SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
(1) Our Nation’s highways, transit systems, 
railroads, ports, and inland waterways drive our 
economy, enabling all industries to achieve growth 
and productivity that makes America strong and 
prosperous. 
(2) The establishment, maintenance, and im-
provement of the national transportation network is 
a national priority, for economic, environmental, en-
ergy, security, and other reasons. 
(3) The ability to move people and goods is crit-
ical to maintaining State, metropolitan, rural, and 
local economies. 
(4) The construction of infrastructure requires 
combining skills from numerous occupations, includ-
ing those in the contracting, engineering, planning 
and design, materials supply, manufacturing, dis-
tribution, and safety industries. 
(5) Investing in transportation infrastructure 
creates long-term capital assets for the Nation that 
will help the United States address its enormous in-
frastructure needs and improve its economic produc-
tivity. 
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(6) Investment in transportation infrastructure 
creates jobs and spurs economic activity to put peo-
ple back to work and stimulate the economy. 
(7) Every billion dollars in transportation in-
vestment has the potential to create up to 30,000 
jobs. 
(8) Every dollar invested in the Nation’s trans-
portation infrastructure yields at least $5.70 in eco-
nomic benefits because of reduced delays, improved 
safety, and reduced vehicle operating costs. 
(9) Numerous experts have noted that the esti-
mated cost to maintain and improve our Nation’s 
highways, bridges, and other critical transportation 
infrastructure significantly exceeds what is currently 
being provided by all levels of government. 
(b) PURPOSE.—The purpose of this Act is to provide 
financing for additional transportation infrastructure cap-
ital investments. 
SEC. 3. CREDIT TO HOLDERS OF TRIP BONDS. 
(a) IN GENERAL.—Subpart I of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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‘‘SEC. 54G. TRIP BONDS. 
‘‘(a) TRIP BOND.—For purposes of this subpart, the 
term ‘TRIP bond’ means any bond issued as part of an 
issue if— 
‘‘(1) 100 percent of the available project pro-
ceeds of such issue are to be used for expenditures 
incurred after the date of the enactment of this sec-
tion for 1 or more qualified projects pursuant to an 
allocation of such proceeds to such project or 
projects by a State infrastructure bank, 
‘‘(2) the bond is issued by or for the benefit of 
a State infrastructure bank and is in registered form 
(within the meaning of section 149(a)), 
‘‘(3) the State infrastructure bank designates 
such bond for purposes of this section, 
‘‘(4) the term of each bond which is part of 
such issue does not exceed 30 years, 
‘‘(5) the issue meets the requirements of sub-
section (e), 
‘‘(6) the State infrastructure bank certifies that 
the State meets the State contribution requirement 
of subsection (h), as in effect on the date of 
issuance, and 
‘‘(7) the State infrastructure bank certifies the 
State meets the requirement described in subsection 
(i). 
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‘‘(b) QUALIFIED PROJECT.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘qualified project’ 
means a capital transportation infrastructure project 
of any governmental unit or other person, including 
roads, bridges, rail and transit systems, ports, and 
inland waterways proposed and approved by a State 
infrastructure bank, but does not include costs of 
operations or maintenance with respect to such 
project. 
‘‘(2) CERTAIN PROJECTS.—Such term also in-
cludes any flood damage risk reduction project with 
a completed Report of the Chief of Engineers, with 
the proceeds of issued bonds available for a State to 
provide to the United States Army Corps of Engi-
neers (under section 5 of the Act entitled ‘An Act 
authorizing the construction of certain public works 
on rivers and harbors for flood control, and for other 
purposes,’ approved June 22, 1936 (33 U.S.C. 
701h)) funds in excess of any required non-Federal 
cost share for such project. 
‘‘(c) APPLICABLE CREDIT RATE.—In lieu of section 
54A(b)(3), for purposes of section 54A(b)(2), the applica-
ble credit rate with respect to an issue under this section 
is the rate equal to an average market yield (as of the 
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day before the date of sale of the issue) on outstanding 
comparable-term corporate debt obligations (determined 
in such manner as the Secretary prescribes). 
‘‘(d) LIMITATION
ON AMOUNT
OF BONDS DES-
IGNATED.— 
‘‘(1) IN
GENERAL.—The maximum aggregate 
face amount of bonds which may be designated 
under subsection (a) by any State infrastructure 
bank shall not exceed the TRIP bond limitation 
amount allocated to such bank under paragraph (3). 
‘‘(2) NATIONAL
LIMITATION
AMOUNT.—There 
is a TRIP bond limitation amount for each calendar 
year. Such limitation amount is— 
‘‘(A) $5,000,000,000 for 2014, 
‘‘(B) $5,000,000,000 for 2015, 
‘‘(C) $10,000,000,000 for 2016, 
‘‘(D) $10,000,000,000 for 2017, 
‘‘(E) $10,000,000,000 for 2018, 
‘‘(F) $10,000,000,000 for 2019, and 
‘‘(G) except as provided in paragraph (4), 
zero thereafter. 
‘‘(3) ALLOCATIONS TO STATES.— 
‘‘(A) IN GENERAL.—The TRIP bond limi-
tation amount for each calendar year shall be 
allocated by the Secretary among the States 
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such that each State is allocated 2 percent of 
such amount. 
‘‘(B) 
RETURN
OF
UNUSED
ALLOCA-
TIONS.—Any allocation to a State under sub-
paragraph (A) which remains unused on the 
last day of the calendar year for which the allo-
cation was made shall be relinquished by the 
State and reallocated by the Secretary propor-
tionally among participating States. 
