,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #hhfd  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #ae1 #bjbf,ms4   
,sewell introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to provide a cr$it =     
,am]ican infra/ructure bonds1 & = o!r   
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,local ,infra/ructure      
,f9anc+ ,tools ,act1 or ! ,,lift ,act4  
#b4 ,cr$it to issu] = c]ta9             
infra/ructure bonds  7a7 ,9 g5]al       
,sub*apt] ,b ( *apt] #fe ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new section3  #fdcf4  
,cr$it all[$ to issu] = ,am]ican        
infra/ructure bonds  7a7 ,9 g5]al ,9 !  
case ( an ,am]ican infra/ructure bond1 !
 issu] ( su* bond %all be all[$ a cr$it 
) respect to ea* int]e/ paym5t "u su*   
bond :i* %all be payable by ! ,secret>y 
z provid$ 9 subsection 7b74  7b7 ,paym5t
 ( cr$it  7#a7 ,9 g5]al ,! ,secret>y    
%all pay 7contemporane\sly ) ea* date on

 :i* int]e/ is s payable7 to ! issu] (  
su* bond 7or to any p]son :o makes su*  
int]e/ paym5ts on behalf ( su* issu]7 an
 am\nt equal to ! applicable p]c5tage ( 
su* int]e/ s payable4  7#b7 ,applicable 
p]c5tage ,= purposes ( ?is subsection1  
except z provid$ 9 subsection 7d71 !    
applicable p]c5tage ) respect to any    
bond %all be det]m9$ "u ! foll[+ table3 
,9 ! case ( a bond issued,the applicable
 dur+ cal5d> ye>3p]c5tage is3 #bjbf     
?r\gh #bjcj #db #bjca #ch #bjcbcd #bjcc 
& !reaft]#cj4  7#c7 ,limitation  7,a7 ,9
 g5]al ,! am\nt ( any int]e/ paym5t tak5
 into acc\nt "u p>agraph 7#a7 ) respect 
to a bond = any paym5t date %all n exce$
 ! am\nt ( int]e/ :i* w\ld h be5 payable
 "u su* bond on su* date if su* int]e/ 7
 det]m9$ at ! rate :i* ! ,secret>y      
e/imates w p]mit ! issuance ( ,am]ican  
infra/ructure bonds ) a specifi$        
maturity or r$emption date )\t disc\nt &
 )\t additional int]e/ co/4  7,b7 ,date 
( rate det]m9ation ) respect to bond    
,su* rate ) respect to any ,am]ican     

infra/ructure bond %all be det]m9$ z ( !
 fir/ day on :i* !re is a b9d+1 writt5  
contract = ! sale or ex*ange ( ! bond4  
7c7 ,am]ican infra/ructure bond  7#a7 ,9
 g5]al ,= purposes ( ?is section1 ! t]m 
,am]ican infra/ructure bond means any   
bond 7o!r ?an a private activity bond7  
issu$ z "p ( an issue if--  7,a7 #ajj   
p]c5t ( ! available project proce$s (   
su* issue are to be us$ = capital       
exp5ditures or op]ations & ma9t5ance    
exp5ditures 9 connection ) prop]ty !    
acquisition1 con/ruction1 or improvem5t 
( :i* w\ld be a capital exp5diture1     
7,b7 ! int]e/ on su* bond w\ld 7b = ?is 
section7 be excludable f gross income "u
 section #ajc1  7,c7 ! issue price has n
 m ?an a de m9imis am\nt 7det]m9$ "u    
rules simil> to ! rules ( section       
#abgc7;a77#c77 ( premium ov] ! /at$     
pr9cipal am\nt ( ! bond1 &  7,d7 prior  
to ! issuance ( su* bond1 ! issu] makes 
an irrevocable election to h ?is section
 apply4  7#b7 ,applicable rules ,=      
purposes ( apply+ p>agraph 7#a7-- 7,a7  

