I 
118TH CONGRESS 
2D SESSION 
H. R. 9698 
To amend the Internal Revenue Code of 1986 to provide for school 
infrastructure finance and innovation tax credit bonds. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 19, 2024 
Mr. HUDSON (for himself and Ms. SEWELL) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for school infrastructure finance and innovation tax cred-
it bonds. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘School Infrastructure 
Finance and Innovation Act’’ or the ‘‘SIFIA Act’’. 
SEC. 2. SIFIA BONDS. 
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 1 is amended by adding at the end the following new 
subpart: 
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‘‘Subpart K—SIFIA Bonds 
‘‘Sec. 54BB. SIFIA bonds. 
‘‘SEC. 54BB. SIFIA BONDS. 
‘‘(a) IN GENERAL.—If a taxpayer holds a SIFIA 
bond on one or more credit allowance dates of the bond 
during any taxable year, there shall be allowed as a credit 
against the tax imposed by this chapter for the taxable 
year an amount equal to the sum of the credits determined 
under subsection (b) with respect to such dates. 
‘‘(b) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—The amount of the credit 
determined under this subsection with respect to any 
credit allowance date for a SIFIA bond is 25 percent 
of the annual credit determined for such bond. 
‘‘(2) ANNUAL CREDIT.—For purposes of this 
subsection, the term ‘annual credit’ means an 
amount equal to the product of— 
‘‘(A) the applicable credit rate, multiplied 
by 
‘‘(B) the face amount of the bond. 
‘‘(3) APPLICABLE CREDIT RATE.—For purposes 
of paragraph (2), the term ‘applicable credit rate’ 
means the rate which the Secretary estimates will 
permit the issuance of each such bond with a speci-
fied maturity or redemption date without discount 
and without interest cost to the issuer. The applica-
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ble credit rate with respect to any such bond shall 
be determined as of the first day on which there is 
a binding, written contract for the sale or exchange 
of the bond. 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this part (other than subpart C and this 
subpart). 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) exceeds the 
limitation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year (determined be-
fore the application of paragraph (1) for such suc-
ceeding taxable year). 
‘‘(d) CREDIT ALLOWANCE DATE.—For purposes of 
this section, the term ‘credit allowance date’ means, with 
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respect to a bond during the taxable year, any of the fol-
lowing dates: 
‘‘(1) March 15. 
‘‘(2) June 15. 
‘‘(3) September 15. 
‘‘(4) December 15. 
Such term includes the last day on which the bond is out-
standing. 
‘‘(e) SIFIA BONDS.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘SIFIA bond’ means any bond issued 
as part of an issue if— 
‘‘(A) 100 percent of the available project 
proceeds of such issue are to be used for the de-
sign, construction, expansion, renovation, fur-
nishing, or equipping of qualified school facili-
ties (as defined in paragraph (7)(A) of this sub-
section) pursuant to an agreement under which 
a private, for-profit entity agrees with a State 
or local educational agency— 
‘‘(i) to construct, expand, or renovate 
one or more buildings constituting the 
qualified school facilities (together with 
any related design, furnishing, and equip-
ping of such buildings), 
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