Move America Act of 2021
Bill: S.1403 | Sponsor: Sen. Hoeven, John (R-ND)
Policy area: Taxation

Summary:
Move America Act of 2021
This bill allows tax-exempt Move America bonds and Move America tax credits to be used for certain infrastructure projects.
A Move America bond is treated as a tax-exempt private facility bond with certain exceptions. At least 95% of the net proceeds from the issuance of the bond must be used for infrastructure projects, including
The bill specifies exceptions and modifications to existing rules for bonds regarding land acquisition, government ownership, rehabilitation expenditures, and the alternative minimum tax.
The bonds are subject to a volume cap equal to 50% of a state's current private activity bond volume cap. States may exchange all or a portion of the volume cap for Move America tax credits to be allocated to taxpayers. The credits include (1) an equity credit for a portion of the basis of each qualified facility; and (2) an infrastructure fund credit for investments in qualified infrastructure funds, including a state infrastructure bank, a water pollution control revolving fund, or a drinking water treatment revolving loan fund.

To amend the Internal Revenue Code of 1986 to provide for Move America 
                    bonds and Move America credits.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Move America Act of 2021''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress makes the following findings:
            (1) Our Nation's infrastructure network serves as a 
        foundation of our economic competitiveness and national 
        security. It is imperative that Congress maintain and 
        revitalize the roads, bridges, ports, railways, airports, 
        transit systems, water systems, and information networks of 
        this country, enabling all industries to achieve the growth and 
        productivity that make the United States strong and prosperous.
            (2) Investing in transportation, water, and information 
        infrastructure creates long-term capital assets for the Nation 
        that will improve economic productivity.
            (3) Investment in infrastructure creates jobs and spurs 
        economic activity to put people back to work and grow the 
        economy.
            (4) The 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.
            (5) Investment in our Nation's infrastructure must be 
        multi-faceted, both by ensuring that there is a sustainable 
        long-term funding source for infrastructure and through using 
        innovative financing mechanisms.
            (6) Areas that are underserved by modern broadband 
        connections are disadvantaged, and ensuring that those areas 
        are connected will enable the Nation to benefit from the fuller 
        participation of previously underserved citizens in the 
        national economy.
            (7) Investment in infrastructure is needed throughout the 
        Nation, and it is essential that infrastructure legislation, 
        including but not limited to this legislation, benefit urban 
        and rural areas, and large and small States.
    (b) Purpose.--The purpose of this Act is to provide tools to 
finance additional transportation, water, and information 
infrastructure capital investments, through an approach that provides 
assistance for financing of infrastructure to all States, rural and 
urban, and large and small.

SEC. 3. MOVE AMERICA BONDS.

    (a) In General.--
            (1) Move america bonds.--Subpart A of part IV of subchapter 
        B of chapter 1 of the Internal Revenue Code of 1986 is amended 
        by inserting after section 142 the following new section:

``SEC. 142A. MOVE AMERICA BONDS.

    ``(a) In General.--
            ``(1) Treatment as exempt facility bond.--Except as 
        otherwise provided in this section, a Move America bond shall 
        be treated for purposes of this part as an exempt facility 
        bond.
            ``(2) Exceptions.--
                    ``(A) No government ownership requirement.--
                Paragraph (1) of section 142(b) shall not apply to any 
                Move America bond.
                    ``(B) Special rules for high-speed rail bonds.--
                Paragraphs (2) and (3) of section 142(i) shall not 
                apply to any Move America bond described in subsection 
                (b)(6).
                    ``(C) Special rules for highway and surface 
                transportation facilities.--Paragraphs (2), (3), and 
                (4) of section 142(m) shall not apply to any Move 
                America bond described in subsection (b)(7).
