States would have more flexibility to leverage public-private partnerships to finance infrastructure projects and give the economy a boost under legislation introduced by U.S. Rep. Jackie Walorski (R-IN) on Tuesday.
The Move America Act, H.R. 3912, would expand the use of private activity bonds and infrastructure tax credits with the goal of generating billions of dollars in private support for a wide range of infrastructure projects. U.S. Sen. John Hoeven (R-ND) previously introduced a Senate version of the bill.
“A strong American economy depends on a modern infrastructure built for the 21st century,” Walorski said. “Public-private partnerships are among the most cost-effective ways to revitalize our aging infrastructure and invest in our nation’s future. The bipartisan Move America Act will give state and local governments the tools and flexibility they need to leverage private dollars for the infrastructure projects most important to our communities.”
Walorski introduced the bill along with U.S. Reps. Earl Blumenauer (D-OR), Brian Fitzpatrick (R-PA) and Sean Patrick Maloney (D-NY).
The legislation would allow $8 billion in federal funding to be leveraged into roughly $226 billion worth of bond authority or $56 billion in tax credits over 10 years, according to the Joint Committee on Taxation.
Under the bill, states would receive Move America Bond allocations for infrastructure projects based on population sizes. The bonds would offer flexible ownership and management of infrastructure projects and exempt private investment from the alternative minimum tax. Additionally, states could carry over unused volume caps for up to five years.
Move America Credits would enable smaller states to swap bond allocations for federal tax credits at a 25 percent rate under the bill. Credits could be used for direct investment in infrastructure projects, lowering capital costs or growing potential investment pools.
“The flexibility and cost-savings offered through Move America are a vital boost for states looking to improve their infrastructure and economies,” Hoeven said. “By securing private funding through tax credits and bonds, we can make our investments in infrastructure go further while saving taxpayer dollars. I look forward to working with my colleagues in the House to advance this important effort through Congress.”
States could also elect to use Move America Bonds, Move America Credits and other federal grant or credit assistance programs together under the bill.
Infrastructure projects allowed under the program include roads, bridges, airports, rail, transit, ports, sewers and broadband, among other projects.