Community College Infrastructure Financing Act

Bill: 118-s-5187
Sponsor: full_name: Sen. Casey, Robert P., Jr. [D-PA]
Introduced: 2024-09-25
Policy area: Taxation
Latest action: action_date: 2024-09-25
text: Read twice and referred to the Committee on Finance.

Summaries:

tv_txt: II 118th CONGRESS 2d Session S. 5187 IN THE SENATE OF THE UNITED STATES September 25, 2024 Mr. Casey introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to establish a tax credit for Qualified Community College Bonds, and for other purposes.

1. Short title This Act may be cited as the Community College Infrastructure Financing Act . 2. Tax Credit for Qualified Community College Bonds (a) In general Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after subpart G the following new subpart: H Qualified Community College Bonds 54. Qualified Community College Bonds (a) Qualified community college bonds For purposes of this subchapter, the term qualified community college bond means any bond issued as part of an issue if— (1) 95 percent of the available project proceeds of such issue are to be used for a qualified purpose with respect to a qualified community college, (2) the bond is issued by a State, local, or Indian tribal government in consultation with the jurisdictions of which such college is located, and (3) the issuer— (A) designates such bond for purposes of this section, and (B) certifies that it has the written approval of the governing body and the State higher education agency for such bond issuance. (b) Limitation on amount of bonds designated (1) National limitation There is a national community college bond limitation of $1,000,000,000 for each calendar year. (2) Allocation of limitation (A) In general The national community college bond limitation for a calendar year shall be allocated by the Secretary to any governing body which— (i) has submitted an application described in subparagraph (C), and (ii) pursuant to the considerations described in subparagraphs (C) and (D), the Secretary (in consultation with the Secretary of Education) has approved an allocation of such limitation under this paragraph. (B) Cumulative limitation per State For purposes of subparagraph (A), the total amount of allocations made to qualified community colleges located with a State for any calendar year shall not exceed an amount equal to 10 percent of the national community college bond limitation for such calendar year. (C) Applications An application described in this subparagraph shall include such information as the Secretary (in consultation with the Secretary of Education) may require, including the following: (i) A description of— (I) the financial sustainability of the proposal, including how the governing body will leverage other sources of funding, and (II) how the qualified purposes proposed with respect to the qualified community college will fill an unmet need within a qualified area. (ii) Any relevant approvals with respect to the proposal that have been granted by any applicable State, local, or Indian Tribal government or appropriate accrediting body. (iii) A certification that the governing body— (I) has consulted with the jurisdictions in which the qualified community college is, or will be, located, and (II) has the written approval of the State higher education agency for the proposal. (iv) In the case of an application proposing to establish a new qualified community college, in addition to the requirements described in clauses (i), (ii), and (iii)— (I) whether such proposal has received approval from the State higher education agency, and (II) a description of the sustainability of such qualified community college, including any commitment from any State, local, or Indian Tribal government to provide additional funding for such college. (D) Priority for allocations For purposes of making allocations under this paragraph, the Secretary (in consultation with the Secretary of Education) shall— (i) give highest priority to any proposed qualified community college which will serve the residents of— (I) the State's largest metropolitan statistical area which does not contain an institution described in subsection (c)(5)(A), or (II) if subclause (I) does not apply, the largest micropolitan statistical area within such State which does not contain an institution described in such subsection, (ii) after application of clause (i), give high priority to any governing body which— (I) has or will have a partnership with— (aa) 1 or more local high schools (as defined in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 )), including a dual or concurrent enrollment program (as defined in such section), (bb) a 4-year institution of higher education that includes a credit-transfer agreement or articulation agreement (as defined in section 486A(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1093a(a) )) for students at the qualified community college, or (cc) a State workforce development board established under section 101 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3111 ), or (II) is the governing body of, or has or will have a partnership with, an institution which is— (aa) a part B institution (as defined in section 322 of the Higher Education Act of 1965 ( 20 U.S.C. 1061 )), (bb) a Historically Black Graduate Professional School (as identified in section 326(e) of such Act ( 20 U.S.C. 1063b(e) )), (cc) a Hispanic-serving institution (as defined in section 502(a) of such Act ( 20 U.S.C. 1101a(a) )), (dd) a Tribal College or University (as defined in section 316(b) of such Act ( 20 U.S.C. 1059c(b) )), (ee) an Alaska Native-serving institution or a Native Hawaiian-serving institution (as such terms are defined in section 317(b) of such Act ( 20 U.S.C. 1059d(b) )), (ff) a Predominantly Black institution (as defined in section 371(c) of such Act ( 20 U.S.C. 1067q(c) )), (gg) an Asian American and Native American Pacific Islander-serving institution (as defined in section 371(c) of such Act ( 20 U.S.C. 1067q(c) )), or (hh) a Native American-serving nontribal institution (as defined in section 371(c) of such Act ( 20 U.S.C. 1067q(c) )), and (iii) after application of clauses (i) and (ii), give priority to any governing body which, in carrying out a new construction or renovation project using any available project proceeds from the issuance of any qualified community college bond, plans to use not less than 80 percent of such proceeds for construction or renovation that is certified, verified, or consistent with the applicable provisions of— (I) the Leadership in Energy and Environmental Design green building rating standard of the United States Green Building Council, (II) the Living Building Challenge green building certification program developed by the International Living Future Institute, (III) a green building rating program developed by the Collaborative for High-Performance Schools that is designated as CHPS Verified, or (IV) a green building program that— (aa) has standards that are equivalent to or more stringent than the standards of a program described in subclause (I), (II), or (III), (bb) is adopted by the State or another jurisdiction with authority over the qualified