    ``(b) Move America Bond.--For purposes of this part, the term `Move 
America bond' means any bond issued as part of an issue 95 percent or 
more of the net proceeds of which are used to provide--
            ``(1) airports,
            ``(2) docks and wharves, including--
                    ``(A) waterborne mooring infrastructure,
                    ``(B) dredging in connection with a dock or wharf, 
                and
                    ``(C) any associated rail and road infrastructure 
                for the purpose of integrating modes of transportation,
            ``(3) mass commuting facilities,
            ``(4) facilities for the furnishing of water (within the 
        meaning of section 142(e)),
            ``(5) sewage facilities,
            ``(6) railroads (as defined in section 20102 of title 49, 
        United States Code) and any associated rail and road 
        infrastructure for the purpose of integrating modes of 
        transportation,
            ``(7) any--
                    ``(A) surface transportation project which is 
                eligible for Federal assistance under title 23, United 
                States Code (as in effect on the date of the enactment 
                of this section),
                    ``(B) project for an international bridge or tunnel 
                for which an international entity authorized under 
                Federal or State law is responsible and which is 
                eligible for Federal assistance under title 23, United 
                States Code (as so in effect), or
                    ``(C) facility for the transfer of freight from 
                truck to rail or rail to truck (including any temporary 
                storage facilities directly related to such transfers) 
                which is eligible for Federal assistance under either 
                title 23 or title 49, United States Code (as so in 
                effect),
            ``(8) flood diversions,
            ``(9) inland waterways, including construction and 
        rehabilitation expenditures for navigation on any inland or 
        intracoastal waterways of the United States (within the meaning 
        of section 4042(d)(2)), or
            ``(10) rural broadband service infrastructure.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Flood diversions.--The term `flood diversion' means 
        any flood damage risk reduction project authorized under any 
        Act for authorizing water resources development projects.
            ``(2) Rural broadband service infrastructure.--The term 
        `rural broadband service infrastructure' means the 
        construction, improvement, or acquisition of facilities and 
        equipment for the provision of broadband services (as defined 
        in section 601 of the Rural Electrification Act of 1936) 
        which--
                    ``(A) meet the minimum requirements in effect under 
                section 601(e) of such Act, and
                    ``(B) will be provided in an area which--
                            ``(i) is a rural area (as defined in 
                        section 601 of such Act), and
                            ``(ii) meets the requirements of clauses 
                        (i) and (ii) of section 601(d)(2)(A) of such 
                        Act.
    ``(d) Move America Volume Cap.--
            ``(1) In general.--The aggregate face amount of Move 
        America bonds issued pursuant to an issue, when added to the 
        aggregate face amount of Move America bonds previously issued 
        by the issuing authority during the calendar year, shall not 
        exceed such issuing authority's Move America volume cap for 
        such year.
            ``(2) Move america volume cap.--For purposes of this 
        subsection--
                    ``(A) In general.--The Move America volume cap for 
                any calendar year is an amount equal to 50 percent of 
                the State ceiling under section 146(d) for such State 
                for such calendar year.
                    ``(B) Allocation of volume cap.--Each State may 
                allocate the Move America volume cap of such State 
                among governmental units (or other authorities) in such 
                State having authority to issue private activity bonds.
            ``(3) Carryforwards.--
                    ``(A) In general.--If--
                            ``(i) an issuing authority's Move America 
                        volume cap, exceeds
                            ``(ii) the aggregate amount of Move America 
                        bonds issued during such calendar year by such 
                        authority,
                any Move America bond issued by such authority during 
                the 5-calendar-year period following such calendar year 
                shall not be taken into account under paragraph (1) to 
                the extent the amount of such bonds does not exceed the 
                amount of such excess. Any excesses arising under this 
                paragraph shall be used under this paragraph in the 
                order of calendar years in which the excesses arose.
                    ``(B) Reallocation of unused carryforwards.--
                            ``(i) In general.--The Move America volume 
                        cap under paragraph (2)(A) for any State for 
                        any calendar year shall be increased by any 
                        amount allocated to such State by the Secretary 
                        under clause (ii).
                            ``(ii) Reallocation.--The Secretary shall 
                        allocate to each qualified State for any 
                        calendar year an amount which bears the same 
                        ratio to the aggregate unused carryforward 
                        amounts of all issuing authorities in all 
                        States for such calendar year as the qualified 
                        State's population for the calendar year bears 
                        to the population of all qualified States for 
                        the calendar year. For purposes of the 
                        preceding sentence, population shall be 
                        determined in accordance with section 146(j).
