,,ii #aacth ,,congress #b;d ,session ,s4 #aieg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #af1 #bjad,mr4 ,bennet 7for himself1 ,mr4 ,blunt1 ,mr4 ,warner1 ,ms4 ,ayotte1 ,ms4 ,landrieu1 ,mr4 ,king1 ,mr4 ,graham1 ,mr4 ,coats1 ,mr4 ,hoeven1 ,mr4 ,begich1 and ,mr4 ,kirk7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to establish the ,american ,infrastructure ,fund1 to provide bond guarantees and make loans to ,states1 local governments1 and infrastructure providers for investments in certain infrastructure projects1 and to provide equity investments in such projects1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,partnership to ,build ,america ,act of #bjad4 #b4 ,american ,infrastructure ,fund 7a7 ,american ,infrastructure ,fund 7#a7 ,in general ,there is established a wholly owned ,government corporation-- 7,a7 which shall be called the ,american ,infrastructure ,fund 7referred to in this ,act as the ,,aif72 7,b7 which shall be headed by the ,board of ,trustees established under subsection 7b72 7,c7 which may have separate subaccounts or subsidiaries for funds used to make loans1 bond guarantees1 and equity investments under this section2 7,d7 which shall be available to the ,,aif to pay for the costs of carrying out this section1 including the compensation of the ,board and other employees of the ,,aif2 and 7,e7 the funds of which may be invested by the ,board in such manner as the ,board determines appropriate4 7#b7 ,deposits to aif ,all funds received from bond issuances1 loan payments1 bond guarantee fees1 and any other funds received in carrying out this section shall be held by ,,aif4 7#c7 ,limitations ,the charter of the ,,aif shall limit its activities to those activities described as the mission of the ,board under subsection 7b77#b74 7#d7 ,oversight ,the ,,aif shall register with the ,securities and ,exchange ,commission and the ,chairman shall report to ,congress annually as to whether the ,,aif is fulfilling the mission of the ,board under subsection 7b77#b74 7#e7 ,treatment of aif 7,a7 ,accounts ,title #ca1 ,united ,states ,code1 is amended in each of sections #iajg7;c77#c7 and #iajh7;d77#b7-- 7i7 by inserting the ,american ,infrastructure ,fund1 after the ,regional ,banks for ,cooperatives12 and 7ii7 by striking those banks and inserting those entities4 7,b7 ,bonds ,section #adi7;b77#c77;,a77i7 of the ,internal ,revenue ,code of #aihf is amended by inserting ,american ,infrastructure ,fund1 after ,federal ,home ,loan ,mortgage ,corporation14 7b7 ,board of trustees 7#a7 ,in general ,there is established a ,board of ,trustees of the ,,aif 7referred to in this subsection as the ,board71 which shall be composed of #i members who-- 7,a7 have substantial experience in bond guarantees or municipal credit2 and 7,b7 to the greatest extent practicable1 have extensive experience working with municipal credit1 risk management1 and infrastructure finance4 7#b7 ,mission ,the mission of the ,board is-- 7,a7 to operate the ,,aif and its subsidiaries to be a low cost provider of bond guarantees1 loans1 and equity investments to ,state and local governments and infrastructure providers for urban and rural infrastructure projects that-- 7i7 provide a positive economic impact2 and 7ii7 meet such other standards as the ,board may develop2 7,b7 to operate the ,,aif in a self-sustaining manner so as to allow the ,,aif to repay its infrastructure bonds when such bonds are due2 7,c7 to not have a profit motive1 but to seek at all times to pursue its mission of providing low cost bond guarantees and loans while-- 7i7 covering its costs2 7ii7 maintaining such reserves as may be needed2 and 7iii7 applying prudent underwriting standards2 7,d7 to only consider projects put forth by ,state and local governments and not to seek projects directly2 7,e7 to always make clear that no taxpayer money supports the ,,aif or ever will support the ,,aif2 and 7,f7 to engage in no other activities other than those permitted under this section4 7#c7 ,membership 7,a7 ,initial members 7i7 ,appointment ,not later than #aej days after the date on which bonds are first issued under subsection 7d71 the ,president shall appoint1 with the advice and consent of the ,senate1 as members of the ,board-- 7,i7 #b individuals from a list of at least #e individuals selected by the ,speaker of the ,house of ,representatives2 7,,ii7 #b individuals from a list of at least #e individuals selected by the ,minority ,leader of the ,house of ,representatives2 7,,iii7 #b individuals from a list of at least #e individuals selected by the ,majority ,leader of the ,senate2 7,,iv7 #b individuals from a list of at least #e individuals selected by the ,minority ,leader of the ,senate2 and 7,v7 #a individual selected at will by the ,president4 7ii7 ,submission of lists ,each of the lists described in clause 7i7 shall be submitted to the ,president not later than #ij days after the date on which bonds are first issued under subsection 7d74 ,if any of such lists are submitted