Sec. 17. American Infrastructure Bond
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/bill/116/hr/658/ih/section-17·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In the case of an American Infrastructure Bond, the Bank shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) the applicable percentage of the interest payable under such bond on such date. For purposes of this section, the term American Infrastructure Bond means any obligation (other than a private activity bond) if— the interest on such obligation would (but for this section) be excludable from gross income under section 103 of the Internal Revenue Code of 1986; such obligation would have been a qualified bond under section 54AA of such Code (determined without regard to subparagraphs
(B)and
(C)of subsection (d)(1) and subsection (g)(2)(B) thereof); such obligation is approved under the American Infrastructure Bond program; and the issuer makes an irrevocable election to have this section apply. For purposes of applying paragraph (1)— for purposes of section 149(b) of such Code, an American Infrastructure Bond shall not be treated as federally guaranteed by reason of the subsidy provided under subsection (a); for purposes of section 148 of such Code, the yield on an American Infrastructure Bond shall be determined without regard to the subsidy provided under subsection (a); and a bond shall not be treated as an American Infrastructure Bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3) of such Code) of premium over the stated principal amount of the bond. For purposes of the Internal Revenue Code of 1986, interest on any American Infrastructure Bond shall be includible in gross income. For purposes of this section— The term interest payment date means any date on which the holder of record of the American Infrastructure Bond is entitled to a payment of interest under such bond. The applicable percentage with respect to the interest subsidy provided for any bond under the American Infrastructure Bond program shall be a percentage recommended by the Executive Committee, reviewed by the risk management committee, and approved by the Board. Not later than 180 days after the date of the enactment of this Act, the Board, in consultation with the Executive Committee, risk management committee, and the Secretary of the Treasury, shall establish an American Infrastructure Bond program, under which the Board may— approve bond issuances for purposes of this section, and assign an applicable percentage with respect to any bond so approved. Issuers may apply for the approval of a bond issuance for purposes of this section, and any such application shall contain such information as the Executive Committee and the risk management committee may require in order to accept or reject an application and to assign an applicable percentage to such bond. Approval of an application and the applicable percentage subsidy assigned under the program shall be based on the ability of each project to meet the criteria established under section 8(d). The applicable percentage with respect to any bond may not exceed 40 percent. For any calendar year, the aggregate amount of interest subsidies provided under this section with respect to all American Infrastructure Bonds shall not exceed an amount equal to 28 percent of interest payable under all such bonds.