Brady

Stoked to have you with us again 

Mr. President, I second the motion and I yield.

Mr. President,

Pursuant to Rule II, paragraph 4(a) of the Rules of the United States Senate, I move to suspend the rules and pass the Gas Prices Relief Act of 2022.

Thank you, I yield.

IN THE SENATE OF THE UNITED STATES

Mr. Kaplan (for himself, with thanks to Mr. Kelly and Mr. O'Halleran) introduced the following bill

A BILL

To amend the Internal Revenue Code of 1986 to provide a gasoline tax holiday, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Gas Prices Relief Act of 2022”.

SEC. 2. 2022 GASOLINE TAX HOLIDAY.

(a) In General.—In the case of gasoline removed, entered, or sold on or after the date of the enactment of this Act and before January 1, 2023—

(1) the rate of tax under section 4081(a)(2)(A)(i) of the Internal Revenue Code of 1986 shall be zero; and

(2) the Leaking Underground Storage Tank Trust Fund financing rate under section 4081(a)(2) of such Code shall not apply to gasoline to which the rate under paragraph (1) applies.

(b) Transfers To Trust Fund.—

(1) IN GENERAL.—The Secretary of the Treasury shall transfer from the general fund to the Highway Trust Fund established under section 9503(a) of the Internal Revenue Code of 1986 and the Leaking Underground Storage Tank Trust Fund established under section 9508(a) of such Code amounts equal to the reduction in amounts credited (but for this subsection) to each such Trust Fund by reason of subsection (a).

(2) COORDINATION RULES.—

(A) LEAKING UNDERGROUND STORAGE TANK TRUST FUND.—Amounts transferred to the Leaking Underground Storage Tank Trust Fund under paragraph (1) shall be treated for purposes of sections 9503(b)(1) and 9508(b)(2) of such Code as taxes received in the Treasury under section 4081 of such Code attributable to the Leaking Underground Storage Tank Trust Fund financing rate.

(B) HIGHWAY TRUST FUND.—Amounts transferred to the Highway Trust Fund under paragraph (1) shall be treated for purposes of section 9503(b)(1) of such Code as taxes received in the Treasury under section 4081 of such Code which are not attributable to the Leaking Underground Storage Tank Trust Fund financing rate.

(c) Benefits Of Tax Reduction Should Be Passed On To Consumers.—

(1) It is the policy of Congress that—

(A) consumers immediately receive the benefit of the reduction in taxes resulting from the application of subsection (a); and

(B) transportation motor fuels producers and other dealers take such actions as necessary to reduce transportation motor fuels prices to reflect such reduction.

(2) ENFORCEMENT.—The Secretary may use all applicable authorities to ensure that the benefit of the reduction in taxes resulting from the application of subsection (a) is received by consumers.

SECTION 3. RECOVERY OF FY2021 RECONCILIATION ACT FUNDS TO OFFSET REVENUE REDUCTIONS.

(a) Reductions in revenue resulting from the temporary suspension of highway fuel taxes on gasoline in Section 2 of this Act shall be recovered from funds appropriated but not yet obligated under the Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2021.

(b) The Secretary of the Treasury shall determine which such funds described in subsection (a) shall be subject to recovery.

Plain English Summary

This bill provides for a temporary exemption through 2022 from the excise tax on gasoline (other than aviation gasoline) and from the Leaking Underground Storage Tank Trust Fund financing rate. The Department of the Treasury must transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund amounts resulting from the exemption provided by this bill.

The bill expresses congressional policy that consumers immediately receive the benefit of this exemption.

The bill also offsets revenue reductions resulting from the highway fuel tax suspension by recovering unobligated funds from the 2021 Reconciliation Act. Which such funds are subject to recovery is left to the discretion of the Secretary of the Treasury.

IN THE SENATE OF THE UNITED STATES

Mr. Kaplan (for himself, with thanks to Mr. Kelly and Mr. O'Halleran) introduced the following bill

A BILL

To amend the Internal Revenue Code of 1986 to provide a gasoline tax holiday, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Gas Prices Relief Act of 2022”.

SEC. 2. 2022 GASOLINE TAX HOLIDAY.

(a) In General.—In the case of gasoline removed, entered, or sold on or after the date of the enactment of this Act and before January 1, 2023—

(1) the rate of tax under section 4081(a)(2)(A)(i) of the Internal Revenue Code of 1986 shall be zero; and

(2) the Leaking Underground Storage Tank Trust Fund financing rate under section 4081(a)(2) of such Code shall not apply to gasoline to which the rate under paragraph (1) applies.

