```

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3939 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 3939

 To amend the Internal Revenue Code of 1986 to jumpstart the sluggish 
  economy, finance critical infrastructure investments, fight income 
          inequality and create jobs, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 28, 2014

   Mr. Neal introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
Transportation and Infrastructure and Education and the Workforce, 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 amend the Internal Revenue Code of 1986 to jumpstart the sluggish 
  economy, finance critical infrastructure investments, fight income 
          inequality and create jobs, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Invest in United 
States Act of 2014''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
          TITLE I--AMERICAN INFRASTRUCTURE FINANCING AUTHORITY

Sec. 101. Findings and purpose.
Sec. 102. Definitions.
        Subtitle A--American Infrastructure Financing Authority

Sec. 111. Establishment and general authority of AIFA.
Sec. 112. Voting members of the Board of Directors.
Sec. 113. Chief Executive Officer of AIFA.
Sec. 114. Powers and duties of the Board of Directors.
Sec. 115. Senior management.
Sec. 116. Special Inspector General for AIFA.
Sec. 117. Other personnel.
Sec. 118. Compliance.
 Subtitle B--Terms and Limitations on Direct Loans and Loan Guarantees

Sec. 121. Eligibility criteria for assistance from AIFA and terms and 
                            limitations of loans.
Sec. 122. Loan terms and repayment.
Sec. 123. Compliance and enforcement.
Sec. 124. Audits; reports to the President and Congress.
                      Subtitle C--Funding of AIFA

Sec. 131. Fees.
Sec. 132. Self-sufficiency of AIFA.
Sec. 133. Funding.
Sec. 134. Contract authority.
                    TITLE II--TAX CREDIT EXTENSIONS

Sec. 201. Permanent extension of new markets tax credit.
Sec. 202. Build America Bonds made permanent.
Sec. 203. Permanent extension of research credit; increase in 
                            alternative simplified research credit.
Sec. 204. Exempt-facility bonds for sewage and water supply facilities.
Sec. 205. Repeal of alternative minimum tax on private activity bonds.
                       TITLE III--SKILLS TRAINING

Sec. 301. Job training tax credit.
Sec. 302. Qualified Job Training Partnerships credit.
                       TITLE IV--TRADE PROVISIONS

Sec. 401. Findings; sense of Congress on applicability of trade 
                            authorities procedures to a bill 
                            implementing a trade and investment 
                            agreement with the European Union.
Sec. 402. Extension of trade adjustment assistance program.
         TITLE V--MINIMUM WAGE INCREASE AND BUSINESS TAX RELIEF

Sec. 501. Minimum wage increases.
Sec. 502. Work Opportunity Credit made permanent.
Sec. 503. Increased expensing limitations and treatment of certain real 
                            property as section 179 property made 
                            permanent.
Sec. 504. Permanent extension of treatment of qualified leasehold 
                            improvement property, qualified restaurant 
                            property, and qualified retail improvement 
                            property as 15-year property for purposes 
                            of depreciation deduction.

          TITLE I--AMERICAN INFRASTRUCTURE FINANCING AUTHORITY

SEC. 101. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) infrastructure has always been a vital element of the 
        economic strength of the United States and a key indicator of 
        the international leadership of the United States;
            (2) the Erie Canal, the Hoover Dam, the railroads, and the 
        interstate highway system are all testaments to American 
        ingenuity and have helped propel and maintain the United States 
        as the world's largest economy;
            (3) according to the World Economic Forum's Global 
        Competitiveness Report, the United States fell to second place 
        in 2009, and dropped to fourth place overall in 2010, however, 
        in the ``Quality of overall infrastructure'' category of the 
        same report, the United States ranked twenty-third in the 
        world;
            (4) according to the World Bank's 2010 Logistic Performance 
        Index, the capacity of countries to efficiently move goods and 
        connect manufacturers and consumers with international markets 
        is improving around the world, and the United States now ranks 
        seventh in the world in logistics-related infrastructure behind 
        countries from both Europe and Asia;
            (5) according to a January 2009 report from the University 
        of Massachusetts/Alliance for American Manufacturing entitled 
        ``Employment, Productivity and Growth,'' infrastructure 
        investment is a ``highly effective engine of job creation'' 
        such that $1,000,000,000 in new investment in infrastructure 
        results in 18,000 total jobs;
            (6) according to the American Society of Civil Engineers, 
        the current condition of the infrastructure in the United 
        States earns a grade point average of D, and an estimated 
        $2,200,000,000,000 investment is needed over the next 5 years 
        to bring American infrastructure up to adequate condition;
            (7) according to the National Surface Transportation Policy 
        and Revenue Study Commission, $225,000,000,000 is needed 
        annually from all sources for the next 50 years to upgrade the 
        United States surface transportation system to a state of good 
        repair and create a more advanced system;
            (8) the current infrastructure financing mechanisms of the 
        United States, both on the Federal and State level, will fail 
        to meet current and foreseeable demands and will create large 
        funding gaps;
            (9) traditional municipal bonds issued by State and local 
        governments are proven to work and have been a part of the tax 
        code for over 100 years, and additional infrastructure 
        financing options can be created at the Federal level to 
        complement the current system to best meet infrastructure 
        needs;
            (10) new, additional financing mechanisms should be 
        targeted and quickly implemented to--
                    (A) serve large in-State or cross jurisdiction 
                infrastructure projects, projects of regional or 
                national significance, or projects that cross sector 
                silos;
                    (B) sufficiently catalyze private sector 
                investment; or
                    (C) ensure the optimal return on public resources;
            (11) although grant programs of the United States 
        Government must continue to play a central role in financing 
        the transportation, environment, and energy infrastructure 
        needs of the United States, current and foreseeable demands on 
        existing Federal, State, and local funding for infrastructure 
        expansion clearly exceed the resources to support these 
        programs by margins wide enough to prompt serious concerns 
        about the United States ability to sustain long-term economic 
        development, productivity, and international competitiveness;
            (12) the capital markets, including pension funds, private 
        equity funds, mutual funds, sovereign wealth funds, and other 
        investors, have a growing interest in infrastructure investment 
        and represent hundreds of billions of dollars of potential 
        investment; and
            (13) the establishment of a United States Government-owned, 
        independent, professionally managed institution that could 
        provide credit support to qualified infrastructure projects of 
        regional and national significance, making transparent merit-
        based investment decisions based on the commercial viability of 
        infrastructure projects, would catalyze the participation of 
        significant private investment capital.
    (b) Purpose.--The purpose of this title is to facilitate investment 
in, and long-term financing of, economically viable infrastructure 
projects of regional or national significance in a manner that both 
complements existing Federal, State, local, and private funding sources 
for these projects and introduces a merit-based system for financing 
such projects, in order to mobilize significant private sector 
investment, create jobs, and ensure United States competitiveness 
through a self-sustaining institution that limits the need for ongoing 
Federal funding.

SEC. 102. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) AIFA.--The term ``AIFA'' means the American 
        Infrastructure Financing Authority established under this 
        title.
            (2) Blind trust.--The term ``blind trust'' means a trust in 
        which the beneficiary has no knowledge of the specific holdings 
        and no rights over how those holdings are managed by the 
        fiduciary of the trust prior to the dissolution of the trust.
            (3) Board of directors.--The term ``Board of Directors'' 
        means Board of Directors of AIFA.
            (4) Chairperson.--The term ``Chairperson'' means the 
        Chairperson of the Board of Directors of AIFA.
            (5) Chief executive officer.--The term ``Chief Executive 
        Officer'' means the Chief Executive Officer of AIFA, appointed 
        under section 113.
            (6) Cost.--The term ``cost'' has the same meaning as in 
        section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a).
            (7) Direct loan.--The term ``direct loan'' has the same 
        meaning as in section 502 of the Federal Credit Reform Act of 
        1990 (2 U.S.C. 661a).
            (8) Eligible entity.--The term ``eligible entity'' means an 
        individual, corporation, partnership (including a public-
        private partnership), joint venture, trust, State, or other 
        governmental entity, including a political subdivision or any 
        other instrumentality of a State, or a revolving fund.
            (9) Infrastructure project.--
                    (A) In general.--The term ``eligible infrastructure 
                project'' means any transportation, water, or energy 
                infrastructure project, or an aggregation of such 
                infrastructure projects, as provided in this title.
                    (B) Transportation infrastructure project.--The 
                term ``transportation infrastructure project'' means 
                the construction, alteration, or repair, including the 
                facilitation of intermodal transit, of the following 
                subsectors:
                            (i) Highway or road.
                            (ii) Bridge.
                            (iii) Mass transit.
                            (iv) Inland waterways.
                            (v) Commercial ports.
                            (vi) Airports.
                            (vii) Air traffic control systems.
                            (viii) Passenger rail, including high-speed 
                        rail.
                            (ix) Freight rail systems.
                    (C) Water infrastructure project.--The term ``water 
                infrastructure project'' means the construction, 
                consolidation, alteration, or repair of the following 
                subsectors:
                            (i) Water waste treatment facility.
                            (ii) Storm water management system.
                            (iii) Dam.
                            (iv) Solid waste disposal facility.
                            (v) Levee.
                            (vi) Open space management system.
                    (D) Energy infrastructure project.--The term 
                ``energy infrastructure project'' means the 
                construction, alteration, or repair of the following 
                subsectors:
                            (i) Pollution reduced energy generation.
                            (ii) Transmission and distribution.
                            (iii) Storage.
                            (iv) Energy efficiency enhancements for 
                        buildings, including public and commercial 
                        buildings.
                    (E) Board authority to modify subsectors.--The 
                Board of Directors may make modifications, at the 
                discretion of the Board, to the subsectors described in 
                this paragraph by a vote of not fewer than 5 of the 
                voting members of the Board of Directors.
            (10) Investment-grade rating.--The term ``investment-grade 
        rating'' means a rating of BBB minus, Baa3, or higher assigned 
        to an infrastructure project by a ratings agency.
            (11) Loan guarantee.--The term ``loan guarantee'' has the 
        same meaning as in section 502 of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a).
            (12) Public-private partnership.--The term ``public-private 
        partnership'' means any eligible entity--
                    (A)(i) which is undertaking the development of all 
                or part of an infrastructure project that will have a 
                public benefit, pursuant to requirements established in 
                one or more contracts between the entity and a State or 
                an instrumentality of a State; or
                    (ii) the activities of which, with respect to such 
                an infrastructure project, are subject to regulation by 
                a State or any instrumentality of a State;
                    (B) which owns, leases, or operates or will own, 
                lease, or operate, the project in whole or in part; and
                    (C) the participants in which include not fewer 
                than 1 nongovernmental entity with significant 
                investment and some control over the project or project 
                vehicle.
            (13) Rural infrastructure project.--The term ``rural 
        infrastructure project'' means an infrastructure project in a 
        rural area, as that term is defined in section 343(a)(13)(A) of 
        the Consolidated Farm and Rural Development Act (7 U.S.C. 
        1991(a)(13)(A)).
            (14) Secretary.--Unless the context otherwise requires, the 
        term ``Secretary'' means the Secretary of the Treasury or the 
        designee thereof.
            (15) Senior management.--The term ``senior management'' 
        means the Chief Financial Officer, Chief Risk Officer, Chief 
        Compliance Officer, General Counsel, Chief Lending Officer, and 
        Chief Operations Officer of AIFA established under section 115, 
        and such other officers as the Board of Directors may, by 
        majority vote, add to senior management.
            (16) State.--The term ``State'' includes the District of 
        Columbia, Puerto Rico, Guam, American Samoa, the Virgin 
        Islands, the Commonwealth of Northern Mariana Islands, and any 
        other territory of the United States.