community college, and (cc) includes a verifiable method to demonstrate compliance with the program. (3) Designation subject to limitation amount The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (a) with respect to any qualified community college shall not exceed the limitation amount allocated to the governing body of such college under paragraph (2) for such calendar year. (c) Definitions For purposes of this section— (1) Governing body The term governing body means— (A) the board of trustees or other governing organization of a qualified community college, or (B) a State, local, or Indian Tribal government (or any political subdivision thereof), or any combination of local educational agencies or municipalities, that participates or proposes to participate in the establishment and operation of a qualified community college. (2) Institution of higher education The term institution of higher education has the meaning given the term in section 101(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1001(a) ). (3) Local educational agency The term local educational agency has the meaning given the term in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 ), except such term shall include any elementary school or secondary school funded by the Bureau of Indian Education, notwithstanding section 8101(30)(C) of such Act. (4) Qualified area The term qualified area means any of the following: (A) A city, metropolitan statistical area, or county that does not contain any institution described in paragraph (5)(A). (B) A low-income community (as defined in section 45D(e)). (5) Qualified community college The term qualified community college means a public institution of higher education— (A) at which the highest degree that is predominantly awarded to students is an associate degree (including 2-year tribally controlled colleges under section 316 of the Higher Education Act of 1965 ( 20 U.S.C. 1059c ) and public 2-year institutions of higher education), (B) that is established by and operated under the supervision of a governing body in conjunction with the State, local, and Indian tribal governments whose residents will be served by such institution, and (C) that is located within a qualified area. (6) Qualified purpose The term qualified purpose means— (A) establishing and operating a qualified community college, (B) expanding an existing qualified community college to a qualified area, (C) constructing, rehabilitating, repairing, upgrading, enhancing, or expanding any facility owned or to be used by a qualified community college to carry out the educational purposes (including instructional and research purposes) of such college, (D) providing equipment for use by students at a qualified community college, (E) investing in online resources or broadband access projects to deliver community college services to qualified areas, or developing course materials for education to be provided by a qualified community college, provided that such uses do not collectively account for more than 10 percent of the amount allocated under subsection (b)(2) to the governing body for such college, (F) training professors and other school personnel at a qualified community college, provided that such use does not account for more than 5 percent of the amount allocated under subsection (b)(2) to the governing body for such college, (G) constructing, rehabilitating, repairing, upgrading, enhancing, or expanding any on-campus facility to be used by a qualified community college to— (i) provide childcare to students and staff, provided that such use does not account for more than 10 percent of the amount allocated under subsection (b)(2) to the governing body for such college, or (ii) provide affordable housing, with a priority given to students and staff, and (H) connecting students with transportation to a qualified community college, including partnering with public transit providers to— (i) add bus, rail, or paratransit stops at or within walking distances of the campus, (ii) add bus, rail, or paratransit routes to allow for transportation between the campus and surrounding areas and other cities, (iii) increase the frequency of service or adjust the schedules for bus, rail, or paratransit routes to allow students to get to and from their classes, and (iv) subsidize bus, rail, or paratransit costs for students. (7) State The term State includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. (8) State higher education agency The term State higher education agency means the officer or agency primarily responsible for the State supervision of higher education. (d) Application of certain labor standards to projects financed with qualified community bonds (1) In general Each laborer and mechanic employed by a contractor or subcontractor in the performance of construction, alteration, or repair work financed in whole, or in part, with the proceeds of any qualified community college bond issued after the date of enactment of the Community College Infrastructure Financing Act shall be paid wages at rates not less than those prevailing on work of a similar character in the locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. (2) Authority The Secretary of Labor shall have, with respect to the labor standards described in paragraph (1), the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. . (b) Conforming amendment The table of subparts for part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to subpart G the following: Subpart H—Qualified Community College Bonds . 3. Credit to holders and issuers of Qualified Community College Bonds (a) Allowance of credit (1) In general Section 54A of the Internal Revenue Code of 1986, as in effect on the day before repeal by Public Law 115–97 , is revived. (2) Credit limited to Qualified Community College Bonds Section 54A(d) of such Code is amended— (A) by striking paragraph (1) and inserting the following: (1) Qualified tax credit bond The term qualified tax credit bond means a qualified community college bond which is part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and (6). , and (B) in paragraph (2), by striking subparagraph (C) and inserting the following: (C) Qualified purpose For purposes of this paragraph, the term qualified purpose means a purpose specified in section 54(c)(3). . (b) Credit allowed to issuer (1) In general Section 6431 of the Internal Revenue Code of 1986, as in effect on the day before repeal by Public Law 115–97 , is revived. (2) Conforming amendments (A) Section 6431(f) of such Code, as revived by paragraph (1), is amended by striking paragraphs (2) and (3) and inserting the following: (2) Specified tax credit bond For purposes of this subsection, the term specified tax credit bond means any qualified tax credit bond (as defined in section 54A(d)(1)) if the issuer of such bond makes an irrevocable election to have this subsection apply. . (B) Subparagraph (A) of section 6211(b)(4) of the Internal Revenue Code of 1986 is amended by striking and 6428A and inserting 6428A, and 6431 . 4. Effective date The amendments made by this Act shall apply to obligations issued after the date of the enactment of this Act.