Invest in United States Act of 2014 - Title I: American Infrastructure Financing Authority - Establishes the American Infrastructure Financing Authority (AIFA) as a wholly-owned government corporation that shall provide direct loans and loan guarantees to facilitate the construction, alteration, or repair of transportation, water, and energy infrastructure projects. Requires infrastructure projects assisted under this Act to have costs that are reasonably anticipated to equal or exceed $100 million ($25 million for rural infrastructure projects).
Establishes an Office of the Special Inspector General to conduct, supervise, and coordinate audits and investigations of the business activities of AIFA.
Prohibits financial assistance from AIFA for any private project for which no public benefit is created. Sets forth terms for loans or loan guarantees for eligible infrastructure projects and for the repayment of such loans. Requires an annual independent audit of AIFA finances.
Requires the Chief Executive Officer of AIFA to: (1) establish fees with respect to loans and loan guarantees that are sufficient to cover AIFA's administrative costs; and (2) take actions to make AIFA a self-sustaining entity, with administrative and federal credit subsidy costs fully funded by fees and risk premiums on loans and loan guarantees.
Title II: Tax Credit Extensions - Amends the Internal Revenue Code to make permanent the new markets tax credit.
Build America Bonds Act of 2014 - Makes permanent the tax credit for investment in the Build America Bonds program.
Makes permanent the tax credit for research expenditures. Increases to 17% the rate of the alternative simplified research tax credit.
Exempts bonds for water and sewage facilities from the volume cap on tax-exempt private activity bonds.
Eliminates tax-exempt interest earned on private activity bonds as an item of tax preference for purposes of calculating the alternative minimum tax (AMT).
Title III: Skills Training - Amends the Internal Revenue Code to allow tax credits for: (1) the qualified training expenses of job trainees who have been unemployed for at least 90 days before enrolling in a training program, and (2) investment in a qualified job training partnership between a private business and an institution of higher education or a labor organization. Defines "qualifying training expenses" as an eligible trainee's qualified tuition costs, which may include costs for books and enrollment in a training program at an institution of higher education that may include a single course, multiple courses, or a combination of work training and study that is reasonably necessary for employment.
Requires the Secretary of the Treasury to establish a Qualified Job Training Partnership program to consider and award certifications for qualified investments eligible for credits to qualified job training partnerships. Requires the Secretary to make grants to individuals who make an investment in a qualified job training partnership, in lieu of a tax credit.
Title IV: Trade Provisions - Expresses the sense of Congress with respect to the implementation of a trade and investment agreement with the European Union.
Amends the Trade Act of 1974 to extend through December 31, 2020: (1) the trade adjustment assistance (TAA) program, and (2) the reemployment trade adjustment assistance (RTAA) program.
Makes funds available through FY2020 and for the period beginning October 1-December 31, 2020 (first quarter of FY2021) for training of adversely affected workers, employment and case management services, and job search expenses and relocation expenses.
Reauthorizes appropriations: (1) through December 31, 2020, for the TAA program for workers, and (2) through FY2020 and for the first quarter of FY2021 for the TAA program for firms and farmers.
Amends the Trade Adjustment Assistance Extension Act of 2011 to declare that TAA program requirements in effect as of February 13, 2011, under the Trade Act of 1974 shall apply to petitions for certification to apply for TAA for workers, firms, and farmers that are filed before January 1, 2021.
Title V: Minimum Wage Increase and Business Tax Relief - Amends the Fair Labor Standards Act of 1938 (FLSA) to increase the federal minimum wage for employees to: (1) $8.20 an hour beginning on the first day of the first month beginning 1 year after the enactment of this Act, (2) $9.15 an hour beginning 1 year after that first day, (3) $10.10 an hour beginning 2 years after that first day, and (4) the amount determined by the Secretary of Labor (based on increases in the Consumer Price Index) beginning 3 years after that first day and annually thereafter.
Increases the federal minimum wage for tipped employees to $3.00 an hour for the 1-year period beginning on the first day of the third month after the enactment of this Act. Provides a formula for subsequent annual adjustments of the wage increase to ensure that it remains equal to 50% of the wage in effect under FLSA for other employees.
Amends the Internal Revenue Code to make permanent: (1) the work opportunity tax credit; (2) the increased expensing allowance for depreciable business assets; and (3) the treatment of qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property as 15-year property for depreciation purposes.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3939 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 3939
To amend the Internal Revenue Code of 1986 to jumpstart the sluggish
economy, finance critical infrastructure investments, fight income
inequality and create jobs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 28, 2014
Mr. Neal introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on
Transportation and Infrastructure and Education and the Workforce, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to jumpstart the sluggish
economy, finance critical infrastructure investments, fight income
inequality and create jobs, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Invest in United
States Act of 2014''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--AMERICAN INFRASTRUCTURE FINANCING AUTHORITY
Sec. 101. Findings and purpose.
Sec. 102. Definitions.
Subtitle A--American Infrastructure Financing Authority
Sec. 111. Establishment and general authority of AIFA.
Sec. 112. Voting members of the Board of Directors.
Sec. 113. Chief Executive Officer of AIFA.
Sec. 114. Powers and duties of the Board of Directors.
Sec. 115. Senior management.
Sec. 116. Special Inspector General for AIFA.
Sec. 117. Other personnel.
Sec. 118. Compliance.
Subtitle B--Terms and Limitations on Direct Loans and Loan Guarantees
Sec. 121. Eligibility criteria for assistance from AIFA and terms and
limitations of loans.
Sec. 122. Loan terms and repayment.
Sec. 123. Compliance and enforcement.
Sec. 124. Audits; reports to the President and Congress.
Subtitle C--Funding of AIFA
Sec. 131. Fees.
Sec. 132. Self-sufficiency of AIFA.
Sec. 133. Funding.
Sec. 134. Contract authority.
TITLE II--TAX CREDIT EXTENSIONS
Sec. 201. Permanent extension of new markets tax credit.
Sec. 202. Build America Bonds made permanent.
Sec. 203. Permanent extension of research credit; increase in
alternative simplified research credit.
Sec. 204. Exempt-facility bonds for sewage and water supply facilities.
Sec. 205. Repeal of alternative minimum tax on private activity bonds.
TITLE III--SKILLS TRAINING
Sec. 301. Job training tax credit.
Sec. 302. Qualified Job Training Partnerships credit.
TITLE IV--TRADE PROVISIONS
Sec. 401. Findings; sense of Congress on applicability of trade
authorities procedures to a bill
implementing a trade and investment
agreement with the European Union.
Sec. 402. Extension of trade adjustment assistance program.
TITLE V--MINIMUM WAGE INCREASE AND BUSINESS TAX RELIEF
Sec. 501. Minimum wage increases.
Sec. 502. Work Opportunity Credit made permanent.
Sec. 503. Increased expensing limitations and treatment of certain real
property as section 179 property made
permanent.
Sec. 504. Permanent extension of treatment of qualified leasehold
improvement property, qualified restaurant
property, and qualified retail improvement
property as 15-year property for purposes
of depreciation deduction.