        Subtitle A--American Infrastructure Financing Authority

SEC. 111. ESTABLISHMENT AND GENERAL AUTHORITY OF AIFA.

    (a) Establishment of AIFA.--The American Infrastructure Financing 
Authority is established as a wholly owned Government corporation.
    (b) General Authority of AIFA.--AIFA shall provide direct loans and 
loan guarantees to facilitate infrastructure projects that are both 
economically viable and of regional or national significance, and shall 
have such other authority as is provided under this title.
    (c) Incorporation.--
            (1) In general.--The Board of Directors first appointed 
        shall be deemed the incorporator of AIFA, and the incorporation 
        shall be held to have been effected from the date of the first 
        meeting of the Board of Directors.
            (2) Corporate office.--AIFA shall--
                    (A) maintain an office in Washington, DC; and
                    (B) for purposes of venue in civil actions, be 
                considered to be a resident of Washington, DC.
    (d) Responsibility of the Secretary.--The Secretary shall take such 
actions as may be necessary to assist in implementing AIFA, and in 
carrying out the purpose of this title.
    (e) Rule of Construction.--Chapter 91 of title 31, United States 
Code, does not apply to AIFA, unless otherwise specifically provided in 
this title.

SEC. 112. VOTING MEMBERS OF THE BOARD OF DIRECTORS.

    (a) Voting Membership of the Board of Directors.--
            (1) In general.--AIFA shall have a Board of Directors 
        consisting of 7 voting members appointed by the President, by 
        and with the advice and consent of the Senate, not more than 4 
        of whom shall be from the same political party.
            (2) Chairperson.--One of the voting members of the Board of 
        Directors shall be designated by the President to serve as 
        Chairperson thereof.
            (3) Congressional recommendations.--Not later than 30 days 
        after the date of enactment of this Act, the majority leader of 
        the Senate, the minority leader of the Senate, the Speaker of 
        the House of Representatives, and the minority leader of the 
        House of Representatives shall each submit a recommendation to 
        the President for appointment of a member of the Board of 
        Directors, after consultation with the appropriate committees 
        of Congress.
    (b) Voting Rights.--Each voting member of the Board of Directors 
shall have an equal vote in all decisions of the Board of Directors.
    (c) Qualifications of Voting Members.--Each voting member of the 
Board of Directors shall--
            (1) be a citizen of the United States; and
            (2) have significant demonstrated expertise in--
                    (A) the management and administration of a 
                financial institution relevant to the operation of 
                AIFA; or
                    (B) the financing, development, or operation of 
                infrastructure projects.
    (d) Terms.--
            (1) In general.--Except as otherwise provided in this 
        title, each voting member of the Board of Directors shall be 
        appointed for a term of 4 years.
            (2) Initial staggered terms.--Of the voting members first 
        appointed to the Board of Directors--
                    (A) the initial Chairperson and 3 of the other 
                voting members shall each be appointed for a term of 4 
                years; and
                    (B) the remaining 3 voting members shall each be 
                appointed for a term of 2 years.
            (3) Date of initial nominations.--The initial nominations 
        for the appointment of all voting members of the Board of 
        Directors shall be made not later than 60 days after the date 
        of enactment of this Act.
            (4) Beginning of term.--The term of each of the initial 
        voting members appointed under this section shall commence 
        immediately upon the date of appointment, except that, for 
        purposes of calculating the term limits specified in this 
        subsection, the initial terms shall each be construed as 
        beginning on January 22 of the year following the date of the 
        initial appointment.
            (5) Vacancies.--A vacancy in the position of a voting 
        member of the Board of Directors shall be filled by the 
        President, and a member appointed to fill a vacancy on the 
        Board of Directors occurring before the expiration of the term 
        for which the predecessor was appointed shall be appointed only 
        for the remainder of that term.
    (e) Meetings.--
            (1) Open to the public; notice.--Except as provided in 
        paragraph (3), all meetings of the Board of Directors shall 
        be--
                    (A) open to the public; and
                    (B) preceded by reasonable public notice.
            (2) Frequency.--The Board of Directors shall meet not later 
        than 60 days after the date on which all members of the Board 
        of Directors are first appointed, at least quarterly 
        thereafter, and otherwise at the call of either the Chairperson 
        or 5 voting members of the Board of Directors.
            (3) Exception for closed meetings.--The voting members of 
        the Board of Directors may, by majority vote, close a meeting 
        to the public if, during the meeting to be closed, there is 
        likely to be disclosed proprietary or sensitive information 
        regarding an infrastructure project under consideration for 
        assistance under this title. The Board of Directors shall 
        prepare minutes of any meeting that is closed to the public, 
        and shall make such minutes available as soon as practicable, 
        not later than 1 year after the date of the closed meeting, 
        with any necessary redactions to protect any proprietary or 
        sensitive information.
            (4) Quorum.--For purposes of meetings of the Board of 
        Directors, 5 voting members of the Board of Directors shall 
        constitute a quorum.
    (f) Compensation of Members.--Each voting member of the Board of 
Directors shall be compensated at a rate equal to the daily equivalent 
of the annual rate of basic pay prescribed for level III of the 
Executive Schedule under section 5314 of title 5, United States Code, 
for each day (including travel time) during which the member is engaged 
in the performance of the duties of the Board of Directors.
    (g) Conflicts of Interest.--A voting member of the Board of 
Directors may not participate in any review or decision affecting an 
infrastructure project under consideration for assistance under this 
title, if the member has or is affiliated with an entity who has a 
financial interest in such project.

SEC. 113. CHIEF EXECUTIVE OFFICER OF AIFA.

    (a) In General.--The Chief Executive Officer of AIFA shall be a 
nonvoting member of the Board of Directors, who shall be responsible 
for all activities of AIFA, and shall support the Board of Directors as 
set forth in this title and as the Board of Directors deems necessary 
or appropriate.
    (b) Appointment and Tenure of the Chief Executive Officer.--
            (1) In general.--The President shall appoint the Chief 
        Executive Officer, by and with the advice and consent of the 
        Senate.
            (2) Term.--The Chief Executive Officer shall be appointed 
        for a term of 6 years.
            (3) Vacancies.--Any vacancy in the office of the Chief 
        Executive Officer shall be filled by the President, and the 
        person appointed to fill a vacancy in that position occurring 
        before the expiration of the term for which the predecessor was 
        appointed shall be appointed only for the remainder of that 
        term.
    (c) Qualifications.--The Chief Executive Officer--
            (1) shall have significant expertise in management and 
        administration of a financial institution, or significant 
        expertise in the financing and development of infrastructure 
        projects; and
            (2) may not--
                    (A) hold any other public office;
                    (B) have any financial interest in an 
                infrastructure project then being considered by the 
                Board of Directors, unless that interest is placed in a 
                blind trust; or
                    (C) have any financial interest in an investment 
                institution or its affiliates or any other entity 
                seeking or likely to seek financial assistance for any 
                infrastructure project from AIFA, unless any such 
                interest is placed in a blind trust for the tenure of 
                the service of the Chief Executive Officer plus 2 
                additional years.
    (d) Responsibilities.--The Chief Executive Officer shall have such 
executive functions, powers, and duties as may be prescribed by this 
title, the bylaws of AIFA, or the Board of Directors, including--
            (1) responsibility for the development and implementation 
        of the strategy of AIFA, including--
                    (A) the development and submission to the Board of 
                Directors of the annual business plans and budget;
                    (B) the development and submission to the Board of 
                Directors of a long-term strategic plan; and
                    (C) the development, revision, and submission to 
                the Board of Directors of internal policies; and
            (2) responsibility for the management and oversight of the 
        daily activities, decisions, operations, and personnel of AIFA, 
        including--
                    (A) the appointment of senior management, subject 
                to approval by the voting members of the Board of 
                Directors, and the hiring and termination of all other 
                AIFA personnel;
                    (B) requesting the detail, on a reimbursable basis, 
                of personnel from any Federal agency having specific 
                expertise not available from within AIFA, following 
                which request the head of the Federal agency may 
                detail, on a reimbursable basis, any personnel of such 
                agency reasonably requested by the Chief Executive 
                Officer;
                    (C) assessing and recommending in the first 
                instance, for ultimate approval or disapproval by the 
                Board of Directors, compensation and adjustments to 
                compensation of senior management and other personnel 
                of AIFA as may be necessary for carrying out the 
                functions of AIFA;
                    (D) ensuring, in conjunction with the general 
                counsel of AIFA, that all activities of AIFA are 
                carried out in compliance with applicable law;
                    (E) overseeing the involvement of AIFA in all 
                projects, including--
                            (i) developing eligible projects for AIFA 
                        financial assistance;
                            (ii) determining the terms and conditions 
                        of all financial assistance packages;
                            (iii) monitoring all infrastructure 
                        projects assisted by AIFA, including 
                        responsibility for ensuring that the proceeds 
                        of any loan made, guaranteed, or participated 
                        in are used only for the purposes for which the 
                        loan or guarantee was made;
                            (iv) preparing and submitting for approval 
                        by the Board of Directors the documents 
                        required under paragraph (1); and
                            (v) ensuring the implementation of 
                        decisions of the Board of Directors; and
                    (F) such other activities as may be necessary or 
                appropriate in carrying out this title.
    (e) Compensation.--
            (1) In general.--Any compensation assessment or 
        recommendation by the Chief Executive Officer under this 
        section shall be without regard to the provisions of chapter 51 
        or subchapter III of chapter 53 of title 5, United States Code.
            (2) Considerations.--The compensation assessment or 
        recommendation required under this subsection shall take into 
        account merit principles, where applicable, as well as the 
        education, experience, level of responsibility, geographic 
        differences, and retention and recruitment needs in determining 
        compensation of personnel.

SEC. 114. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.

