than Puerto Rico for a calendar year shall be one- 
half of 1 percent of national qualified school infra-
structure bond limitation for such year. In making 
other allocations, the amount to be allocated under 
paragraph (1) shall be reduced by the aggregate 
amount allocated under this paragraph and para-
graph (3). 
‘‘(3) ALLOCATIONS FOR INDIAN SCHOOLS.—The 
amount to be allocated under paragraph (1) to the 
Secretary of the Interior for schools funded by the 
Bureau of Indian Affairs for a calendar year shall 
be one-half of 1 percent of national qualified school 
infrastructure bond limitation for such year. Not-
withstanding any other provision of law, in the case 
of amounts allocated under the preceding sentence, 
Indian tribal governments (as defined in section 
7701(a)(40)) shall be treated as qualified issuers for 
purposes of this subchapter. 
‘‘(h) INTEREST PAYMENT DATE.—For purposes of 
this section, the term ‘interest payment date’ means any 
date on which the holder of record of the school infrastruc-
ture bond is entitled to a payment of interest under such 
bond. 
‘‘(i) SPECIAL RULES.— 
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‘‘(1) INTEREST ON SCHOOL INFRASTRUCTURE 
BONDS
INCLUDIBLE
IN
GROSS
INCOME
FOR
FED-
ERAL INCOME TAX PURPOSES.—For purposes of this 
title, interest on any school infrastructure bond shall 
be includible in gross income. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subsections (f), (g), (h), and 
(i) of section 54A shall apply for purposes of the 
credit allowed under subsection (a). 
‘‘(3) APPLICATION OF CERTAIN LABOR STAND-
ARDS.—Notwithstanding any other provision of law, 
a school infrastructure bond shall be treated as a 
qualified school construction bond for purposes of 
the application of section 1601 of the American Re-
covery and Reinvestment Act of 2009 (Public Law 
111–5; 26 U.S.C. 54C note.).’’. 
(b) CLERICAL AMENDMENTS.— 
(1) The table of subparts for part IV of sub-
chapter A of chapter 1 of such Code is amended by 
amending the item related to subpart J to read as 
follows: 
‘‘SUBPART J—CERTAIN INFRASTRUCTURE BONDS’’. 
(2) The table of chapters for subpart J of part 
IV of subchapter A of chapter 1 of such Code is 
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amended by adding at the end the following new 
item: 
‘‘Sec. 54BB. School infrastructure bonds.’’. 
(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 
school infrastructure bond (as defined in section 54BB of 
the Internal Revenue Code of 1986, as added by this sec-
tion) and the amount of any credit determined under such 
section with respect to such bond shall be treated for pur-
poses of the income tax laws of such State as being exempt 
from Federal income tax. 
(d) CREDIT FOR QUALIFIED BONDS ALLOWED TO 
ISSUER.—Paragraph (3) of section 6431(f) of such Code 
is amended by inserting ‘‘any school infrastructure bond 
(as defined in section 54BB) or’’ before ‘‘any qualified tax 
credit bond’’. 
(e) SEQUESTRATION.—Subparagraph (A) of section 
255(g)(1) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by adding before ‘‘Postal 
Service Fund’’ the following: ‘‘Payments under section 
54BB of the Internal Revenue Code of 1986.’’ 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2017. 
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SEC. 202. EXPANSION OF QUALIFIED ZONE ACADEMY 
BONDS. 
(a) CONSTRUCTION OF A PUBLIC SCHOOL FACIL-
ITY.—Subparagraph (A) of section 54E(d)(3) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘reha-
bilitating or repairing’’ and inserting ‘‘constructing, reha-
bilitating, retrofitting, or repairing’’. 
(b) REMOVAL OF PRIVATE BUSINESS CONTRIBUTION 
REQUIREMENT.—Section 54E of the Internal Revenue 
Code of 1986 is amended— 
(1) in subsection (a)(3)— 
(A) in subparagraph (A), by inserting 
‘‘and’’ at the end; and 
(B) by striking subparagraph (B); 
(2) by striking subsection (b); and 
(3) in paragraph (1) of subsection (c)— 
(A) by striking ‘‘and $400,000,0000’’ and 
inserting ‘‘$400,000,000’’; and 
(B) by striking ‘‘and, except as provided’’ 
and all that follows through the period at the 
end and inserting ‘‘, and $1,400,000,000 for 
2018 and each year thereafter.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2017. 