                            ``(iii) Qualified state.--For purposes of 
                        this subparagraph, the term `qualified State' 
                        means, with respect to a calendar year, any 
                        State--
                                    ``(I) which allocated its entire 
                                Move America volume cap for the 
                                preceding calendar year, and
                                    ``(II) for which a request is made 
                                (not later than May 1 of the calendar 
                                year) to receive an allocation under 
                                clause (ii).
                            ``(iv) Unused carryforward amount.--For 
                        purposes of this paragraph, the term `unused 
                        carryforward amount' means, with respect to any 
                        issuing authority for any calendar year, the 
                        excess of--
                                    ``(I) the amount of the excess 
                                described in subparagraph (A) for the 
                                sixth preceding calendar year, over
                                    ``(II) the amount of bonds issued 
                                by such issuing authority to which 
                                subparagraph (A) applied during the 5 
                                preceding calendar years.
            ``(4) Facility must be located within state.--
                    ``(A) In general.--No portion of the Move America 
                volume cap of an issuing authority for any calendar 
                year may be used with respect to financing for a 
                facility located outside of the authority's State.
                    ``(B) Exception for certain facilities where state 
                will get proportionate share of benefit.--Subparagraph 
                (A) shall not apply to any Move America bond the 
                proceeds of which are used to provide a facility 
                described in paragraph (4) or (5) of subsection (b) if 
                the issuer establishes that the State's share of the 
                use of the facility will equal or exceed the State's 
                share of the private activity bonds issued to finance 
                the facility.
    ``(e) Applicability of Certain Federal Laws.--
            ``(1) In general.--An issue shall not be treated as an 
        issue under subsection (b) unless the facility for which the 
        proceeds of such issue are used meets the requirements 
        applicable to construction, alteration, or repair of similar 
        facilities under any Federal law that would apply if the 
        facility were funded or financed under any other Federal 
        program (including under titles 23, 40, and 49, United States 
        Code) which would otherwise apply to similar facilities.
            ``(2) Public transportation capital projects.--In addition 
        to the requirements of paragraph (1), an issue the proceeds of 
        which are used to finance a capital project (as defined in 
        section 5302(3) of title 49, United States Code) relating to 
        public transportation (as defined in section 5302(14) of such 
        title) shall not be treated as an issue under subsection (b) 
        unless such project complies with the requirements of chapter 
        53 of title 49, United States Code.
    ``(f) Special Rule for Environmental Remediation Costs for Docks 
and Wharves.--For purposes of this section, amounts used for working 
capital expenditures relating to environmental remediation required 
under State or Federal law at or near a facility described in 
subsection (b)(2) (including environmental remediation in the riverbed 
and land within or adjacent to the Federal navigation channel used to 
access such facility) shall be treated as an amount used to provide for 
such a facility.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the purposes of this section, 
including regulations requiring States to report the amount of Move 
America volume cap of the State carried forward for any calendar year 
under subsection (d)(3).''.
            (2) Conforming amendment.--The table of sections for 
        subpart A of part IV of subchapter B of chapter 1 of such Code 
        is amended by inserting after the item relating to section 142 
        the following new item:

``Sec. 142A. Move America bonds.''.
    (b) Application of Other Private Activity Bond Rules.--
            (1) Treatment under private activity bond volume cap.--
        Subsection (g) of section 146 of the Internal Revenue Code of 
        1986 is amended by striking ``and'' at the end of paragraph 
        (3), by striking the period at the end of paragraph (4) and 
        inserting ``, and'', and by inserting after paragraph (4) the 
        following new paragraph:
            ``(5) any Move America bond.''.
            (2) Special rule on use for land acquisition.--Subparagraph 
        (A) of section 147(c)(1) of the Internal Revenue Code of 1986 
        is amended by inserting ``(50 percent in the case of any issue 
        of Move America bonds)'' after ``25 percent''.
            (3) Special rules for rehabilitation expenditures.--
                    (A) Inclusion of certain expenditures.--
                Subparagraph (B) of section 147(d)(3) of the Internal 
                Revenue Code of 1986 is amended by inserting ``, except 
                that, in the case of any Move America bond, such term 
                shall include any expenditure described in clause (v) 
                thereof'' before the period at the end.