,n treat$ z f$]ally gu>ante$ ,= purposes
 ( section #adi7;b71 an ,am]ican        
infra/ructure bond %all n be treat$ z   
f$]ally gu>ante$ by reason ( ! cr$it    
all[$ "u ?is section4  7,b7 ,application
 ( arbitrage rules ,= purposes ( section
 #adh1 ! yield on an ,am]ican           
infra/ructure bond %all be r$uc$ by !   
cr$it all[$ "u ?is section4  7d7        
,def9ition & special rules ,= purposes (
 ?is section--  7#a7 ,int]e/ includible 
9 gross income ,= purposes ( ?is title1 
int]e/ on any ,am]ican infra/ructure    
bond %all be includible 9 gross income4 
7#b7 ,available project proce$s ,! t]m  
available project proce$s means--  7,a7 
! excess (-- 7i7 ! proce$s f ! sale ( an
 issue1 ov]  7ii7 ! sum (-- 7,i7        
issuance co/s f9anc$ by ! issue 7! ext5t
 t su* co/s d n exce$ #b p]c5t ( su*    
proce$s71 &  7,,ii7 am\nts 9 a          
reasonably requir$ res]ve 7)9 ! mean+ ( 
section #aej7;a77#c77 ) respect to su*  
issue71 &  7,b7 ! proce$s f any inve/m5t
 ( ! excess describ$ 9 clause 7i74  7#c7

 ,curr5t refund+s all[$  7,a7 ,9 g5]al  
,9 ! case ( a bond issu$ to refund an   
,am]ican infra/ructure bond1 su* refund+
 bond %all be treat$ z an ,am]ican      
infra/ructure bond = purposes ( ?is     
section if-- 7i7 ! av]age maturity date 
( ! issue ( :i* ! refund+ bond is a "p  
is n lat] ?an ! av]age maturity date ( !
 bonds to be refund$ by su* issue1  7ii7
 ! am\nt ( ! refund+ bond does n exce$ !
 out/&+ am\nt ( ! refund$ bond1  7iii7 !
 refund$ bond is r$eem$ n lat] ?an #ij  
days aft] ! date ( ! issuance ( !       
refund+ bond1 &  7iv7 ! refund$ bond 0  
issu$ m ?an #cj days aft] ! date ( !    
enactm5t ( ?is section4  7,b7           
,applicable p]c5tage limitation ,!      
applicable p]c5tage ) respect to any    
bond to :i* subp>agraph 7,a7 applies    
%all be #cj p]c5t4  7,c7 ,det]m9ation ( 
av]age maturity ,= purposes (           
subp>agraph 7,a77i71 av]age maturity    
%all be det]m9$ 9 accordance ) section  
#adg7;b77#b77;,a74  7,d7 ,application ( 
,davis-,bacon ,act requirem5ts ) respect

 to ,am]ican infra/ructure bonds        
,sub*apt] ,,iv ( *apt] #ca ( ! title    
#dj1 ,unit$ ,/ates ,code1 %all apply to 
projects f9anc$ ) ! proce$s ( ,am]ican  
infra/ructure bonds4  7e7 ,regulations  
,! ,secret>y may prescribe su*          
regulations & o!r guidance z may be     
necess>y or appropriate to c>ry out ?is 
section4  4  7b7 ,con=m+ am5dm5ts  7#a7 
,section #acbd7;b77#b7 ( title #ca1     
,unit$ ,/ates ,code1 is am5d$ by /rik+  
#fdca & ins]t+ #fdca1 #fdcf4  7#b7 ,!   
table ( sections = sub*apt] ,b ( *apt]  
#fe ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by add+ at ! end ! foll[+ new  
item3  ,sec4 #fdcf4 ,cr$it all[$ to     
issu] = ,am]ican infra/ructure bonds4  4
  7c7 ,effective date ,! am5dm5ts made  
by ?is section %all apply to bonds issu$
 m ?an #cj days aft] ! date ( ! enactm5t
 ( ?is ,act4  #c4 ,advance refund+ bonds
  7a7 ,9 g5]al ,section #adi7;d7 ( !    
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7#a7 by /rik+ to advance refund 
ano!r bond4 9 p>agraph 7#a7 & ins]t+ z  