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SEC. 203. ANNUAL REPORT ON BOND PROGRAM. 
(a) IN GENERAL.—Not later than September 30 of 
each fiscal year beginning after the date of the enactment 
of this Act, the Secretary shall submit to the appropriate 
congressional committees a report on the school infra-
structure bond program. 
(b) ELEMENTS.—The report under paragraph (1) 
shall include, with respect to the fiscal year preceding the 
year in which the report is submitted, the following: 
(1) An identification of— 
(A) each local educational agency that re-
ceived funds from a school infrastructure bond; 
and 
(B) each local educational agency that was 
eligible to receive such funds— 
(i) but did not receive such funds; or 
(ii) received less than the maximum 
amount of funds for which the agency was 
eligible. 
(2) With respect to each local educational agen-
cy described in paragraph (1)— 
(A) an assessment of the capacity of the 
agency to raise funds for the long-term im-
provement of public school facilities, as deter-
mined by an assessment of— 
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(i) the current and historic ability of 
the agency to raise funds for construction, 
renovation, modernization, and major re-
pair projects for schools, including the abil-
ity of the agency to raise funds through 
imposition of property taxes; 
(ii) whether the agency has been able 
to issue bonds to fund construction 
projects, including such bonds as— 
(I) qualified school construction 
bonds under section 54F of the Inter-
nal Revenue Code of 1986; 
(II) 
qualified 
zone 
academy 
bonds under section 1397E of the In-
ternal Revenue Code of 1986; and 
(III) school infrastructure bonds; 
and 
(iii) the bond rating of the agency; 
(B) the demographic composition of the 
student population served by the agency, 
disaggregated by— 
(i) race; 
(ii) the number and percentage of stu-
dents counted under section 1124(c) of the 
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Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 6333(c)); and 
(iii) the number and percentage of 
students who are eligible for a free or re-
duced price lunch under the Richard B. 
Russell National School Lunch Act (42 
U.S.C. 1751 et seq.); 
(C) the population density of the geo-
graphic area served by the agency; 
(D) a description of the projects carried 
out with funds received from school infrastruc-
ture bonds; 
(E) a description of the demonstrable or 
expected benefits of the projects; and 
(F) the estimated number of jobs created 
by the projects. 
(3) The total dollar amount of all funds re-
ceived by local educational agencies from school in-
frastructure bonds. 
(4) Any other factors that the Secretary deter-
mines to be appropriate. 
(c) INFORMATION COLLECTION.—A State or local 
educational agency that receives funds from a school infra-
structure bond shall— 
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(1) annually compile the information necessary 
for the Secretary to determine the elements de-
scribed in subsection (b); and 
(2) report the information to the Secretary at 
such time and in such manner as the Secretary may 
require. 
TITLE III—GENERAL 
PROVISIONS 
SEC. 301. ALLOWABLE USES OF FUNDS. 