(b) Transfers To Trust Fund.—

(1) IN GENERAL.—The Secretary of the Treasury shall transfer from the general fund to the Highway Trust Fund established under section 9503(a) of the Internal Revenue Code of 1986 and the Leaking Underground Storage Tank Trust Fund established under section 9508(a) of such Code amounts equal to the reduction in amounts credited (but for this subsection) to each such Trust Fund by reason of subsection (a).

(2) COORDINATION RULES.—

(A) LEAKING UNDERGROUND STORAGE TANK TRUST FUND.—Amounts transferred to the Leaking Underground Storage Tank Trust Fund under paragraph (1) shall be treated for purposes of sections 9503(b)(1) and 9508(b)(2) of such Code as taxes received in the Treasury under section 4081 of such Code attributable to the Leaking Underground Storage Tank Trust Fund financing rate.

(B) HIGHWAY TRUST FUND.—Amounts transferred to the Highway Trust Fund under paragraph (1) shall be treated for purposes of section 9503(b)(1) of such Code as taxes received in the Treasury under section 4081 of such Code which are not attributable to the Leaking Underground Storage Tank Trust Fund financing rate.

(c) Benefits Of Tax Reduction Should Be Passed On To Consumers.—

(1) It is the policy of Congress that—

(A) consumers immediately receive the benefit of the reduction in taxes resulting from the application of subsection (a); and

(B) transportation motor fuels producers and other dealers take such actions as necessary to reduce transportation motor fuels prices to reflect such reduction.

(2) ENFORCEMENT.—The Secretary may use all applicable authorities to ensure that the benefit of the reduction in taxes resulting from the application of subsection (a) is received by consumers.

SECTION 3. RECOVERY OF FY2021 RECONCILIATION ACT FUNDS TO OFFSET REVENUE REDUCTIONS.

(a) Reductions in revenue resulting from the temporary suspension of highway fuel taxes on gasoline in Section 2 of this Act shall be recovered from funds appropriated but not yet obligated under the Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2021.

(b) The Secretary of the Treasury shall determine which such funds described in subsection (a) shall be subject to recovery.

Plain English Summary

This bill provides for a temporary exemption through 2022 from the excise tax on gasoline (other than aviation gasoline) and from the Leaking Underground Storage Tank Trust Fund financing rate. The Department of the Treasury must transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund amounts resulting from the exemption provided by this bill.

The bill expresses congressional policy that consumers immediately receive the benefit of this exemption.

The bill also offsets revenue reductions resulting from the highway fuel tax suspension by recovering unobligated funds from the 2021 Reconciliation Act. Which such funds are subject to recovery is left to the discretion of the Secretary of the Treasury.

2 GP to introduce state legislation in Utah to provide a state gas tax holiday for the remainder of 2022

3 GP to introduce state legislation in Arizona to provide a state gas tax holiday for the remainder of 2022

Mr. President, I second the amendment offered by the Senator for California, and I yield.

Mr. President,

The language the Senator for Virginia is objecting to had broad support across the aisle. I know this because that language is found not only in my amendment, but also in the original bill. I would suggest the Senator for Virginia refer to Section 3 of the original bill, which includes the following language, and I quote:

Quote

Marriage

For the purposes of any Federal law in which marital status is a factor, an individual shall be considered married if—

(1)
the marriage of the individual is valid in the State where the marriage was entered into...

As you can see, this language from the original bill is identical to the language in my amendment that the Senator for Virginia finds so objectionable. I suggest she take it up with the bill's sponsor. But in both his and my defense, I will suggest two considerations: First, there is no indication — absolutely none — that the Obergefell v. Hodges ruling is under any threat at all, nevermind an imminent one requiring federal legislation. Second, both the original bill and the version as amended would extend full faith and credit to same-sex marriages in other states. I'm not going to stand here and hypothesize about what may happen in the unlikely event Obergefell is overturned, but what I will say is that neither version of this bill would take us back to the status quo that existed under DOMA prior to that ruling. This is progress, of the bipartisan and moderate type I would think a Blue Dog like the Senator for Virginia, whom I've heard prides herself on moderate and independent thinking, would be more than happy to support.

Thank you, I yield.