"p ( an issue describ$ 9 p>agraph 7#b71 
7#c71 or 7#d741  7#b7 by r$esignat+     
p>agraphs 7#b7 & 7#c7 z p>agraphs 7#e7 &
 7#g71 respectively1  7#c7 by ins]t+    
aft] p>agraph 7#a7 ! foll[+ new         
p>agraphs3  7#b7 ,c]ta9 private activity
 bonds ,an issue is describ$ 9 ?is      
p>agraph if any bond 7issu$ z "p ( su*  
issue7 is issu$ to advance refund a     
private activity bond 7o!r ?an a        
qualifi$ #eja7;c77#c7 bond74  7#c7 ,o!r 
bonds  7,a7 ,9 g5]al ,an issue is       
describ$ 9 ?is p>agraph if any bond     
7issu$ z "p ( su* issue71 h]e9aft] 9 ?is
 p>agraph ref]r$ to z ! refund+ bond1 is
 issu$ to advance refund a bond unless--
  7i7 ! refund+ bond is only-- 7,i7 !   
fir/ advance refund+ ( ! orig9al bond if
 ! orig9al bond is issu$ aft] #aihe1 or 
7,,ii7 ! fir/ or second advance refund+ 
( ! orig9al bond if ! orig9al bond 0    
issu$ be=e #aihf1  7ii7 9 ! case (      
refund$ bonds issu$ be=e #aihf1 !       
refund$ bond is r$eem$ n lat] ?an !     
e>lie/ date on :i* su* bond may be      

r$eem$ at p> or at a premium ( #c p]c5t 
or less1  7iii7 9 ! case ( refund$ bonds
 issu$ aft] #aihe1 ! refund$ bond is    
r$eem$ n lat] ?an ! e>lie/ date on :i*  
su* bond may be r$eem$1  7iv7 ! initial 
tempor>y p]iod "u section #adh7;c7      
ends--  7,i7 ) respect to ! proce$s ( ! 
refund+ bond n lat] ?an #cj days aft] ! 
date ( issue ( su* bond1 &  7,,ii7 )    
respect to ! proce$s ( ! refund$ bond on
 ! date ( issue ( ! refund+ bond1 &  7v7
 9 ! case ( refund$ bonds to :i* section
 #adh7;e7 did n apply1 on & aft] ! date 
( issue ( ! refund+ bond1 ! am\nt (     
proce$s ( ! refund$ bond inve/$ 9 high] 
yield+ inve/m5ts 7z def9$ 9 section     
#adh7;b77 :i* are nonpurpose inve/m5ts  
7z def9$ 9 section #adh7;f77#f77;,a77   
does n exce$-- 7,i7 ! am\nt s inve/$ z  
"p ( a reasonably requir$ res]ve or     
replacem5t fund or dur+ an all[able     
tempor>y p]iod1 &  7,,ii7 ! am\nt :i* is
 equal to ! less] ( #e p]c5t ( ! proce$s
 ( ! issue ( :i* ! refund$ bond is a "p 
or #ajj1jjj 7to ! ext5t su* am\nt is    

allocable to ! refund$ bond74  7,b7     
,special rules = r$emptions  7i7 ,issu] 
mu/ r$eem only if debt s]vice sav+s     
,clause 7ii7 & 7iii7 ( subp>agraph 7,a7 
%all apply only if ! issu] may realize  
pres5t value debt s]vice sav+s 7det]m9$ 
)\t reg>d to adm9i/rative exp5ses7 9    
connection ) ! issue ( :i* ! refund+    
bond is a "p4  7ii7 ,r$emptions n       
requir$ be=e #ij? day ,= purposes (     
clauses 7ii7 & 7iii7 ( subp>agraph 7,a71
 ! e>lie/ date ref]r$ to 9 su* clauses  
%all n be e>li] ?an ! #ij? day aft] !   
date ( issuance ( ! refund+ bond4  7#d7 
,abusive transactions prohibit$ ,an     
issue is describ$ 9 ?is p>agraph if any 
bond 7issu$ z "p ( su* issue7 is issu$  
to advance refund ano!r bond & a device 
is employ$ 9 connection ) ! issuance (  
su* issue to obta9 a mat]ial f9ancial   
advantage 7bas$ on arbitrage7 ap>t f    
sav+s attributable to l[] int]e/ rates4 
1 &  7#d7 by ins]t+ aft] p>agraph 7#e7  
7z s r$esignat$7 ! foll[+ new p>agraph3 
7#f7 ,special rules = purposes (        