TITLE I--AMERICAN INFRASTRUCTURE FINANCING AUTHORITY
SEC. 101. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that--
(1) infrastructure has always been a vital element of the
economic strength of the United States and a key indicator of
the international leadership of the United States;
(2) the Erie Canal, the Hoover Dam, the railroads, and the
interstate highway system are all testaments to American
ingenuity and have helped propel and maintain the United States
as the world's largest economy;
(3) according to the World Economic Forum's Global
Competitiveness Report, the United States fell to second place
in 2009, and dropped to fourth place overall in 2010, however,
in the ``Quality of overall infrastructure'' category of the
same report, the United States ranked twenty-third in the
world;
(4) according to the World Bank's 2010 Logistic Performance
Index, the capacity of countries to efficiently move goods and
connect manufacturers and consumers with international markets
is improving around the world, and the United States now ranks
seventh in the world in logistics-related infrastructure behind
countries from both Europe and Asia;
(5) according to a January 2009 report from the University
of Massachusetts/Alliance for American Manufacturing entitled
``Employment, Productivity and Growth,'' infrastructure
investment is a ``highly effective engine of job creation''
such that $1,000,000,000 in new investment in infrastructure
results in 18,000 total jobs;
(6) according to the American Society of Civil Engineers,
the current condition of the infrastructure in the United
States earns a grade point average of D, and an estimated
$2,200,000,000,000 investment is needed over the next 5 years
to bring American infrastructure up to adequate condition;
(7) according to the National Surface Transportation Policy
and Revenue Study Commission, $225,000,000,000 is needed
annually from all sources for the next 50 years to upgrade the
United States surface transportation system to a state of good
repair and create a more advanced system;
(8) the current infrastructure financing mechanisms of the
United States, both on the Federal and State level, will fail
to meet current and foreseeable demands and will create large
funding gaps;
(9) traditional municipal bonds issued by State and local
governments are proven to work and have been a part of the tax
code for over 100 years, and additional infrastructure
financing options can be created at the Federal level to
complement the current system to best meet infrastructure
needs;
(10) new, additional financing mechanisms should be
targeted and quickly implemented to--
(A) serve large in-State or cross jurisdiction
infrastructure projects, projects of regional or
national significance, or projects that cross sector
silos;
(B) sufficiently catalyze private sector
investment; or
(C) ensure the optimal return on public resources;
(11) although grant programs of the United States
Government must continue to play a central role in financing
the transportation, environment, and energy infrastructure
needs of the United States, current and foreseeable demands on
existing Federal, State, and local funding for infrastructure
expansion clearly exceed the resources to support these
programs by margins wide enough to prompt serious concerns
about the United States ability to sustain long-term economic
development, productivity, and international competitiveness;
(12) the capital markets, including pension funds, private
equity funds, mutual funds, sovereign wealth funds, and other
investors, have a growing interest in infrastructure investment
and represent hundreds of billions of dollars of potential
investment; and
(13) the establishment of a United States Government-owned,
independent, professionally managed institution that could
provide credit support to qualified infrastructure projects of
regional and national significance, making transparent merit-
based investment decisions based on the commercial viability of
infrastructure projects, would catalyze the participation of
significant private investment capital.
(b) Purpose.--The purpose of this title is to facilitate investment
in, and long-term financing of, economically viable infrastructure
projects of regional or national significance in a manner that both
complements existing Federal, State, local, and private funding sources
for these projects and introduces a merit-based system for financing
such projects, in order to mobilize significant private sector
investment, create jobs, and ensure United States competitiveness
through a self-sustaining institution that limits the need for ongoing
Federal funding.
SEC. 102. DEFINITIONS.
For purposes of this title, the following definitions shall apply:
(1) AIFA.--The term ``AIFA'' means the American
Infrastructure Financing Authority established under this
title.
(2) Blind trust.--The term ``blind trust'' means a trust in
which the beneficiary has no knowledge of the specific holdings
and no rights over how those holdings are managed by the
fiduciary of the trust prior to the dissolution of the trust.
(3) Board of directors.--The term ``Board of Directors''
means Board of Directors of AIFA.
(4) Chairperson.--The term ``Chairperson'' means the
Chairperson of the Board of Directors of AIFA.
(5) Chief executive officer.--The term ``Chief Executive
Officer'' means the Chief Executive Officer of AIFA, appointed
under section 113.
(6) Cost.--The term ``cost'' has the same meaning as in
section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a).
(7) Direct loan.--The term ``direct loan'' has the same
meaning as in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a).
(8) Eligible entity.--The term ``eligible entity'' means an
individual, corporation, partnership (including a public-
private partnership), joint venture, trust, State, or other
governmental entity, including a political subdivision or any
other instrumentality of a State, or a revolving fund.
(9) Infrastructure project.--
(A) In general.--The term ``eligible infrastructure
project'' means any transportation, water, or energy
infrastructure project, or an aggregation of such
infrastructure projects, as provided in this title.
(B) Transportation infrastructure project.--The
term ``transportation infrastructure project'' means
the construction, alteration, or repair, including the
facilitation of intermodal transit, of the following
subsectors:
(i) Highway or road.
(ii) Bridge.
(iii) Mass transit.
(iv) Inland waterways.
(v) Commercial ports.
(vi) Airports.
(vii) Air traffic control systems.
(viii) Passenger rail, including high-speed
rail.
(ix) Freight rail systems.
(C) Water infrastructure project.--The term ``water
infrastructure project'' means the construction,
consolidation, alteration, or repair of the following
subsectors:
(i) Water waste treatment facility.
(ii) Storm water management system.
(iii) Dam.
(iv) Solid waste disposal facility.
(v) Levee.
(vi) Open space management system.
(D) Energy infrastructure project.--The term
``energy infrastructure project'' means the
construction, alteration, or repair of the following
subsectors:
(i) Pollution reduced energy generation.
(ii) Transmission and distribution.
(iii) Storage.
(iv) Energy efficiency enhancements for
buildings, including public and commercial
buildings.
(E) Board authority to modify subsectors.--The
Board of Directors may make modifications, at the
discretion of the Board, to the subsectors described in
this paragraph by a vote of not fewer than 5 of the
voting members of the Board of Directors.
(10) Investment-grade rating.--The term ``investment-grade
rating'' means a rating of BBB minus, Baa3, or higher assigned
to an infrastructure project by a ratings agency.
(11) Loan guarantee.--The term ``loan guarantee'' has the
same meaning as in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a).
(12) Public-private partnership.--The term ``public-private
partnership'' means any eligible entity--
(A)(i) which is undertaking the development of all
or part of an infrastructure project that will have a
public benefit, pursuant to requirements established in
one or more contracts between the entity and a State or
an instrumentality of a State; or
(ii) the activities of which, with respect to such
an infrastructure project, are subject to regulation by
a State or any instrumentality of a State;
(B) which owns, leases, or operates or will own,
lease, or operate, the project in whole or in part; and
(C) the participants in which include not fewer
than 1 nongovernmental entity with significant
investment and some control over the project or project
vehicle.
(13) Rural infrastructure project.--The term ``rural
infrastructure project'' means an infrastructure project in a
rural area, as that term is defined in section 343(a)(13)(A) of
the Consolidated Farm and Rural Development Act (7 U.S.C.
1991(a)(13)(A)).
(14) Secretary.--Unless the context otherwise requires, the
term ``Secretary'' means the Secretary of the Treasury or the
designee thereof.
(15) Senior management.--The term ``senior management''
means the Chief Financial Officer, Chief Risk Officer, Chief
Compliance Officer, General Counsel, Chief Lending Officer, and
Chief Operations Officer of AIFA established under section 115,
and such other officers as the Board of Directors may, by
majority vote, add to senior management.
(16) State.--The term ``State'' includes the District of
Columbia, Puerto Rico, Guam, American Samoa, the Virgin
Islands, the Commonwealth of Northern Mariana Islands, and any
other territory of the United States.
Subtitle A--American Infrastructure Financing Authority
SEC. 111. ESTABLISHMENT AND GENERAL AUTHORITY OF AIFA.
(a) Establishment of AIFA.--The American Infrastructure Financing
Authority is established as a wholly owned Government corporation.
(b) General Authority of AIFA.--AIFA shall provide direct loans and
loan guarantees to facilitate infrastructure projects that are both
economically viable and of regional or national significance, and shall
have such other authority as is provided under this title.
(c) Incorporation.--
(1) In general.--The Board of Directors first appointed
shall be deemed the incorporator of AIFA, and the incorporation
shall be held to have been effected from the date of the first
meeting of the Board of Directors.
(2) Corporate office.--AIFA shall--
(A) maintain an office in Washington, DC; and
(B) for purposes of venue in civil actions, be
considered to be a resident of Washington, DC.
(d) Responsibility of the Secretary.--The Secretary shall take such
actions as may be necessary to assist in implementing AIFA, and in
carrying out the purpose of this title.
(e) Rule of Construction.--Chapter 91 of title 31, United States
Code, does not apply to AIFA, unless otherwise specifically provided in
this title.
SEC. 112. VOTING MEMBERS OF THE BOARD OF DIRECTORS.
(a) Voting Membership of the Board of Directors.--
(1) In general.--AIFA shall have a Board of Directors
consisting of 7 voting members appointed by the President, by
and with the advice and consent of the Senate, not more than 4
of whom shall be from the same political party.
(2) Chairperson.--One of the voting members of the Board of
Directors shall be designated by the President to serve as
Chairperson thereof.