                    (B) Period for expenditures.--Subparagraph (C) of 
                section 147(d)(3) of such Code is amended by inserting 
                ``(5 years, in the case of any Move America bond)'' 
                after ``2 years''.
    (c) Treatment Under the Alternative Minimum Tax.--Subparagraph (C) 
of section 57(a)(5) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new clause:
                            ``(vii) Exception for move america bonds.--
                        For purposes of clause (i), the term `private 
                        activity bond' shall not include any Move 
                        America bond (as defined in section 142A).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to obligations issued in calendar years beginning after the date 
of the enactment of this Act.

SEC. 4. MOVE AMERICA CREDITS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after the 
section 42 the following new section:

``SEC. 42A. MOVE AMERICA CREDITS.

    ``(a) Move America Equity Credits.--
            ``(1) In general.--For purposes of section 38, the Move 
        America equity credit for any taxable year in the credit period 
        is an amount equal to 10 percent of the qualified basis of each 
        qualified facility.
            ``(2) Definitions.--For purposes of this section--
                    ``(A) Qualified basis.--
                            ``(i) In general.--The qualified basis of 
                        any qualified facility is the portion of the 
                        eligible basis of such facility to which the 
                        State has allocated an amount of the State 
                        credit limitation under subsection 
                        (c)(3)(C)(i).
                            ``(ii) Determination.--The qualified basis 
                        of a facility for purposes of all taxable years 
                        in the credit period shall be determined as of 
                        the date of the last day of the calendar year 
                        in which the qualified facility is placed in 
                        service.
                            ``(iii) Exception.--Notwithstanding any 
                        other provision of this section, the qualified 
                        basis of any qualified facility shall be zero 
                        unless the chief executive officer (or the 
                        equivalent) of the local jurisdiction in which 
                        the qualified facility is located is provided a 
                        reasonable opportunity to comment on the 
                        qualified facility.
                    ``(B) Qualified facility.--The term `qualified 
                facility' means a facility described in section 
                142A(b), but only if such facility--
                            ``(i) meets the requirements applicable to 
                        similar facilities under any Federal law which 
                        would apply if the facility were financed under 
                        any other Federal program (including titles 23, 
                        40, and 49, United States Code),
                            ``(ii) complies with the requirements of 
                        chapter 53 of title 49, United States Code, in 
                        the case of a capital project (as defined in 
                        section 5302(3) of title 49, United States 
                        Code) relating to public transportation (as 
                        defined in section 5302(14) of such title), and
                            ``(iii) will be generally available for 
                        public use throughout the credit period.
                    ``(C) Credit period.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the credit period with respect to 
                        any qualified facility is the period of 10 
                        taxable years beginning with the first taxable 
                        year beginning in the calendar year in which 
                        the facility is placed in service.
                            ``(ii) Early termination.--If at any time 
                        during the 10-taxable-year period described in 
                        clause (i) a facility ceases to be a qualified 
                        facility, or ceases and then recommences to be 
                        a qualified facility, the credit period with 
                        respect to such facility shall include only the 
                        taxable years in such 10-year period in which 
                        the facility was a qualified facility for the 
                        entire taxable year.
                            ``(iii) Dispositions of property or 
                        interest relating to qualified facility.--A 
                        facility shall not cease to be a qualified 
                        facility solely by reason of the disposition of 
                        the facility (or an interest therein) if it is 
                        reasonably expected that such facility will 
                        otherwise continue to be a qualified facility.
                            ``(iv) Treatment of credit in case of 
                        disposition.--If at any time during the 10-
                        taxable-year period described in clause (i) a 
                        qualified facility (or an interest therein) is 
                        disposed of--
                                    ``(I) the credit under paragraph 
                                (1) for any year in such period 
                                beginning after the date of the 
                                disposal shall be allowed to the 
                                acquiring person, and not to the person 
                                disposing of the facility (or 
                                interest), and
                                    ``(II) the credit under paragraph 
                                (1) for the year of the disposal shall 
                                be allocated between such persons on 
                                the basis of the number of days during 
                                such year the facility (or interest) 
                                was held by each.