(a) IN GENERAL.—Except as provided in section 302, 
a local educational agency that receives covered funds may 
use such funds to— 
(1) develop the facilities master plan required 
under section 103(e); 
(2) construct, modernize, renovate, or retrofit 
public school facilities, which may include seismic 
retrofitting for schools vulnerable to natural disas-
ters; 
(3) carry out major repairs of public school fa-
cilities; 
(4) install furniture or fixtures with at least a 
10-year life in public school facilities; 
(5) construct new public school facilities; 
(6) acquire and prepare sites on which new 
public school facilities will be constructed; 
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(7) extend the life of basic systems and compo-
nents of public school facilities; 
(8) reduce current or anticipated overcrowding 
in public school facilities; 
(9) ensure the building envelopes of public 
school facilities are structurally sound, secure, and 
protects occupants and interiors from the elements; 
(10) improve energy and water efficiency to 
lower the costs of energy and water consumption in 
public school facilities; 
(11) improve indoor air quality in public school 
facilities; 
(12) reduce or eliminate the presence of— 
(A) toxins and chemicals, including mer-
cury, radon, PCBs, lead, and asbestos; 
(B) mold and mildew; or 
(C) rodents and pests; 
(13) ensure the safety of drinking water at the 
tap and water used for meal preparation in public 
school facilities, which may include testing of the po-
tability of water at the tap for the presence of lead 
and other contaminants; 
(14) bring public school facilities into compli-
ance with applicable fire, health, and safety codes; 
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(15) make public school facilities accessible to 
people with disabilities through compliance with the 
Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.) and section 504 of the Rehabilitation 
Act of 1973 (29 U.S.C. 794); 
(16) provide instructional program space im-
provements for programs relating to early learning 
(including early learning programs operated by part-
ners of the agency), special education, science, tech-
nology, career and technical education, physical edu-
cation, or the arts; 
(17) increase the use of public school facilities 
for the purpose of community-based partnerships 
that provide students with academic, health, and so-
cial services; 
(18) ensure the health of students and staff 
during the construction or modernization of public 
school facilities; or 
(19) reduce or eliminate excessive classroom 
noise. 
(b) ALLOWANCE FOR DIGITAL LEARNING.—A local 
educational agency may use funds received under section 
103(a)(2) or proceeds from a school infrastructure bond 
limitation allocated under section 54BB(g)(1)(C) of the 
Internal Revenue Code of 1986 (as added by section 201) 
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to leverage existing public programs or public-private part-
nerships to expand access to high-speed broadband suffi-
cient for digital learning. 
SEC. 302. PROHIBITED USES. 
A local educational agency that receives covered 
funds may not use such funds for— 
(1) payment of routine and predictable mainte-
nance costs and minor repairs; 
(2) any facility that is primarily used for ath-
letic contests or exhibitions or other events for which 
admission is charged to the general public; 
(3) vehicles; 
(4) central offices, operation centers, or other 
facilities that are not primarily used to educate stu-
dents; or 
(5) digital infrastructure or handheld digital de-
vices. 
SEC. 303. GREEN PRACTICES. 
(a) IN GENERAL.—In a given fiscal year, a local edu-
cational agency that uses covered funds for a new con-
struction project or renovation project shall use not less 
than the applicable percentage (as described in subsection 
(b)) of the funds used for such project for construction 
or renovation that is certified, verified, or consistent with 
any applicable provisions of— 
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(1) the United States Green Building Council 
Leadership in Energy and Environmental Design 
green building rating standard (commonly known as 
the ‘‘LEED Green Building Rating System’’); 
(2) the Living Building Challenge developed by 
the International Living Future Institute; 
(3) a green building rating program developed 
by the Collaborative for High-Performance Schools 
(commonly known as ‘‘CHPS’’) that is CHPS- 
verified; 
(4) a program that— 
(A) has standards that are equivalent to or 
more stringent than the standards of a program 
described in paragraphs (1) through (3); 
(B) is adopted by the State or another ju-
risdiction with authority over the agency; and 
(C) includes a verifiable method to dem-
onstrate compliance with such program. 
(b) APPLICABLE PERCENTAGE.—The applicable per-
centage described in this subsection is— 
(1) for fiscal year 2018, 60 percent; 
(2) for fiscal year 2019, 70 percent; 
(3) for fiscal year 2020; 80 percent; 
(4) for fiscal year 2021, 90 percent; and 
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(5) for each of fiscal years 2022 through 2027, 
100 percent. 
SEC. 304. USE OF AMERICAN IRON, STEEL, AND MANUFAC-
TURED PRODUCTS. 
(a) IN GENERAL.—A local educational agency that 
receives covered funds shall ensure that any iron, steel, 
and manufactured products used in projects carried out 
with such funds are produced in the United States. 
(b) WAIVER AUTHORITY.— 
(1) IN
GENERAL.—The Secretary may waive 
the requirement of subsection (a) if the Secretary 
determines that— 
(A) applying subsection (a) would be in-
consistent with the public interest; 
(B) iron, steel, and manufactured products 
produced in the United States are not produced 
in a sufficient and reasonably available amount 
or are not of a satisfactory quality; or 
(C) using iron, steel, and manufactured 
products produced in the United States will in-
crease the cost of the overall project by more 
than 25 percent. 