(3) Congressional recommendations.--Not later than 30 days
after the date of enactment of this Act, the majority leader of
the Senate, the minority leader of the Senate, the Speaker of
the House of Representatives, and the minority leader of the
House of Representatives shall each submit a recommendation to
the President for appointment of a member of the Board of
Directors, after consultation with the appropriate committees
of Congress.
(b) Voting Rights.--Each voting member of the Board of Directors
shall have an equal vote in all decisions of the Board of Directors.
(c) Qualifications of Voting Members.--Each voting member of the
Board of Directors shall--
(1) be a citizen of the United States; and
(2) have significant demonstrated expertise in--
(A) the management and administration of a
financial institution relevant to the operation of
AIFA; or
(B) the financing, development, or operation of
infrastructure projects.
(d) Terms.--
(1) In general.--Except as otherwise provided in this
title, each voting member of the Board of Directors shall be
appointed for a term of 4 years.
(2) Initial staggered terms.--Of the voting members first
appointed to the Board of Directors--
(A) the initial Chairperson and 3 of the other
voting members shall each be appointed for a term of 4
years; and
(B) the remaining 3 voting members shall each be
appointed for a term of 2 years.
(3) Date of initial nominations.--The initial nominations
for the appointment of all voting members of the Board of
Directors shall be made not later than 60 days after the date
of enactment of this Act.
(4) Beginning of term.--The term of each of the initial
voting members appointed under this section shall commence
immediately upon the date of appointment, except that, for
purposes of calculating the term limits specified in this
subsection, the initial terms shall each be construed as
beginning on January 22 of the year following the date of the
initial appointment.
(5) Vacancies.--A vacancy in the position of a voting
member of the Board of Directors shall be filled by the
President, and a member appointed to fill a vacancy on the
Board of Directors occurring before the expiration of the term
for which the predecessor was appointed shall be appointed only
for the remainder of that term.
(e) Meetings.--
(1) Open to the public; notice.--Except as provided in
paragraph (3), all meetings of the Board of Directors shall
be--
(A) open to the public; and
(B) preceded by reasonable public notice.
(2) Frequency.--The Board of Directors shall meet not later
than 60 days after the date on which all members of the Board
of Directors are first appointed, at least quarterly
thereafter, and otherwise at the call of either the Chairperson
or 5 voting members of the Board of Directors.
(3) Exception for closed meetings.--The voting members of
the Board of Directors may, by majority vote, close a meeting
to the public if, during the meeting to be closed, there is
likely to be disclosed proprietary or sensitive information
regarding an infrastructure project under consideration for
assistance under this title. The Board of Directors shall
prepare minutes of any meeting that is closed to the public,
and shall make such minutes available as soon as practicable,
not later than 1 year after the date of the closed meeting,
with any necessary redactions to protect any proprietary or
sensitive information.
(4) Quorum.--For purposes of meetings of the Board of
Directors, 5 voting members of the Board of Directors shall
constitute a quorum.
(f) Compensation of Members.--Each voting member of the Board of
Directors shall be compensated at a rate equal to the daily equivalent
of the annual rate of basic pay prescribed for level III of the
Executive Schedule under section 5314 of title 5, United States Code,
for each day (including travel time) during which the member is engaged
in the performance of the duties of the Board of Directors.
(g) Conflicts of Interest.--A voting member of the Board of
Directors may not participate in any review or decision affecting an
infrastructure project under consideration for assistance under this
title, if the member has or is affiliated with an entity who has a
financial interest in such project.
SEC. 113. CHIEF EXECUTIVE OFFICER OF AIFA.
(a) In General.--The Chief Executive Officer of AIFA shall be a
nonvoting member of the Board of Directors, who shall be responsible
for all activities of AIFA, and shall support the Board of Directors as
set forth in this title and as the Board of Directors deems necessary
or appropriate.
(b) Appointment and Tenure of the Chief Executive Officer.--
(1) In general.--The President shall appoint the Chief
Executive Officer, by and with the advice and consent of the
Senate.
(2) Term.--The Chief Executive Officer shall be appointed
for a term of 6 years.
(3) Vacancies.--Any vacancy in the office of the Chief
Executive Officer shall be filled by the President, and the
person appointed to fill a vacancy in that position occurring
before the expiration of the term for which the predecessor was
appointed shall be appointed only for the remainder of that
term.
(c) Qualifications.--The Chief Executive Officer--
(1) shall have significant expertise in management and
administration of a financial institution, or significant
expertise in the financing and development of infrastructure
projects; and
(2) may not--
(A) hold any other public office;
(B) have any financial interest in an
infrastructure project then being considered by the
Board of Directors, unless that interest is placed in a
blind trust; or
(C) have any financial interest in an investment
institution or its affiliates or any other entity
seeking or likely to seek financial assistance for any
infrastructure project from AIFA, unless any such
interest is placed in a blind trust for the tenure of
the service of the Chief Executive Officer plus 2
additional years.
(d) Responsibilities.--The Chief Executive Officer shall have such
executive functions, powers, and duties as may be prescribed by this
title, the bylaws of AIFA, or the Board of Directors, including--
(1) responsibility for the development and implementation
of the strategy of AIFA, including--
(A) the development and submission to the Board of
Directors of the annual business plans and budget;
(B) the development and submission to the Board of
Directors of a long-term strategic plan; and
(C) the development, revision, and submission to
the Board of Directors of internal policies; and
(2) responsibility for the management and oversight of the
daily activities, decisions, operations, and personnel of AIFA,
including--
(A) the appointment of senior management, subject
to approval by the voting members of the Board of
Directors, and the hiring and termination of all other
AIFA personnel;
(B) requesting the detail, on a reimbursable basis,
of personnel from any Federal agency having specific
expertise not available from within AIFA, following
which request the head of the Federal agency may
detail, on a reimbursable basis, any personnel of such
agency reasonably requested by the Chief Executive
Officer;
(C) assessing and recommending in the first
instance, for ultimate approval or disapproval by the
Board of Directors, compensation and adjustments to
compensation of senior management and other personnel
of AIFA as may be necessary for carrying out the
functions of AIFA;
(D) ensuring, in conjunction with the general
counsel of AIFA, that all activities of AIFA are
carried out in compliance with applicable law;
(E) overseeing the involvement of AIFA in all
projects, including--
(i) developing eligible projects for AIFA
financial assistance;
(ii) determining the terms and conditions
of all financial assistance packages;
(iii) monitoring all infrastructure
projects assisted by AIFA, including
responsibility for ensuring that the proceeds
of any loan made, guaranteed, or participated
in are used only for the purposes for which the
loan or guarantee was made;
(iv) preparing and submitting for approval
by the Board of Directors the documents
required under paragraph (1); and
(v) ensuring the implementation of
decisions of the Board of Directors; and
(F) such other activities as may be necessary or
appropriate in carrying out this title.
(e) Compensation.--
(1) In general.--Any compensation assessment or
recommendation by the Chief Executive Officer under this
section shall be without regard to the provisions of chapter 51
or subchapter III of chapter 53 of title 5, United States Code.
(2) Considerations.--The compensation assessment or
recommendation required under this subsection shall take into
account merit principles, where applicable, as well as the
education, experience, level of responsibility, geographic
differences, and retention and recruitment needs in determining
compensation of personnel.
SEC. 114. POWERS AND DUTIES OF THE BOARD OF DIRECTORS.