            ``(3) Reallocation.--
                    ``(A) In general.--If any qualified facility is not 
                placed in service within 3 years of the date of the 
                allocation under subsection (c)(3), the State shall 
                rescind the allocation under subsection (c)(3)(C)(i). 
                Any allocation so rescinded may be reallocated by the 
                State under subsection (c) (including to qualified 
                infrastructure funds for purposes of the credit under 
                subsection (b)) within the calendar year in which it is 
                so rescinded.
                    ``(B) Reversion.--Any rescinded allocation which is 
                not reallocated under subparagraph (A) by the last day 
                of the calendar year in which it is so rescinded shall 
                revert to inclusion in the State's Move America volume 
                cap under section 142A(d) as if it had never been 
                exchanged under subsection (c)(1).
                    ``(C) No multiple reallocations.--Any rescinded 
                allocation which is reallocated under subparagraph (A) 
                and is subsequently rescinded shall not be further 
                reallocated and shall immediately revert to inclusion 
                in the Move America volume cap as provided in 
                subparagraph (B).
            ``(4) Coordination with deduction for depreciation, etc.--
        The basis of any property taken into account in determining the 
        qualified basis of a qualified facility with respect to which a 
        credit is allowed under this section shall be reduced by the 
        aggregate amount of the credit allowable under this section 
        during all taxable years in the credit period which is properly 
        allocable to the cost basis of such property. The Secretary 
        shall provide for adjustments to basis in cases where the 
        taxpayer is not allowed a full credit for all years in the 
        credit period.
    ``(b) Move America Infrastructure Fund Credits.--
            ``(1) Allowance of credit.--
                    ``(A) In general.--For purposes of section 38, in 
                the case of a taxpayer who holds a Move America 
                investment on a credit allowance date of such 
                investment which occurs during the taxable year, the 
                Move America infrastructure fund credit for such 
                taxable year is an amount equal to 5 percent of the 
                amount paid to the qualified infrastructure fund for 
                such investment at its original issue.
                    ``(B) Credit allowance date.--For purposes of 
                subparagraph (A), except as provided in paragraph (3), 
                the term `credit allowance date' means with respect to 
                any Move America investment--
                            ``(i) the date on which such investment is 
                        initially made, and
                            ``(ii) each of the 9 anniversary dates of 
                        such date thereafter.
            ``(2) Definitions.--For purposes of this section--
                    ``(A) Move america investment.--
                            ``(i) In general.--The term `Move America 
                        investment' means any equity investment in a 
                        qualified infrastructure fund, if--
                                    ``(I) such investment is acquired 
                                by the taxpayer at its original issue 
                                solely in exchange for cash,
                                    ``(II) substantially all of such 
                                cash is used by the qualified 
                                infrastructure fund to make qualified 
                                investments, and
                                    ``(III) such investment is 
                                designated for purposes of this 
                                subsection by the qualified 
                                infrastructure fund, including a 
                                designation of the qualified investment 
                                which will be made with such 
                                investment.
                            ``(ii) Limitation.--
                                    ``(I) In general.--The maximum 
                                amount of equity investments issued by 
                                a qualified infrastructure fund in a 
                                calendar year which may be designated 
                                under clause (i)(III) by such fund 
                                shall not exceed 200 percent of the 
                                portion of the State credit limitation 
                                allocated under subsection 
                                (c)(3)(A)(ii) to such fund in such 
                                calendar year.
                                    ``(II) Expiration.--If the 
                                limitation determined under subclause 
                                (I) with respect to an infrastructure 
                                fund for a calendar year exceeds the 
                                amount of equity investments designated 
                                under clause (i)(III) by such fund in 
                                such year, the State shall rescind such 
                                excess allocation. Any allocation so 
                                rescinded may be reallocated by the 
                                State under subsection (c) (including 
                                to qualified facilities for purposes of 
                                the credit under subsection (a)) within 
                                the immediately succeeding calendar 
                                year.
