated 

21 loans, to eligible entities; and 

22 (C) make equity investments in QIPs. 

23 (3) QUALIFIED INFRASTRUCTURE PROJECTS.— 

24 A project qualifies as a QIP under this section if— 


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1 (A) the project is sponsored by a State or 

2 local government; 

3 (B) the infrastructure is, or will be, owned 

4 by a State or local government; 

5 (C) the project involves the construction, 

6 maintenance, improvement, or repair of a trans7 portation, energy, water, communications, or 

8 educational facility; 

9 (D) the recipient of bond guarantees, 

10 loans, equity investments, or any other innova11 tive financing technique authorized under this 

12 Act provides written assurances prescribed by 

13 the AIF that the project will be performed in 

14 compliance with the requirements of all Federal 

15 laws that would otherwise apply to similar 

16 projects to which the United States is a party; 

17 and 

18 (E) in the case of a public transportation 

19 capital project as defined in section 5302 of 

20 title 49, United States Code, the recipient of 

21 bond guarantees, loans, equity investments, or 

22 any other innovative financing technique au23 thorized under this Act complies with the grant 

24 requirements applicable to grants made under 

25 section 5309 of such title. 


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1 (4) APPLICATION FOR ASSISTANCE.— 

2 (A) IN GENERAL.—A State or local gov3 ernment that wishes to receive a loan or bond 

4 guarantee under this section shall submit an 

5 application to the Board in such form and man6 ner and containing such information as the 

7 Board may require. 

8 (B) REQUIREMENT FOR PUBLIC SPONSOR9 SHIP OF PRIVATE ENTITIES.—A private entity 

10 may only receive a bond guarantee, loan, or eq11 uity investment under this section if the State 

12 or local government for the jurisdiction in which 

13 the nonprofit infrastructure provider or private 

14 partner is located submits an application pursu15 ant to subparagraph (A) on behalf of such non16 profit infrastructure provider or private part17 ner. 

18 (5) LIMITATIONS ON SINGLE STATE AWARDS.— 

19 (A) ANNUAL LIMITATION.—The Board 

20 shall set an annual limit, as a percentage of 

21 total assistance provided under this section dur22 ing a year, on the amount of assistance a single 

23 State (including local governments and other 

24 infrastructure providers within such State) may 


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1 receive in assistance provided under this sec2 tion. 

3 (B) CUMULATIVE LIMITATION.—The 

4 Board shall set a limit, as a percentage of total 

5 assistance provided under this section out6 standing at any one time, on the amount of as7 sistance a single State (including local govern8 ments and other infrastructure providers within 

9 such State) may receive in assistance provided 

10 under this section. 

11 (6) LOAN SPECIFICATIONS.—Loans made under 

12 this section shall have such maturity and carry such 

13 interest rate as the Board determines appropriate. 

14 (7) BOND GUARANTEE.—The Board shall 

15 charge such fees for Bond guarantees made under 

16 this section as the Board determines appropriate. 

17 (8) EQUITY INVESTMENTS.—With respect to a 

18 QIP, the amount of an equity investment made by 

19 the AIF in such QIP may not exceed 20 percent of 

20 the total cost of the QIP. 

21 (9) PUBLIC-PRIVATE PARTNERSHIP REQUIRE22 MENTS.—At least 35 percent of the assistance pro23 vided under this section shall be provided to QIPs 

24 for which at least 10 percent of the financing for 

25 such QIPs comes from private debt or equity. 


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1 (10) PROHIBITION ON PRINCIPAL FORGIVE2 NESS.—With respect to a loan made under this sec3 tion, the Board may not forgive any amount of prin4 cipal on such loan. 

5 (d) AMERICAN INFRASTRUCTURE BONDS.— 

6 (1) IN GENERAL.—Not later than 90 days after 

7 the date of the enactment of this Act, the Secretary, 

8 acting through the AIF, shall issue bonds, which 

9 shall be called ‘‘American Infrastructure Bonds’’. 

10 The proceeds from the American Infrastructure 

11 Bonds shall be deposited into the AIF. 

12 (2) FORMS AND DENOMINATIONS; INTEREST.— 

13 American Infrastructure Bonds shall— 

14 (A) be in such forms and denominations as 

15 determined by the Secretary, and shall have a 

16 50-year maturity; and 

17 (B) bear interest of 1 percent. 

