(A) the project is sponsored by a State or 
local government; 
(B) the infrastructure is, or will be, owned 
by a State or local government; 
(C) the project involves the construction, 
maintenance, improvement, or repair of a trans-
portation, energy, water, communications, or 
educational facility; 
(D) the recipient of bond guarantees, 
loans, equity investments, or any other innova-
tive financing technique authorized under this 
Act provides written assurances prescribed by 
the AIF that the project will be performed in 
compliance with the requirements of all Federal 
laws that would otherwise apply to similar 
projects to which the United States is a party; 
and 
(E) in the case of a public transportation 
capital project as defined in section 5302 of 
title 49, United States Code, the recipient of 
bond guarantees, loans, equity investments, or 
any other innovative financing technique au-
thorized under this Act complies with the grant 
requirements applicable to grants made under 
section 5309 of such title. 
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(4) APPLICATION FOR ASSISTANCE.— 
(A) IN GENERAL.—A State or local gov-
ernment that wishes to receive a loan or bond 
guarantee under this section shall submit an 
application to the Board in such form and man-
ner and containing such information as the 
Board may require. 
(B) REQUIREMENT FOR PUBLIC SPONSOR-
SHIP OF PRIVATE ENTITIES.—A private entity 
may only receive a bond guarantee, loan, or eq-
uity investment under this section if the State 
or local government for the jurisdiction in which 
the nonprofit infrastructure provider or private 
partner is located submits an application pursu-
ant to subparagraph (A) on behalf of such non-
profit infrastructure provider or private part-
ner. 
(5) LIMITATIONS ON SINGLE STATE AWARDS.— 
(A) ANNUAL
LIMITATION.—The Board 
shall set an annual limit, as a percentage of 
total assistance provided under this section dur-
ing a year, on the amount of assistance a single 
State (including local governments and other 
infrastructure providers within such State) may 
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receive in assistance provided under this sec-
tion. 
(B) 
CUMULATIVE
LIMITATION.—The 
Board shall set a limit, as a percentage of total 
assistance provided under this section out-
standing at any one time, on the amount of as-
sistance a single State (including local govern-
ments and other infrastructure providers within 
such State) may receive in assistance provided 
under this section. 
(6) LOAN SPECIFICATIONS.—Loans made under 
this section shall have such maturity and carry such 
interest rate as the Board determines appropriate. 
(7) BOND
GUARANTEE.—The Board shall 
charge such fees for Bond guarantees made under 
this section as the Board determines appropriate. 
(8) EQUITY INVESTMENTS.—With respect to a 
QIP, the amount of an equity investment made by 
the AIF in such QIP may not exceed 20 percent of 
the total cost of the QIP. 
(9) PUBLIC-PRIVATE
PARTNERSHIP
REQUIRE-
MENTS.—At least 35 percent of the assistance pro-
vided under this section shall be provided to QIPs 
for which at least 10 percent of the financing for 
such QIPs comes from private debt or equity. 
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(10) PROHIBITION
ON
PRINCIPAL
FORGIVE-
NESS.—With respect to a loan made under this sec-
tion, the Board may not forgive any amount of prin-
cipal on such loan. 
(d) AMERICAN INFRASTRUCTURE BONDS.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary, 
acting through the AIF, shall issue bonds, which 
shall be called ‘‘American Infrastructure Bonds’’. 
The proceeds from the American Infrastructure 
Bonds shall be deposited into the AIF. 
(2) FORMS AND DENOMINATIONS; INTEREST.— 
American Infrastructure Bonds shall— 
(A) be in such forms and denominations as 
determined by the Secretary, and shall have a 
50-year maturity; and 
(B) bear interest of 1 percent. 
(3) NO
FULL
FAITH
AND
CREDIT.—Interest 
and principal payments paid to holders of American 
Infrastructure Bonds shall be paid from the AIF, to 
the extent funds are available, and shall not be 
backed by the full faith and credit of the United 
States. 
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(4) AMOUNT OF BONDS.—The aggregate face 
amount of the bonds issued under this subsection 
shall be $50,000,000,000. 
(5) SALE
OF
AMERICAN
INFRASTRUCTURE 
BONDS.— 
(A) COMPETITIVE
BIDDING
PROCESS.— 
The Secretary shall sell $50,000,000,000 of 
American Infrastructure Bonds— 
(i) through a competitive bidding 
process that encourages aggressive bidding; 
(ii) with prospective purchasers bid-
ding on how low of a multiplier they will 
accept (for purposes of subsection (b)(1) of 
section 966 of the Internal Revenue Code 
of 1986) when purchasing the American 
Infrastructure Bonds, for purposes of ap-
plying the foreign earnings exclusion de-
scribed under that section; and 
(iii) in a manner that ensures no enti-
ties participating in the bidding may 
collude or coordinate their bids. 
