Hoeven: Move America Act Introduced in House of Representatives
Bipartisan Legislation Expands Support for Public-Private Partnerships, Creates Flexibility for State Infrastructure Development
WASHINGTON – Senator John Hoeven (R-N.D.) today issued the following statement after his bipartisan legislation, the Move America Act, was introduced in the House of Representatives by Representatives Jackie Walorski (R-Ind.), Earl Blumenauer (D-Ore.), Brian Fitzpatrick (R-Pa.) and Sean Patrick Maloney (D-N.Y.). The senator’s bill, which he introduced with Senator Ron Wyden (D-Ore.) earlier this year, would bring billions of dollars of investment to state and local governments to help grow and repair America’s aging infrastructure.
“The flexibility and cost-savings offered through Move America are a vital boost for states looking to improve their infrastructure and economies,” Hoeven said. “By securing private funding through tax credits and bonds, we can make our investments in infrastructure go further while saving taxpayer dollars. I look forward to working with my colleagues in the House to advance this important effort through Congress.”
Move America expands tax-exempt private activity bonds and creates a new infrastructure tax credit, helping fund infrastructure projects through private-public partnerships. This would lower overall costs and give state and local governments flexibility to construct the infrastructure they most need. Qualified projects include roads, bridges, transit, ports, rail, airports, water and sewer facilities and broadband.
The American Society of Civil Engineers (ASCE) has estimated the nation will need an additional $2 trillion of infrastructure investment over the next ten years for the nation to support the economy and remain competitive. It’s vital that Congress work in a bipartisan manner to address this critical need. Greater use of private capital through public-private partnerships would serve as a helpful addition to increased federal infrastructure spending. Move America attracts this private capital through:
Move America Bonds – Allows states to issue tax-exempt bonds in partnership with private entities, lowering their overall borrowing cost. Each state would receive a bond allocation, based on population size. Other features of Move America bonds include:
- Flexible ownership and management arrangements
- Favorable tax treatment, such as being exempt from the Alternative Minimum Tax
- Any unused volume cap can be carried over for up to five years
Move America Tax Credits – Allows smaller states the ability to trade in some or all of their bond allocation for federal tax credits at a 25 percent rate. Features of the tax credits include:
- Credits are available for direct investment in a project, reducing capital costs and expanding the potential investment pool
- States can elect to use the credits to capitalize state infrastructure banks or other infrastructure revolving funds, allowing greater usage of the private-public partnership model on non-revenue projects
- Move America Credits can be used in conjunction with Move America Bonds or other federal grant or credit assistance programs
Through these tools, Move America leverages $8 billion in federal investment into $226 billion worth of bond authority over the next 10 years or up to $56 billion over 10 years in tax credits, according to the Joint Committee on Taxation. The Move America Act is supported by the U.S. Chamber of Commerce, The Business Roundtable, American Association of State Highway Transportation Officials (AASHTO), American Road and Transportation Builders Association (ARTBA), Associated General Contractors (AGC), American Association of Port Authorities (AAPA), Airports Council International (ACI-NA), Laborers International Union of North America (LIUNA), International Union of Operating Engineers (IUOE), Securities Industry and Financial Markets Association (SIFMA), The Association of Equipment Manufacturers (AEM) and the American Society of Civil Engineers (ASCE).
Next Article Previous Article