18 (3) NO FULL FAITH AND CREDIT.—Interest 

19 and principal payments paid to holders of American 

20 Infrastructure Bonds shall be paid from the AIF, to 

21 the extent funds are available, and shall not be 

22 backed by the full faith and credit of the United 

23 States. 


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1 (4) AMOUNT OF BONDS.—The aggregate face 

2 amount of the bonds issued under this subsection 

3 shall be $50,000,000,000. 

4 (5) SALE OF AMERICAN INFRASTRUCTURE

5 BONDS.— 

6 (A) COMPETITIVE BIDDING PROCESS.— 

7 The Secretary shall sell $50,000,000,000 of 

8 American Infrastructure Bonds— 

9 (i) through a competitive bidding 

10 process that encourages aggressive bidding; 

11 (ii) with prospective purchasers bid12 ding on how low of a multiplier they will 

13 accept (for purposes of subsection (b)(1) of 

14 section 966 of the Internal Revenue Code 

15 of 1986) when purchasing the American 

16 Infrastructure Bonds, for purposes of ap17 plying the foreign earnings exclusion de18 scribed under that section; and 

19 (iii) in a manner that ensures no enti20 ties participating in the bidding may 

21 collude or coordinate their bids. 

22 (B) LIMITATION.—The multiplier de23 scribed in subparagraph (A)(ii) may not be 

24 greater than 6. 


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1 (6) REIMBURSEMENT OF COSTS.—The Board 

2 shall repay the Secretary, from funds in the AIF, for 

3 the costs to the Secretary in carrying out this sub4 section. 

5 (e) ADDITIONAL BONDS.— 

6 (1) IN GENERAL.—The Board may issue such 

7 other bonds as the Board determines appropriate, 

8 the proceeds from which shall be deposited into the 

9 AIF. 

10 (2) NO FULL FAITH AND CREDIT.—Interest 

11 and principal payments paid to holders of bonds 

12 issued pursuant to paragraph (1) shall be paid from 

13 the AIF, to the extent funds are available, and shall 

14 not be backed by the full faith and credit of the 

15 United States. 

16 (f) DEFINITIONS.—For purposes of this section: 

17 (1) INFRASTRUCTURE PROVIDER.—The term 

18 ‘‘infrastructure provider’’ means an entity that seeks 

19 to finance a QIP. 

20 (2) SECRETARY.—The term ‘‘Secretary’’ means 

21 the Secretary of the Treasury. 

22 (3) STATE.—The term ‘‘State’’ means each of 

23 the several States, the District of Columbia, any ter24 ritory or possession of the United States, and each 

25 Federally recognized Indian tribe. 


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1 SEC. 3. FOREIGN EARNINGS EXCLUSION FOR PURCHASE OF 

2 INFRASTRUCTURE BONDS. 

3 (a) IN GENERAL.—Subpart F of part III of sub4 chapter N of chapter 1 of the Internal Revenue Code of 

5 1986 is amended by adding at the end the following new 

6 section: 

7 ‘‘SEC. 966. FOREIGN EARNINGS EXCLUSION FOR PURCHASE 

8 OF INFRASTRUCTURE BONDS. 

9 ‘‘(a) EXCLUSION.—In the case of a corporation which 

10 is a United States shareholder and for which the election 

11 under this section is in effect for the taxable year, gross 

12 income does not include an amount equal to the qualified 

13 cash dividend amount. 

14 ‘‘(b) QUALIFIED CASH DIVIDEND AMOUNT.—For 

15 purposes of this section, the term ‘qualified cash dividend 

16 amount’ means an amount of the cash dividends which 

17 are received during a taxable year by such shareholder 

18 from controlled foreign corporations equal to— 

19 ‘‘(1) the multiplier determined under section 

20 2(d)(5) of the Partnership to Build America Act of 

21 2017 for such shareholder, multiplied by 

22 ‘‘(2) the face amount of qualified infrastructure 

23 bonds acquired at its original issue (directly or 

24 through an underwriter) by such shareholder. 

25 ‘‘(c) LIMITATIONS.— 


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1 ‘‘(1) IN GENERAL.—The amount of dividends 

2 taken into account under subsection (a) for a tax3 able year shall not exceed the lesser of— 

4 ‘‘(A) the cash dividends received by the 

5 taxpayer for such taxable year, or 

6 ‘‘(B) the amount shown on the applicable 

7 financial statement as earnings permanently re8 invested outside the United States. 

