Strengthening Pensions through Investment in Infrastructure Act

Bill: 115-hr-6276
Sponsor: full_name: Rep. Bishop, Mike [R-MI-8]
Introduced: 2018-06-28
Policy area: Taxation
Subjects: Employee benefits and pensions

Financial services and investments

Government employee pay, benefits, personnel management

Income tax exclusion

Infrastructure development
Latest action: action_date: 2018-06-28
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2018-06-28
action_desc: Introduced in House
text: <p><b>Strengthening Pensions through Investment in Infrastructure Act </b></p> <p>This bill modifies the criteria for private activity bonds to specify that the use of public infrastructure property by a public pension fund is not considered a private business use. (The private business use test is one of the tests used to determine if a bond is a taxable private activity bond rather than a tax-exempt bond.) </p> <p>The bill also specifies that public infrastructure property is not considered investment-type property for the purpose of determining whether a bond is a taxable arbitrage bond. (Taxable arbitrage bonds are used to acquire higher yielding investments, or to replace funds which were used directly or indirectly to acquire higher yielding investments.) </p>

tv_txt: I 115th CONGRESS 2d Session H. R. 6276 IN THE HOUSE OF REPRESENTATIVES June 28, 2018 Mr. Bishop of Michigan introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to modify the treatment of use of public infrastructure property for the private business use test for private activity bonds, and for other purposes.

1. Short title This Act may be cited as the Strengthening Pensions through Investment in Infrastructure Act . 2. Treatment of use of public infrastructure property for private business use test for private activity bonds (a) Use by public pension funds treated as government use Section 141(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (10) Use by public pension funds not treated as private business use (A) In general For purposes of this part, use by a public pension fund of public infrastructure property shall not be treated as private business use. (B) Definitions For purposes of this paragraph— (i) Public pension fund The term public pension fund means a pension fund established or maintained for employees or former employees of a State, political subdivision of a State, or an agency or instrumentality thereof. (ii) Public infrastructure property The term public infrastructure property means property with the following characteristics: (I) Consists of roads, bridges, tunnels, docks, wharves, ports, harbors, airports, rail stations, mass transit or commuting centers, water infrastructure (including sewage, waste water, storm water, and solid waste treatment), heating, cooling, or electric utility production, municipal buildings, or other real or tangible property that is used for an essential government function (within the meaning of section 115). (II) Provides services to the general public or is available for general public use. (III) If rates are charged for use of or services provided by such property, such rates are subject to State or local governmental regulatory or contractual control, limitation, or approval. . (b) Effective date The amendment made by this section shall apply with respect to use after the date of enactment of this Act. 3. Public infrastructure property not treated as investment property for arbitrage bonds (a) In general Section 148(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (5) Public infrastructure property not treated as investment-type property The term investment-type property shall not include public infrastructure property (as defined in section 141(b)(10)). . (b) Effective date The amendment made by this section shall apply with respect to transactions after the date of the enactment of this Act.