‘‘(4) CARRYOVER OF UNUSED ISSUANCE LIMI-
TATION.—If for any calendar year the TRIP bond 
limitation amount under paragraph (2) exceeds the 
amount of TRIP bonds issued during such year, 
such excess shall be carried forward to 1 or more 
succeeding calendar years as an addition to the 
TRIP bond limitation amount under paragraph (2) 
for such succeeding calendar year and until used by 
issuance of TRIP bonds. 
‘‘(e) SPECIAL
RULES
RELATING
TO
EXPENDI-
TURES.— 
‘‘(1) IN GENERAL.—An issue shall be treated as 
meeting the requirements of this subsection if, as of 
the date of issuance, the State infrastructure bank 
reasonably expects— 
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available to pay the costs of any qualified project in 
such State. 
‘‘(4) APPLICABILITY OF FEDERAL LAW.—The 
requirements of any Federal law, including titles 23, 
40, and 49 of the United States Code, which would 
otherwise apply to projects to which the United 
States is a party or to funds made available under 
such law and projects assisted with those funds shall 
apply to— 
‘‘(A) funds made available under each 
TRIP Bonds Trust Account for similar quali-
fied projects, other than contributions required 
under subsection (h), and 
‘‘(B) similar qualified projects assisted 
through the use of such funds. 
‘‘(5) INVESTMENT.—Subject to subsections (e) 
and (f), it shall be the duty of the State infrastruc-
ture bank to invest in investment grade obligations 
such portion of the TRIP Bonds Trust Account held 
by such Bank as is not, in the judgment of such 
bank, required to meet current withdrawals. To the 
extent cost-effective, investments should be made in 
securities that support infrastructure investment at 
the State and local level. 
‘‘(h) STATE CONTRIBUTION REQUIREMENTS.— 
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‘‘(1) IN GENERAL.—For purposes of subsection 
(a)(6), the State contribution requirement of this 
subsection is met if the State infrastructure bank 
has obtained a commitment, not later than the date 
of issuance of the bond, for deposit into the TRIP 
Bonds Trust Account equal annual installments suf-
ficient, together with earnings thereon, to repay the 
principal of the TRIP bond at maturity. 
‘‘(2) STATE CONTRIBUTIONS MAY NOT INCLUDE 
FEDERAL FUNDS.—For purposes of this subsection, 
State contributions shall not be derived, directly or 
indirectly, from Federal funds, including any trans-
fers from the Highway Trust Fund under section 
9503. 
‘‘(3) REQUIREMENTS IN LIEU OF ANY OTHER 
MATCHING
CONTRIBUTION
REQUIREMENTS.—For 
purposes of subsection (g)(4), the TRIP bond pro-
ceeds may be applied toward any State matching 
contribution requirement under any other Federal 
law. 
‘‘(i) UTILIZATION
OF
UPDATED
CONSTRUCTION 
TECHNOLOGY FOR QUALIFIED PROJECTS.—For purposes 
of subsection (a)(7), the requirement of this subsection is 
met if the appropriate State agency relating to the quali-
fied project is utilizing updated construction technologies. 
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‘‘(j) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) STATE INFRASTRUCTURE BANK.— 
‘‘(A) IN GENERAL.—The term ‘State infra-
structure bank’ means a State infrastructure 
bank established under section 610 of title 23, 
United States Code, and includes a joint ven-
ture among 2 or more State infrastructure 
banks. Such term also includes, with respect to 
any State that has not established a State in-
frastructure bank prior to the date of the enact-
ment of this section, the State Department of 
Transportation of such State, or such other 
public instrumentality designated by the State 
to issue bonds under this section. 
‘‘(B) 
SPECIAL
AUTHORITY.—Notwith-
standing any other provision of law, a State in-
frastructure bank shall be authorized to per-
form any of the functions necessary to carry 
out the purposes of this section, including the 
making of direct grants to qualified projects 
from available project proceeds of TRIP bonds 
issued by such bank. 
‘‘(2) PROHIBITION ON USE OF HIGHWAY TRUST 
FUND.—Notwithstanding any other provision of law, 
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no funds derived from the Highway Trust Fund es-
tablished under section 9503 shall be used to pay for 
credits under this section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 54A(d) of the In-
ternal Revenue Code of 1986 is amended— 
(A) by striking ‘‘or’’ at the end of subpara-
graph (D), 
(B) by inserting ‘‘or’’ at the end of sub-
paragraph (E), 
(C) by inserting after subparagraph (E) 
the following new subparagraph: 
‘‘(F) a TRIP bond,’’, and 
(D) by inserting ‘‘(paragraphs (3), (4), 
and (6), in the case of a TRIP bond)’’ after 
‘‘and (6)’’. 
(2) Subparagraph (C) of section 54A(d)(2) of 
such Code is amended by striking ‘‘and’’ at the end 
of clause (iv), by striking the period at the end of 
clause (v) and inserting ‘‘, and’’, and by adding at 
the end the following new clause: 
‘‘(vi) in the case of a TRIP bond, a 
purpose specified in section 54G(a)(1).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart I of part IV of subchapter A of chapter 1 of 
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the Internal Revenue Code of 1986 is amended by adding 
at the end the following new item: 
‘‘Sec. 54G. TRIP bonds.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this Act shall apply to bonds issued after December 31, 
2013. 
Æ 
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