Name: Jonah Kaplan (R-UT)

Media/Outlet: State of the Union with Jake Tapper and Dana Bash (CNN)

Reason: Federal Gas Tax Suspension and Windfall Profits Tax Act

• Republicans are in favor of a gas tax holiday so Americans will see immediate relief at the pump. It's been part of the inflation reduction plan Senator Madison released on behalf of Senate Republicans since the beginning. We're committed to getting it done as one of the quickest ways we can combat inflation.
• We also believe we should tackle the other driver of rising fuel costs, which is excessive regulation. So I proposed an amendment to the bill Democrats brought to the floor that would provide a holiday from regulations that would increase prices for transportation fuels, including gas. Unfortunately, so far, Democrats are opposing that.
• But the biggest issue with the bill Democrats brought to the floor is inclusion of a new tax on the oil industry to offset lost revenue from the gas tax holiday. It's a terrible idea. It will discourage investment in the oil industry, discourage more oil production, at a time when Americans badly need more oil to bring down the price of gas.
• Republicans have another solution, which is to take back money from last year's reconciliation bill that hasn't been designated for anything yet. It's been a year and that money is still just sitting around. Why not use it to help provide some relief for Americans at the pump, instead of a new tax that could drive costs up even further?
• Billie Whitmore was very candid on the Senate floor. She said the gas tax holiday was the half of this bill Republicans want, and the new, costly tax is the half Democrats want. For the sake of the American people, Democrats need to stop thinking so much about what they want and more about what the American people need.

Nay

Mr. President, I once again second the Republican Leader's amendment and I yield.

Mr. President,

No matter how many times the Senator for Michigan uses buzzwords like "bipartisanship" and "meeting her halfway," no, I will not be voting for the bill exactly as she wants it. I will not be voting for a windfall profits tax. I'm not sure who across the aisle needs to hear this, but doing 100% of what you want is not, in fact, bipartisan compromise.

My constituents in the state of Utah would like a gas tax holiday without seeing the cost of it passed back to them once oil companies figure out how to pass on the cost of a windfall profits tax. I am accountable to my constituents in the state of Utah, not to the Senator for Michigan and not to the other forty-nine Senators across the aisle. If you want my vote, learn to compromise with the values and needs of the people of the state of Utah that I am here to represent.

Thank you, I yield.

Yea

Yea

Yea

Yea

Yea

Yea

Yea

Mr. President, I second the amendment offered by the Republican Leader and I yield.

Mr. President,

Is the goal of the bill to provide relief to Americans who are facing pain at the pump, or is the goal of the bill to sock it to oil companies? If the goal of the bill is the former, my amendments don't slash the bill to an unrecognizable mess. Instead, my amendment eliminates the thorny issue of a windfall profits tax and instead reclaims funds from last year's reconciliation bill that still haven't even been obligated to any projects a year later. If that money is just sitting around, why don't we use it to offset the cost of this gas tax holiday? Meanwhile, the second amendment I've offered, far from slashing the bill to an unrecognizable mess, just adds to it to offer Americans even more relief.

Reclaiming unobligated funds from the reconciliation bill is the simplest way to pay for this while ensuring costs aren't passed on to consumers. I will have no trouble looking Americans in the eye taking back money from the reconciliation bill that isn't even being used a year later to pay for this.

Thank you, I yield.

Mr. President,

The proposal I've introduced as a substitute takes a markedly different approach than the bill before us. The bill's current language takes a big government approach, putting the federal government in the driver's seat in terms of driving investment. The proposal I've offered will see to it the infrastructure bank's initial capitalization is driven entirely by private investment so this is a true public-private partnership, not another federal program that's going to balloon in cost for the taxpayer.

There are a number of other improvements, such as this proposal's very broad criteria for investing in infrastructure projects. The bank would be able to take that broad approach precisely because there are no taxpayer dollars at stake. So instead of all the many hoops the current language would require, the bank's legal mandate would just allow broad investment in infrastructure projects with public benefit. This bill will also ensure both investors and communities get more bang for their buck with fewer costly regulations. An infrastructure bank is a great idea, because the federal government can't just spend the trillions of dollars we know are needed to improve our infrastructure nationwide. Private investment is a must or we're never going to meet our infrastructure needs. But we need to give investors confidence their investments are going to go further by ensuring they go primarily toward the actual projects, not toward regulatory and administrative overhead.

Thank you, I yield.

Nay

Mr. President,

I move to strike everything after the enacting clause and insert the following:

Quote

(with thanks to Mr. Webster)

 

SECTION 1. SHORT TITLE.

