,,ii #aafth ,,congress #b;d ,session ,s4 #dbjc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #b1 #bjbj ,mr4 ,wicker 7for himself and ,mr4 ,bennet7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a credit to issuers of ,american infrastructure bonds4 #a4 ,short title ,this ,act may be cited as the ,american ,infrastructure ,bonds ,act of #bjbj4 #b4 ,credit for ,american infrastructure bonds allowed to issuers 7a7 ,in general ,subchapter ,b of chapter #fe of the ,internal ,revenue ,code of #aihf is amended by inserting after section #fdcj the following new section3 #fdca4 ,credit to issuer of ,american infrastructure bonds 7a7 ,in general ,the issuer of an ,american infrastructure bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the ,secretary as provided in subsection 7b74 7b7 ,payment of credit 7#a7 ,in general ,the ,secretary shall pay 7contemporaneously with each interest payment date under such bond7 to the issuer of such bond 7or to any person who makes such interest payments on behalf of the issuer7 the applicable percentage of the interest payable under such bond on such date4 7#b7 ,applicable percentage ,for purposes of paragraph 7#a71 the applicable percentage shall be equal to-- 7,a7 in the case of any ,american infrastructure bond issued before ,january #a1 #bjbf1 #ce percent1 and 7,b7 in the case of any ,american infrastructure bond issued after ,december #ca1 #bjbe1 #bh percent4 7#c7 ,interest payment date ,for purposes of this subsection1 the term interest payment date means each date on which the holder of record of the ,american infrastructure bond is entitled to a payment of interest under such bond4 7c7 ,american infrastructure bond 7#a7 ,in general ,for purposes of this section1 the term ,american infrastructure bond means any obligation if-- 7,a7 the interest on such obligation would 7but for this section7 be excludable from gross income under section #ajc1 7,b7 either-- 7i7 the obligation is not a private activity bond1 or 7ii7 the obligation is a private activity bond1 but it is issued as part of an issue #ie percent or more of the net proceeds of which are to be used to finance or refinance property that meets the ownership test in section #ade7;a77#a71 as applied by substituting #ie percent of the property for all property1 and 7,c7 the issuer makes an irrevocable election to have this section apply4 7#b7 ,applicable rules ,for purposes of applying paragraph 7#a7-- 7,a7 for purposes of section #adi7;b71 a bond shall not be treated as federally guaranteed by reason of the credit allowed under this section1 and 7,b7 a bond shall not be treated as an ,american infrastructure bond if the issue price has more than a de minimis amount 7determined under rules similar to the rules of section #abgc7;a77#c77 of premium over the stated principal amount of the bond4 7d7 ,special rules 7#a7 ,interest on ,american infrastructure bonds includible in gross income for ,federal income tax purposes ,for purposes of this title1 interest on any ,american infrastructure bond shall be includible in gross income4 7#b7 ,application of arbitrage rules ,for purposes of section #adh1 the yield on an issue of ,american infrastructure bonds shall be reduced by the credit allowed under this section1 except that no such reduction shall apply with respect to determining the amount of gross proceeds of an issue that qualifies as a reasonably required reserve or replacement fund4 7e7 ,regulations ,the ,secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section4 4 7b7 ,conforming amendments 7#a7 ,the table of sections for subchapter ,b of chapter #fe of subtitle ,f of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #fdca4 ,credit to issuer of ,american infrastructure bonds4 4 7#b7 ,subparagraph 7,a7 of section #fbaa7;b77#d7 of such ,code is amended by inserting #fdca1;after #cf;,b14 7c7 ,transitional coordination with state law ,except as otherwise provided by a ,state after the date of the enactment of this ,act1 the interest on any ,american infrastructure bond 7as defined in section #fdca of the ,internal ,revenue ,code of #aihf 7as added by this ,act77 and the amount of any credit determined under such section with respect to such bond shall be treated for purposes of the income tax laws of such ,state as being exempt from ,federal income tax4 7d7 ,adjustment to payment to issuers in case of sequestration 7#a7 ,in general ,in the case of any payment under subsection 7b7 of section #fdca of the ,internal ,revenue ,code of #aihf 7as added by this ,act7 made after the date of enactment of this ,act to which sequestration applies1 the amount of such payment shall be increased to an amount equal to-- 7,a7 such payment 7determined before such sequestration71 multiplied by 7,b7 the quotient obtained by dividing the number #a by the amount by which the number #a exceeds the percentage reduction in such payment pursuant to such sequestration4 7#b7 ,sequestration ,for purposes of this subsection1 the term sequestration means any reduction in direct spending ordered in accordance with a sequestration report prepared by the ,director of the ,office and ,management and ,budget pursuant to the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe or the ,statutory ,pay-,as-,you-,go ,act of #bjaj or future legislation having similar effect4 7e7 ,effective date ,the amendments made by this section shall apply to obligations issued after the date of enactment of this ,act4