Hoeven, Wyden Reintroduce Legislation to Spur Investment in Nation’s Infrastructure
Move America Act Provides States with Access to Flexible Funding Sources to Lower Costs and Meet Local Infrastructure Needs
WASHINGTON – Senator John Hoeven (R-N.D.) and Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) today 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 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.
“Reliable and safe infrastructure is vital to every person and industry across our country,” said Senator Hoeven. “The Move America Act would support an injection of much-needed capital into infrastructure projects throughout the nation. The bonds and tax credits created under our legislation provide a complement to federal funding sources and serve as cost-effective, flexible solutions for states and local governments, supporting the construction of a wide array of critical infrastructure.”
“America is facing an infrastructure crisis that requires an all hands on deck approach,” Ranking Member Wyden said. “From our biggest cities to our smallest towns, Move America gives local leaders the flexibility to quickly and efficiently jump start infrastructure projects in their own neighborhoods. Leveraging this community investment will revitalize the ports, bridges, airports and other gateways of commerce needed to move our economy forward.”
The American Society of Civil Engineers (ASCE) has estimated the nation will need an additional $2 trillion of infrastructure investment by 2025, above current projections, 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, American Society of Civil Engineers (ASCE), 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), the Association of Equipment Manufacturers (AEM) and the American Council of Engineering Companies (ACEC).
An overview of the bill, with statements of support from transportation, business and financial stakeholders, can be found here. A section-by-section summary of the bill can be found here. Legislative text can be found here.
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