The Board of Directors shall--
(1) as soon as is practicable after the date on which all
members are appointed, approve or disapprove senior management
appointed by the Chief Executive Officer;
(2) not later than 180 days after the date on which all
members are appointed--
(A) develop and approve the bylaws of AIFA,
including bylaws for the regulation of the affairs and
conduct of the business of AIFA, consistent with the
purpose, goals, objectives, and policies set forth in
this title;
(B) establish subcommittees, including an audit
committee that is composed solely of members of the
Board of Directors who are independent of the senior
management of AIFA;
(C) develop and approve, in consultation with
senior management, a conflict-of-interest policy for
the Board of Directors and for senior management;
(D) approve or disapprove internal policies that
the Chief Executive Officer shall submit to the Board
of Directors, including--
(i) policies regarding the loan application
and approval process, including--
(I) disclosure and application
procedures to be followed by entities
in the course of nominating
infrastructure projects for assistance
under this title;
(II) guidelines for the selection
and approval of projects;
(III) specific criteria for
determining eligibility for project
selection, consistent with subtitle B;
and
(IV) standardized terms and
conditions, fee schedules, or legal
requirements of a contract or program,
so as to carry out this title; and
(ii) operational guidelines; and
(E) approve or disapprove a 1-year business plan
and budget for AIFA;
(3) ensure that AIFA is at all times operated in a manner
that is consistent with this title, by--
(A) monitoring and assessing the effectiveness of
AIFA in achieving its strategic goals;
(B) periodically reviewing internal policies;
(C) reviewing and approving annual business plans,
annual budgets, and long-term strategies submitted by
the Chief Executive Officer;
(D) reviewing and approving annual reports
submitted by the Chief Executive Officer;
(E) engaging one or more external auditors, as set
forth in this title; and
(F) reviewing and approving all changes to the
organization of senior management;
(4) appoint and fix, by a vote of not fewer than 5 voting
members of the Board of Directors, and without regard to the
provisions of chapter 51 or subchapter III of chapter 53 of
title 5, United Sates Code, the compensation and adjustments to
compensation of all AIFA personnel, provided that in appointing
and fixing any compensation or adjustments to compensation
under this paragraph, the Board shall--
(A) consult with, and seek to maintain
comparability with, other comparable Federal personnel,
as the Secretary may deem appropriate;
(B) consult with the Office of Personnel
Management; and
(C) carry out such duties consistent with merit
principles, where applicable, as well as the education,
experience, level of responsibility, geographic
differences, and retention and recruitment needs in
determining compensation of personnel;
(5) establish such other criteria, requirements, or
procedures as the Board of Directors may consider to be
appropriate in carrying out this title;
(6) serve as the primary liaison for AIFA in interactions
with Congress, the Executive Branch, and State and local
governments, and to represent the interests of AIFA in such
interactions and others;
(7) approve by a vote of not fewer than 5 voting members of
the Board of Directors any changes to the bylaws or internal
policies of AIFA;
(8) have the authority and responsibility--
(A) to oversee entering into and carry out such
contracts, leases, cooperative agreements, or other
transactions as are necessary to carry out this title
with--
(i) any Federal department or agency;
(ii) any State, territory, or possession
(or any political subdivision thereof,
including State infrastructure banks) of the
United States; and
(iii) any individual, public-private
partnership, firm, association, or corporation;
(B) to approve of the acquisition, lease, pledge,
exchange, and disposal of real and personal property by
AIFA and otherwise approve the exercise by AIFA of all
of the usual incidents of ownership of property, to the
extent that the exercise of such powers is appropriate
to and consistent with the purposes of AIFA;
(C) to determine the character of, and the
necessity for, the obligations and expenditures of
AIFA, and the manner in which the obligations and
expenditures will be incurred, allowed, and paid,
subject to this title and other Federal law
specifically applicable to wholly owned Federal
corporations;
(D) to execute, in accordance with applicable
bylaws and regulations, appropriate instruments;
(E) to approve other forms of credit enhancement
that AIFA may provide to eligible projects, as long as
the forms of credit enhancements are consistent with
the purposes of this title and terms set forth in
subtitle B;
(F) to exercise all other lawful powers that are
necessary or appropriate to carry out, and are
consistent with, the purposes of AIFA;
(G) to sue or be sued in the corporate capacity of
AIFA in any court of competent jurisdiction;
(H) to indemnify the members of the Board of
Directors and officers of AIFA for any liabilities
arising out of the actions of the members and officers
in such capacity, in accordance with, and subject to
the limitations contained in this title;
(I) to review all financial assistance packages to
all eligible infrastructure projects, as submitted by
the Chief Executive Officer and to approve, postpone,
or deny the same by majority vote;
(J) to review all restructuring proposals submitted
by the Chief Executive Officer, including assignation,
pledging, or disposal of the interest of AIFA in a
project, including payment or income from any interest
owned or held by AIFA, and to approve, postpone, or
deny the same by majority vote; and
(K) to enter into binding commitments, as specified
in approved financial assistance packages;
(9) delegate to the Chief Executive Officer those duties
that the Board of Directors deems appropriate, to better carry
out the powers and purposes of the Board of Directors under
this section; and
(10) to approve a maximum aggregate amount of principal
exposure of AIFA at any given time.
SEC. 115. SENIOR MANAGEMENT.
(a) In General.--Senior management shall support the Chief
Executive Officer in the discharge of the responsibilities of the Chief
Executive Officer.
(b) Appointment of Senior Management.--The Chief Executive Officer
shall appoint such senior managers as are necessary to carry out the
purpose of AIFA, as approved by a majority vote of the voting members
of the Board of Directors.
(c) Term.--Each member of senior management shall serve at the
pleasure of the Chief Executive Officer and the Board of Directors.
(d) Removal of Senior Management.--Any member of senior management
may be removed, either by a majority of the voting members of the Board
of Directors upon request by the Chief Executive Officer, or otherwise
by vote of not fewer than 5 voting members of the Board of Directors.
(e) Senior Management.--
(1) In general.--Each member of senior management shall
report directly to the Chief Executive Officer, other than the
Chief Risk Officer, who shall report directly to the Board of
Directors.
(2) Duties and responsibilities.--
(A) Chief financial officer.--The Chief Financial
Officer shall be responsible for all financial
functions of AIFA, provided that, at the discretion of
the Board of Directors, specific functions of the Chief
Financial Officer may be delegated externally.
(B) Chief risk officer.--The Chief Risk Officer
shall be responsible for all functions of AIFA relating
to--
(i) the creation of financial, credit, and
operational risk management guidelines and
policies;
(ii) the establishment of guidelines to
ensure diversification of lending activities by
region, infrastructure project type, and
project size;
(iii) the creation of conforming standards
for infrastructure finance agreements;
(iv) the monitoring of the financial,
credit, and operational exposure of AIFA; and
(v) risk management and mitigation actions,
including by reporting such actions, or
recommendations of such actions to be taken,
directly to the Board of Directors.
(C) Chief compliance officer.--The Chief Compliance
Officer shall be responsible for all functions of AIFA
relating to internal audits, accounting safeguards, and
the enforcement of such safeguards and other applicable
requirements.
(D) General counsel.--The General Counsel shall be
responsible for all functions of AIFA relating to legal
matters and, in consultation with the Chief Executive
Officer, shall be responsible for ensuring that AIFA
complies with all applicable law.
(E) Chief operations officer.--The Chief Operations
Officer shall be responsible for all operational
functions of AIFA, including those relating to the
continuing operations and performance of all
infrastructure projects in which AIFA retains an
interest and for all AIFA functions related to human
resources.
(F) Chief lending officer.--The Chief Lending
Officer shall be responsible for--
(i) all functions of AIFA relating to the
development of project pipeline, financial
structuring of projects, credit analysis of
infrastructure projects, selection of
infrastructure projects to be reviewed by the
Board of Directors, preparation of
infrastructure projects to be presented to the
Board of Directors, and set aside for rural
infrastructure projects; and
(ii) the creation and management of--
(I) a Center for Excellence to
provide technical assistance to public
sector borrowers in the development and
financing of infrastructure projects;
and
(II) an Office of Rural Assistance
to provide technical assistance in the
development and financing of rural
infrastructure projects.
(f) Changes to Senior Management.--The Board of Directors, in
consultation with the Chief Executive Officer, may alter the structure
of the senior management of AIFA at any time to better accomplish the
goals, objectives, and purposes of AIFA, provided that the functions of
the Chief Financial Officer set forth in subsection (e) remain separate
from the functions of the Chief Risk Officer set forth in subsection
(e).
(g) Conflicts of Interest.--No individual appointed to senior
management may--
(1) hold any other public office;
(2) have any financial interest in an infrastructure
project then being considered by the Board of Directors, unless
that interest is placed in a blind trust; or
(3) have any financial interest in an investment
institution or its affiliates, AIFA or its affiliates, or other
entity then seeking or likely to seek financial assistance for
any infrastructure project from AIFA, unless any such interest
is placed in a blind trust during the term of service of that
individual in a senior management position, and for a period of
2 years thereafter.
SEC. 116. SPECIAL INSPECTOR GENERAL FOR AIFA.
(a) In General.--During the first 5 operating years of AIFA, the
Office of the Inspector General of the Department of the Treasury shall
have responsibility for AIFA.
(b) Office of the Special Inspector General.--Effective 5 years
after the date of enactment of the commencement of the operations of
AIFA, there is established the Office of the Special Inspector General
for AIFA.
