(1) PLEDGE.—The Bank shall have the author-
ity to pledge its loans to the discount window of the 
Board of Governors of the Federal Reserve System. 
(2) PURCHASE
OF
OBLIGATIONS.—The Sec-
retary of the Treasury may purchase obligations 
issued by the Bank. 
(f) LEVERAGE LIMITATION.—The Bank shall main-
tain risk-based capital at no less than 10 percent. 
(g) PROHIBITION
ON
FUNDING
OF
FOREIGN 
PROJECTS.—The Bank is prohibited from providing eq-
uity investments, direct loans, indirect loans, and loan 
guarantees for infrastructure projects not located within 
the United States. 
(h) PROHIBITION WITH RESPECT TO CHINA.—The 
Bank is prohibited from providing equity investments, di-
rect loans, indirect loans, and loan guarantees for infra-
structure projects that are owned, directed, controlled, fi-
nanced, or influenced by the Government of the People’s 
Republic of China, the Chinese Communist Party, or the 
People’s Liberation Army. 
SEC. 6. HOLDING COMPANY SECURITIES. 
(a) EQUITY SECURITIES.— 
(1) IN GENERAL.—The Holding Company shall 
issue such equity securities as the Board of Direc-
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tors of the Holding Company determines appro-
priate. 
(2) DIVIDENDS.—The Holding Company may 
make such dividend payments on the equity securi-
ties of the Holding Company as the Holding Com-
pany determines appropriate. 
(3) RESTRICTION
ON
VOTING
RIGHTS.—Any 
holder of an equity security of the Holding Company 
that is a non-United States individual or entity shall 
have no voting rights with respect to such equity se-
curity. 
(b) BONDS.— 
(1) STANDARD BONDS.—The Holding Company 
may issue standard bonds with maturities up to 30 
years or longer, as needed. 
(2) OTHER
BONDS.—The Holding Company 
may issue other bonds, notes, and marketable securi-
ties with maturities and interest rates as the Hold-
ing Company determines appropriate. 
(3) AUTHORITY TO PURCHASE BONDS.— 
(A) IN GENERAL.—The Secretary of the 
Treasury and the Board of Governors of the 
Federal Reserve System may purchase bonds 
issued under this section. 
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(B) LIMITATION.—The aggregate amount 
of outstanding bonds purchased by the Sec-
retary under this paragraph may not exceed 5 
percent of the total amount of the outstanding 
bonds of the Holding Company. 
(c) LEVERAGE LIMITATION.—The Holding Company 
shall maintain risk-based capital at no less than 10 per-
cent. 
(d) INVESTMENT
LIMITATION
ON
NON-UNITED 
STATES INDIVIDUALS AND ENTITIES.— 
(1) Non-United States individuals and entities 
may not hold more than 25 percent, in the aggre-
gate, of the equity securities and bonds of the Hold-
ing Company. 
(2) The Formation Agent and Holding Com-
pany are prohibited from issuing any bond, note, 
marketable security, or other financial instrument to 
any person or entity— 
(A) affiliated with, owned by, or directed, 
controlled, financed, or influenced by the Gov-
ernment of the People’s Republic of China, the 
Chinese Communist Party, or the People’s Lib-
eration Army; or 
(B) affiliated with, owned by, or directed, 
controlled, financed, or influenced by a State 
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Sponsor of Terrorism, as so designated by the 
Secretary of State. 
SEC. 7. OVERSIGHT AND REGULATION. 
The Board of Governors of the Federal Reserve Sys-
tem shall— 
(1) have oversight and supervisory authority 
over the Holding Company and the Bank, in order 
to ensure the safe and sound operation of the Hold-
ing Company and the Bank; and 
(2) shall regulate Bank activities to ensure 
compliance with the requirements set forth in this 
Act. 
SEC. 8. INFRASTRUCTURE GUARANTEE FUND. 
The Bank shall establish an Infrastructure Guar-
antee Fund that shall be used with respect to specific 
loans or loan guarantees made by the Bank in the event 
of any non-payment by the recipient of such loan or loan 
guarantee. 
SEC. 9. HOLDING COMPANY AND BANK EXEMPTION FROM 
TAXATION. 
Effective for taxable years ending on or after the date 
of enactment of this Act, the Holding Company and the 
Bank, including franchises, capital, reserves, surplus, ad-
vances, and income of the Holding Company or Bank, 
shall be exempt from all taxation imposed by the United 
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States and any State, county, municipal, or local taxing 
authority, except that any real property of the Holding 
Company and the Bank shall be subject to State, county, 
municipal, or local taxation to the same extent according 
to its value as other real property is taxed. 
SEC. 10. FEDERAL INFRASTRUCTURE BANK HOLDING COM-
PANY CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended— 
(1) by adding at the end the following new sec-
tion: 
‘‘SEC. 45U. FEDERAL INFRASTRUCTURE BANK HOLDING 
COMPANY CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of a taxpayer who holds a qualified Holding Com-
pany equity investment on a credit allowance date of such 
investment which occurs during the taxable year, the Fed-
eral Infrastructure Bank Holding Company credit deter-
mined under this section for such taxable year is an 
amount equal to 10 percent of the amount paid to the 
Holding Company for such investment at its original issue. 
‘‘(b) CREDIT ALLOWANCE DATE.—For purposes of 
this section, the credit allowance date with respect to any 
qualified Holding Company equity investment is— 
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‘‘(1) the date on which such investment is ini-
tially made; and 
‘‘(2) each of the 4 taxable years thereafter. 
‘‘(c) QUALIFIED HOLDING COMPANY EQUITY IN-
VESTMENT.—For purposes of this section, the term ‘quali-
fied Holding Company equity investment’ means any eq-
uity investment originally issued by the Holding Company 
to the taxpayer under section 6(a)(1) of the Federal Infra-
structure Bank Act of 2022 not later than 3 years after 
the date of the enactment of such Act. 
‘‘(d) HOLDING COMPANY.—For purposes of this sec-
tion, the term ‘Holding Company’ means the Federal In-
frastructure Bank Holding Company established by the 
Federal Infrastructure Bank Act of 2022.’’; and 
(2) in the table of contents for such subpart, by 
adding at the end the following: 
‘‘45U. Federal Infrastructure Bank Holding Company credit.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (32), by 
striking the period at the end of paragraph (33) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(34) the Federal Infrastructure Bank Holding 
Company credit determined under section 45U.’’. 
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(2) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (37), by 
striking the period at the end of paragraph (38) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(39) to the extent provided in section 
45U(e).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 11. RULE OF CONSTRUCTION. 
Nothing in this Act may be construed as authorizing 
the Federal Government to guarantee the assets of the 
Bank or Holding Company. 
Æ 
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