    The Board of Directors shall--
            (1) as soon as is practicable after the date on which all 
        members are appointed, approve or disapprove senior management 
        appointed by the Chief Executive Officer;
            (2) not later than 180 days after the date on which all 
        members are appointed--
                    (A) develop and approve the bylaws of AIFA, 
                including bylaws for the regulation of the affairs and 
                conduct of the business of AIFA, consistent with the 
                purpose, goals, objectives, and policies set forth in 
                this title;
                    (B) establish subcommittees, including an audit 
                committee that is composed solely of members of the 
                Board of Directors who are independent of the senior 
                management of AIFA;
                    (C) develop and approve, in consultation with 
                senior management, a conflict-of-interest policy for 
                the Board of Directors and for senior management;
                    (D) approve or disapprove internal policies that 
                the Chief Executive Officer shall submit to the Board 
                of Directors, including--
                            (i) policies regarding the loan application 
                        and approval process, including--
                                    (I) disclosure and application 
                                procedures to be followed by entities 
                                in the course of nominating 
                                infrastructure projects for assistance 
                                under this title;
                                    (II) guidelines for the selection 
                                and approval of projects;
                                    (III) specific criteria for 
                                determining eligibility for project 
                                selection, consistent with subtitle B; 
                                and
                                    (IV) standardized terms and 
                                conditions, fee schedules, or legal 
                                requirements of a contract or program, 
                                so as to carry out this title; and
                            (ii) operational guidelines; and
                    (E) approve or disapprove a 1-year business plan 
                and budget for AIFA;
            (3) ensure that AIFA is at all times operated in a manner 
        that is consistent with this title, by--
                    (A) monitoring and assessing the effectiveness of 
                AIFA in achieving its strategic goals;
                    (B) periodically reviewing internal policies;
                    (C) reviewing and approving annual business plans, 
                annual budgets, and long-term strategies submitted by 
                the Chief Executive Officer;
                    (D) reviewing and approving annual reports 
                submitted by the Chief Executive Officer;
                    (E) engaging one or more external auditors, as set 
                forth in this title; and
                    (F) reviewing and approving all changes to the 
                organization of senior management;
            (4) appoint and fix, by a vote of not fewer than 5 voting 
        members of the Board of Directors, and without regard to the 
        provisions of chapter 51 or subchapter III of chapter 53 of 
        title 5, United Sates Code, the compensation and adjustments to 
        compensation of all AIFA personnel, provided that in appointing 
        and fixing any compensation or adjustments to compensation 
        under this paragraph, the Board shall--
                    (A) consult with, and seek to maintain 
                comparability with, other comparable Federal personnel, 
                as the Secretary may deem appropriate;
                    (B) consult with the Office of Personnel 
                Management; and
                    (C) carry out such duties consistent with merit 
                principles, where applicable, as well as the education, 
                experience, level of responsibility, geographic 
                differences, and retention and recruitment needs in 
                determining compensation of personnel;
            (5) establish such other criteria, requirements, or 
        procedures as the Board of Directors may consider to be 
        appropriate in carrying out this title;
            (6) serve as the primary liaison for AIFA in interactions 
        with Congress, the Executive Branch, and State and local 
        governments, and to represent the interests of AIFA in such 
        interactions and others;
            (7) approve by a vote of not fewer than 5 voting members of 
        the Board of Directors any changes to the bylaws or internal 
        policies of AIFA;
            (8) have the authority and responsibility--
                    (A) to oversee entering into and carry out such 
                contracts, leases, cooperative agreements, or other 
                transactions as are necessary to carry out this title 
                with--
                            (i) any Federal department or agency;
                            (ii) any State, territory, or possession 
                        (or any political subdivision thereof, 
                        including State infrastructure banks) of the 
                        United States; and
                            (iii) any individual, public-private 
                        partnership, firm, association, or corporation;
                    (B) to approve of the acquisition, lease, pledge, 
                exchange, and disposal of real and personal property by 
                AIFA and otherwise approve the exercise by AIFA of all 
                of the usual incidents of ownership of property, to the 
                extent that the exercise of such powers is appropriate 
                to and consistent with the purposes of AIFA;
                    (C) to determine the character of, and the 
                necessity for, the obligations and expenditures of 
                AIFA, and the manner in which the obligations and 
                expenditures will be incurred, allowed, and paid, 
                subject to this title and other Federal law 
                specifically applicable to wholly owned Federal 
                corporations;
                    (D) to execute, in accordance with applicable 
                bylaws and regulations, appropriate instruments;
                    (E) to approve other forms of credit enhancement 
                that AIFA may provide to eligible projects, as long as 
                the forms of credit enhancements are consistent with 
                the purposes of this title and terms set forth in 
                subtitle B;
                    (F) to exercise all other lawful powers that are 
                necessary or appropriate to carry out, and are 
                consistent with, the purposes of AIFA;
                    (G) to sue or be sued in the corporate capacity of 
                AIFA in any court of competent jurisdiction;
                    (H) to indemnify the members of the Board of 
                Directors and officers of AIFA for any liabilities 
                arising out of the actions of the members and officers 
                in such capacity, in accordance with, and subject to 
                the limitations contained in this title;
                    (I) to review all financial assistance packages to 
                all eligible infrastructure projects, as submitted by 
                the Chief Executive Officer and to approve, postpone, 
                or deny the same by majority vote;
                    (J) to review all restructuring proposals submitted 
                by the Chief Executive Officer, including assignation, 
                pledging, or disposal of the interest of AIFA in a 
                project, including payment or income from any interest 
                owned or held by AIFA, and to approve, postpone, or 
                deny the same by majority vote; and
                    (K) to enter into binding commitments, as specified 
                in approved financial assistance packages;
            (9) delegate to the Chief Executive Officer those duties 
        that the Board of Directors deems appropriate, to better carry 
        out the powers and purposes of the Board of Directors under 
        this section; and
            (10) to approve a maximum aggregate amount of principal 
        exposure of AIFA at any given time.

SEC. 115. SENIOR MANAGEMENT.

    (a) In General.--Senior management shall support the Chief 
Executive Officer in the discharge of the responsibilities of the Chief 
Executive Officer.
    (b) Appointment of Senior Management.--The Chief Executive Officer 
shall appoint such senior managers as are necessary to carry out the 
purpose of AIFA, as approved by a majority vote of the voting members 
of the Board of Directors.
    (c) Term.--Each member of senior management shall serve at the 
pleasure of the Chief Executive Officer and the Board of Directors.
    (d) Removal of Senior Management.--Any member of senior management 
may be removed, either by a majority of the voting members of the Board 
of Directors upon request by the Chief Executive Officer, or otherwise 
by vote of not fewer than 5 voting members of the Board of Directors.
    (e) Senior Management.--
            (1) In general.--Each member of senior management shall 
        report directly to the Chief Executive Officer, other than the 
        Chief Risk Officer, who shall report directly to the Board of 
        Directors.
            (2) Duties and responsibilities.--
                    (A) Chief financial officer.--The Chief Financial 
                Officer shall be responsible for all financial 
                functions of AIFA, provided that, at the discretion of 
                the Board of Directors, specific functions of the Chief 
                Financial Officer may be delegated externally.
                    (B) Chief risk officer.--The Chief Risk Officer 
                shall be responsible for all functions of AIFA relating 
                to--
                            (i) the creation of financial, credit, and 
                        operational risk management guidelines and 
                        policies;
                            (ii) the establishment of guidelines to 
                        ensure diversification of lending activities by 
                        region, infrastructure project type, and 
                        project size;
                            (iii) the creation of conforming standards 
                        for infrastructure finance agreements;
                            (iv) the monitoring of the financial, 
                        credit, and operational exposure of AIFA; and
                            (v) risk management and mitigation actions, 
                        including by reporting such actions, or 
                        recommendations of such actions to be taken, 
                        directly to the Board of Directors.
                    (C) Chief compliance officer.--The Chief Compliance 
                Officer shall be responsible for all functions of AIFA 
                relating to internal audits, accounting safeguards, and 
                the enforcement of such safeguards and other applicable 
                requirements.
                    (D) General counsel.--The General Counsel shall be 
                responsible for all functions of AIFA relating to legal 
                matters and, in consultation with the Chief Executive 
                Officer, shall be responsible for ensuring that AIFA 
                complies with all applicable law.
                    (E) Chief operations officer.--The Chief Operations 
                Officer shall be responsible for all operational 
                functions of AIFA, including those relating to the 
                continuing operations and performance of all 
                infrastructure projects in which AIFA retains an 
                interest and for all AIFA functions related to human 
                resources.
                    (F) Chief lending officer.--The Chief Lending 
                Officer shall be responsible for--
                            (i) all functions of AIFA relating to the 
                        development of project pipeline, financial 
                        structuring of projects, credit analysis of 
                        infrastructure projects, selection of 
                        infrastructure projects to be reviewed by the 
                        Board of Directors, preparation of 
                        infrastructure projects to be presented to the 
                        Board of Directors, and set aside for rural 
                        infrastructure projects; and
                            (ii) the creation and management of--
                                    (I) a Center for Excellence to 
                                provide technical assistance to public 
                                sector borrowers in the development and 
                                financing of infrastructure projects; 
                                and
                                    (II) an Office of Rural Assistance 
                                to provide technical assistance in the 
                                development and financing of rural 
                                infrastructure projects.
    (f) Changes to Senior Management.--The Board of Directors, in 
consultation with the Chief Executive Officer, may alter the structure 
of the senior management of AIFA at any time to better accomplish the 
goals, objectives, and purposes of AIFA, provided that the functions of 
the Chief Financial Officer set forth in subsection (e) remain separate 
from the functions of the Chief Risk Officer set forth in subsection 
(e).
    (g) Conflicts of Interest.--No individual appointed to senior 
management may--
            (1) hold any other public office;
            (2) have any financial interest in an infrastructure 
        project then being considered by the Board of Directors, unless 
        that interest is placed in a blind trust; or
            (3) have any financial interest in an investment 
        institution or its affiliates, AIFA or its affiliates, or other 
        entity then seeking or likely to seek financial assistance for 
        any infrastructure project from AIFA, unless any such interest 
        is placed in a blind trust during the term of service of that 
        individual in a senior management position, and for a period of 
        2 years thereafter.

SEC. 116. SPECIAL INSPECTOR GENERAL FOR AIFA.

    (a) In General.--During the first 5 operating years of AIFA, the 
Office of the Inspector General of the Department of the Treasury shall 
have responsibility for AIFA.
    (b) Office of the Special Inspector General.--Effective 5 years 
after the date of enactment of the commencement of the operations of 
AIFA, there is established the Office of the Special Inspector General 
for AIFA.
    (c) Appointment of Inspector General; Removal.--
            (1) Head of office.--The head of the Office of the Special 
        Inspector General for AIFA shall be the Special Inspector 
        General for AIFA (in this title referred to as the ``Special 
        Inspector General''), who shall be appointed by the President, 
        by and with the advice and consent of the Senate.
            (2) Basis of appointment.--The appointment of the Special 
        Inspector General shall be made on the basis of integrity and 
        demonstrated ability in accounting, auditing, financial 
        analysis, law, management analysis, public administration, or 
        investigations.
            (3) Timing of nomination.--The nomination of an individual 
        as Special Inspector General shall be made as soon as is 
        practicable after the effective date under subsection (b).
            (4) Removal.--The Special Inspector General shall be 
        removable from office in accordance with the provisions of 
        section 3(b) of the Inspector General Act of 1978 (5 U.S.C. 
        App.).
            (5) Rule of construction.--For purposes of section 7324 of 
        title 5, United States Code, the Special Inspector General 
        shall not be considered an employee who determines policies to 
        be pursued by the United States in the nationwide 
        administration of Federal law.
            (6) Rate of pay.--The annual rate of basic pay of the 
        Special Inspector General shall be the annual rate of basic pay 
        for an Inspector General under section 3(e) of the Inspector 
        General Act of 1978 (5 U.S.C. App.).
    (d) Duties.--
            (1) In general.--It shall be the duty of the Special 
        Inspector General to conduct, supervise, and coordinate audits 
        and investigations of the business activities of AIFA.
            (2) Other systems, procedures, and controls.--The Special 
        Inspector General shall establish, maintain, and oversee such 
        systems, procedures, and controls as the Special Inspector 
        General considers appropriate to discharge the duty under 
        paragraph (1).
            (3) Additional duties.--In addition to the duties specified 
        in paragraphs (1) and (2), the Inspector General shall also 
        have the duties and responsibilities of inspectors general 
        under the Inspector General Act of 1978.
    (e) Powers and Authorities.--
            (1) In general.--In carrying out the duties specified in 
        subsection (c), the Special Inspector General shall have the 
        authorities provided in section 6 of the Inspector General Act 
        of 1978.
            (2) Additional authority.--The Special Inspector General 
        shall carry out the duties specified in subsection (c)(1) in 
        accordance with section 4(b)(1) of the Inspector General Act of 
        1978.
    (f) Personnel, Facilities, and Other Resources.--
            (1) Additional officers.--
                    (A) The Special Inspector General may select, 
                appoint, and employ such officers and employees as may 
                be necessary for carrying out the duties of the Special 
                Inspector General, subject to the provisions of title 
                5, United States Code, governing appointments in the 
                competitive service, and the provisions of chapter 51 
                and subchapter III of chapter 53 of such title, 
                relating to classification and General Schedule pay 
                rates.