(c) Appointment of Inspector General; Removal.--
(1) Head of office.--The head of the Office of the Special
Inspector General for AIFA shall be the Special Inspector
General for AIFA (in this title referred to as the ``Special
Inspector General''), who shall be appointed by the President,
by and with the advice and consent of the Senate.
(2) Basis of appointment.--The appointment of the Special
Inspector General shall be made on the basis of integrity and
demonstrated ability in accounting, auditing, financial
analysis, law, management analysis, public administration, or
investigations.
(3) Timing of nomination.--The nomination of an individual
as Special Inspector General shall be made as soon as is
practicable after the effective date under subsection (b).
(4) Removal.--The Special Inspector General shall be
removable from office in accordance with the provisions of
section 3(b) of the Inspector General Act of 1978 (5 U.S.C.
App.).
(5) Rule of construction.--For purposes of section 7324 of
title 5, United States Code, the Special Inspector General
shall not be considered an employee who determines policies to
be pursued by the United States in the nationwide
administration of Federal law.
(6) Rate of pay.--The annual rate of basic pay of the
Special Inspector General shall be the annual rate of basic pay
for an Inspector General under section 3(e) of the Inspector
General Act of 1978 (5 U.S.C. App.).
(d) Duties.--
(1) In general.--It shall be the duty of the Special
Inspector General to conduct, supervise, and coordinate audits
and investigations of the business activities of AIFA.
(2) Other systems, procedures, and controls.--The Special
Inspector General shall establish, maintain, and oversee such
systems, procedures, and controls as the Special Inspector
General considers appropriate to discharge the duty under
paragraph (1).
(3) Additional duties.--In addition to the duties specified
in paragraphs (1) and (2), the Inspector General shall also
have the duties and responsibilities of inspectors general
under the Inspector General Act of 1978.
(e) Powers and Authorities.--
(1) In general.--In carrying out the duties specified in
subsection (c), the Special Inspector General shall have the
authorities provided in section 6 of the Inspector General Act
of 1978.
(2) Additional authority.--The Special Inspector General
shall carry out the duties specified in subsection (c)(1) in
accordance with section 4(b)(1) of the Inspector General Act of
1978.
(f) Personnel, Facilities, and Other Resources.--
(1) Additional officers.--
(A) The Special Inspector General may select,
appoint, and employ such officers and employees as may
be necessary for carrying out the duties of the Special
Inspector General, subject to the provisions of title
5, United States Code, governing appointments in the
competitive service, and the provisions of chapter 51
and subchapter III of chapter 53 of such title,
relating to classification and General Schedule pay
rates.
(B) The Special Inspector General may exercise the
authorities of subsections (b) through (i) of section
3161 of title 5, United States Code (without regard to
subsection (a) of that section).
(2) Retention of services.--The Special Inspector General
may obtain services as authorized by section 3109 of title 5,
United States Code, at daily rates not to exceed the equivalent
rate prescribed for grade GS-15 of the General Schedule by
section 5332 of such title.
(3) Ability to contract for audits, studies, and other
services.--The Special Inspector General may enter into
contracts and other arrangements for audits, studies, analyses,
and other services with public agencies and with private
persons, and make such payments as may be necessary to carry
out the duties of the Special Inspector General.
(4) Request for information.--
(A) In general.--Upon request of the Special
Inspector General for information or assistance from
any department, agency, or other entity of the Federal
Government, the head of such entity shall, insofar as
is practicable and not in contravention of any existing
law, furnish such information or assistance to the
Special Inspector General, or an authorized designee.
(B) Refusal to comply.--Whenever information or
assistance requested by the Special Inspector General
is, in the judgment of the Special Inspector General,
unreasonably refused or not provided, the Special
Inspector General shall report the circumstances to the
Secretary of the Treasury, without delay.
(g) Reports.--
(1) Annual report.--Not later than 1 year after the
confirmation of the Special Inspector General, and every
calendar year thereafter, the Special Inspector General shall
submit to the President a report summarizing the activities of
the Special Inspector General during the previous 1-year period
ending on the date of such report.
(2) Public disclosures.--Nothing in this subsection shall
be construed to authorize the public disclosure of information
that is--
(A) specifically prohibited from disclosure by any
other provision of law;
(B) specifically required by Executive order to be
protected from disclosure in the interest of national
defense or national security or in the conduct of
foreign affairs; or
(C) a part of an ongoing criminal investigation.
SEC. 117. OTHER PERSONNEL.
Except as otherwise provided in the bylaws of AIFA, the Chief
Executive Officer, in consultation with the Board of Directors, shall
appoint, remove, and define the duties of such qualified personnel as
are necessary to carry out the powers, duties, and purpose of AIFA,
other than senior management, who shall be appointed in accordance with
section 124.
SEC. 118. COMPLIANCE.
The provision of assistance by the Board of Directors pursuant to
this title shall not be construed as superseding any provision of State
law or regulation otherwise applicable to an infrastructure project.
Subtitle B--Terms and Limitations on Direct Loans and Loan Guarantees
SEC. 121. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM AIFA AND TERMS AND
LIMITATIONS OF LOANS.
(a) In General.--Any project whose use or purpose is private and
for which no public benefit is created shall not be eligible for
financial assistance from AIFA under this title. Financial assistance
under this title shall only be made available if the applicant for such
assistance has demonstrated to the satisfaction of the Board of
Directors that the infrastructure project for which such assistance is
being sought--
(1) is not for the refinancing of an existing
infrastructure project; and
(2) meets--
(A) any pertinent requirements set forth in this
title;
(B) any criteria established by the Board of
Directors or Chief Executive Officer in accordance with
this title; and
(C) the definition of a transportation
infrastructure project, water infrastructure project,
or energy infrastructure project.
(b) Considerations.--The criteria established by the Board of
Directors pursuant to this title shall provide adequate consideration
of--
(1) the economic, financial, technical, environmental, and
public benefits and costs of each infrastructure project under
consideration for financial assistance under this title,
prioritizing infrastructure projects that--
(A) contribute to regional or national economic
growth;
(B) offer value for money to taxpayers;
(C) demonstrate a clear public benefit;
(D) lead to job creation; and
(E) mitigate environmental concerns;
(2) the means by which development of the infrastructure
project under consideration is being financed, including--
(A) the terms, conditions, and structure of the
proposed financing;
(B) the credit worthiness and standing of the
project sponsors, providers of equity, and
cofinanciers;
(C) the financial assumptions and projections on
which the infrastructure project is based; and
(D) whether there is sufficient State or municipal
political support for the successful completion of the
infrastructure project;
(3) the likelihood that the provision of assistance by AIFA
will cause such development to proceed more promptly and with
lower costs for financing than would be the case without such
assistance;
(4) the extent to which the provision of assistance by AIFA
maximizes the level of private investment in the infrastructure
project or supports a public-private partnership, while
providing a significant public benefit;
(5) the extent to which the provision of assistance by AIFA
can mobilize the participation of other financing partners in
the infrastructure project;
(6) the technical and operational viability of the
infrastructure project;
(7) the proportion of financial assistance from AIFA;
(8) the geographic location of the project in an effort to
have geographic diversity of projects funded by AIFA;
(9) the size of the project and its impact on the resources
of AIFA; and
(10) the infrastructure sector of the project, in an effort
to have projects from more than one sector funded by AIFA.
(c) Application.--
(1) In general.--Any eligible entity seeking assistance
from AIFA under this title for an eligible infrastructure
project shall submit an application to AIFA at such time, in
such manner, and containing such information as the Board of
Directors or the Chief Executive Officer may require.
(2) Review of applications.--AIFA shall review applications
for assistance under this title on an ongoing basis. The Chief
Executive Officer, working with the senior management, shall
prepare eligible infrastructure projects for review and
approval by the Board of Directors.
(3) Dedicated revenue sources.--The Federal credit
instrument shall be repayable, in whole or in part, from tolls,
user fees, or other dedicated revenue sources that also secure
the infrastructure project obligations.
(d) Eligible Infrastructure Project Costs.--
(1) In general.--Except as provided in paragraph (2), to be
eligible for assistance under this title, an infrastructure
project shall have project costs that are reasonably
anticipated to equal or exceed $100,000,000.