                                    ``(III) Reversion.--Any rescinded 
                                allocation which is not reallocated 
                                under subclause (II) by the last day of 
                                such immediately succeeding calendar 
                                year shall revert to inclusion in the 
                                State's Move America volume cap under 
                                section 142A(d) as if it had never been 
                                exchanged under subsection (c)(1).
                                    ``(IV) No multiple reallocations.--
                                Any rescinded allocation which is 
                                reallocated under subclause (II) and is 
                                subsequently rescinded shall not be 
                                further reallocated and shall 
                                immediately revert to inclusion in the 
                                Move America volume cap as provided in 
                                subclause (III).
                            ``(iii) Safe harbor for determining use of 
                        cash.--The requirement of clause (i)(II) shall 
                        be treated as met if at least 95 percent of the 
                        aggregate gross assets of the qualified 
                        infrastructure fund (determined without regard 
                        to any cash received under clause (i)(I) that 
                        has not been invested in any other asset before 
                        the date that is 3 years after the date such 
                        cash is received) are invested in qualified 
                        investments.
                            ``(iv) Treatment of subsequent 
                        purchasers.--The term `Move America investment' 
                        includes any equity investment which would (but 
                        for clause (i)(I)) be a Move America investment 
                        in the hands of the taxpayer if such investment 
                        was a Move America investment in the hands of a 
                        prior holder.
                    ``(B) Qualified infrastructure fund.--The term 
                `qualified infrastructure fund' means--
                            ``(i) a State infrastructure bank 
                        established under section 610 of title 23, 
                        United States Code,
                            ``(ii) a water pollution control revolving 
                        fund established under title VI of the Federal 
                        Water Pollution Control Act (33 U.S.C. 1381 et 
                        seq.),
                            ``(iii) a drinking water treatment 
                        revolving loan fund established under section 
                        1452 of the Safe Drinking Water Act (42 U.S.C. 
                        300j-12), or
                            ``(iv) an equivalent fund established or 
                        designated by the State or any instrumentality 
                        thereof and certified by the Secretary as 
                        having a primary purpose of financing qualified 
                        facilities.
                In the case of a fund described in clause (ii) or 
                (iii), the amount of any Move America investment shall 
                not be included in determining the amount of State or 
                other non-Federal contributions to such fund.
                    ``(C) Qualified investment.--The term `qualified 
                investment' means an investment (whether by loan, loan 
                guarantee, or equity investment) in--
                            ``(i) qualified facilities, or
                            ``(ii) in the case of a fund described in 
                        clause (i), (ii), or (iii) of subparagraph (B), 
                        projects and activities for which such funds 
                        are authorized to be used under any other 
                        provision of law.
            ``(3) Early termination.--
                    ``(A) In general.--If at any time during the 
                compliance period the fund which issued a Move America 
                investment ceases to be a qualified infrastructure 
                fund, or ceases and then recommences to be a qualified 
                infrastructure fund, any date described in paragraph 
                (1)(B) (including the date described in clause (i) 
                thereof) occurring in--
                            ``(i) the taxable year in which the fund 
                        ceased to be a qualified infrastructure fund, 
                        or
                            ``(ii) any other taxable year in such 
                        period in which the fund is not a qualified 
                        infrastructure fund for the entire taxable 
                        year,
                shall not be treated as a credit allowance date for 
                purposes of paragraph (1).
                    ``(B) Compliance period.--For purposes of 
                subparagraph (A), the term `compliance period' means 
                the 10-taxable-year period beginning with the taxable 
                year that includes the date of the original issue of 
                the Move America investment.
                    ``(C) Loss of qualification.--A fund shall cease to 
                be a qualified infrastructure fund as of the date more 
                than 5 percent of the investments made by the fund are 
                not qualified investments. For purposes of the 
                preceding sentence, the amount of any cash received 
                under subparagraph (A)(i)(I) that has not been invested 
                in any other asset before the date that is 3 years 
                after the date such cash is received shall not be taken 
                into account in determining investments made by the 
                fund.