                    (B) The Special Inspector General may exercise the 
                authorities of subsections (b) through (i) of section 
                3161 of title 5, United States Code (without regard to 
                subsection (a) of that section).
            (2) Retention of services.--The Special Inspector General 
        may obtain services as authorized by section 3109 of title 5, 
        United States Code, at daily rates not to exceed the equivalent 
        rate prescribed for grade GS-15 of the General Schedule by 
        section 5332 of such title.
            (3) Ability to contract for audits, studies, and other 
        services.--The Special Inspector General may enter into 
        contracts and other arrangements for audits, studies, analyses, 
        and other services with public agencies and with private 
        persons, and make such payments as may be necessary to carry 
        out the duties of the Special Inspector General.
            (4) Request for information.--
                    (A) In general.--Upon request of the Special 
                Inspector General for information or assistance from 
                any department, agency, or other entity of the Federal 
                Government, the head of such entity shall, insofar as 
                is practicable and not in contravention of any existing 
                law, furnish such information or assistance to the 
                Special Inspector General, or an authorized designee.
                    (B) Refusal to comply.--Whenever information or 
                assistance requested by the Special Inspector General 
                is, in the judgment of the Special Inspector General, 
                unreasonably refused or not provided, the Special 
                Inspector General shall report the circumstances to the 
                Secretary of the Treasury, without delay.
    (g) Reports.--
            (1) Annual report.--Not later than 1 year after the 
        confirmation of the Special Inspector General, and every 
        calendar year thereafter, the Special Inspector General shall 
        submit to the President a report summarizing the activities of 
        the Special Inspector General during the previous 1-year period 
        ending on the date of such report.
            (2) Public disclosures.--Nothing in this subsection shall 
        be construed to authorize the public disclosure of information 
        that is--
                    (A) specifically prohibited from disclosure by any 
                other provision of law;
                    (B) specifically required by Executive order to be 
                protected from disclosure in the interest of national 
                defense or national security or in the conduct of 
                foreign affairs; or
                    (C) a part of an ongoing criminal investigation.

SEC. 117. OTHER PERSONNEL.

    Except as otherwise provided in the bylaws of AIFA, the Chief 
Executive Officer, in consultation with the Board of Directors, shall 
appoint, remove, and define the duties of such qualified personnel as 
are necessary to carry out the powers, duties, and purpose of AIFA, 
other than senior management, who shall be appointed in accordance with 
section 124.

SEC. 118. COMPLIANCE.

    The provision of assistance by the Board of Directors pursuant to 
this title shall not be construed as superseding any provision of State 
law or regulation otherwise applicable to an infrastructure project.

 Subtitle B--Terms and Limitations on Direct Loans and Loan Guarantees

SEC. 121. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM AIFA AND TERMS AND 
              LIMITATIONS OF LOANS.

    (a) In General.--Any project whose use or purpose is private and 
for which no public benefit is created shall not be eligible for 
financial assistance from AIFA under this title. Financial assistance 
under this title shall only be made available if the applicant for such 
assistance has demonstrated to the satisfaction of the Board of 
Directors that the infrastructure project for which such assistance is 
being sought--
            (1) is not for the refinancing of an existing 
        infrastructure project; and
            (2) meets--
                    (A) any pertinent requirements set forth in this 
                title;
                    (B) any criteria established by the Board of 
                Directors or Chief Executive Officer in accordance with 
                this title; and
                    (C) the definition of a transportation 
                infrastructure project, water infrastructure project, 
                or energy infrastructure project.
    (b) Considerations.--The criteria established by the Board of 
Directors pursuant to this title shall provide adequate consideration 
of--
            (1) the economic, financial, technical, environmental, and 
        public benefits and costs of each infrastructure project under 
        consideration for financial assistance under this title, 
        prioritizing infrastructure projects that--
                    (A) contribute to regional or national economic 
                growth;
                    (B) offer value for money to taxpayers;
                    (C) demonstrate a clear public benefit;
                    (D) lead to job creation; and
                    (E) mitigate environmental concerns;
            (2) the means by which development of the infrastructure 
        project under consideration is being financed, including--
                    (A) the terms, conditions, and structure of the 
                proposed financing;
                    (B) the credit worthiness and standing of the 
                project sponsors, providers of equity, and 
                cofinanciers;
                    (C) the financial assumptions and projections on 
                which the infrastructure project is based; and
                    (D) whether there is sufficient State or municipal 
                political support for the successful completion of the 
                infrastructure project;
            (3) the likelihood that the provision of assistance by AIFA 
        will cause such development to proceed more promptly and with 
        lower costs for financing than would be the case without such 
        assistance;
            (4) the extent to which the provision of assistance by AIFA 
        maximizes the level of private investment in the infrastructure 
        project or supports a public-private partnership, while 
        providing a significant public benefit;
            (5) the extent to which the provision of assistance by AIFA 
        can mobilize the participation of other financing partners in 
        the infrastructure project;
            (6) the technical and operational viability of the 
        infrastructure project;
            (7) the proportion of financial assistance from AIFA;
            (8) the geographic location of the project in an effort to 
        have geographic diversity of projects funded by AIFA;
            (9) the size of the project and its impact on the resources 
        of AIFA; and
            (10) the infrastructure sector of the project, in an effort 
        to have projects from more than one sector funded by AIFA.
    (c) Application.--
            (1) In general.--Any eligible entity seeking assistance 
        from AIFA under this title for an eligible infrastructure 
        project shall submit an application to AIFA at such time, in 
        such manner, and containing such information as the Board of 
        Directors or the Chief Executive Officer may require.
            (2) Review of applications.--AIFA shall review applications 
        for assistance under this title on an ongoing basis. The Chief 
        Executive Officer, working with the senior management, shall 
        prepare eligible infrastructure projects for review and 
        approval by the Board of Directors.
            (3) Dedicated revenue sources.--The Federal credit 
        instrument shall be repayable, in whole or in part, from tolls, 
        user fees, or other dedicated revenue sources that also secure 
        the infrastructure project obligations.
    (d) Eligible Infrastructure Project Costs.--
            (1) In general.--Except as provided in paragraph (2), to be 
        eligible for assistance under this title, an infrastructure 
        project shall have project costs that are reasonably 
        anticipated to equal or exceed $100,000,000.
            (2) Rural infrastructure projects.--To be eligible for 
        assistance under this title, a rural infrastructure project 
        shall have project costs that are reasonably anticipated to 
        equal or exceed $25,000,000.
    (e) Loan Eligibility and Maximum Amounts.--
            (1) In general.--The amount of a direct loan or loan 
        guarantee under this title shall not exceed the lesser of 50 
        percent of the reasonably anticipated eligible infrastructure 
        project costs or, if the direct loan or loan guarantee does not 
        receive an investment grade rating, the amount of the senior 
        project obligations.
            (2) Maximum annual loan and loan guarantee volume.--The 
        aggregate amount of direct loans and loan guarantees made by 
        AIFA in any single fiscal year may not exceed--
                    (A) during the first 2 fiscal years of the 
                operations of AIFA, $10,000,000,000;
                    (B) during fiscal years 3 through 9 of the 
                operations of AIFA, $20,000,000,000; or
                    (C) during any fiscal year thereafter, 
                $50,000,000,000.
    (f) State and Local Permits Required.--The provision of assistance 
by the Board of Directors pursuant to this title shall not be deemed to 
relieve any recipient of such assistance, or the related infrastructure 
project, of any obligation to obtain required State and local permits 
and approvals.

SEC. 122. LOAN TERMS AND REPAYMENT.

    (a) In General.--A direct loan or loan guarantee under this title 
with respect to an eligible infrastructure project shall be on such 
terms, subject to such conditions, and contain such covenants, 
representations, warranties, and requirements (including requirements 
for audits) as the Chief Executive Officer determines appropriate.
    (b) Terms.--A direct loan or loan guarantee under this title--
            (1) shall--
                    (A) be payable, in whole or in part, from tolls, 
                user fees, or other dedicated revenue sources that also 
                secure the senior project obligations (such as 
                availability payments and dedicated State or local 
                revenues); and
                    (B) include a rate covenant, coverage requirement, 
                or similar security feature supporting the project 
                obligations; and
            (2) may have a lien on revenues described in paragraph (1), 
        subject to any lien securing project obligations.
    (c) Base Interest Rate.--The base interest rate on a direct loan 
under this title shall be not less than the yield on United States 
Treasury obligations of a similar maturity to the maturity of the 
direct loan on the date of execution of the loan agreement.
    (d) Risk Assessment.--Before entering into an agreement for 
assistance under this title, the Chief Executive Officer, in 
consultation with the Director of the Office of Management and Budget 
and each rating agency providing a preliminary rating opinion letter 
under this section, shall determine an appropriate Federal credit 
subsidy amount for each direct loan and loan guarantee, taking into 
account such letter, as well as any comparable market rates available 
for such a loan or loan guarantee, should any exist.
    (e) Credit Fee.--With respect to each agreement for assistance 
under this title, the Chief Executive Officer shall charge a credit fee 
to the recipient of such assistance to pay for, over time, all or a 
portion of the Federal credit subsidy determined under subsection (d), 
with the remainder paid by the account established for AIFA. In the 
case of a direct loan, such credit fee shall be in addition to the base 
interest rate established under subsection (c).
    (f) Maturity Date.--The final maturity date of a direct loan or 
loan guaranteed by AIFA under this title shall be not later than 35 
years after the date of substantial completion of the infrastructure 
project, as determined by the Chief Executive Officer.
    (g) Preliminary Rating Opinion Letter.--
            (1) In general.--The Chief Executive Officer shall require 
        each applicant for assistance under this title to provide a 
        preliminary rating opinion letter from at least 1 ratings 
        agency, indicating that the senior obligations of the 
        infrastructure project, which may be the Federal credit 
        instrument, have the potential to achieve an investment-grade 
        rating.
            (2) Rural infrastructure projects.--With respect to a rural 
        infrastructure project, a rating agency opinion letter 
        described in paragraph (1) shall not be required, except that 
        the loan or loan guarantee shall receive an internal rating 
        score, using methods similar to the ratings agencies generated 
        by AIFA, measuring the proposed direct loan or loan guarantee 
        against comparable direct loans or loan guarantees of similar 
        credit quality in a similar sector.
    (h) Investment-Grade Rating Requirement.--
            (1) Loans and loan guarantees.--The execution of a direct 
        loan or loan guarantee under this title shall be contingent on 
        the senior obligations of the infrastructure project receiving 
        an investment-grade rating.
            (2) Rating of aifa overall portfolio.--The average rating 
        of the overall portfolio of AIFA shall be not less than 
        investment grade after 5 years of operation.
    (i) Terms and Repayment of Direct Loans.--
            (1) Schedule.--The Chief Executive Officer shall establish 
        a repayment schedule for each direct loan under this title, 
        based on the projected cash flow from infrastructure project 
        revenues and other repayment sources.
            (2) Commencement.--Scheduled loan repayments of principal 
        or interest on a direct loan under this title shall commence 
        not later than 5 years after the date of substantial completion 
        of the infrastructure project, as determined by the Chief 
        Executive Officer of AIFA.
            (3) Deferred payments of direct loans.--
                    (A) Authorization.--If, at any time after the date 
                of substantial completion of an infrastructure project 
                assisted under this title, the infrastructure project 
                is unable to generate sufficient revenues to pay the 
                scheduled loan repayments of principal and interest on 
                the direct loan under this title, the Chief Executive 
                Officer may allow the obligor to add unpaid principal 
                and interest to the outstanding balance of the direct 
                loan, if the result would benefit the taxpayer.