This Act may be cited as the “Federal Infrastructure Bank Act of 2022”.

 

SEC. 2. DEFINITIONS.

For the purposes of this Act:

(1) BANK.—The term “Bank” means the Federal Infrastructure Bank established under section 4.

(2) ELIGIBLE ENTITY.—The term “eligible entity” means—

(A) a corporation;

(B) a partnership, including a public-private partnership;

(C) a joint venture;

(D) a trust;

(E) a State;

(F) any other governmental entity, including a political subdivision or any other instrumentality of a State; or

(G) a revolving fund.

(3) HOLDING COMPANY.—The term “Holding Company” means the “Federal Infrastructure Bank Holding Company” established under section 3.

(4) INFRASTRUCTURE PROJECT.—The term “infrastructure project” means the construction, consolidation, alteration, or repair of projects, which provide public benefit or use, in the following categories:

(A) Highway and roadway facilities, including bridges and tunnels.

(B) Port or marine terminal facilities, including approaches to marine terminal facilities or inland port facilities, and port or marine equipment including fixed equipment to serve approaches to marine terminals or inland ports.

(C) Airports, heliports, vertiports, spaceports, or air traffic control systems and facilities.

(D) Transmission or distribution pipelines.

(E) Facilities or equipment for energy transmission, distribution, or storage.

(F) Intercity passenger or freight rail lines, facilities, or equipment.

(G) Intercity passenger bus facilities or equipment.

(H) Public transportation facilities or equipment.

(I) Inland waterways.

(J) Intermodal facilities or equipment.

(K) Water treatment and solid waste disposal facilities and associated infrastructure such as pipes.

(L) Storm water management systems.

(M) Dams and levees.

(N) Any other infrastructure project which the Bank identifies as providing a public benefit with regards to infrastructure.

(5) RISK-BASED CAPITAL.—The term “risk-based capital” shall have the meaning given that term by the Board of Governors of the Federal Reserve System.

(6) RURAL.—The term “rural” means any area not in a metropolitan statistical area with a population of 50,000 or greater.

(7) STATE.—The term “State” means each of the 50 several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, and each federally recognized Indian Tribe.

(8) STATE INFRASTRUCTURE BANK.—The term “State infrastructure bank” means a State infrastructure bank or multi-State infrastructure bank established pursuant to—

(A) section 350 of the National Highway System Designation Act of 1995;

(B) section 1511(l) of the Transportation Equity Act for the 21st Century;

(C) section 610 of title 23, United States Code; or

(D) any State law as an agency, component unit, or other governmental entity of the State.

 

SEC. 3. SELECTION OF THE FORMATION AGENT.

(a) In General.—Within 90 days of the date of enactment of this Act, the Secretary of the Treasury, in consultation with the Chairman of the Board of Governors of the Federal Reserve System, shall select a Formation Agent which shall—

(1) make and file with the Secretary of the Treasury an organization certificate for the Bank in accordance with such rules and regulations as the Secretary may prescribe, including the establishment of the Holding Company; and

(2) have significant experience in infrastructure and infrastructure finance.

 

(b) Establishment Of The Federal Infrastructure Bank Holding Company.—Within 60 days after being selected under subsection (a), the Formation Agent shall establish the Federal Infrastructure Bank Holding Company, prescribe the governing structure of the Holding Company, and establish the Federal Infrastructure Bank Holding Company Board of Directors, which shall—

(1) initially consist of 7 members;

(2) be elected by the shareholders of the Holding Company;

(3) serve 4-year terms, only 2 of which may be consecutive;

(4) within the limitations of law and regulation, determine and sign the articles of association that govern the operations of the Holding Company, and have the power to adopt, amend, and repeal bylaws governing the performance of the powers and duties granted to or imposed upon the Holding Company by law; and

(5) select and effect the appointment of qualified persons to fill the office of the Chief Executive Officer of the Bank and such other offices as may be provided for in the bylaws of the Holding Company and the Federal Infrastructure Bank.

 

(c) Earnings And Reserves Not Government Funds.—The earnings and reserves of the Holding Company shall be the sole property of the Holding Company and are not Government funds or public funds.

 

(d) Treatment Of Shareholders Of The Formation Agent.—The Formation Agent shall issue equity securities of the Holding Company to each shareholder of the Formation Agent, in an amount that the Formation Agent determines has a value equal to the value of equity securities of the Formation Agent held by such shareholder upon the establishment of the Holding Company.

