Senators Ron Wyden (D-OR) and John Hoeven (R-ND) recently introduced a bill designed to increase infrastructure investment through the expansion of private activity bonds and the creation of a new infrastructure tax credit. The Move America Act of 2015 would grant states the authority to raise up to $180 million in tax exempt bonds and would provide states up to $45 million in infrastructure tax credits over a 10-year period.
The bill creates Move America bonds, which are exempt facility private activity bonds issued by states and municipalities on behalf of companies that design and operate public transportation facilities, such as airports and highways. Interest income from Move America bonds is excluded from AMT. Move America bonds are subject to a uniform volume cap of 50% of a state’s private activity bond volume cap.
The bill also creates Move America tax credits, which states could sell to raise capital or allocate to a project sponsor. If a state allocates the credits to a project sponsor, the sponsor could claim the credits or sell them. The bill makes the credits available to taxpayers once the project has been placed in service, at which point taxpayers can claim the credits ratably over a 10-year period.
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