(B) 
LIMITATION.—The 
multiplier 
de-
scribed in subparagraph (A)(ii) may not be 
greater than 6. 
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(6) REIMBURSEMENT OF COSTS.—The Board 
shall repay the Secretary, from funds in the AIF, for 
the costs to the Secretary in carrying out this sub-
section. 
(e) ADDITIONAL BONDS.— 
(1) IN GENERAL.—The Board may issue such 
other bonds as the Board determines appropriate, 
the proceeds from which shall be deposited into the 
AIF. 
(2) NO
FULL
FAITH
AND
CREDIT.—Interest 
and principal payments paid to holders of bonds 
issued pursuant to paragraph (1) shall be paid from 
the AIF, to the extent funds are available, and shall 
not be backed by the full faith and credit of the 
United States. 
(f) DEFINITIONS.—For purposes of this section: 
(1) INFRASTRUCTURE
PROVIDER.—The term 
‘‘infrastructure provider’’ means an entity that seeks 
to finance a QIP. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(3) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, any ter-
ritory or possession of the United States, and each 
Federally recognized Indian tribe. 
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SEC. 3. FOREIGN EARNINGS EXCLUSION FOR PURCHASE OF 
INFRASTRUCTURE BONDS. 
(a) IN GENERAL.—Subpart F of part III of sub-
chapter N of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 966. FOREIGN EARNINGS EXCLUSION FOR PURCHASE 
OF INFRASTRUCTURE BONDS. 
‘‘(a) EXCLUSION.—In the case of a corporation which 
is a United States shareholder and for which the election 
under this section is in effect for the taxable year, gross 
income does not include an amount equal to the qualified 
cash dividend amount. 
‘‘(b) QUALIFIED CASH DIVIDEND AMOUNT.—For 
purposes of this section, the term ‘qualified cash dividend 
amount’ means an amount of the cash dividends which 
are received during a taxable year by such shareholder 
from controlled foreign corporations equal to— 
‘‘(1) the multiplier determined under section 
2(d)(5) of the Partnership to Build America Act of 
2017 for such shareholder, multiplied by 
‘‘(2) the face amount of qualified infrastructure 
bonds acquired at its original issue (directly or 
through an underwriter) by such shareholder. 
‘‘(c) LIMITATIONS.— 
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‘‘(1) IN GENERAL.—The amount of dividends 
taken into account under subsection (a) for a tax-
able year shall not exceed the lesser of— 
‘‘(A) the cash dividends received by the 
taxpayer for such taxable year, or 
‘‘(B) the amount shown on the applicable 
financial statement as earnings permanently re-
invested outside the United States. 
‘‘(2) DIVIDENDS MUST BE EXTRAORDINARY.— 
The amount of dividends taken into account under 
subsection (a) shall not exceed the excess (if any) 
of— 
‘‘(A) the cash dividends received during 
the taxable year by such shareholder from con-
trolled foreign corporations, over 
‘‘(B) the annual average for the base pe-
riod years of the cash dividends received during 
each base period year by such shareholder from 
controlled foreign corporations. 
‘‘(3) REDUCTION OF BENEFIT IF INCREASE IN 
RELATED PARTY INDEBTEDNESS.—The amount of 
dividends which would (but for this paragraph) be 
taken into account under subsection (a) shall be re-
duced by the excess (if any) of— 
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‘‘(A) the amount of indebtedness of the 
controlled foreign corporation to any related 
person (as defined in section 954(d)(3)) as of 
the close of the taxable year for which the elec-
tion under this section is in effect, over 
‘‘(B) the amount of indebtedness of the 
controlled foreign corporation to any related 
person (as so defined) as of the close of the pre-
ceding taxable year. 
‘‘(4) TREATMENT
OF
CONTROLLED
FOREIGN 
CORPORATIONS.—All controlled foreign corporations 
with respect to which the taxpayer is a United 
States shareholder shall be treated as 1 controlled 
foreign corporation for purposes of this subsection. 
The Secretary may prescribe such regulations as 
may be necessary or appropriate to prevent the 
avoidance of the purposes of this subsection, includ-
ing regulations providing that cash dividends shall 
not be taken into account under subsection (a) to 
the extent such dividends are attributable to the di-
rect or indirect transfer (including through the use 
of intervening entities or capital contributions) of 
cash or other property from a related person (as so 
defined) to a controlled foreign corporation. 
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‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) QUALIFIED
INFRASTRUCTURE
BONDS.— 
The term ‘qualified infrastructure bond’ means a 
bond issued under section 2(d) of the Partnership to 
Build America Act of 2017. 