(2) Rural infrastructure projects.--To be eligible for
assistance under this title, a rural infrastructure project
shall have project costs that are reasonably anticipated to
equal or exceed $25,000,000.
(e) Loan Eligibility and Maximum Amounts.--
(1) In general.--The amount of a direct loan or loan
guarantee under this title shall not exceed the lesser of 50
percent of the reasonably anticipated eligible infrastructure
project costs or, if the direct loan or loan guarantee does not
receive an investment grade rating, the amount of the senior
project obligations.
(2) Maximum annual loan and loan guarantee volume.--The
aggregate amount of direct loans and loan guarantees made by
AIFA in any single fiscal year may not exceed--
(A) during the first 2 fiscal years of the
operations of AIFA, $10,000,000,000;
(B) during fiscal years 3 through 9 of the
operations of AIFA, $20,000,000,000; or
(C) during any fiscal year thereafter,
$50,000,000,000.
(f) State and Local Permits Required.--The provision of assistance
by the Board of Directors pursuant to this title shall not be deemed to
relieve any recipient of such assistance, or the related infrastructure
project, of any obligation to obtain required State and local permits
and approvals.
SEC. 122. LOAN TERMS AND REPAYMENT.
(a) In General.--A direct loan or loan guarantee under this title
with respect to an eligible infrastructure project shall be on such
terms, subject to such conditions, and contain such covenants,
representations, warranties, and requirements (including requirements
for audits) as the Chief Executive Officer determines appropriate.
(b) Terms.--A direct loan or loan guarantee under this title--
(1) shall--
(A) be payable, in whole or in part, from tolls,
user fees, or other dedicated revenue sources that also
secure the senior project obligations (such as
availability payments and dedicated State or local
revenues); and
(B) include a rate covenant, coverage requirement,
or similar security feature supporting the project
obligations; and
(2) may have a lien on revenues described in paragraph (1),
subject to any lien securing project obligations.
(c) Base Interest Rate.--The base interest rate on a direct loan
under this title shall be not less than the yield on United States
Treasury obligations of a similar maturity to the maturity of the
direct loan on the date of execution of the loan agreement.
(d) Risk Assessment.--Before entering into an agreement for
assistance under this title, the Chief Executive Officer, in
consultation with the Director of the Office of Management and Budget
and each rating agency providing a preliminary rating opinion letter
under this section, shall determine an appropriate Federal credit
subsidy amount for each direct loan and loan guarantee, taking into
account such letter, as well as any comparable market rates available
for such a loan or loan guarantee, should any exist.
(e) Credit Fee.--With respect to each agreement for assistance
under this title, the Chief Executive Officer shall charge a credit fee
to the recipient of such assistance to pay for, over time, all or a
portion of the Federal credit subsidy determined under subsection (d),
with the remainder paid by the account established for AIFA. In the
case of a direct loan, such credit fee shall be in addition to the base
interest rate established under subsection (c).
(f) Maturity Date.--The final maturity date of a direct loan or
loan guaranteed by AIFA under this title shall be not later than 35
years after the date of substantial completion of the infrastructure
project, as determined by the Chief Executive Officer.
(g) Preliminary Rating Opinion Letter.--
(1) In general.--The Chief Executive Officer shall require
each applicant for assistance under this title to provide a
preliminary rating opinion letter from at least 1 ratings
agency, indicating that the senior obligations of the
infrastructure project, which may be the Federal credit
instrument, have the potential to achieve an investment-grade
rating.
(2) Rural infrastructure projects.--With respect to a rural
infrastructure project, a rating agency opinion letter
described in paragraph (1) shall not be required, except that
the loan or loan guarantee shall receive an internal rating
score, using methods similar to the ratings agencies generated
by AIFA, measuring the proposed direct loan or loan guarantee
against comparable direct loans or loan guarantees of similar
credit quality in a similar sector.
(h) Investment-Grade Rating Requirement.--
(1) Loans and loan guarantees.--The execution of a direct
loan or loan guarantee under this title shall be contingent on
the senior obligations of the infrastructure project receiving
an investment-grade rating.
(2) Rating of aifa overall portfolio.--The average rating
of the overall portfolio of AIFA shall be not less than
investment grade after 5 years of operation.
(i) Terms and Repayment of Direct Loans.--
(1) Schedule.--The Chief Executive Officer shall establish
a repayment schedule for each direct loan under this title,
based on the projected cash flow from infrastructure project
revenues and other repayment sources.
(2) Commencement.--Scheduled loan repayments of principal
or interest on a direct loan under this title shall commence
not later than 5 years after the date of substantial completion
of the infrastructure project, as determined by the Chief
Executive Officer of AIFA.
(3) Deferred payments of direct loans.--
(A) Authorization.--If, at any time after the date
of substantial completion of an infrastructure project
assisted under this title, the infrastructure project
is unable to generate sufficient revenues to pay the
scheduled loan repayments of principal and interest on
the direct loan under this title, the Chief Executive
Officer may allow the obligor to add unpaid principal
and interest to the outstanding balance of the direct
loan, if the result would benefit the taxpayer.
(B) Interest.--Any payment deferred under
subparagraph (A) shall--
(i) continue to accrue interest, in
accordance with the terms of the obligation,
until fully repaid; and
(ii) be scheduled to be amortized over the
remaining term of the loan.
(C) Criteria.--
(i) In general.--Any payment deferral under
subparagraph (A) shall be contingent on the
infrastructure project meeting criteria
established by the Board of Directors.
(ii) Repayment standards.--The criteria
established under clause (i) shall include
standards for reasonable assurance of
repayment.
(4) Prepayment of direct loans.--
(A) Use of excess revenues.--Any excess revenues
that remain after satisfying scheduled debt service
requirements on the infrastructure project obligations
and direct loan and all deposit requirements under the
terms of any trust agreement, bond resolution, or
similar agreement securing project obligations under
this title may be applied annually to prepay the direct
loan, without penalty.
(B) Use of proceeds of refinancing.--A direct loan
under this title may be prepaid at any time, without
penalty, from the proceeds of refinancing from non-
Federal funding sources.
(5) Sale of direct loans.--
(A) In general.--As soon as is practicable after
substantial completion of an infrastructure project
assisted under this title, and after notifying the
obligor, the Chief Executive Officer may sell to
another entity, or reoffer into the capital markets, a
direct loan for the infrastructure project, if the
Chief Executive Officer determines that the sale or
reoffering can be made on favorable terms for the
taxpayer.
(B) Consent of obligor.--In making a sale or
reoffering under subparagraph (A), the Chief Executive
Officer may not change the original terms and
conditions of the direct loan, without the written
consent of the obligor.
(j) Loan Guarantees.--
(1) Terms.--The terms of a loan guaranteed by AIFA under
this title shall be consistent with the terms set forth in this
section for a direct loan, except that the rate on the
guaranteed loan and any payment, pre-payment, or refinancing
features shall be negotiated between the obligor and the
lender, with the consent of the Chief Executive Officer.
(2) Guaranteed lender.--A guaranteed lender shall be
limited to those lenders meeting the definition of that term in
section 601(a) of title 23, United States Code.
(k) Compliance With FCRA.--
(1) In general.--Except as provided in paragraph (2),
direct loans and loan guarantees authorized by this title shall
be subject to the provisions of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661 et seq.).
(2) Exception.--Section 504(b) of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661c(b)) shall not apply to a loan or
loan guarantee under this title.
SEC. 123. COMPLIANCE AND ENFORCEMENT.
(a) Credit Agreement.--Notwithstanding any other provision of law,
each eligible entity that receives assistance under this title from
AIFA shall enter into a credit agreement that requires such entity to
comply with all applicable policies and procedures of AIFA, in addition
to all other provisions of the loan agreement.
(b) AIFA Authority on Noncompliance.--In any case in which a
recipient of assistance under this title is materially out of
compliance with the loan agreement, or any applicable policy or
procedure of AIFA, the Board of Directors may take action to cancel
unutilized loan amounts, or to accelerate the repayment terms of any
outstanding obligation.
SEC. 124. AUDITS; REPORTS TO THE PRESIDENT AND CONGRESS.
(a) Accounting.--The books of account of AIFA shall be maintained
in accordance with generally accepted accounting principles, and shall
be subject to an annual audit by independent public accountants of
nationally recognized standing appointed by the Board of Directors.