                    (B) Interest.--Any payment deferred under 
                subparagraph (A) shall--
                            (i) continue to accrue interest, in 
                        accordance with the terms of the obligation, 
                        until fully repaid; and
                            (ii) be scheduled to be amortized over the 
                        remaining term of the loan.
                    (C) Criteria.--
                            (i) In general.--Any payment deferral under 
                        subparagraph (A) shall be contingent on the 
                        infrastructure project meeting criteria 
                        established by the Board of Directors.
                            (ii) Repayment standards.--The criteria 
                        established under clause (i) shall include 
                        standards for reasonable assurance of 
                        repayment.
            (4) Prepayment of direct loans.--
                    (A) Use of excess revenues.--Any excess revenues 
                that remain after satisfying scheduled debt service 
                requirements on the infrastructure project obligations 
                and direct loan and all deposit requirements under the 
                terms of any trust agreement, bond resolution, or 
                similar agreement securing project obligations under 
                this title may be applied annually to prepay the direct 
                loan, without penalty.
                    (B) Use of proceeds of refinancing.--A direct loan 
                under this title may be prepaid at any time, without 
                penalty, from the proceeds of refinancing from non-
                Federal funding sources.
            (5) Sale of direct loans.--
                    (A) In general.--As soon as is practicable after 
                substantial completion of an infrastructure project 
                assisted under this title, and after notifying the 
                obligor, the Chief Executive Officer may sell to 
                another entity, or reoffer into the capital markets, a 
                direct loan for the infrastructure project, if the 
                Chief Executive Officer determines that the sale or 
                reoffering can be made on favorable terms for the 
                taxpayer.
                    (B) Consent of obligor.--In making a sale or 
                reoffering under subparagraph (A), the Chief Executive 
                Officer may not change the original terms and 
                conditions of the direct loan, without the written 
                consent of the obligor.
    (j) Loan Guarantees.--
            (1) Terms.--The terms of a loan guaranteed by AIFA under 
        this title shall be consistent with the terms set forth in this 
        section for a direct loan, except that the rate on the 
        guaranteed loan and any payment, pre-payment, or refinancing 
        features shall be negotiated between the obligor and the 
        lender, with the consent of the Chief Executive Officer.
            (2) Guaranteed lender.--A guaranteed lender shall be 
        limited to those lenders meeting the definition of that term in 
        section 601(a) of title 23, United States Code.
    (k) Compliance With FCRA.--
            (1) In general.--Except as provided in paragraph (2), 
        direct loans and loan guarantees authorized by this title shall 
        be subject to the provisions of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661 et seq.).
            (2) Exception.--Section 504(b) of the Federal Credit Reform 
        Act of 1990 (2 U.S.C. 661c(b)) shall not apply to a loan or 
        loan guarantee under this title.

SEC. 123. COMPLIANCE AND ENFORCEMENT.

    (a) Credit Agreement.--Notwithstanding any other provision of law, 
each eligible entity that receives assistance under this title from 
AIFA shall enter into a credit agreement that requires such entity to 
comply with all applicable policies and procedures of AIFA, in addition 
to all other provisions of the loan agreement.
    (b) AIFA Authority on Noncompliance.--In any case in which a 
recipient of assistance under this title is materially out of 
compliance with the loan agreement, or any applicable policy or 
procedure of AIFA, the Board of Directors may take action to cancel 
unutilized loan amounts, or to accelerate the repayment terms of any 
outstanding obligation.

SEC. 124. AUDITS; REPORTS TO THE PRESIDENT AND CONGRESS.

    (a) Accounting.--The books of account of AIFA shall be maintained 
in accordance with generally accepted accounting principles, and shall 
be subject to an annual audit by independent public accountants of 
nationally recognized standing appointed by the Board of Directors.
    (b) Reports.--
            (1) Board of directors.--Not later than 90 days after the 
        last day of each fiscal year, the Board of Directors shall 
        submit to the President and Congress a complete and detailed 
        report with respect to the preceding fiscal year, setting 
        forth--
                    (A) a summary of the operations of AIFA, for such 
                fiscal year;
                    (B) a schedule of the obligations of AIFA and 
                capital securities outstanding at the end of such 
                fiscal year, with a statement of the amounts issued and 
                redeemed or paid during such fiscal year;
                    (C) the status of infrastructure projects receiving 
                funding or other assistance pursuant to this title 
                during such fiscal year, including all nonperforming 
                loans, and including disclosure of all entities with a 
                development, ownership, or operational interest in such 
                infrastructure projects;
                    (D) a description of the successes and challenges 
                encountered in lending to rural communities, including 
                the role of the Center for Excellence and the Office of 
                Rural Assistance established under this title; and
                    (E) an assessment of the risks of the portfolio of 
                AIFA, prepared by an independent source.
            (2) GAO.--Not later than 5 years after the date of 
        enactment of this title, the Comptroller General of the United 
        States shall conduct an evaluation of, and shall submit to 
        Congress a report on, activities of AIFA for the fiscal years 
        covered by the report that includes an assessment of the impact 
        and benefits of each funded infrastructure project, including a 
        review of how effectively each such infrastructure project 
        accomplished the goals prioritized by the infrastructure 
        project criteria of AIFA.
    (c) Books and Records.--
            (1) In general.--AIFA shall maintain adequate books and 
        records to support the financial transactions of AIFA, with a 
        description of financial transactions and infrastructure 
        projects receiving funding, and the amount of funding for each 
        such project maintained on a publically accessible database.
            (2) Audits by the secretary and gao.--The books and records 
        of AIFA shall at all times be open to inspection by the 
        Secretary of the Treasury, the Special Inspector General, and 
        the Comptroller General of the United States.

                      Subtitle C--Funding of AIFA

SEC. 131. FEES.

    (a) In General.--The Chief Executive Officer shall establish fees 
with respect to loans and loan guarantees under this title that--
            (1) are sufficient to cover all the administrative costs to 
        the Federal Government for the operations of AIFA;
            (2) may be in the form of an application or transaction 
        fee, or interest rate adjustment; and
            (3) may be based on the risk premium associated with the 
        loan or loan guarantee, taking into consideration--
                    (A) the price of United States Treasury obligations 
                of a similar maturity;
                    (B) prevailing market conditions;
                    (C) the ability of the infrastructure project to 
                support the loan or loan guarantee; and
                    (D) the total amount of the loan or loan guarantee.
    (b) Treasury Receipts.--AIFA shall annually deposit amounts of fees 
collected under this section that are not used for the expenses of AIFA 
as miscellaneous receipts with the Treasury.

SEC. 132. SELF-SUFFICIENCY OF AIFA.

    The Chief Executive Officer shall, to the extent possible, take 
actions consistent with this title to make AIFA a self-sustaining 
entity, with administrative costs and Federal credit subsidy costs 
fully funded by fees and risk premiums on loans and loan guarantees.

SEC. 133. FUNDING.

    There is authorized to be appropriated to AIFA to carry out this 
title, to make direct loans and loan guarantees under this title, not 
more than $10,000,000,000, to remain available until expended, of which 
amount, not more than $25,000,000 for each of fiscal years 2014 through 
2015, and not more than $50,000,000 for fiscal year 2016 may be used 
for administrative costs of AIFA. Such amount shall earn interest. Not 
more than 5 percent of such amount shall be used to offset subsidy 
costs associated with rural infrastructure projects.

SEC. 134. CONTRACT AUTHORITY.

    Notwithstanding any other provision of law, approval by the Board 
of Directors of a Federal credit instrument that uses funds made 
available under this title shall impose upon the United States a 
contractual obligation to fund the Federal credit investment.

                    TITLE II--TAX CREDIT EXTENSIONS

SEC. 201. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) Extension.--
            (1) In general.--Subparagraph (G) of section 45D(f)(1) of 
        the Internal Revenue Code of 1986 is amended by striking ``, 
        2011, 2012, and 2013'' and inserting ``and each calendar year 
        thereafter''.
            (2) Conforming amendment.--Section 45D(f)(3) of such Code 
        is amended by striking the last sentence.
    (b) Inflation Adjustment.--Subsection (f) of section 45D of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(4) Inflation adjustment.--
                    ``(A) In general.--In the case of any calendar year 
                beginning after 2013, the dollar amount in paragraph 
                (1)(G) shall be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year, determined by substituting 
                        `calendar year 2000' for `calendar year 1992' 
                        in subparagraph (B) thereof.
                    ``(B) Rounding rule.--Any increase under 
                subparagraph (A) which is not a multiple of $1,000,000 
                shall be rounded to the nearest multiple of 
                $1,000,000.''.
    (c) Alternative Minimum Tax Relief.--Subparagraph (B) of section 
38(c)(4) of the Internal Revenue Code of 1986 is amended--
            (1) by redesignating clauses (v) through (ix) as clauses 
        (vi) through (x), respectively, and
            (2) by inserting after clause (iv) the following new 
        clause:
                            ``(v) the credit determined under section 
                        45D, but only with respect to credits 
                        determined with respect to qualified equity 
                        investments (as defined in section 45D(b)) 
                        initially made before January 1, 2014,''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date 
        of the enactment of this Act.
            (2) Alternative minimum tax relief.--The amendments made by 
        subsection (c) shall apply to credits determined with respect 
        to qualified equity investments (as defined in section 45D(b) 
        of the Internal Revenue Code of 1986) initially made after the 
        date of the enactment of this Act.

SEC. 202. BUILD AMERICA BONDS MADE PERMANENT.

    (a) Short Title.--This section may be cited as the ``Build America 
Bonds Act of 2014''.
    (b) Build America Bonds Made Permanent.--
            (1) In general.--Subparagraph (B) of section 54AA(d)(1) of 
        the Internal Revenue Code of 1986 is amended by inserting ``or 
        on or after the date of the enactment of the Build America 
        Bonds Act of 2014,'' after ``January 1, 2011,''.
            (2) Reduction in credit percentage to bondholders.--
        Subsection (b) of section 54AA of such Code is amended to read 
        as follows:
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any interest payment date 
        for a build America bond is the applicable percentage of the 
        amount of interest payable by the issuer with respect to such 
        date.
            ``(2) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage shall be determined under the 
        following table:

``In the case of a bond issued                           The applicable
  during calendar year:                                  percentage is:
        2009 or 2010...........................................     35 
        2013...................................................     32 
        2014...................................................     31 
        2015...................................................     30 
        2016...................................................     29 
        2017 and thereafter....................................  28.''.
            (3) Extension of payments to issuers.--
                    (A) In general.--Section 6431 of such Code is 
                amended--
                            (i) by inserting ``or on or after the date 
                        of the enactment of the Build America Bonds Act 
                        of 2014,'' after ``January 1, 2011,'' in 
                        subsection (a), and
                            (ii) by striking ``before January 1, 2011'' 
                        in subsection (f)(1)(B) and inserting ``during 
                        a particular period''.
                    (B) Conforming amendments.--Subsection (g) of 
                section 54AA of such Code is amended--
                            (i) by inserting ``or during a period 
                        beginning on or after the date of the enactment 
                        of the Build America Bonds Act of 2014,'' after 
                        ``January 1, 2011,'', and
                            (ii) by striking ``Qualified Bonds Issued 
                        Before 2011'' in the heading and inserting 
                        ``Certain Qualified Bonds''.