 

SEC. 4. ESTABLISHMENT OF THE FEDERAL INFRASTRUCTURE BANK.

(a) In General.—The Formation Agent shall establish the Federal Infrastructure Bank as a Delaware corporation and the Bank shall be a wholly-owned subsidiary of the Holding Company.

 

(b) Federal Banking Charter.—The Comptroller of the Currency shall grant a national bank charter to the Bank.

 

(c) Regional Offices.—Within 5 years of the date of enactment of this Act, the Bank shall establish regional offices for the purpose of focusing on infrastructure projects in different areas of the United States.

 

(d) Board Of Directors.—The Board of Directors of the Holding Company established under section 3 shall be the initial Board of Directors of the Bank.

 

(e) Earnings And Reserves Not Government Funds.—The earnings and reserves of the Bank are not Government funds or public funds.

 

SEC. 5. FUNCTIONS OF THE BANK.

(a) In General.—The Bank shall provide equity investments, direct loans, indirect loans, and loan guarantees to eligible entities for the construction or maintenance of infrastructure projects in the United States with sufficient revenue sources and guarantees to support the payment of dividends, interest, principal, or fees, as applicable, to the Bank.

 

(b) Support For Rural Projects.—Not less than 10 percent of the dollar amount of loans, equity investments, and loan guarantees provided by the Bank shall be with respect to infrastructure projects in rural areas.

 

(c) Leveraging Bank Investments.—The Bank shall attempt to cross subsidize non-revenue infrastructure projects with revenue generating infrastructure projects to diversify the loan portfolio.

 

(d) No Commercial Or Investment Banking Activities.—Notwithstanding any other provision of law, the Bank is prohibited from accepting customer deposits or engaging in financial or investment banking activities.

 

(e) Pledge And Credit Facilities.—

(1) PLEDGE.—The Bank shall have the authority to pledge its loans to the discount window of the Board of Governors of the Federal Reserve System.

(2) PURCHASE OF OBLIGATIONS.—The Secretary of the Treasury may purchase obligations issued by the Bank.

 

(f) Leverage Limitation.—The Bank shall maintain risk-based capital at no less than 10 percent.

 

(g) Prohibition On Funding Of Foreign Projects.—The Bank is prohibited from providing equity investments, direct loans, indirect loans, and loan guarantees for infrastructure projects not located within the United States.

 

(h) Prohibition With Respect To China.—The Bank is prohibited from providing equity investments, direct loans, indirect loans, and loan guarantees for infrastructure projects that are owned, directed, controlled, financed, or influenced by the Government of the People’s Republic of China, the Chinese Communist Party, or the People’s Liberation Army.

 

SEC. 6. HOLDING COMPANY SECURITIES.

(a) Equity Securities.—

(1) IN GENERAL.—The Holding Company shall issue such equity securities as the Board of Directors of the Holding Company determines appropriate.

(2) DIVIDENDS.—The Holding Company may make such dividend payments on the equity securities of the Holding Company as the Holding Company determines appropriate.

(3) RESTRICTION ON VOTING RIGHTS.—Any holder of an equity security of the Holding Company that is a non-United States individual or entity shall have no voting rights with respect to such equity security.

 

(b) Bonds.—

(1) STANDARD BONDS.—The Holding Company may issue standard bonds with maturities up to 30 years or longer, as needed.

(2) OTHER BONDS.—The Holding Company may issue other bonds, notes, and marketable securities with maturities and interest rates as the Holding Company determines appropriate.

(3) AUTHORITY TO PURCHASE BONDS.—

(A) IN GENERAL.—The Secretary of the Treasury and the Board of Governors of the Federal Reserve System may purchase bonds issued under this section.

(B) LIMITATION.—The aggregate amount of outstanding bonds purchased by the Secretary under this paragraph may not exceed 5 percent of the total amount of the outstanding bonds of the Holding Company.

 

(c) Leverage Limitation.—The Holding Company shall maintain risk-based capital at no less than 10 percent.

 

(d) Investment Limitation On Non-United States Individuals And Entities.—

(1) Non-United States individuals and entities may not hold more than 25 percent, in the aggregate, of the equity securities and bonds of the Holding Company.

(2) The Formation Agent and Holding Company are prohibited from issuing any bond, note, marketable security, or other financial instrument to any person or entity—

(A) affiliated with, owned by, or directed, controlled, financed, or influenced by the Government of the People’s Republic of China, the Chinese Communist Party, or the People’s Liberation Army; or

(B) affiliated with, owned by, or directed, controlled, financed, or influenced by a State Sponsor of Terrorism, as so designated by the Secretary of State.