(b) Reports.--
(1) Board of directors.--Not later than 90 days after the
last day of each fiscal year, the Board of Directors shall
submit to the President and Congress a complete and detailed
report with respect to the preceding fiscal year, setting
forth--
(A) a summary of the operations of AIFA, for such
fiscal year;
(B) a schedule of the obligations of AIFA and
capital securities outstanding at the end of such
fiscal year, with a statement of the amounts issued and
redeemed or paid during such fiscal year;
(C) the status of infrastructure projects receiving
funding or other assistance pursuant to this title
during such fiscal year, including all nonperforming
loans, and including disclosure of all entities with a
development, ownership, or operational interest in such
infrastructure projects;
(D) a description of the successes and challenges
encountered in lending to rural communities, including
the role of the Center for Excellence and the Office of
Rural Assistance established under this title; and
(E) an assessment of the risks of the portfolio of
AIFA, prepared by an independent source.
(2) GAO.--Not later than 5 years after the date of
enactment of this title, the Comptroller General of the United
States shall conduct an evaluation of, and shall submit to
Congress a report on, activities of AIFA for the fiscal years
covered by the report that includes an assessment of the impact
and benefits of each funded infrastructure project, including a
review of how effectively each such infrastructure project
accomplished the goals prioritized by the infrastructure
project criteria of AIFA.
(c) Books and Records.--
(1) In general.--AIFA shall maintain adequate books and
records to support the financial transactions of AIFA, with a
description of financial transactions and infrastructure
projects receiving funding, and the amount of funding for each
such project maintained on a publically accessible database.
(2) Audits by the secretary and gao.--The books and records
of AIFA shall at all times be open to inspection by the
Secretary of the Treasury, the Special Inspector General, and
the Comptroller General of the United States.
Subtitle C--Funding of AIFA
SEC. 131. FEES.
(a) In General.--The Chief Executive Officer shall establish fees
with respect to loans and loan guarantees under this title that--
(1) are sufficient to cover all the administrative costs to
the Federal Government for the operations of AIFA;
(2) may be in the form of an application or transaction
fee, or interest rate adjustment; and
(3) may be based on the risk premium associated with the
loan or loan guarantee, taking into consideration--
(A) the price of United States Treasury obligations
of a similar maturity;
(B) prevailing market conditions;
(C) the ability of the infrastructure project to
support the loan or loan guarantee; and
(D) the total amount of the loan or loan guarantee.
(b) Treasury Receipts.--AIFA shall annually deposit amounts of fees
collected under this section that are not used for the expenses of AIFA
as miscellaneous receipts with the Treasury.
SEC. 132. SELF-SUFFICIENCY OF AIFA.
The Chief Executive Officer shall, to the extent possible, take
actions consistent with this title to make AIFA a self-sustaining
entity, with administrative costs and Federal credit subsidy costs
fully funded by fees and risk premiums on loans and loan guarantees.
SEC. 133. FUNDING.
There is authorized to be appropriated to AIFA to carry out this
title, to make direct loans and loan guarantees under this title, not
more than $10,000,000,000, to remain available until expended, of which
amount, not more than $25,000,000 for each of fiscal years 2014 through
2015, and not more than $50,000,000 for fiscal year 2016 may be used
for administrative costs of AIFA. Such amount shall earn interest. Not
more than 5 percent of such amount shall be used to offset subsidy
costs associated with rural infrastructure projects.
SEC. 134. CONTRACT AUTHORITY.
Notwithstanding any other provision of law, approval by the Board
of Directors of a Federal credit instrument that uses funds made
available under this title shall impose upon the United States a
contractual obligation to fund the Federal credit investment.
TITLE II--TAX CREDIT EXTENSIONS
SEC. 201. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.
(a) Extension.--
(1) In general.--Subparagraph (G) of section 45D(f)(1) of
the Internal Revenue Code of 1986 is amended by striking ``,
2011, 2012, and 2013'' and inserting ``and each calendar year
thereafter''.
(2) Conforming amendment.--Section 45D(f)(3) of such Code
is amended by striking the last sentence.
(b) Inflation Adjustment.--Subsection (f) of section 45D of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(4) Inflation adjustment.--
``(A) In general.--In the case of any calendar year
beginning after 2013, the dollar amount in paragraph
(1)(G) shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year, determined by substituting
`calendar year 2000' for `calendar year 1992'
in subparagraph (B) thereof.
``(B) Rounding rule.--Any increase under
subparagraph (A) which is not a multiple of $1,000,000
shall be rounded to the nearest multiple of
$1,000,000.''.
(c) Alternative Minimum Tax Relief.--Subparagraph (B) of section
38(c)(4) of the Internal Revenue Code of 1986 is amended--
(1) by redesignating clauses (v) through (ix) as clauses
(vi) through (x), respectively, and
(2) by inserting after clause (iv) the following new
clause:
``(v) the credit determined under section
45D, but only with respect to credits
determined with respect to qualified equity
investments (as defined in section 45D(b))
initially made before January 1, 2014,''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Alternative minimum tax relief.--The amendments made by
subsection (c) shall apply to credits determined with respect
to qualified equity investments (as defined in section 45D(b)
of the Internal Revenue Code of 1986) initially made after the
date of the enactment of this Act.
SEC. 202. BUILD AMERICA BONDS MADE PERMANENT.
(a) Short Title.--This section may be cited as the ``Build America
Bonds Act of 2014''.
(b) Build America Bonds Made Permanent.--
(1) In general.--Subparagraph (B) of section 54AA(d)(1) of
the Internal Revenue Code of 1986 is amended by inserting ``or
on or after the date of the enactment of the Build America
Bonds Act of 2014,'' after ``January 1, 2011,''.
(2) Reduction in credit percentage to bondholders.--
Subsection (b) of section 54AA of such Code is amended to read
as follows:
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any interest payment date
for a build America bond is the applicable percentage of the
amount of interest payable by the issuer with respect to such
date.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage shall be determined under the
following table:
``In the case of a bond issued The applicable
during calendar year: percentage is:
2009 or 2010........................................... 35
2013................................................... 32
2014................................................... 31
2015................................................... 30
2016................................................... 29
2017 and thereafter.................................... 28.''.
(3) Extension of payments to issuers.--
(A) In general.--Section 6431 of such Code is
amended--
(i) by inserting ``or on or after the date
of the enactment of the Build America Bonds Act
of 2014,'' after ``January 1, 2011,'' in
subsection (a), and
(ii) by striking ``before January 1, 2011''
in subsection (f)(1)(B) and inserting ``during
a particular period''.
(B) Conforming amendments.--Subsection (g) of
section 54AA of such Code is amended--
(i) by inserting ``or during a period
beginning on or after the date of the enactment
of the Build America Bonds Act of 2014,'' after
``January 1, 2011,'', and
(ii) by striking ``Qualified Bonds Issued
Before 2011'' in the heading and inserting
``Certain Qualified Bonds''.
(4) Reduction in percentage of payments to issuers.--
Subsection (b) of section 6431 of such Code is amended--
(A) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'',
(B) by striking ``35 percent'' and inserting ``the
applicable percentage'', and
(C) by adding at the end the following new
paragraph:
``(2) Applicable percentage.--For purposes of this
subsection, the term `applicable percentage' means the
percentage determined in accordance with the following table:
``In the case of a qualified bond The applicable
issued during calendar year: percentage is:
2009 or 2010........................................... 35
2013................................................... 32
2014................................................... 31
2015................................................... 30
2016................................................... 29
2017 and thereafter.................................... 28.''.
(5) Current refundings permitted.--Subsection (g) of
section 54AA of such Code is amended by adding at the end the
following new paragraph:
``(3) Treatment of current refunding bonds.--
``(A) In general.--For purposes of this subsection,
the term `qualified bond' includes any bond (or series
of bonds) issued to refund a qualified bond if--
``(i) the average maturity date of the
issue of which the refunding bond is a part is
not later than the average maturity date of the
bonds to be refunded by such issue,
``(ii) the amount of the refunding bond
does not exceed the outstanding amount of the
refunded bond, and
``(iii) the refunded bond is redeemed not
later than 90 days after the date of the
issuance of the refunding bond.
``(B) Applicable percentage.--In the case of a
refunding bond referred to in subparagraph (A), the
applicable percentage with respect to such bond under
section 6431(b) shall be the lowest percentage
specified in paragraph (2) of such section.