(2) PUBLICATION.—Before issuing a waiver 
under paragraph (1), the Secretary shall publish in 
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the Federal Register a detailed written explanation 
of the waiver determination. 
(c) CONSISTENCY WITH INTERNATIONAL AGREE-
MENTS.—This section shall be applied in a manner con-
sistent with the obligations of the United States under 
international agreements. 
(d) DEFINITIONS.—In this section: 
(1) PRODUCED IN THE UNITED STATES.—The 
term ‘‘produced in the United States’’ means the fol-
lowing: 
(A) When used with respect to a manufac-
tured product, the product was manufactured in 
the United States and the cost of the compo-
nents of such product that were mined, pro-
duced, or manufactured in the United States 
exceeds 60 percent of the total cost of all com-
ponents of the product. 
(B) When used with respect to iron or 
steel products, or an individual component of a 
manufactured product, all manufacturing proc-
esses for such iron or steel products or compo-
nents, from the initial melting stage through 
the application of coatings, occurred in the 
United States. Except that the term does not 
include— 
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(i) steel or iron material or products 
manufactured abroad from semi-finished 
steel or iron from the United States; and 
(ii) or iron material or products man-
ufactured in the United States from semi- 
finished steel or iron of foreign origin. 
(2) MANUFACTURED
PRODUCT.—The term 
‘‘manufactured product’’ means any construction 
material or end product (as such terms are defined 
in part 25.003 of the Federal Acquisition Regula-
tion) that is not an iron or steel product, includ-
ing— 
(A) electrical components; and 
(B) non-ferrous building materials, includ-
ing, aluminum and polyvinylchloride (PVC), 
glass, fiber optics, plastic, wood, masonry, rub-
ber, manufactured stone, any other non-ferrous 
metals, and any unmanufactured construction 
material. 
SEC. 305. COMPTROLLER GENERAL REPORT. 
(a) IN GENERAL.—Not later than the date that is 
2 years after the date of the enactment of this Act, the 
Comptroller General of the United States shall submit to 
the appropriate congressional committees a report on the 
projects carried out with covered funds. 
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(b) ELEMENTS.—The report under subsection (a) 
shall include an assessment of— 
(1) the types of projects carried out with cov-
ered funds; 
(2) the geographic distribution of the projects; 
(3) an assessment of the impact of the projects 
on the health and safety of school staff and stu-
dents; and 
(4) how the Secretary or States could make 
covered funds more accessible— 
(A) to schools with highest numbers and 
percentages of students counted under section 
1124(c) of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6333(c)); and 
(B) to schools with fiscal challenges in 
raising 
capital 
for 
school 
infrastructure 
projects. 
(c) UPDATES.—The Comptroller General shall up-
date and resubmit the report to the appropriate congres-
sional committees— 
(1) on a date that is between 5 and 6 years 
after the date of enactment of this Act; and 
(2) on a date that is between 10 and 11 years 
after such date of enactment. 
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SEC. 306. STUDY AND REPORT PHYSICAL CONDITION OF 
PUBLIC SCHOOLS. 
(a) STUDY AND REPORT.—Not less frequently than 
once in each 5-year period beginning after the date of the 
enactment of this Act, the Secretary, acting through the 
Director of the Institute of Education Sciences, shall— 
(1) carry out a comprehensive study of the 
physical conditions of public schools in the United 
States, including schools that received covered funds 
schools that did not receive such funds; and 
(2) submit a report to the appropriate congres-
sional committees that includes that results of the 
study. 
(b) ELEMENTS.—Each study and report under sub-
section (a) shall include an assessment of— 
(1) the effect of school facility conditions on 
student and staff health and safety; 
(2) the effect of school facility conditions on 
student academic outcomes; 
(3) the condition of school facilities, set forth 
separately by geographic region; 
(4) the condition of school facilities for eco-
nomically disadvantaged students as well as students 
from major racial and ethnic subgroups; and 
(5) the accessibility of school facilities for stu-
dents and staff with disabilities. 
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