Proposed U.S. Senate Bill Would Create Infrastructure Tax Credit

New legislation introduced in the Senate could help bridge the infrastructure funding gap by expanding the use of tax-exempt bonds and implementing a new tax credit to help state and local governments pay for infrastructure projects.

The measure, which is known as the “Move America Act of 2015,” would expand the availability of tax-exempt bonds and create a new tax credit for state and local governments who are trying to pay for large construction projects.

The bill would provide:

–Up to $180 billion in tax-exempt bond authority for States over the next 10 years
–Up to $45 billion in infrastructure tax credits for States over the next 10 years
–Flexible public-private partnership ownership arrangements for roads, bridges, ports, rail and airports

The bill is co-sponsored by Sen. Ron Wyden (D-OR), Ranking Member of the Finance Committee, and Sen, John Hoeven (R-ND).

The current transportation funding measure is scheduled to expire on May 31. The Department of Transportation has said it has enough money to cover projects for a month or two after that, but then it will have to cut back on payments to state and local governments who are expecting federal help with large infrastructure projects.

The traditional source of federal transportation funding has been the 18.4 cents-per-gallon gas tax. The tax has not been increased since 1993, and improvements in fuel efficiency have reduced its purchasing power.

The federal government typically spends about $50 billion per year on transportation projects, but the gas tax only brings in approximately $34 billion at its current rate.

Learn more about “Move America Act of 2015.” 

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