‘‘(2) APPLICABLE
FINANCIAL
STATEMENT.— 
The term ‘applicable financial statement’ means, 
with respect to a taxable year— 
‘‘(A) with respect to a United States 
shareholder which is required to file a financial 
statement with the Securities and Exchange 
Commission (or which is included in such a 
statement so filed by another person), the most 
recent audited annual financial statement (in-
cluding the notes which form an integral part 
of such statement) of such shareholder (or 
which includes such shareholder)— 
‘‘(i) which was so filed for such tax-
able year, and 
‘‘(ii) which is certified as being pre-
pared in accordance with generally accept-
ed accounting principles, and 
‘‘(B) with respect to any other United 
States shareholder, the most recent audited fi-
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nancial statement (including the notes which 
form an integral part of such statement) of 
such shareholder (or which includes such share-
holder)— 
‘‘(i) which is certified as being pre-
pared in accordance with generally accept-
ed accounting principles, and 
‘‘(ii) which is used for the purposes of 
a statement or report— 
‘‘(I) to creditors, 
‘‘(II) to shareholders, or 
‘‘(III) for any other substantial 
nontax purpose. 
‘‘(3) BASE PERIOD YEARS.— 
‘‘(A) IN GENERAL.—The base period years 
are the 3 taxable years— 
‘‘(i) which are among the 5 most re-
cent preceding taxable years ending before 
the taxable year, and 
‘‘(ii) which are determined by dis-
regarding— 
‘‘(I) 1 taxable year for which the 
amount 
described 
in 
subsection 
(c)(2)(B) is the largest, and 
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‘‘(II) 1 taxable year for which 
such amount is the smallest. 
‘‘(B) SHORTER PERIOD.—If the taxpayer 
has fewer than 5 taxable years ending before 
the taxable year, then in lieu of applying sub-
paragraph (A), the base period years shall in-
clude all the taxable years of the taxpayer end-
ing before such taxable year. 
‘‘(C) MERGERS, ACQUISITIONS, ETC.— 
‘‘(i) IN
GENERAL.—Rules similar to 
the rules of subparagraphs (A) and (B) of 
section 41(f)(3) shall apply for purposes of 
this paragraph. 
‘‘(ii) SPIN-OFFS, ETC.—If there is a 
distribution to which section 355 (or so 
much of section 356 as relates to section 
355) applies during the 5-year period re-
ferred to in subparagraph (A)(i) and the 
controlled corporation (within the meaning 
of section 355) is a United States share-
holder— 
‘‘(I) the controlled corporation 
shall be treated as being in existence 
during the period that the distributing 
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idend under section 78, 367, or 1248. In the case 
of a liquidation under section 332 to which section 
367(b) applies, the preceding sentence shall not 
apply to the extent the United States shareholder 
actually receives cash as part of the liquidation. 
‘‘(5) COORDINATION WITH DIVIDEND RECEIVED 
DEDUCTION.—No deduction shall be allowed under 
section 243 or 245 for any dividend which is ex-
cluded from income by subsection (a). 
‘‘(6) CONTROLLED GROUPS.—All United States 
shareholders which are members of an affiliated 
group filing a consolidated return under section 
1501 shall be treated as one United States share-
holder. 
‘‘(7) REPORTING.—The Secretary shall require 
by regulation or other guidance the reporting of 
such information as the Secretary may require to 
carry out this section. 
‘‘(e) DENIAL OF FOREIGN TAX CREDIT; DENIAL OF 
CERTAIN EXPENSES.— 
‘‘(1) FOREIGN TAX CREDIT.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under section 901 for any taxes paid or 
accrued (or treated as paid or accrued) with re-
spect to the excluded portion of any dividend. 
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‘‘(B) DENIAL OF DEDUCTION OF RELATED 
TAX.—No deduction shall be allowed under this 
chapter for any tax for which credit is not al-
lowable by reason of the preceding sentence. 
‘‘(2) EXPENSES.—No deduction shall be al-
lowed for expenses directly allocable to the exclud-
able portion described in paragraph (1). 
‘‘(3) EXCLUDABLE PORTION.—For purposes of 
paragraph (1), unless the taxpayer otherwise speci-
fies, the excludable portion of any dividend or other 
amount is the amount which bears the same ratio to 
the amount of such dividend or other amount as the 
amount excluded from income under subsection (a) 
for the taxable year bears to the amount described 
in subsection (c)(2)(A) for such year. 
‘‘(4) COORDINATION WITH SECTION 78.—Sec-
tion 78 shall not apply to any tax which is not allow-
able as a credit under section 901 by reason of this 
subsection. 
‘‘(f) APPLICATION OF SECTION.—This section shall 
apply with respect to the taxable year of the taxpayer in 
which the taxpayer acquires qualified infrastructure bonds 
at its original issue (directly or through an underwriter) 
under section 2(d)(5) of the Partnership to Build America 
Act of 2017.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for subpart F of part III of subchapter N of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘966. Foreign earnings exclusion for purchase of infrastructure bonds.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to dividends received for taxable 
years ending after the date of the enactment of this Act. 
Æ 
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