after the date required under this clause1 the ,president may appoint the #b members of the ,board who were to be selected from such list at will4 7,b7 ,staggered terms ,the members of the ,board appointed pursuant to subparagraph 7,a77i7 shall serve staggered terms1 with #b each of the initial members of the ,board serving for terms of #e1 #f1 #g1 and #h years1 respectively1 and the initial ,chair selected under subparagraph 7,d7 serving for #i years4 ,the decision of which ,board members1 other than the ,chair1 serve for which initial terms shall be made by the members of the ,board drawing lots4 7,c7 ,additional members 7i7 ,in general ,except as provided in subparagraph 7,a71 if the term of a member of the ,board expires or otherwise becomes vacant1 the ,president shall appoint a replacement for such member1 with the advice and consent of the ,senate1 from among a list of at least #e individuals submitted by the ,board4 7ii7 ,term of service 7,i7 ,in general ,each member of the ,board appointed to replace a member whose term is expiring shall serve for a #g-year term4 7,,ii7 ,vacancies ,any member of the ,board appointed to fill a vacancy occurring before the expiration of the term to which that member's predecessor was appointed shall be appointed only for the remainder of the term4 7,d7 ,chair ,the members of the ,board shall choose #a member to serve as the ,chair of the ,board for a term of #g years1 except that the initial ,chair shall serve for a term of #i years1 pursuant to subsection 7,b74 7,e7 ,continuation of service ,each member of the ,board may continue to serve after the expiration of the term of office to which that member was appointed until a successor has been appointed4 7,f7 ,conflicts of interest ,no member of the ,board may have a financial interest in1 or be employed by1 a ,qualified ,infrastructure ,project 7,,qip7 related to assistance provided under this section or any entity that has purchased bonds under subsection 7d74 ,owning municipal credit of any ,state or local government or owning the securities of a diversified company that engages in infrastructure activities1 provided those activities constitute less than #bj percent of the company's revenues1 or investing in broadly held investment funds shall not be deemed to create a conflict of interest4 ,the ,board may issue regulations to define terms used under this subparagraph4 7#d7 ,compensation ,the members of the ,board shall be compensated at an amount to be set by the ,board1 but under no circumstances may such compensation be higher than the rate prescribed for level ,,iv of the ,executive ,schedule under section #ecae of title #e1 ,united ,states ,code4 7#e7 ,staff ,the ,board shall employ and set compensation for such staff as the ,board determines as is necessary to carry out the activities and mission of the ,,aif1 and such staff may be paid without regard to the provisions of chapter #ea and subchapter ,,iii of chapter #ec1 ,united ,states ,code1 relating to classification and ,general ,schedule pay rates4 7#f7 ,procedures ,the ,board shall establish such procedures as are necessary to carry out this section4 7#g7 ,corporate governance standards 7,a7 ,board committees generally ,the ,board shall maintain all of the committees required to be maintained by the board of directors of an issuer listed on the ,new ,york ,stock ,exchange as of the date of the enactment of this section4 7,b7 ,risk management committee ,the ,board shall maintain a risk management committee1 which shall-- 7i7 employ additional staff who are certified by the ,board as having significant and relevant experience in insurance underwriting and credit risk management2 and 7ii7 establish the risk management policies used by the ,board4 7,c7 ,standards ,the ,board shall1 to the extent practicable1 follow all standards with respect to corporate governance that are required to be followed by the board of directors of an issuer listed on the ,new ,york ,stock ,exchange as of the date of the enactment of this section4 7#h7 ,biennial reports ,not less frequently than once every #b years1 the ,board shall produce a report that describes1 of the materials1 goods1 and products that were used to construct1 or to support the construction of1 qualified infrastructure projects 7as described in subsection 7c77 and received financing from the ,american ,infrastructure ,fund within the most recent #b calendar years1 the percentage of such materials1 goods1 and products that were created1 sourced1 or manufactured in the ,united ,states4 7c7 ,infrastructure investment 7#a7 ,entities eligible for assistance ,the ,,aif may provide assistance to ,state and local government entities1 nonprofit infrastructure providers1 private parties1 and public-private partnerships 7referred to in this section as eligible entities7 to help finance qualified infrastructure projects 7referred to in this subsection as ,q,i,ps74 7#b7 ,forms of assistance ,the ,,aif may-- 7,a7 provide bond guarantees