                    ``(D) Expiration of credit.--If substantially all 
                of the cash paid for any Move America investment is not 
                used to make qualified investments designated under 
                paragraph (2)(A)(i)(III) within 3 years of the date of 
                original issue of such investment, any date described 
                in paragraph (1)(B) occurring in a taxable year which 
                ends after the date which is 3 years after such date of 
                original issue shall not be treated as a credit 
                allowance date for purposes of paragraph (1).
    ``(c) Move America Credit Allocation.--
            ``(1) Exchange of move america bond volume cap.--
                    ``(A) In general.--If a State has in effect a 
                qualified allocation plan for a calendar year, the 
                State may exchange (in such manner as the Secretary may 
                prescribe) all or a portion of the State's Move America 
                volume cap under section 142A(d) for such year for a 
                State credit limitation.
                    ``(B) Limitation.--The amount of a State's Move 
                America volume cap for a calendar year which may be 
                exchanged under subparagraph (A) shall not include any 
                portion of such cap which is attributable to an amount 
                of State credit limitation which has reverted under 
                paragraph (3)(D) or subsection (a)(3)(B) or 
                (b)(2)(A)(iv).
            ``(2) State credit limitation.--For purposes of this 
        section, the State credit limitation with respect to any State 
        for a calendar year is a dollar amount equal to 25 percent of 
        the Move America volume cap exchanged under paragraph (1) for 
        such calendar year.
            ``(3) Allocation.--
                    ``(A) In general.--A State may allocate the State 
                credit limitation, according to the qualified 
                allocation plan, for any calendar year among--
                            ``(i) qualified facilities in the State for 
                        purposes of the Move America equity credit 
                        under subsection (a), and
                            ``(ii) qualified infrastructure funds in 
                        the State for purposes of the Move America 
                        infrastructure fund credit under subsection 
                        (b).
                    ``(B) Qualified allocation plan.--
                            ``(i) In general.--For purposes of this 
                        subsection, the term `qualified allocation 
                        plan' means any plan--
                                    ``(I) which sets forth selection 
                                criteria to be used in determining 
                                infrastructure priorities of the State 
                                and allocating the State credit 
                                limitation among facilities (in 
                                accordance with clause (ii)) and 
                                infrastructure funds in the State, and
                                    ``(II) which provides a procedure 
                                that the State (or an agent or other 
                                private contractor of the State) will 
                                follow in monitoring for noncompliance 
                                with the provisions of this section and 
                                in notifying the Internal Revenue 
                                Service of such noncompliance.
                            ``(ii) Limitation based on facility 
                        feasibility for move america equity credits.--
                                    ``(I) In general.--In the case of 
                                an allocation with respect to any 
                                qualified facility for purposes of the 
                                Move America equity credit under 
                                subsection (a), such allocation shall 
                                not exceed the minimum amount which the 
                                State transportation authority or other 
                                applicable agency determines is 
                                required for the financial feasibility 
                                of the facility and its viability for 
                                completion and availability for public 
                                use throughout the credit period.
                                    ``(II) Minimum feasibility 
                                determination.--In making the 
                                determination under subclause (I), such 
                                entity shall consider the sources and 
                                uses of funds and the total financing 
                                planned for the facility, any proceeds 
                                or receipts expected to be generated by 
                                reason of tax benefits, the 
                                reasonableness of the developmental and 
                                operational costs of the facility over 
                                the full expected operational life of 
                                the facility, ancillary costs 
                                (including right-of-way and procurement 
                                costs), financing costs, and retained 
                                and transferred risk.
                    ``(C) Special rules relating to move america equity 
                credit.--
                            ``(i) Limitation.--The amount allocated to 
                        a qualified facility under subparagraph (A)(i) 
                        shall not exceed the eligible basis of such 
                        facility.
                            ``(ii) Eligible basis.--For purposes of 
                        this section, except as provided in clause 
                        (iii), the eligible basis of any qualified 
                        facility is the lesser of--
                                    ``(I) the portion of the basis of 
                                such facility which is attributable to 
                                the aggregate amount of equity 
                                investment of all taxpayers in the 
                                costs of the facility which are subject 
                                to the allowance for depreciation 
                                (determined as of the last day of the 
                                calendar year in which the facility is 
                                placed in service), or
                                    ``(II) 20 percent of the costs of 
                                the facility which are subject to the 
                                allowance for depreciation (determined 
                                as of the last day of the calendar year 
                                in which the facility is placed in 
                                service).
