<div> Jul 08 2020 <a href="https://www.wicker.senate.gov/public/index.cfm/press-releases?ID=1F8857A9-8995-4E9B-97A2-522A7D9717F1">Wicker, Bennet Introduce American</a> <a href="https://www.wicker.senate.gov/public/index.cfm/press-releases?ID=1F8857A9-8995-4E9B-97A2-522A7D9717F1">Infrastructure Bonds Act</a> Senators Propose New Class of Financingfor Local Projects WASHINGTON – U.S. Senators Roger Wicker, R-Miss., and Michael Bennet, D-Colo., today announced the classintroductionof“directof-pay”the“AmericantaxablemunicipalInfrastructurebonds BondstohelpActstrugglingof2020 ,”governmentslegislationthatfinancewouldcriticalcreatepublicanew projects in the wake of the coronavirus pandemic. The senators’ proposed “American Infrastructure theBonds2008(AIBs)”financialwouldcrisisimprovetoattractuponmorethe modelinvestmentof“BuildinpublicAmericainfrastructure.Bonds(BABs)” that were issued after  to“Empoweringhelpourcommunitiesourlocalleadersemergetofromstartsevereimportantfinancialinfrastructurehardship withprojectsassetsisathatproven,providecostvalue-effectivetotheway area for years to come,” said. “The American Infrastructure Bonds Act of 2020 would improveforuponcommunitiespreviouseffortsandaddingtoWickerexpandassurancesinvestmentfortheinthebondholder.”stateandlocal bond market by increasing flexibility  and“Thisimprovebipartisanqualityproposaloflifewillincommunitiessupportlocallyacross-drivenColorado,”effortstosaidrevitalize our.“Americaninfrastructure,Infrastructurecreatejobs, Bonds are a proven, successful model for drawing much-needed investmentsBennet that are critically important for creating stronger and more resilient communities – from improving roads, bridges, public transit, and tunnels to renovating hospitals and school buildings.” The senators’ legislation would allow state and local governments to issue taxable bonds for any public expenditure that would be eligible to be financed by tax -exempt bonds. These bonds could be used to support a wide range of infrastructure projects, including roads, bridges, water systems, and broadband internet. The bonds would be modeled as a “direct-pay” taxable bond, with the U.S. Treasury paying a percentage of the bond’s interest to the issuing entity to reduce costs for state and local governments. These payments would encourage economic recovery from the coronavirus pandemic by subsidizing AIBs issued through 2025 at a higher percentage of the bond’s interest. The payments would revert to a revenue neutral percentage for projects after 2025, reducing long-term costs for the federal government and providing a permanent financing option for localities. In plain terms, the senators’ legislation is expected to boost investment in infrastructure and other important public projects at a critical time by providing affordable access to the large taxable bond market. The higher interest rates offered by the taxable AIBs increase the expected value of the bonds to some types of investors, such as pension funds and foreign investors, who do not receive the tax advantage from traditional tax-exempt bonds. Expanding the market for municipal bonds increases private investment in the public sector and equips local governments with more options for financing projects. Importantly, AIBs would incentivize private capital to invest in rural areas, where financing can often be harder to secure. The senators’ legislation provides important flexibilities to state and local governments. With AIBs, local communities can develop their infrastructure strategically without the burden of a centralized bureaucracy or the constraint of a state cap on allocation. As an additional benefit, the payments from the U.S. Treasury to issuers would be exempt from sequestration, which would increase the confidence of the bondholder and bond issuer alike. The American Infrastructure Bonds Act of 2020 is supported by: The National League of Cities, the National Association of Counties, the Government Finance Officers Association, the American Public Gas Association, the National Association of Bond Lawyers, the Bond Dealers of America, the American Society of Civil Engineers, the American Council on Education, the Securities Industry and Financial Markets Association, and the American Planning Association.For a one-page explanation of the legislation click here. To read the bill text click here . The American Infrastructure Bonds Act of 2020 Senator Roger F. Wicker (R-MS) and Senator Michael Bennet (D-CO) In past financial crises, Congress has used its authority to provide additional tax relief for bonds to expand investor interest in the market. The loss of revenue from the COVID-19 outbreak has created numerous budget challenges for state and local governments. Municipalities across the country will struggle to finance new and ongoing infrastructure projects while they recover from these revenue losses. Rural communities have been particularly hard hit. Issuing American Infrastructure Bonds (AIBs) could help local municipalities and counties raise much-needed capital for a wide range of infrastructure projects. AIBs would be similar to the “Build America Bonds (BABs)” that Congress created following the 2008 financial crisis, but would have important improvements. What are American Infrastructure Bonds? <ul><li>American Infrastructure Bonds (AIBs) would allow state and local governments to issue taxable bonds for any public purpose expenditure that is eligible to be financed with tax-exempt bonds.</li></ul> <ul><li>AIBs would be available to all state and local governments to use as they determine what is best for them.</li></ul> <ul><li>AIBs would be modeled as a “direct-pay” taxable bond.</li></ul> <ul><li>The Treasury Department would make direct payments to the issuer of the bonds at 35% after the date of enactment and down to an estimated revenue neutral rate of 28% starting in 2026.</li></ul> <ul><li>AIBs would improve upon BABs because the Treasury payments are exempt from sequestration.</li></ul> <ul><li>AIBs have the potential to attract investment in local communities from a wider range of investors, such as pension funds and foreign investors that are not typically interested in tax-exempt municipal bonds. This will be advantageous for rural communities, as well.</li></ul> <ul><li>AIBs could be used for any expenditure that is eligible to be financed with tax-exempt bonds including roads, bridges, tunnels, canals, ports, water systems, sewage treatment facilities, storm water management systems, pipelines, utility system expansions and environmental and safety upgrades, long-term natural gas supplies for municipal utility gas distribution systems and electric generation facilities, long-term supplies of electricity for municipal electric utility systems including renewable energy projects, broadband and other telecommunications systems, rail facilities, subways, and other purposes.</li></ul> The American Infrastructure Bonds Act of 2020 The American Infrastructure Bonds Act would amend Subchapter B of chapter 65 of the Tax Code to provide a credit to issuers of American Infrastructure Bonds. The Secretary of the Department of Treasury would be given the authority to make direct payments to the issuer of the bonds on each interest payment date.   Support: The National League of Cities, the National Association of Counties, the Government Finance Officers Association, the American Public Gas Association, the National Association of Bond Lawyers, the Bond Dealers of America, American Society of Civil Engineers, American Council on Education, the Securities Industry and Financial Markets Association, and the American Planning Association. </div>