            (4) Reduction in percentage of payments to issuers.--
        Subsection (b) of section 6431 of such Code is amended--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
            ``(1) In general.--The Secretary'',
                    (B) by striking ``35 percent'' and inserting ``the 
                applicable percentage'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(2) Applicable percentage.--For purposes of this 
        subsection, the term `applicable percentage' means the 
        percentage determined in accordance with the following table:

``In the case of a qualified bond                        The applicable
  issued during calendar year:                           percentage is:
        2009 or 2010...........................................     35 
        2013...................................................     32 
        2014...................................................     31 
        2015...................................................     30 
        2016...................................................     29 
        2017 and thereafter....................................  28.''.
            (5) Current refundings permitted.--Subsection (g) of 
        section 54AA of such Code is amended by adding at the end the 
        following new paragraph:
            ``(3) Treatment of current refunding bonds.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified bond' includes any bond (or series 
                of bonds) issued to refund a qualified bond if--
                            ``(i) the average maturity date of the 
                        issue of which the refunding bond is a part is 
                        not later than the average maturity date of the 
                        bonds to be refunded by such issue,
                            ``(ii) the amount of the refunding bond 
                        does not exceed the outstanding amount of the 
                        refunded bond, and
                            ``(iii) the refunded bond is redeemed not 
                        later than 90 days after the date of the 
                        issuance of the refunding bond.
                    ``(B) Applicable percentage.--In the case of a 
                refunding bond referred to in subparagraph (A), the 
                applicable percentage with respect to such bond under 
                section 6431(b) shall be the lowest percentage 
                specified in paragraph (2) of such section.
                    ``(C) Determination of average maturity.--For 
                purposes of subparagraph (A)(i), average maturity shall 
                be determined in accordance with section 
                147(b)(2)(A).''.
            (6) Clarification related to levees and flood control 
        projects.--Subparagraph (A) of section 54AA(g)(2) of such Code 
        is amended by inserting ``(including capital expenditures for 
        levees and other flood control projects)'' after ``capital 
        expenditures''.
            (7) Gross-up of payment to issuers in case of 
        sequestration.--In the case of any payment under section 
        6431(b) of the Internal Revenue Code of 1986 made after the 
        date of the 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 one by the 
                amount by which one exceeds the percentage reduction in 
                such payment pursuant to such 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.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued on or after the date of the enactment of 
this Act.

SEC. 203. PERMANENT EXTENSION OF RESEARCH CREDIT; INCREASE IN 
              ALTERNATIVE SIMPLIFIED RESEARCH CREDIT.

    (a) Permanent Extension.--
            (1) In general.--Section 41 of the Internal Revenue Code of 
        1986 is amended by striking subsection (h).
            (2) Conforming amendments.--Such Code is amended--
                    (A) in section 41(c) by striking paragraph (4) and 
                redesignating paragraphs (5) and (6) as paragraphs (4) 
                and (5), respectively;
                    (B) in section 41(c)(4), as so redesignated, by 
                striking the second sentence of subparagraph (C); and
                    (C) in paragraph (1) of section 45C(b) by striking 
                subparagraph (D).
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred after December 31, 
        2013.
    (b) Increase in Alternative Simplified Research Credit.--
            (1) In general.--Subparagraph (A) of section 41(c)(4) of 
        such Code, as redesignated by subsection (a), is amended by 
        striking ``14 percent (12 percent in the case of taxable years 
        ending before January 1, 2009)'' and inserting ``17 percent''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.

SEC. 204. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY FACILITIES.

    (a) Bonds for Water and Sewage Facilities Exempt From Volume Cap on 
Private Activity Bonds.--
            (1) In general.--Paragraph (3) of section 146(g) of the 
        Internal Revenue Code of 1986 is amended by inserting ``(4), 
        (5),'' after ``(2),''.
            (2) Conforming amendment.--Paragraphs (2) and (3)(B) of 
        section 146(k) are both amended by striking ``(4), (5), (6), 
        or'' and inserting ``(6)''.
    (b) Tax-Exempt Issuance by Indian Tribal Governments.--
            (1) In general.--Subsection (c) of section 7871 of the 
        Internal Revenue Code of 1986 is amended by adding at the end 
        the following new paragraph:
            ``(4) Exception for bonds for water and sewage 
        facilities.--Paragraph (2) shall not apply to an exempt 
        facility bond 95 percent or more of the net proceeds (as 
        defined in section 150(a)(3)) of which are to be used to 
        provide facilities described in paragraph (4) or (5) of section 
        142(a).''.
            (2) Conforming amendment.--Paragraph (2) of section 7871(c) 
        is amended by striking ``paragraph (3)'' and inserting 
        ``paragraphs (3) and (4)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued on or after the date of the enactment of 
this Act.

SEC. 205. REPEAL OF ALTERNATIVE MINIMUM TAX ON PRIVATE ACTIVITY BONDS.

    (a) In General.--Subsection (a) of section 57 of the Internal 
Revenue Code of 1986 is amended by striking paragraph (5).
    (b) Conforming Amendments.--
            (1) Subparagraph (B) of section 1(g)(7) of such Code is 
        amended by adding ``and'' at the end of clause (i), by striking 
        ``, and'' at the end of clause (ii) and inserting a period, and 
        by striking clause (iii).
            (2) Subclause (II) of section 53(d)(1)(B)(ii) of such Code 
        is amended by striking ``, (5)''.
            (3) Subparagraph (C) of section 56(b)(1) of such Code is 
        amended by striking clause (iii) and redesignating clauses (iv) 
        and (v) as clauses (iii) and (iv), respectively.
            (4) Paragraph (3) of section 148(b) of such Code is amended 
        to read as follows:
            ``(3) Exception for tax-exempt bonds.--The term `investment 
        property' does not include any tax-exempt bond.''.
            (5) Subparagraph (B)(i) of section 149(g)(3) of such Code 
        is amended to read as follows:
                            ``(i) In general.--Such term shall not 
                        include any bond issued as part of an issue 95 
                        percent of the net proceeds of which are 
                        invested in bonds the interest on which is not 
                        includible in gross income under section 
                        103.''.
            (6) Paragraph (5) of section 1400L(d) of such Code is 
        amended by striking subparagraph (E).
            (7) Paragraph (5) of section 1400N(a) of such Code is 
        amended by striking subparagraph (G).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

                       TITLE III--SKILLS TRAINING

SEC. 301. JOB TRAINING TAX 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. JOB TRAINING CREDIT.

    ``(a) In General.--For the purposes of section 38, the job training 
credit determined under this section for the taxable year is an amount 
equal to 100 percent of the qualified training expenses paid by the 
qualifying taxpayer during the taxable year.
    ``(b) Limitation.--The credit allowed under subsection (a) with 
respect to any eligible trainee of the qualifying taxpayer shall not 
exceed the excess (if any) of $4,000 over the aggregate credit allowed 
to such taxpayer under this section with respect to such eligible 
trainee for all prior taxable years.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified training expenses.--
                    ``(A) In general.--The term `qualified training 
                expenses' means, with respect to any eligible trainee 
                of the qualifying taxpayer, expenses paid or incurred 
                by such taxpayer for qualified tuition costs of such 
                eligible trainee.
                    ``(B) Qualified tuition costs.--The term `qualified 
                tuition costs' means costs for books and enrollment in 
                a training program at a qualified educational 
                organization, the outcome of which, if completed, will 
                provide the eligible trainee a certificate or 
                credential recognized by a State accrediting body, 
                Federal Apprenticeship Agency, or any other national 
                accrediting body recognized by the Department of 
                Education as an independent, third-party accrediting 
                body. Such training program--
                            ``(i) may include a single course, multiple 
                        courses, or a combination of work training and 
                        study, and
                            ``(ii) must be reasonably necessary for 
                        employment in a position based in the United 
                        States for which the qualifying taxpayer is 
                        currently hiring.
                    ``(C) Qualified educational organization.--The term 
                `qualified educational organization' means any 
                educational organization described in section 101 of 
                the Higher Education Act of 1965.
            ``(2) Qualifying taxpayer.--The term `qualifying taxpayer' 
        means any taxpayer who provides, with respect to any eligible 
        trainee, such documentation as required by the Secretary 
        regarding qualified training expenses and proof of unemployment 
        status as described in paragraph (3)(A).
            ``(3) Eligible trainee.--The term `eligible trainee' means 
        any individual who--
                    ``(A) has been unemployed for at least 90 days 
                immediately preceding the date of enrollment in a 
                training program described in paragraph (1)(B), and
                    ``(B) had not been employed by the qualifying 
                taxpayer at any time prior to such enrollment date.
    ``(d) Special Rules.--
            ``(1) Denial of double benefit.--No deduction shall be 
        allowed under this chapter for the portion of the expenses 
        otherwise allowable as a deduction that are taken into account 
        in determining the credit under this section for the taxable 
        year.
            ``(2) Aggregation.--For purposes of this section, all 
        persons treated as a single employer under subsection (a) or 
        (b) or section 52, or subsection (m) or (o) of section 414, 
        shall be treated as one person.
            ``(3) Treatment of expenses as educational assistance 
        program.--Qualified training expenses shall be treated as an 
        educational assistance program for purposes of section 127.
    ``(e) Election To Have Credit Not Apply.--A taxpayer may elect (at 
such time and in such manner as the Secretary may by regulations 
prescribe) to have this section not apply for any taxable year.
    ``(f) Termination.--This section shall not apply to expenses paid 
after December 31, 2016.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of the Internal Revenue Code of 1986 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 job training credit determined under section 
        45S(a).''.
    (c) Credit Allowed Against Alternative Minimum Tax.--Section 
38(c)(4)(B) of the Internal Revenue Code of 1986, as amended by section 
206, is amended by redesignating clauses (viii), (ix), and (x) as 
clauses (ix), (x), and (xi), respectively, and by inserting after 
clause (vii) the following new clause:
                            ``(viii) the credit determined under 
                        section 45S,''.
    (d) Technical Amendment.--Section 6501(m) of the Internal Revenue 
Code of 1986 is amended by inserting ``45S(e),'' after ``45H(g),''.
    (e) Clerical Amendment.--The table of sections for 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 item:

``Sec. 45S. Job training credit.''.
    (f) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to expenses paid or incurred after the date of the 
        enactment of this Act, in taxable years ending after such date.
            (2) Minimum tax.--The amendments made by subsection (c) 
        shall apply to credits determined under section 45S of the 
        Internal Revenue Code of 1986 in taxable years ending after the 
        date of the enactment of this Act, and to carrybacks of such 
        credits.

SEC. 302. QUALIFIED JOB TRAINING PARTNERSHIPS CREDIT.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 48D the following new section:

``SEC. 48E. QUALIFIED JOB TRAINING PARTNERSHIPS CREDIT.

    ``(a) In General.--For purposes of section 46, the Qualified Job 
Training Partnership credit for any taxable year is an amount equal to 
the percentage determined by the Secretary (not to exceed 100 percent) 
of the qualified investment for such taxable year with respect to any 
Qualified Job Training Partnership.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the aggregate 
        amount of the costs paid or incurred in such taxable year by 
        one or more eligible private business employers for expenses 
        necessary for and directly related to the conduct of a 
        Qualified Job Training Partnership in the form of contributions 
        of cash, cash equivalent, equipment, or any combination of the 
        three where 100 percent of the investment is used for the 
        planning, implementation, or operation of a Qualified Job 
        Training Partnership and the training financed through the 
        investment must result in a type of certificate or credential 
        recognized by a State accrediting body, Federal Apprenticeship 
        Agency, or any other national accrediting body recognized by 
        the Department of Education as an independent, third-party 
        accrediting body.