to debt issued by eligible entities2 7,b7 make loans1 including subordinated loans1 to eligible entities2 and 7,c7 make equity investments in ,q,i,ps4 7#c7 ,qualified infrastructure projects ,a project qualifies as a ,,qip under this section if-- 7,a7 the project is sponsored by a ,state or local government2 7,b7 the infrastructure is1 or will be1 owned by a ,state or local government2 7,c7 the project involves the construction1 maintenance1 improvement1 or repair of a transportation1 energy1 water1 communications1 or educational facility2 and 7,d7 the recipient of bond guarantees1 loans1 equity investments1 or any other financing technique authorized under this ,act provides written assurances prescribed by the ,,aif that the project will be performed in compliance with the requirements of all ,federal laws that would otherwise apply to similar projects to which the ,united ,states is a party4 7#d7 ,application for assistance 7,a7 ,in general ,a ,state or local government that wishes to receive a loan or bond guarantee under this section shall submit an application to the ,board in such form and manner and containing such information as the ,board may require4 7,b7 ,requirement for public sponsorship of private entities ,a private entity may only receive a bond guarantee1 loan1 or equity investment under this section if the ,state or local government for the jurisdiction in which the nonprofit infrastructure provider or private partner is located submits an application pursuant to subparagraph 7,a7 on behalf of such nonprofit infrastructure provider or private partner4 7#e7 ,limitations on single state awards 7,a7 ,annual limitation ,the ,board shall set an annual limit1 as a percentage of total assistance provided under this section during a year1 on the amount of assistance a single ,state 7including local governments and other infrastructure providers within such ,state7 may receive in assistance provided under this section4 7,b7 ,cumulative limitation ,the ,board shall set a limit1 as a percentage of total assistance provided under this section outstanding at any one time1 on the amount of assistance a single ,state 7including local governments and other infrastructure providers within such ,state7 may receive in assistance provided under this section4 7#f7 ,loan specifications ,loans made under this section shall have such maturity and carry such interest rate as the ,board determines appropriate4 7#g7 ,bond guarantee ,the ,board shall charge such fees for ,bond guarantees made under this section as the ,board determines appropriate4 7#h7 ,equity investments ,with respect to a ,,qip1 the amount of an equity investment made by the ,,aif in such ,,qip may not exceed #bj percent of the total cost of the ,,qip4 7#i7 ,public-private partnership requirements ,at least #ce percent of the assistance provided under this section shall be provided to ,q,i,ps for which at least #aj percent of the financing for such ,q,i,ps comes from private debt or equity4 7#aj7 ,prohibition on principal forgiveness ,with respect to a loan made under this section1 the ,board may not forgive any amount of principal on such loan4 7d7 ,american ,infrastructure ,bonds 7#a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary1 acting through the ,,aif1 shall issue bonds1 which shall be called ,american ,infrastructure ,bonds4 ,the proceeds from the ,american ,infrastructure ,bonds shall be deposited into the ,,aif4 7#b7 ,forms and denominations2 interest ,american ,infrastructure ,bonds shall-- 7,a7 be in such forms and denominations as determined by the ,secretary1 and shall have a #ej-year maturity2 and 7,b7 bear interest of #a percent4 7#c7 ,no full faith and credit ,interest and principal payments paid to holders of ,american ,infrastructure ,bonds shall be paid from the ,,aif1 to the extent funds are available1 and shall not be backed by the full faith and credit of the ,united ,states4 7#d7 ,amount of bonds ,the aggregate face amount of the bonds issued under this subsection shall be #ej1jjj1jjj1jjj4 7#e7 ,sale of american infrastructure bonds 7,a7 ,competitive bidding process ,the ,secretary shall sell #ej1jjj1jjj1jjj of ,american ,infrastructure ,bonds-- 7i7 through a competitive bidding process that encourages aggressive bidding2 7ii7 with prospective purchasers bidding on how low of a multiplier they will accept 7for purposes of subsection 7b77#a7 of section #iff of the ,internal ,revenue ,code of #aihf7 when purchasing the ,american ,infrastructure ,bonds1 for purposes of applying the foreign earnings exclusion described under that section2 and 7iii7 in a manner that ensures no entities participating in the bidding may collude or coordinate their bids4 7,b7 ,limitation ,the multiplier described in subparagraph 7,a77ii7 may not be greater than #f4 7#f7 ,reimbursement of costs ,the ,board shall repay the ,secretary1 from funds in the ,,aif1 for the costs to the ,secretary in carrying out this subsection4 7e7 ,additional bonds 7#a7 ,in general ,the ,board may issue such other bonds as the ,board determines appropriate1 the proceeds from which shall be deposited into the ,,aif4 7#b7 ,no full faith and credit ,interest and principal payments paid to holders of bonds issued pursuant to paragraph 7#a7 shall be paid from the ,,aif1 to the extent funds are available1 and shall not be backed by the full faith and credit of the ,united ,states4 7f7 ,definitions ,for purposes of this section3 7#a7 ,infrastructure provider ,the term infrastructure provider means an entity that seeks to finance a ,,qip4 7#b7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#c7 ,state ,the term ,state means each of the several ,states1 the ,district of ,columbia1 any territory or possession of the ,united ,states1 and each ,federally recognized ,indian tribe4 #c4 ,foreign earnings exclusion for purchase of infrastructure bonds 7a7 ,in general ,subpart ,f of part ,,iii of subchapter ,n of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #iff4 ,foreign earnings exclusion for purchase of infrastructure bonds 7a7 ,exclusion ,in the case of a corporation which is a ,united ,states shareholder and for which the election under this section is in effect for the taxable year1 gross income does not include an amount equal to the qualified cash dividend amount4 7b7 ,qualified cash dividend amount ,for purposes of this section1 the term qualified cash dividend amount means an amount of the cash dividends which are received during a taxable year by such shareholder from controlled foreign corporations equal to-- 7#a7 the multiplier determined under section #b7;d77#e7 of the ,partnership to ,build ,america ,act of #bjad for such shareholder1 multiplied by 7#b7 the face amount of qualified infrastructure bonds acquired at its original issue 7directly or through an underwriter7 by such shareholder4 7c7 ,limitations 7#a7 ,in general ,the amount of dividends taken into account under subsection 7a7 for a taxable year shall not exceed the lesser of-- 7,a7 the cash dividends received by the taxpayer for such taxable year1 or 7,b7 the amount shown on the applicable financial statement as earnings permanently reinvested outside the ,united ,states4 7#b7 ,dividends must be extraordinary ,the amount of dividends taken into account under subsection 7a7 shall not exceed the excess 7if any7 of-- 7,a7 the cash dividends received during the taxable year by such shareholder from controlled foreign corporations1 over 7,b7 the annual average for the base period years of the cash dividends received during each base period year by such shareholder from controlled foreign corporations4 7#c7 ,reduction of benefit if increase in related party indebtedness ,the amount of dividends which would 7but for this paragraph7 be taken into account under subsection 7a7 shall be reduced by the excess 7if any7 of-- 7,a7 the amount of indebtedness of the controlled foreign corporation to any related person 7as defined in section #ied7;d77#c77 as of the close of the taxable year for which the election under this section is in effect1 over 7,b7 the amount of indebtedness of the controlled foreign corporation to any related person 7as so defined7 as of the close of the preceding taxable year4 7#d7 ,treatment of controlled foreign corporations ,all controlled foreign corporations with respect to which the taxpayer is a ,united ,states shareholder shall be treated as #a controlled foreign corporation for purposes of this subsection4 ,the ,secretary may prescribe such regulations as may be necessary or appropriate to prevent the avoidance of the purposes of this subsection1 including regulations providing that cash dividends shall not be taken into account under subsection 7a7 to the extent such dividends are attributable to the direct or indirect transfer 7including through the use of intervening entities or capital contributions7 of cash or other property from a related person 7as so defined7 to a controlled foreign corporation4 7d7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,qualified infrastructure bonds ,the term qualified infrastructure bond means a bond issued under section #b7;d7 of the ,partnership to ,build ,america ,act of #bjad4 7#b7 ,applicable financial statement ,the term applicable financial statement means1 with respect to a taxable year-- 7,a7 with respect to a ,united ,states shareholder which is required to file a financial statement with the ,securities and ,exchange ,commission 7or which is included in such a statement so filed by another person71 the most recent audited annual financial statement 7including the notes which form an integral part of such statement7 of such shareholder 7or which includes such shareholder7-- 7i7 which was so filed for such taxable year1 and 7ii7 which is certified as being prepared in accordance with generally accepted accounting principles1 and 7,b7 with respect to any other ,united ,states shareholder1 the most recent audited financial statement 7including the notes which form