Lawmakers Announce Infrastructure Bond Credit Bill

Lawmakers Announce Infrastructure Bond Credit Bill

U.S. Senate

The American Infrastructure Bonds Act of 2020 would provide a credit to American infrastructure bond issuers to draw investment and assist local governments in their recovery from the COVID-19 pandemic, Sen. Roger F. Wicker, R-Miss., and Senate Finance Committee member Michael F. Bennet, D-Colo., said in a July 8 release.

The American Infrastructure Bonds Act of 2020 would provide a credit to American infrastructure bond issuers to draw investment and assist local governments in their recovery from the COVID-19 pandemic, Sen. Roger F. Wicker, R-Miss., and Senate Finance Committee member Michael F. Bennet, D-Colo., said in a July 8 release.

The <a href="/lr/resolve//2cps1">American Infrastructure Bonds Act of 2020</a> would provide a credit to American infrastructure bond issuers to draw investment and assist local governments in their recovery from the COVID-19 pandemic, Sen. Roger F. Wicker, R-Miss., and Senate Finance Committee member Michael F. Bennet, D-Colo., said in a July 8 release.

The American Infrastructure Bonds Act of 2020 would provide a credit to American infrastructure bond issuers to draw investment and assist local governments in their recovery from the COVID-19 pandemic, Sen. Roger F. Wicker, R-Miss., and Senate Finance Committee member Michael F. Bennet, D-Colo., said in a July 8 release.