U.S. Sens. John Hoeven (R-ND) and Ron Wyden (D-OR) recently reintroduced the Move America Act, which creates a new infrastructure tax credit and expands tax-exempt private activity bonds aimed at helping state and local governments fund infrastructure projects.
Over the next 10 years, an additional $2 trillion is needed for infrastructure investment, according to The American Society of Civil Engineers.
“Congress continues working with the administration on an infrastructure package to revitalize America’s infrastructure, and Move America should be a part of this effort, providing a cost-effective complement to public funding,” Hoeven said. “In fact, the administration’s budget proposal supports tax-exempt financing for infrastructure. Through tax-exempt bonds and tax credits, our legislation brings a sustainable and flexible approach to help states build vital projects, like permanent flood protection, roads, bridges, airports and information networks.”
The act would allow states to issue tax-exempt bonds in partnership with private entities, and smaller states to trade some or all of their bond allocation for federal tax credits at a 25 percent rate.
It is expected to leverage $8 billion in federal investments into $226 billion in bonds and up to $56 billion in tax credits over 10 years, according to the Joint Committee on Taxation.
The act was first introduced in May 2015.