Environmental Infrastructure Act of 1991

Environmental Infrastructure Act of 1991 - Amends the Internal Revenue Code to establish infrastructure bonds as a category of tax-exempt bond. Includes within this new category any State or local bond issued as part of an issue 95 percent or more of whose proceeds are to be used to provide public sewage facilities, solid or hazardous waste disposal facilities, water supply systems, or other facilities acquired, constructed, or renovated to achieve compliance with Federal environmental law.

Revises arbitrage rebate provisions.

Classifies infrastructure facilities as seven-year property for purposes of the accelerated cost recovery system associated with the depreciation deduction. Designates a ten-year class life to such facilities under the alternative depreciation system.

Exempts infrastructure facility property from restrictions relating to property leased to a tax-exempt entity.