an integral part of such statement7 of such shareholder 7or which includes such shareholder7-- 7i7 which is certified as being prepared in accordance with generally accepted accounting principles1 and 7ii7 which is used for the purposes of a statement or report-- 7,i7 to creditors1 7,,ii7 to shareholders1 or 7,,iii7 for any other substantial nontax purpose4 7#c7 ,base period years 7,a7 ,in general ,the base period years are the #c taxable years-- 7i7 which are among the #e most recent preceding taxable years ending before the taxable year1 and 7ii7 which are determined by disregarding-- 7,i7 #a taxable year for which the amount described in subsection 7c77#b77;,b7 is the largest1 and 7,,ii7 #a taxable year for which such amount is the smallest4 7,b7 ,shorter period ,if the taxpayer has fewer than #e taxable years ending before the taxable year1 then in lieu of applying subparagraph 7,a71 the base period years shall include all the taxable years of the taxpayer ending before such taxable year4 7,c7 ,mergers1 acquisitions1 etc 7i7 ,in general ,rules similar to the rules of subparagraphs 7,a7 and 7,b7 of section #da7;f77#c7 shall apply for purposes of this paragraph4 7ii7 ,spin-offs1 etc ,if there is a distribution to which section #cee 7or so much of section #cef as relates to section #cee7 applies during the #e-year period referred to in subparagraph 7,a77i7 and the controlled corporation 7within the meaning of section #cee7 is a ,united ,states shareholder-- 7,i7 the controlled corporation shall be treated as being in existence during the period that the distributing corporation 7within the meaning of section #cee7 is in existence1 and 7,,ii7 for purposes of applying subsection 7c77#b7 to the controlled corporation and the distributing corporation1 amounts described in subsection 7c77#b77;,b7 which are received or includable by the distributing corporation or controlled corporation 7as the case may be7 before the distribution referred to in subclause 7,i7 from a controlled foreign corporation shall be allocated between such corporations in proportion to their respective interests as ,united ,states shareholders of such controlled foreign corporation immediately after such distribution4 7iii7 ,exception ,subclause 7,,ii7 of clause 7ii7 shall not apply if neither the controlled corporation nor the distributing corporation is a ,united ,states shareholder of such controlled foreign corporation immediately after such distribution4 7#d7 ,dividend ,the term dividend shall not include amounts includable in gross income as a dividend under section #gh1 #cfg1 or #abdh4 ,in the case of a liquidation under section #ccb to which section #cfg7;b7 applies1 the preceding sentence shall not apply to the extent the ,united ,states shareholder actually receives cash as part of the liquidation4 7#e7 ,coordination with dividend received deduction ,no deduction shall be allowed under section #bdc or #bde for any dividend which is excluded from income by subsection 7a74 7#f7 ,controlled groups ,all ,united ,states shareholders which are members of an affiliated group filing a consolidated return under section #aeja shall be treated as one ,united ,states shareholder4 7#g7 ,reporting ,the ,secretary shall require by regulation or other guidance the reporting of such information as the ,secretary may require to carry out this section4 7e7 ,denial of foreign tax credit2 denial of certain expenses 7#a7 ,foreign tax credit 7,a7 ,in general ,no credit shall be allowed under section #ija for any taxes paid or accrued 7or treated as paid or accrued7 with respect to the excluded portion of any dividend4 7,b7 ,denial of deduction of related tax ,no deduction shall be allowed under this chapter for any tax for which credit is not allowable by reason of the preceding sentence4 7#b7 ,expenses ,no deduction shall be allowed for expenses directly allocable to the excludable portion described in paragraph 7#a74 7#c7 ,excludable portion ,for purposes of paragraph 7#a71 unless the taxpayer otherwise specifies1 the excludable portion of any dividend or other amount is the amount which bears the same ratio to the amount of such dividend or other amount as the amount excluded from income under subsection 7a7 for the taxable year bears to the amount described in subsection 7c77#b77;,a7 for such year4 7#d7 ,coordination with section #gh ,section #gh shall not apply to any tax which is not allowable as a credit under section #ija by reason of this subsection4 7f7 ,election ,to have section apply ,a taxpayer may elect to have this section apply for any taxable year4 4 7b7 ,clerical amendment ,the table of sections for subpart ,f of part ,,iii of subchapter ,n of chapter #a of such ,code is amended by adding at the end the following new item3 #iff4 ,foreign earnings exclusion for purchase of infrastructure bonds4 4 7c7 ,effective date ,the amendments made by this section shall apply to dividends received for taxable years ending after the date of the enactment of this ,act4