9 ‘‘(2) DIVIDENDS MUST BE EXTRAORDINARY.— 

10 The amount of dividends taken into account under 

11 subsection (a) shall not exceed the excess (if any) 

12 of— 

13 ‘‘(A) the cash dividends received during 

14 the taxable year by such shareholder from con15 trolled foreign corporations, over 

16 ‘‘(B) the annual average for the base pe17 riod years of the cash dividends received during 

18 each base period year by such shareholder from 

19 controlled foreign corporations. 

20 ‘‘(3) REDUCTION OF BENEFIT IF INCREASE IN

21 RELATED PARTY INDEBTEDNESS.—The amount of 

22 dividends which would (but for this paragraph) be 

23 taken into account under subsection (a) shall be re24 duced by the excess (if any) of— 


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1 ‘‘(A) the amount of indebtedness of the 

2 controlled foreign corporation to any related 

3 person (as defined in section 954(d)(3)) as of 

4 the close of the taxable year for which the elec5 tion under this section is in effect, over 

6 ‘‘(B) the amount of indebtedness of the 

7 controlled foreign corporation to any related 

8 person (as so defined) as of the close of the pre9 ceding taxable year. 

10 ‘‘(4) TREATMENT OF CONTROLLED FOREIGN

11 CORPORATIONS.—All controlled foreign corporations 

12 with respect to which the taxpayer is a United 

13 States shareholder shall be treated as 1 controlled 

14 foreign corporation for purposes of this subsection. 

15 The Secretary may prescribe such regulations as 

16 may be necessary or appropriate to prevent the 

17 avoidance of the purposes of this subsection, includ18 ing regulations providing that cash dividends shall 

19 not be taken into account under subsection (a) to 

20 the extent such dividends are attributable to the di21 rect or indirect transfer (including through the use 

22 of intervening entities or capital contributions) of 

23 cash or other property from a related person (as so 

24 defined) to a controlled foreign corporation. 


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1 ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur2 poses of this section— 

3 ‘‘(1) QUALIFIED INFRASTRUCTURE BONDS.— 

4 The term ‘qualified infrastructure bond’ means a 

5 bond issued under section 2(d) of the Partnership to 

6 Build America Act of 2017. 

7 ‘‘(2) APPLICABLE FINANCIAL STATEMENT.— 

8 The term ‘applicable financial statement’ means, 

9 with respect to a taxable year— 

10 ‘‘(A) with respect to a United States 

11 shareholder which is required to file a financial 

12 statement with the Securities and Exchange 

13 Commission (or which is included in such a 

14 statement so filed by another person), the most 

15 recent audited annual financial statement (in16 cluding the notes which form an integral part 

17 of such statement) of such shareholder (or 

18 which includes such shareholder)— 

19 ‘‘(i) which was so filed for such tax20 able year, and 

21 ‘‘(ii) which is certified as being pre22 pared in accordance with generally accept23 ed accounting principles, and 

24 ‘‘(B) with respect to any other United 

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1 nancial statement (including the notes which 

2 form an integral part of such statement) of 

3 such shareholder (or which includes such share4 holder)— 

5 ‘‘(i) which is certified as being pre6 pared in accordance with generally accept7 ed accounting principles, and 

8 ‘‘(ii) which is used for the purposes of 

9 a statement or report— 

10 ‘‘(I) to creditors, 

11 ‘‘(II) to shareholders, or 

12 ‘‘(III) for any other substantial 

13 nontax purpose. 

14 ‘‘(3) BASE PERIOD YEARS.— 

15 ‘‘(A) IN GENERAL.—The base period years 

16 are the 3 taxable years— 

17 ‘‘(i) which are among the 5 most re18 cent preceding taxable years ending before 

19 the taxable year, and 

20 ‘‘(ii) which are determined by dis21 regarding— 

22 ‘‘(I) 1 taxable year for which the 

23 amount described in subsection 

24 (c)(2)(B) is the largest, and 


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1 ‘‘(II) 1 taxable year for which 

2 such amount is the smallest. 

3 ‘‘(B) SHORTER PERIOD.—If the taxpayer 

4 has fewer than 5 taxable years ending before 

5 the taxable year, then in lieu of applying sub6 paragraph (A), the base period years shall in7 clude all the taxable years of the taxpayer end8 ing before such taxable year. 

9 ‘‘(C) MERGERS, ACQUISITIONS, ETC.— 

10 ‘‘(i) IN GENERAL.—Rules similar to 

11 the rules of subparagraphs (A) and (B) of 

12 section 41(f)(3) shall apply for purposes of 

13 this paragraph. 

