Bill · S. 1480· Senate(119-S-1480)
American Infrastructure Bonds Act of 2025
- Introduced
- 4/10/2025
- Last activity
- 4/10/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Roger Wicker
- Cosponsors
- - 2 - 5
- Introduced
- In Committee
What this bill would do
The American Infrastructure Bonds Act of 2025 seeks to amend the Internal Revenue Code of 1986. It aims to provide a tax credit to the issuers of American infrastructure bonds. Under this bill, the Secretary of the Treasury would pay the issuer 28 percent of the interest payable on such bonds. These bonds must meet specific criteria, including not being private activity bonds. The act also includes rules regarding how interest is treated for gross income and how state laws coordinate with these federal changes.
Yes· 3 of 5
Does this repair or build roads and bridges?+5
The bill provides a mechanism to fund large-scale infrastructure projects through bond interest credits.
Does this improve buses, trains and other public transport?+4
Infrastructure bonds can be utilized for various public transit improvements.
Would business owners be better off under this?+4
The bill provides a significant tax credit that benefits bond issuers, which may include private entities.
The opposite
Does this reduce what the federal government spends?-3
The bill increases direct government spending through the provision of a 28 percent interest credit to bond issuers.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Credit for Issuers: The Secretary shall pay the issuer (or a person making interest payments on their behalf) a credit equal to 28 percent of the interest payable under the bond (Section 2(a)(b)(1)).
-
State Tax Coordination: For purposes of state income tax laws, the interest on these bonds and the amount of the credit will be treated as being exempt from Federal income tax, unless the State provides otherwise (Section 2(c)).
Potential Negative Impacts for People
-
Taxable Interest: Interest on any American infrastructure bond shall be includable in gross income for federal income tax purposes (Section 2(a)(d)(1)).
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Premium Restrictions: A bond will not be treated as an American infrastructure bond if its issue price has more than a de minimis amount of premium over the stated principal amount (Section 2(a)(c)(2)(B)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Environment Energy And Infrastructure
- Improves Roads And Bridges+5Improves Public Transit+4
- Demographic And Interest Groups
- Good For Business Owners+4
- Governance And Ideology
- Increases Federal Power+2
- Economy And Finance
- Improves Economic Growth+3Reduces Government Spending-3
- 6/17/2025
- 4 Cosponsors added.
- 4/10/2025
- Read twice and referred to the Committee on Finance.
- 3 Cosponsors added.
- Introduced in Senate
Michael BennetDemocrat · Colorado
Katie BrittRepublican · Alabama
Christopher CoonsDemocrat · Delaware
Catherine Cortez MastoDemocrat · Nevada
Cindy Hyde-SmithRepublican · Mississippi
Mark KellyDemocrat · Arizona
Timothy KaineDemocrat · Virginia