 

SEC. 7. OVERSIGHT AND REGULATION.

The Board of Governors of the Federal Reserve System shall—

(1) have oversight and supervisory authority over the Holding Company and the Bank, in order to ensure the safe and sound operation of the Holding Company and the Bank; and

(2) shall regulate Bank activities to ensure compliance with the requirements set forth in this Act.

 

SEC. 8. INFRASTRUCTURE GUARANTEE FUND.

The Bank shall establish an Infrastructure Guarantee Fund that shall be used with respect to specific loans or loan guarantees made by the Bank in the event of any non-payment by the recipient of such loan or loan guarantee.

 

SEC. 9. HOLDING COMPANY AND BANK EXEMPTION FROM TAXATION.

Effective for taxable years ending on or after the date of enactment of this Act, the Holding Company and the Bank, including franchises, capital, reserves, surplus, advances, and income of the Holding Company or Bank, shall be exempt from all taxation imposed by the United States and any State, county, municipal, or local taxing authority, except that any real property of the Holding Company and the Bank shall be subject to State, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.

 

SEC. 10. FEDERAL INFRASTRUCTURE BANK HOLDING COMPANY CREDIT.

(a) In General.—Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended—

(1) by adding at the end the following new section:

“SEC. 45U. FEDERAL INFRASTRUCTURE BANK HOLDING COMPANY CREDIT.

“(a) In General.—For purposes of section 38, in the case of a taxpayer who holds a qualified Holding Company equity investment on a credit allowance date of such investment which occurs during the taxable year, the Federal Infrastructure Bank Holding Company credit determined under this section for such taxable year is an amount equal to 10 percent of the amount paid to the Holding Company for such investment at its original issue.

“(b) Credit Allowance Date.—For purposes of this section, the credit allowance date with respect to any qualified Holding Company equity investment is—

“(1) the date on which such investment is initially made; and

“(2) each of the 4 taxable years thereafter.

“(c) Qualified Holding Company Equity Investment.—For purposes of this section, the term ‘qualified Holding Company equity investment’ means any equity investment originally issued by the Holding Company to the taxpayer under section 6(a)(1) of the Federal Infrastructure Bank Act of 2022 not later than 3 years after the date of the enactment of such Act.

“(d) Holding Company.—For purposes of this section, the term ‘Holding Company’ means the Federal Infrastructure Bank Holding Company established by the Federal Infrastructure Bank Act of 2022.”; and

(2) in the table of contents for such subpart, by adding at the end the following:

“45U. Federal Infrastructure Bank Holding Company credit.”.

(b) Conforming Amendments.—

(1) Section 38(b) of such Code is amended by striking “plus” at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting “, plus”, and by adding at the end the following new paragraph:

“(34) the Federal Infrastructure Bank Holding Company credit determined under section 45U.”.

(2) Section 1016(a) of such Code is amended by striking “and” at the end of paragraph (37), by striking the period at the end of paragraph (38) and inserting “, and”, and by adding at the end the following new paragraph:

“(39) to the extent provided in section 45U(e).”.

 

(c) Effective Date.—The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

 

SEC. 11. RULE OF CONSTRUCTION.

Nothing in this Act may be construed as authorizing the Federal Government to guarantee the assets of the Bank or Holding Company.

 

Plain English Summary

 

This bill provides for the establishment of the Federal Infrastructure Bank Holding Company (FIBHC), which shall be the parent company of the Federal Infrastructure Bank (the bank).

 

The bank shall provide equity investments, direct loans, and loan guarantees for the construction or maintenance of infrastructure projects in the United States with sufficient revenue sources and guarantees to support the payment of dividends, interest, principal, or fees to the bank. At least 10% of the loans, equity investments, and loan guarantees shall be for infrastructure projects in rural areas.

 

The Board of Governors of the Federal Reserve System shall have oversight and supervisory authority over the FIBHC and the bank. The bank shall establish an Infrastructure Guarantee Fund to cover loans and loan guarantees in the event of nonpayment by loan recipients.

 

The bill provides for a taxpayer credit in an amount equal to 10% of the amount such taxpayer paid to the FIBHC for an equity investment at its original issue.

Thank you, I yield.

Mr. President, I second the Republican Leader's amendment and I yield.