            ``(2) Limitation.--The amount which is treated as qualified 
        investment for all taxable years with respect to any Qualified 
        Job Training Partnership shall not exceed the amount certified 
        by the Secretary as eligible for the credit under this section.
            ``(3) Exclusions.--The qualified investment for any taxable 
        year with respect to any Qualified Job Training Partnership 
        shall not take into account any cost for student tuition or for 
        any other expense as determined by the Secretary as appropriate 
        to carry out the purposes of this section.
            ``(4) Certain progress expenditure rules made applicable.--
        In the case of costs described in paragraph (1) that are paid 
        for property of a character subject to an allowance for 
        depreciation, rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the date 
        of the enactment of the Revenue Reconciliation Act of 1990) 
        shall apply for purposes of this section.
    ``(c) Qualified Job Training Partnership.--
            ``(1) In general.--The term `Qualified Job Training 
        Partnership' means a formal or informal partnership between at 
        least 1 eligible private business employer and--
                    ``(A) 1 qualified educational institution, or
                    ``(B) 1 labor organization (as defined in section 
                2(5) of the National Labor Relations Act),
        where the stated goal of the partnership is to train students 
        in job-ready skills.
            ``(2) Eligible private business employer.--The term 
        `eligible private business employer' means--
                    ``(A) a business entity at least 50 percent of the 
                gross income of which is derived from qualified 
                production activities (within the meaning of section 
                199(c)), or
                    ``(B) any type of domestic business entity the 
                average number of full-time employees of which for the 
                taxable year is not more than 500.
            ``(3) Qualified educational institution.--The term 
        `qualified educational institution' means any institution of 
        higher education described in section 101 of the Higher 
        Education Act of 1965 which provides a 2-year program that 
        culminates in an associate degree.
    ``(d) Qualified Job Training Partnership Program.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 60 days after the 
                date of the enactment of this section, the Secretary, 
                in consultation with the Secretary of Labor, shall 
                establish a Qualified Job Training Partnership program 
                to consider and award certifications for qualified 
                investments eligible for credits under this section to 
                Qualified Job Training Partnerships.
                    ``(B) Limitation.--The total amount of credits that 
                may be allocated under the program shall not exceed 
                $1,000,000,000.
            ``(2) Certification.--
                    ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit an 
                application containing such information as the 
                Secretary may require during the period beginning on 
                the date the Secretary establishes the program under 
                paragraph (1).
                    ``(B) Time for review of applications.--The 
                Secretary shall take action to approve or deny any 
                application under subparagraph (A) within 30 days of 
                the submission of such application.
                    ``(C) Multi-year applications.--An application for 
                certification under subparagraph (A) may include a 
                request for an allocation of credits for more than 1 
                year.
            ``(3) Selection criteria.--In determining the Qualified Job 
        Training Partnerships with respect to which qualified 
        investments may be certified under this section, the 
        Secretary--
                    ``(A) shall give priority to those applications 
                which demonstrate--
                            ``(i) the greatest probability that those 
                        who complete the program will secure 
                        employment;
                            ``(ii) the greatest potential for providing 
                        workers who complete the program with skills 
                        that can provide long-term job and income 
                        security;
                            ``(iii) the strongest market demand for the 
                        type of training offered;
                            ``(iv) the greatest probability that the 
                        program would create a net increase in job 
                        training opportunities;
                            ``(v) a strong need in the community for 
                        skills training;
                            ``(vi) the ability to allow nontraditional 
                        learners to complete the training; and
                            ``(vii) the ability and capacity to 
                        implement the program in a reasonable period of 
                        time; and
                    ``(B) shall take into additional consideration 
                which applications show--
                            ``(i) the ability to leverage additional 
                        sources of capital; and
                            ``(ii) the greatest ability to offer 
                        training programs that result in a certificate 
                        or credential (within the meaning of subsection 
                        (b)(1)) that is stackable or portable or both.
            ``(4) Review and additional allocation.--
                    ``(A) Review.--Not later than 1 year after the date 
                of enactment of this section, the Secretary shall 
                review the credits allocated under this section as of 
                such date.
                    ``(B) Additional allocation.--If the Secretary 
                determines at the time of the review that credits under 
                this section are available for allocation pursuant to 
                the requirements set forth in paragraph (2), the 
                Secretary is authorized to allocate such available 
                credits through the conduct of an additional program or 
                programs for applications for certification.
            ``(5) Disclosure of allocations.--The Secretary shall, upon 
        making a certification under this subsection, publicly disclose 
        the identity of the applicant and the amount of the credit with 
        respect to such applicant.
    ``(e) Special Rules.--
            ``(1) Basis adjustment.--For purposes of this subtitle, if 
        a credit is allowed under this section for an expenditure 
        related to property of a character subject to an allowance for 
        depreciation, the basis of such property shall be reduced by 
        the amount of such credit.
            ``(2) Denial of double benefit.--
                    ``(A) Bonus depreciation.--A credit shall not be 
                allowed under this section for any investment for which 
                bonus depreciation is allowed under section 168(k), 
                1400L(b)(1), or 1400N(d)(1).
                    ``(B) Deductions.--No deduction under this subtitle 
                shall be allowed for the portion of the expenses 
                otherwise allowable as a deduction taken into account 
                in determining the credit under this section for the 
                taxable year which is equal to the amount of the credit 
                determined for such taxable year under subsection (a) 
                attributable to such portion. This subparagraph shall 
                not apply to expenses related to property of a 
                character subject to an allowance for depreciation the 
                basis of which is reduced under paragraph (1).''.
    (b) Inclusion as Part of Investment Credit.--Section 46 of the 
Internal Revenue Code of 1986 is amended--
            (1) by adding a comma at the end of paragraph (4),
            (2) by striking ``and'' at the end of paragraph (5),
            (3) by striking the period at the end of paragraph (6) and 
        inserting ``, and'', and
            (4) by adding at the end the following new paragraph:
            ``(7) the Qualified Job Training Partnerships credit.''.
    (c) Conforming Amendment.--Section 49(a)(1)(C) of the Internal 
Revenue Code of 1986 is amended by striking ``and'' at the end of 
clause (v), by striking the period at the end of clause (vi) and 
inserting ``, and'', and by adding at the end the following new clause:
                            ``(vii) the basis of any property to which 
                        paragraph (1) of section 48E(e) applies which 
                        is part of a Qualified Job Training Partnership 
                        under such section 48E.''.
    (d) Clerical Amendment.--The table of sections for subpart E of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 48D the 
following new item:

``Sec. 48E. Qualified Job Training Partnership credit.''.
    (e) Grants for Qualified Investments in Qualified Job Training 
Partnerships in Lieu of Tax Credits.--
            (1) In general.--Upon application, the Secretary of the 
        Treasury shall, subject to the requirements of this subsection, 
        provide a grant to each person who makes a qualified investment 
        in a Qualified Job Training Partnership in an amount not to 
        exceed 100 percent of such investment.
            (2) Application.--
                    (A) In general.--At the stated election of the 
                applicant, an application for certification under 
                section 48E(d)(2) of the Internal Revenue Code of 1986 
                for a credit under such section for any taxable year 
                shall be considered to be an application for a grant 
                under paragraph (1) for such taxable year.
                    (B) Submission date.--An application for a grant 
                under paragraph (1) for any taxable year shall be 
                submitted--
                            (i) not earlier than the day after the last 
                        day of such taxable year, and
                            (ii) not later than the due date (including 
                        extensions) for filing the return of tax for 
                        such taxable year.
                    (C) Information to be submitted.--An application 
                for a grant under paragraph (1) shall include such 
                information and be in such form as the Secretary of the 
                Treasury may require to state the amount of the credit 
                allowable (but for the receipt of a grant under this 
                subsection) under section 48E for the taxable year for 
                the qualified investment with respect to which such 
                application is made.
            (3) Time for payment of grant.--
                    (A) In general.--The Secretary of the Treasury 
                shall make payment of the amount of any grant under 
                paragraph (1) during the 30-day period beginning on the 
                later of--
                            (i) the date of the application for such 
                        grant, or
                            (ii) the date the qualified investment for 
                        which the grant is being made is made.
                    (B) Regulations.--In the case of investments of an 
                ongoing nature, the Secretary of the Treasury shall 
                issue regulations to determine the date on which a 
                qualified investment shall be deemed to have been made 
                for purposes of this paragraph.
            (4) Qualified investment.--For purposes of this subsection, 
        the term ``qualified investment'' means a qualified investment 
        that is certified under section 48E(d) of the Internal Revenue 
        Code of 1986 for purposes of the credit under such section 48E.
            (5) Application of certain rules.--
                    (A) In general.--In making grants under this 
                subsection, the Secretary of the Treasury shall apply 
                rules similar to the rules of section 50 of the 
                Internal Revenue Code of 1986. In applying such rules, 
                any increase in tax under chapter 1 of such Code by 
                reason of an investment ceasing to be a qualified 
                investment shall be imposed on the person to whom the 
                grant was made.
                    (B) Special rules.--
                            (i) Recapture of excessive grant amounts.--
                        If the amount of a grant made under this 
                        subsection exceeds the amount allowable as a 
                        grant under this subsection, such excess shall 
                        be recaptured under subparagraph (A) as if the 
                        investment to which such excess portion of the 
                        grant relates had ceased to be a qualified 
                        investment immediately after such grant was 
                        made.
                            (ii) Grant information not treated as 
                        return information.--In no event shall the 
                        amount of a grant made under paragraph (1), the 
                        identity of the person to whom such grant was 
                        made, or a description of the investment with 
                        respect to which such grant was made be treated 
                        as return information for purposes of section 
                        6103 of the Internal Revenue Code of 1986.
            (6) Secretary.--Any reference in this subsection to the 
        Secretary of the Treasury shall be treated as including the 
        Secretary's delegate.
            (7) Other terms.--Any term used in this subsection which is 
        also used in section 48E of the Internal Revenue Code of 1986 
        shall have the same meaning for purposes of this subsection as 
        when used in such section.
            (8) Denial of double benefit.--No credit shall be allowed 
        under section 46(7) of the Internal Revenue Code of 1986 by 
        reason of section 48E of such Code for any investment for which 
        a grant is awarded under this subsection.
            (9) Appropriations.--There is hereby appropriated to the 
        Secretary of the Treasury such sums as may be necessary to 
        carry out this subsection.
    (f) Effective Date.--The amendments made by subsections (a) through 
(d) of this section shall apply to amounts paid or incurred after the 
date of the enactment of this Act, in taxable years beginning after 
such date.

                       TITLE IV--TRADE PROVISIONS

SEC. 401. FINDINGS; SENSE OF CONGRESS ON APPLICABILITY OF TRADE 
              AUTHORITIES PROCEDURES TO A BILL IMPLEMENTING A TRADE AND 
              INVESTMENT AGREEMENT WITH THE EUROPEAN UNION.

    (a) Findings.--Congress finds the following:
            (1) The United States and the European Union (EU) maintain 
        a very strong and beneficial commercial relationship.
            (2) The United States-EU relationship supports a combined 
        13 million jobs, and nearly $4 trillion in investment.
            (3) The economies of the United States and the EU each 
        generate more than $16 trillion, which represents 45 percent of 
        global gross domestic product, and over one-third of global 
        trade and investment flows.
            (4) The United States-EU single commercial relationship is 
        the world's largest and the EU remains the largest market for 
        United States exports and the largest source of imports into 
        the United States.
            (5) Congress welcomes the work of the High Level Working 
        Group report and the decision of President Obama to launch 
        negotiations for a potential bilateral trade agreement.
            (6) The Transatlantic Trade and Investment Partnership 
        (TTIP) represents a key strategic opportunity for the United 
        States and the EU.
