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US SB1480
Bill
AI Summary
- Creates a new category of "American infrastructure bonds" that allows state and local government bond issuers to receive a federal payment equal to 28% of interest costs on each payment date
- Requires bonds to qualify as tax-exempt municipal bonds (excluding private activity bonds) and issuers must make an irrevocable election to participate
- Makes interest on these bonds taxable for federal income tax purposes, unlike traditional municipal bonds, though states may treat the interest as tax-exempt unless they opt out
- Includes sequestration protection that automatically increases federal payments to offset any budget cuts under the Balanced Budget Act or similar legislation
- Applies to bonds issued after enactment, introduced April 10, 2025 by Senators Wicker, Bennet, Britt, and Hyde-Smith with bipartisan sponsorship
Legislative Description
American Infrastructure Bonds Act of 2025
Taxation
Last Action
Read twice and referred to the Committee on Finance.
4/10/2025
Committee Referrals
Finance4/10/2025
Full Bill Text
No bill text available