p>agraph 7#c7 ,= purposes ( p>agraph    
7#c71 bonds issu$ be=e ,octob] #bb1     
#aihf1 %all be tak5 into acc\nt "u      
subp>agraph 7,a77i7 !re( except--  7,a7 
a refund+ :i* occurr$ be=e #aihf %all be
 treat$ z an advance refund+ only if !  
refund+ bond 0 issu$ m ?an #ahj days    
be=e ! r$emption ( ! refund$ bond1 &    
7,b7 a bond issu$ be=e #aihf1 %all be   
treat$ z advance refund$ no m ?an once  
be=e ,m>* #ae1 #aihf4  4  7b7 ,con=m+   
am5dm5t ,section #adh7;f77#d77;,c7 ( su*
 ,code is am5d$ by r$esignat+ clauses   
7xiv7 ?r\gh 7xvi7 z clauses 7xv7 to     
7xvii71 respectively1 & by ins]t+ aft]  
clause 7xiii7 ! foll[+ new clause3      
7xiv7 ,det]m9ation ( initial tempor>y   
p]iod ,= purposes ( ?is subp>agraph1 !  
end ( ! initial section tempor>y p]iod  
%all be det]m9$ )\t reg>d to section    
#adi7;d77#c77;,a77iv74  4  7c7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to advance refund+   
bonds issu$ m ?an #cj days aft] ! date (
 ! enactm5t ( ?is ,act4  #d4 ,p]man5t   

modification ( small issu] exception to 
tax-exempt int]e/ exp5se allocation     
rules = f9ancial in/itutions  7a7       
,p]man5t increase 9 limitation          
,subp>agraphs 7,c77i71 7,d77i71 &       
7,d77iii77,,ii7 ( section #bfe7;b77#c7 (
 ! ,int]nal ,rev5ue ,code ( #aihf are   
ea* am5d$ by /rik+ #aj1jjj1jjj & ins]t+ 
#cj1jjj1jjj4  7b7 ,p]man5t modification 
( o!r special rules ,section            
#bfe7;b77#c7 ( su* ,code is am5d$-- 7#a7
 by r$esignat+ clauses 7iv71 7v71 & 7vi7
 ( subp>agraph 7,g7 z clauses 7ii71     
7iii71 & 7iv71 respectively1 & mov+ su* 
clauses to ! end ( subp>agraph 7,h7 7z  
add$ by p>agraph 7#b771 &  7#b7 by /rik+
 s mu* ( subp>agraph 7,g7 z prec$es su* 
clauses & ins]t+ ! foll[+3  7,g7        
,qualifi$ #eja7;c77#c7 bonds treat$ z   
issu$ by exempt organization ,9 ! case (
 a qualifi$ #eja7;c77#c7 bond 7z def9$ 9
 section #ade71 ?is p>agraph %all be    
appli$ by treat+ ! #eja7;c77#c7         
organization = ^: b5efit su* bond 0     
issu$ z ! issu]4  7,h7 ,special rule =  

qualifi$ f9anc+s  7i7 ,9 g5]al ,9 ! case
 ( a qualifi$ f9anc+ issue-- 7,i7       
subp>agraph 7,f7 %all n apply1 &  7,,ii7
 any obligation issu$ z a "p ( su* issue
 %all be treat$ z a qualifi$ tax-exempt 
obligation if ! requirem5ts ( ?is       
p>agraph are met ) respect to ea*       
qualifi$ portion ( ! issue 7det]m9$ by  
treat+ ea* qualifi$ portion z a sep>ate 
issue :i* is issu$ by ! qualifi$ borr[] 
) respect to :i* su* portion relates74  
4  7c7 ,inflation adju/m5t ,section     
#bfe7;b77#c7 ( su* ,code1 z am5d$ by    
subsection 7b71 is am5d$ by add+ at !   
end ! foll[+ new subp>agraph3  7,i7     
,inflation adju/m5t ,9 ! case ( any     
cal5d> ye> aft] #bjbf1 ! #cj1jjj1jjj    
am\nts conta9$ 9 subp>agraphs 7,c77i71  
7,d77i71 & 7,d77iii77,,ii7 %all ea* be  
increas$ by an am\nt equal to-- 7i7 su* 
doll> am\nt1 multipli$ by  7ii7 !       
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = su* cal5d> ye>1 det]m9$ by 
sub/itut+ cal5d> ye> #bjbe = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  ,any

 increase det]m9$ "u ! prec$+ s5t5ce    
%all be r\nd$ to ! ne>e/ multiple (     
#ajj1jjj4  4  7d7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to obligations issu$ aft] ! date ( !    
enactm5t ( ?is ,act4