            (7) The groundbreaking TTIP will deepen ties between the 
        United States and the EU, increase exports, grow both 
        economies, and support hundreds of thousands of jobs on both 
        sides of the Atlantic Ocean.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the applicability of section 151 of the Trade Act of 
        1974 (19 U.S.C. 2191; relating to trade authorities procedures) 
        to a bill implementing a trade and investment agreement with 
        the European Union (EU) resulting from negotiations with the 
        EU, as notified to the United States Congress on March 20, 
        2013, should be determined without regard to any prenegotiation 
        notification and consultation requirements that would otherwise 
        be applicable; and
            (2) the Administration should press for a quick conclusion 
        of this comprehensive and ambitious agreement.

SEC. 402. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAM.

    (a) Extension of Termination Provisions.--Section 285 of the Trade 
Act of 1974 (19 U.S.C. 2271 note) is amended by striking ``2013'' each 
place it appears and inserting ``2020''.
    (b) Training Funds.--Section 236(a)(2)(A) of the Trade Act of 1974 
(19 U.S.C. 2296(a)(2)(A)) is amended--
            (1) in clause (i), by striking ``and 2013'' and inserting 
        ``through 2020''; and
            (2) in clause (ii), by striking ``2013'' each place it 
        appears and inserting ``2020''.
    (c) Reemployment Trade Adjustment Assistance.--Section 246(b)(1) of 
the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking 
``2013'' and inserting ``2020''.
    (d) Authorizations of Appropriations.--
            (1) Trade adjustment assistance for workers.--Section 
        245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) is amended 
        by striking ``2013'' and inserting ``2020''.
            (2) Trade adjustment assistance for firms.--Section 255(a) 
        of the Trade Act of 1974 (19 U.S.C. 2345(a)) is amended--
                    (A) by striking ``and 2013'' and inserting 
                ``through 2020''; and
                    (B) by striking ``October 1, 2013, and ending on 
                December 31, 2013'' and inserting ``October 1, 2020, 
                and ending on December 31, 2020''.
            (3) Trade adjustment assistance for farmers.--Section 
        298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is 
        amended--
                    (A) by striking ``and 2013'' and inserting 
                ``through 2020''; and
                    (B) by striking ``October 1, 2013, and ending on 
                December 31, 2013'' and inserting ``October 1, 2020, 
                and ending on December 31, 2020''.
    (e) Amendments to Trade Adjustment Assistance Extension Act of 
2011.--
            (1) Application of prior law.--Section 233(a) of the Trade 
        Adjustment Assistance Extension Act of 2011 (title II of Public 
        Law 112-40; 125 Stat. 416; 19 U.S.C. 2271 note prec.) is 
        amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``2014'' and inserting ``2021''; and
                    (B) by striking paragraphs (3) through (7) and 
                inserting the following:
            ``(3) section 245(a) of that Act shall be applied and 
        administered by substituting `2021' for `2007';
            ``(4) section 246(b)(1) of that Act shall be applied and 
        administered by substituting `December 31, 2021' for `the date 
        that is 5 years' and all that follows through `State';
            ``(5) section 256(b) of that Act shall be applied and 
        administered by substituting `the 1-year period beginning on 
        January 1, 2021' for `each of fiscal years 2003 through 2007, 
        and $4,000,000 for the 3-month period beginning on October 1, 
        2007';
            ``(6) section 298(a) of that Act shall be applied and 
        administered by substituting `the 1-year period beginning on 
        January 1, 2021' for `each of the fiscal years' and all that 
        follows through `October 1, 2007'; and
            ``(7) section 285 of that Act shall be applied and 
        administered--
                    ``(A) in subsection (a), by substituting `2021' for 
                `2007' each place it appears; and
                    ``(B) by applying and administering subsection (b) 
                as if it read as follows:
    ```(b) Other Assistance.--
            ```(1) Assistance for firms.--
                    ```(A) In general.--Except as provided in 
                subparagraph (B), assistance may not be provided under 
                chapter 3 after December 31, 2021.
                    ```(B) Exception.--Notwithstanding subparagraph 
                (A), any assistance approved under chapter 3 on or 
                before December 31, 2021, may be provided--
                            ```(i) to the extent funds are available 
                        pursuant to such chapter for such purpose; and
                            ```(ii) to the extent the recipient of the 
                        assistance is otherwise eligible to receive 
                        such assistance.
            ```(2) Farmers.--
                    ```(A) In general.--Except as provided in 
                subparagraph (B), assistance may not be provided under 
                chapter 6 after December 31, 2021.
                    ```(B) Exception.--Notwithstanding subparagraph 
                (A), any assistance approved under chapter 6 on or 
                before December 31, 2021, may be provided--
                            ```(i) to the extent funds are available 
                        pursuant to such chapter for such purpose; and
                            ```(ii) to the extent the recipient of the 
                        assistance is otherwise eligible to receive 
                        such assistance.'.''.
            (2) Continuation of benefits.--Section 233(b) of the Trade 
        Adjustment Assistance Extension Act of 2011 is amended by 
        striking ``2014'' each place it appears and inserting ``2021''.

         TITLE V--MINIMUM WAGE INCREASE AND BUSINESS TAX RELIEF

SEC. 501. MINIMUM WAGE INCREASES.

    (a) Minimum Wage.--
            (1) In general.--Section 6(a)(1) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read 
        as follows:
            ``(1) except as otherwise provided in this section, not 
        less than--
                    ``(A) $8.20 an hour, beginning on the first day of 
                the first month that begins 1 year after the date of 
                enactment of the Invest in United States Act of 2014;
                    ``(B) $9.15 an hour, beginning 1 year after that 
                first day;
                    ``(C) $10.10 an hour, beginning 2 years after that 
                first day; and
                    ``(D) beginning on the date that is 3 years after 
                that first day, and annually thereafter, the amount 
                determined by the Secretary pursuant to subsection 
                (h);''.
            (2) Determination based on increase in the consumer price 
        index.--Section 6 of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 206) is amended by adding at the end the following:
    ``(h)(1) Each year, by not later than the date that is 90 days 
before a new minimum wage determined under subsection (a)(1)(D) is to 
take effect, the Secretary shall determine the minimum wage to be in 
effect pursuant to this subsection for the subsequent 1-year period. 
The wage determined pursuant to this subsection for a year shall be--
            ``(A) not less than the amount in effect under subsection 
        (a)(1) on the date of such determination;
            ``(B) increased from such amount by the annual percentage 
        increase in the Consumer Price Index for Urban Wage Earners and 
        Clerical Workers (United States city average, all items, not 
        seasonally adjusted), or its successor publication, as 
        determined by the Bureau of Labor Statistics; and
            ``(C) rounded to the nearest multiple of $0.05.
    ``(2) In calculating the annual percentage increase in the Consumer 
Price Index for purposes of paragraph (1)(B), the Secretary shall 
compare such Consumer Price Index for the most recent month, quarter, 
or year available (as selected by the Secretary prior to the first year 
for which a minimum wage is in effect pursuant to this subsection) with 
the Consumer Price Index for the same month in the preceding year, the 
same quarter in the preceding year, or the preceding year, 
respectively.''.
    (b) Base Minimum Wage for Tipped Employees.--Section 3(m)(1) of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(1)) is amended to 
read as follows:
            ``(1) the cash wage paid such employee, which for purposes 
        of such determination shall be not less than--
                    ``(A) for the 1-year period beginning on the first 
                day of the third month that begins after the date of 
                enactment of the Fair Minimum Wage and Business Tax 
                Relief Act of 2013, $3.00 an hour;
                    ``(B) for each succeeding 1-year period until the 
                hourly wage under this paragraph equals 50 percent of 
                the wage in effect under section 6(a)(1) for such 
                period, an hourly wage equal to the amount determined 
                under this paragraph for the preceding year, increased 
                by the lesser of--
                            ``(i) $0.50; or
                            ``(ii) the amount necessary for the wage in 
                        effect under this paragraph to equal 50 percent 
                        of the wage in effect under section 6(a)(1) for 
                        such period, rounded to the nearest multiple of 
                        $0.05; and
                    ``(C) for each succeeding 1-year period after the 
                year in which the hourly wage under this paragraph 
                first equals 50 percent of the wage in effect under 
                section 6(a)(1) for the same period, the amount 
                necessary to ensure that the wage in effect under this 
                paragraph remains equal to 50 percent of the wage in 
                effect under section 6(a)(1), rounded to the nearest 
                multiple of $0.05; and''.
    (c) Publication of Notice.--Section 6 of the Fair Labor Standards 
Act of 1938 (as amended by subsection (a)) (29 U.S.C. 206) is further 
amended by adding at the end the following:
    ``(i) Not later than 60 days prior to the effective date of any 
increase in the minimum wage determined under subsection (h) or 
required for tipped employees in accordance with subparagraph (B) or 
(C) of section 3(m)(1), as amended by the Fair Minimum Wage and 
Business Tax Relief Act of 2013, the Secretary shall publish in the 
Federal Register and on the website of the Department of Labor a notice 
announcing the adjusted required wage.''.
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the first day of the first month that begins 1 
year after the date of enactment of this Act.

SEC. 502. WORK OPPORTUNITY CREDIT MADE PERMANENT.

    (a) In General.--Section 51(c) of the Internal Revenue Code of 1986 
is amended by striking paragraph (4).
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to individuals who begin work for the employer after December 31, 
2013.

SEC. 503. INCREASED EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN REAL 
              PROPERTY AS SECTION 179 PROPERTY MADE PERMANENT.

    (a) In General.--Subsection (b) of section 179 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``shall not exceed--'' and all that follows 
        in paragraph (1) and inserting ``shall not exceed $500,000.'', 
        and
            (2) by striking ``exceeds--'' and all that follows in 
        paragraph (2) and inserting ``exceeds $2,000,000.''.
    (b) Computer Software.--Clause (ii) of section 179(d)(1)(A) of such 
Code is amended by striking ``and which is placed in service in a 
taxable year beginning after 2002 and before 2014,''.
    (c) Special Rules for Treatment of Qualified Real Property.--
Subsection (f) of section 179 of such Code is amended--
            (1) by striking ``beginning in 2010, 2011, 2012, or 2013'' 
        in paragraph (1), and
            (2) by striking paragraph (4).
    (d) Election.--Paragraph (2) of section 179(c) of such Code is 
amended to read as follows:
            ``(2) Revocation of election.--Any election made under this 
        section, and any specification contained in any such election, 
        may be revoked by the taxpayer with respect to any property, 
        and such revocation, once made, shall be irrevocable.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.

SEC. 504. PERMANENT EXTENSION OF TREATMENT OF QUALIFIED LEASEHOLD 
              IMPROVEMENT PROPERTY, QUALIFIED RESTAURANT PROPERTY, AND 
              QUALIFIED RETAIL IMPROVEMENT PROPERTY AS 15-YEAR PROPERTY 
              FOR PURPOSES OF DEPRECIATION DEDUCTION.

    (a) Qualified Leasehold Improvement Property.--Clause (iv) of 
section 168(e)(3)(E) of the Internal Revenue Code of 1986 is amended by 
striking ``placed in service before January 1, 2014''.
    (b) Qualified Restaurant Property.--Clause (v) of section 
168(e)(3)(E) of the Internal Revenue Code of 1986 is amended by 
striking ``placed in service before January 1, 2014''.
    (c) Qualified Retail Improvement Property.--Clause (ix) of section 
168(e)(3)(E) of the Internal Revenue Code of 1986 is amended by 
striking ``, and before January 1, 2014''.
    (d) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.
                                 <all>
```