Hoeven, Wyden Introduce Move America Act to Provide Innovative Financing Sources for Local Infrastructure
WASHINGTON – Senator John Hoeven (R-N.D.) and Senate Finance Committee Chairman Ron Wyden (D-Ore.) this week reintroduced the Move America Act, bipartisan legislation that will bring billions of dollars of investment to state and local governments to help grow and repair America’s aging infrastructure. Move America expands tax-exempt Private Activity Bonds and creates a new infrastructure tax credit, helping fund infrastructure projects through public-private 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, flood protection and broadband.
“The Move America Act offers innovative and flexible solutions to address our nation’s infrastructure needs,” said SenatorHoeven. “The bonds and tax credits authorized by our legislation would serve as an important complement to federal funding, providing cost-effective options that help taxpayer dollars go further. As we continue to work on addressing our nation’s critical infrastructure needs, we should advance bipartisan efforts like this, which will help us support a growing economy, improve our quality of life and ensure our country remains competitive for years to come.”
“America faces an infrastructure crisis that requires all of the tools in the toolbox,” said Senator Wyden. “From big cities to small towns, our bill gives community leaders a new option to get infrastructure projects off the ground quickly. We’ve seen the importance of similar financing tools. For example, Build America Bonds in the Recovery Act were an overwhelming success. Leveraging this community investment will revitalize the roads, bridges, airports needed to create jobs and rebuild our economy.”
In order to support the nation’s economy and remain competitive, it’s vital that Congress work in a bipartisan manner to address the gap in infrastructure investment. To this end, 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 Base Erosion and Anti-Abuse Tax (BEAT)
- 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, American Society of Civil Engineers (ASCE), American Road and Transportation Builders Association (ARTBA), Associated General Contractors (AGC), Airports Council International (ACI-NA), International Union of Operating Engineers (IUOE), American Association of State Highway and Transportation Officials (AASHTO), the Association of Equipment Manufacturers (AEM), Securities Industry and Financial Markets Association (SIFMA) and BPC Action.
An overview of the bill, with statements of support from transportation, business and financial stakeholders, can be foundhere. A section-by-section summary of the bill can be found here. Legislative text can be found here.
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