14 ‘‘(ii) SPIN-OFFS, ETC.—If there is a 

15 distribution to which section 355 (or so 

16 much of section 356 as relates to section 

17 355) applies during the 5-year period re18 ferred to in subparagraph (A)(i) and the 

19 controlled corporation (within the meaning 

20 of section 355) is a United States share21 holder— 

22 ‘‘(I) the controlled corporation 

23 shall be treated as being in existence 

24 during the period that the distributing 


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1 corporation (within the meaning of 

2 section 355) is in existence, and 

3 ‘‘(II) for purposes of applying 

4 subsection (c)(2) to the controlled cor5 poration and the distributing corpora6 tion, amounts described in subsection 

7 (c)(2)(B) which are received or includ8 able by the distributing corporation or 

9 controlled corporation (as the case 

10 may be) before the distribution re11 ferred to in subclause (I) from a con12 trolled foreign corporation shall be al13 located between such corporations in 

14 proportion to their respective interests 

15 as United States shareholders of such 

16 controlled foreign corporation imme17 diately after such distribution. 

18 ‘‘(iii) EXCEPTION.—Subclause (II) of 

19 clause (ii) shall not apply if neither the 

20 controlled corporation nor the distributing 

21 corporation is a United States shareholder 

22 of such controlled foreign corporation im23 mediately after such distribution. 

24 ‘‘(4) DIVIDEND.—The term ‘dividend’ shall not 

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1 idend under section 78, 367, or 1248. In the case 

2 of a liquidation under section 332 to which section 

3 367(b) applies, the preceding sentence shall not 

4 apply to the extent the United States shareholder 

5 actually receives cash as part of the liquidation. 

6 ‘‘(5) COORDINATION WITH DIVIDEND RECEIVED

7 DEDUCTION.—No deduction shall be allowed under 

8 section 243 or 245 for any dividend which is ex9 cluded from income by subsection (a). 

10 ‘‘(6) CONTROLLED GROUPS.—All United States 

11 shareholders which are members of an affiliated 

12 group filing a consolidated return under section 

13 1501 shall be treated as one United States share14 holder. 

15 ‘‘(7) REPORTING.—The Secretary shall require 

16 by regulation or other guidance the reporting of 

17 such information as the Secretary may require to 

18 carry out this section. 

19 ‘‘(e) DENIAL OF FOREIGN TAX CREDIT; DENIAL OF

20 CERTAIN EXPENSES.— 

21 ‘‘(1) FOREIGN TAX CREDIT.— 

22 ‘‘(A) IN GENERAL.—No credit shall be al23 lowed under section 901 for any taxes paid or 

24 accrued (or treated as paid or accrued) with re25 spect to the excluded portion of any dividend. 


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1 ‘‘(B) DENIAL OF DEDUCTION OF RELATED

2 TAX.—No deduction shall be allowed under this 

3 chapter for any tax for which credit is not al4 lowable by reason of the preceding sentence. 

5 ‘‘(2) EXPENSES.—No deduction shall be al6 lowed for expenses directly allocable to the exclud7 able portion described in paragraph (1). 

8 ‘‘(3) EXCLUDABLE PORTION.—For purposes of 

9 paragraph (1), unless the taxpayer otherwise speci10 fies, the excludable portion of any dividend or other 

11 amount is the amount which bears the same ratio to 

12 the amount of such dividend or other amount as the 

13 amount excluded from income under subsection (a) 

14 for the taxable year bears to the amount described 

15 in subsection (c)(2)(A) for such year. 

16 ‘‘(4) COORDINATION WITH SECTION 78.—Sec17 tion 78 shall not apply to any tax which is not allow18 able as a credit under section 901 by reason of this 

19 subsection. 

20 ‘‘(f) APPLICATION OF SECTION.—This section shall 

21 apply with respect to the taxable year of the taxpayer in 

22 which the taxpayer acquires qualified infrastructure bonds 

23 at its original issue (directly or through an underwriter) 

24 under section 2(d)(5) of the Partnership to Build America 

25 Act of 2017.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for subpart F of part III of subchapter N of chapter 1 

3 of such Code is amended by adding at the end the fol4 lowing new item: 

‘‘966. Foreign earnings exclusion for purchase of infrastructure bonds.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to dividends received for taxable 

7 years ending after the date of the enactment of this Act. 

Æ 


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