American Infrastructure Bonds Act of 2023

To amend the Internal Revenue Code of 1986 to provide a credit to issuers of American infrastructure bonds. 1. Short title This Act may be cited as the American Infrastructure Bonds Act of 2023 2. Credit for American infrastructure bonds allowed to issuers (a) In general Subchapter B of chapter 65 6431. Credit to issuer of american infrastructure bonds (a) In general The issuer of an American infrastructure bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b). (b) Payment of credit (1) In general The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 28 percent of the interest payable under such bond on such date. (2) Interest payment date For purposes of this subsection, the term interest payment date (c) American infrastructure bond (1) In general For purposes of this section, the term American infrastructure bond (A) the interest on such obligation would (but for this section) be excludable from gross income under section 103, (B) the obligation is not a private activity bond, and (C) the issuer makes an irrevocable election to have this section apply. (2) Applicable rules For purposes of applying paragraph (1)— (A) for purposes of section 149(b), a bond shall not be treated as federally guaranteed by reason of the credit allowed under this section, and (B) a bond shall not be treated as an American infrastructure bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond. (d) Special rules (1) Interest on American infrastructure bonds includible in gross income for Federal income tax purposes For purposes of this title, interest on any American infrastructure bond shall be includible in gross income. (2) Application of arbitrage rules For purposes of section 148, the yield on an issue of American infrastructure bonds shall be reduced by the credit allowed under this section, except that no such reduction shall apply with respect to determining the amount of gross proceeds of an issue that qualifies as a reasonably required reserve or replacement fund. (e) Regulations The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section. . (b) Conforming amendments (1) The table of sections for subchapter B of chapter 65 of subtitle F of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 6431. Credit to issuer of american infrastructure bonds. . (2) Subparagraph (A) of section 6211(b)(4) of such Code is amended by inserting 6431, 6428B, (c) Transitional coordination with state law Except as otherwise provided by a State after the date of the enactment of this Act, the interest on any American infrastructure bond (as defined in section 6431 (d) Adjustment to payment to issuers in case of sequestration (1) In general In the case of any payment under subsection (b) of section 6431 (A) such payment (determined before such sequestration), multiplied by (B) the quotient obtained by dividing the number 1 by the amount by which the number 1 exceeds the percentage reduction in such payment pursuant to such sequestration. (2) Sequestration For purposes of this subsection, the term sequestration (e) Effective date The amendments made by this section shall apply to obligations issued after the date of enactment of this Act.

Summary: American Infrastructure Bonds Act of 2023 This bill allows the issuer of an American infrastructure bond a tax credit for 28% of the interest payable under such bond.