                            ``(iii) Exclusion of government 
                        assistance.--Eligible basis shall not include 
                        any portion of the basis of such facility which 
                        is attributable to any assistance or financing 
                        provided by a Federal, State, or local 
                        government (determined as of the last day of 
                        the calendar year in which the facility is 
                        placed in service).
                    ``(D) Reversion of unallocated limitation.--Any 
                portion of the State credit limitation for any calendar 
                year which remains unallocated as of the last day of 
                such calendar year shall revert to inclusion in the 
                State's Move America volume cap under section 142A(d) 
                as if it had never been exchanged under paragraph 
                (1).''.
    (b) Credits Made Part of General Business Credit.--Subsection (b) 
of section 38 of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``plus'' at the end of paragraph (32);
            (2) by striking the period at the end of paragraph (33) and 
        inserting a comma; and
            (3) by adding at the end the following new paragraphs:
            ``(34) the Move America equity credit under section 
        42A(a)(1), plus
            ``(35) the Move America infrastructure fund credit under 
        section 42A(b)(1).''.
    (c) Treatment Under Alternative Minimum Tax and Base Erosion Tax.--
            (1) Alternative minimum tax.--Section 38(c)(4)(B) of the 
        Internal Revenue Code of 1986 is amended by redesignating 
        clauses (iv) through (xii) as clauses (vi) through (xiv), 
        respectively, and by inserting after clause (ii) the following 
        new clauses:
                            ``(iii) the credit determined under section 
                        42A(a)(1),
                            ``(iv) the credit determined under section 
                        42A(b)(1),''.
            (2) Base erosion tax.--Section 59A(b)(1)(B)(ii) of such 
        Code is amended by striking ``plus'' at the end of subclause 
        (I), by redesignating subclause (II) as subclause (III), and by 
        inserting after subclause (I) the following new subclause:
                                    ``(II) the credit allowed under 
                                section 38 for the taxable year which 
                                is properly allocable to the sum of the 
                                Move America equity credit under 
                                section 42A(a)(1) and the Move America 
                                infrastructure fund credit under 
                                section 42A(b)(1), plus''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 42 the 
following new item:

``Sec. 42A. Move America credits.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
    (f) Reporting.--A State shall, at such time and in such manner as 
the Secretary of the Treasury shall require, report--
            (1) to the Secretary of the Treasury--
                    (A) the amount of the Move America volume cap of 
                the State for the calendar year which is exchanged 
                under section 42A(c)(1) of the Internal Revenue Code of 
                1986 for a State credit limitation;
                    (B) the amount (if any) of the State credit 
                limitation allocated under section 42A(c)(3)(A)(i) of 
                such Code to qualified facilities, the amount so 
                allocated to each such facility, and the taxpayer with 
                respect to such facility (including the name of the 
                taxpayer and any other identifying information as the 
                Secretary of the Treasury shall require); and
                    (C) the amount (if any) of the State credit 
                limitation allocated under section 42A(c)(3)(A)(ii) of 
                such Code to qualified infrastructure funds, the amount 
                so allocated to each such fund, and each taxpayer 
                holding any Move America investment with respect to any 
                such fund (including the name of the taxpayer and any 
                other identifying information as the Secretary of the 
                Treasury shall require);
            (2) to the Secretary of the Treasury and any taxpayer who 
        is the sponsor of a qualified facility receiving an allocation 
        under section 42A(c)(3)(A)(i) of such Code, the date on which 
        the qualified facility is placed in service; and
            (3) to the Secretary of the Treasury and any taxpayer 
        holding a Move America investment, a certification that the 
        entity which issued the investment is a qualified 
        infrastructure fund and that the investment will be used to 
        make qualified investments designated for purposes of section 
        42A(b)(2)(A)(i)(III) of the Internal Revenue Code of 1986.
For purposes of this subsection, any term used in this subsection that 
is also used in section 42A or 142A of such Code has the same meaning 
as when used in such section.
                                 <all>