``(C) Determination of average maturity.--For
purposes of subparagraph (A)(i), average maturity shall
be determined in accordance with section
147(b)(2)(A).''.
(6) Clarification related to levees and flood control
projects.--Subparagraph (A) of section 54AA(g)(2) of such Code
is amended by inserting ``(including capital expenditures for
levees and other flood control projects)'' after ``capital
expenditures''.
(7) Gross-up of payment to issuers in case of
sequestration.--In the case of any payment under section
6431(b) of the Internal Revenue Code of 1986 made after the
date of the enactment of this Act to which sequestration
applies, the amount of such payment shall be increased to an
amount equal to--
(A) such payment (determined before such
sequestration), multiplied by
(B) the quotient obtained by dividing one by the
amount by which one exceeds the percentage reduction in
such payment pursuant to such sequestration.
For purposes of this subsection, the term ``sequestration''
means any reduction in direct spending ordered in accordance
with a sequestration report prepared by the Director of the
Office and Management and Budget pursuant to the Balanced
Budget and Emergency Deficit Control Act of 1985 or the
Statutory Pay-As-You-Go Act of 2010.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued on or after the date of the enactment of
this Act.
SEC. 203. PERMANENT EXTENSION OF RESEARCH CREDIT; INCREASE IN
ALTERNATIVE SIMPLIFIED RESEARCH CREDIT.
(a) Permanent Extension.--
(1) In general.--Section 41 of the Internal Revenue Code of
1986 is amended by striking subsection (h).
(2) Conforming amendments.--Such Code is amended--
(A) in section 41(c) by striking paragraph (4) and
redesignating paragraphs (5) and (6) as paragraphs (4)
and (5), respectively;
(B) in section 41(c)(4), as so redesignated, by
striking the second sentence of subparagraph (C); and
(C) in paragraph (1) of section 45C(b) by striking
subparagraph (D).
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2013.
(b) Increase in Alternative Simplified Research Credit.--
(1) In general.--Subparagraph (A) of section 41(c)(4) of
such Code, as redesignated by subsection (a), is amended by
striking ``14 percent (12 percent in the case of taxable years
ending before January 1, 2009)'' and inserting ``17 percent''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 204. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY FACILITIES.
(a) Bonds for Water and Sewage Facilities Exempt From Volume Cap on
Private Activity Bonds.--
(1) In general.--Paragraph (3) of section 146(g) of the
Internal Revenue Code of 1986 is amended by inserting ``(4),
(5),'' after ``(2),''.
(2) Conforming amendment.--Paragraphs (2) and (3)(B) of
section 146(k) are both amended by striking ``(4), (5), (6),
or'' and inserting ``(6)''.
(b) Tax-Exempt Issuance by Indian Tribal Governments.--
(1) In general.--Subsection (c) of section 7871 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(4) Exception for bonds for water and sewage
facilities.--Paragraph (2) shall not apply to an exempt
facility bond 95 percent or more of the net proceeds (as
defined in section 150(a)(3)) of which are to be used to
provide facilities described in paragraph (4) or (5) of section
142(a).''.
(2) Conforming amendment.--Paragraph (2) of section 7871(c)
is amended by striking ``paragraph (3)'' and inserting
``paragraphs (3) and (4)''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued on or after the date of the enactment of
this Act.
SEC. 205. REPEAL OF ALTERNATIVE MINIMUM TAX ON PRIVATE ACTIVITY BONDS.
(a) In General.--Subsection (a) of section 57 of the Internal
Revenue Code of 1986 is amended by striking paragraph (5).
(b) Conforming Amendments.--
(1) Subparagraph (B) of section 1(g)(7) of such Code is
amended by adding ``and'' at the end of clause (i), by striking
``, and'' at the end of clause (ii) and inserting a period, and
by striking clause (iii).
(2) Subclause (II) of section 53(d)(1)(B)(ii) of such Code
is amended by striking ``, (5)''.
(3) Subparagraph (C) of section 56(b)(1) of such Code is
amended by striking clause (iii) and redesignating clauses (iv)
and (v) as clauses (iii) and (iv), respectively.
(4) Paragraph (3) of section 148(b) of such Code is amended
to read as follows:
``(3) Exception for tax-exempt bonds.--The term `investment
property' does not include any tax-exempt bond.''.
(5) Subparagraph (B)(i) of section 149(g)(3) of such Code
is amended to read as follows:
``(i) In general.--Such term shall not
include any bond issued as part of an issue 95
percent of the net proceeds of which are
invested in bonds the interest on which is not
includible in gross income under section
103.''.
(6) Paragraph (5) of section 1400L(d) of such Code is
amended by striking subparagraph (E).
(7) Paragraph (5) of section 1400N(a) of such Code is
amended by striking subparagraph (G).
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
TITLE III--SKILLS TRAINING
SEC. 301. JOB TRAINING TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45S. JOB TRAINING CREDIT.
``(a) In General.--For the purposes of section 38, the job training
credit determined under this section for the taxable year is an amount
equal to 100 percent of the qualified training expenses paid by the
qualifying taxpayer during the taxable year.
``(b) Limitation.--The credit allowed under subsection (a) with
respect to any eligible trainee of the qualifying taxpayer shall not
exceed the excess (if any) of $4,000 over the aggregate credit allowed
to such taxpayer under this section with respect to such eligible
trainee for all prior taxable years.
``(c) Definitions.--For purposes of this section--
``(1) Qualified training expenses.--
``(A) In general.--The term `qualified training
expenses' means, with respect to any eligible trainee
of the qualifying taxpayer, expenses paid or incurred
by such taxpayer for qualified tuition costs of such
eligible trainee.
``(B) Qualified tuition costs.--The term `qualified
tuition costs' means costs for books and enrollment in
a training program at a qualified educational
organization, the outcome of which, if completed, will
provide the eligible trainee a certificate or
credential recognized by a State accrediting body,
Federal Apprenticeship Agency, or any other national
accrediting body recognized by the Department of
Education as an independent, third-party accrediting
body. Such training program--
``(i) may include a single course, multiple
courses, or a combination of work training and
study, and
``(ii) must be reasonably necessary for
employment in a position based in the United
States for which the qualifying taxpayer is
currently hiring.
``(C) Qualified educational organization.--The term
`qualified educational organization' means any
educational organization described in section 101 of
the Higher Education Act of 1965.
``(2) Qualifying taxpayer.--The term `qualifying taxpayer'
means any taxpayer who provides, with respect to any eligible
trainee, such documentation as required by the Secretary
regarding qualified training expenses and proof of unemployment
status as described in paragraph (3)(A).
``(3) Eligible trainee.--The term `eligible trainee' means
any individual who--
``(A) has been unemployed for at least 90 days
immediately preceding the date of enrollment in a
training program described in paragraph (1)(B), and
``(B) had not been employed by the qualifying
taxpayer at any time prior to such enrollment date.
``(d) Special Rules.--
``(1) Denial of double benefit.--No deduction shall be
allowed under this chapter for the portion of the expenses
otherwise allowable as a deduction that are taken into account
in determining the credit under this section for the taxable
year.
``(2) Aggregation.--For purposes of this section, all
persons treated as a single employer under subsection (a) or
(b) or section 52, or subsection (m) or (o) of section 414,
shall be treated as one person.
``(3) Treatment of expenses as educational assistance
program.--Qualified training expenses shall be treated as an
educational assistance program for purposes of section 127.
``(e) Election To Have Credit Not Apply.--A taxpayer may elect (at
such time and in such manner as the Secretary may by regulations
prescribe) to have this section not apply for any taxable year.
``(f) Termination.--This section shall not apply to expenses paid
after December 31, 2016.''.
(b) Credit To Be Part of General Business Credit.--Subsection (b)
of section 38 of the Internal Revenue Code of 1986 is amended by
striking ``plus'' at the end of paragraph (35), by striking the period
at the end of paragraph (36) and inserting ``, plus'', and by adding at
the end the following new paragraph:
``(37) the job training credit determined under section
45S(a).''.
(c) Credit Allowed Against Alternative Minimum Tax.--Section
38(c)(4)(B) of the Internal Revenue Code of 1986, as amended by section
206, is amended by redesignating clauses (viii), (ix), and (x) as
clauses (ix), (x), and (xi), respectively, and by inserting after
clause (vii) the following new clause:
``(viii) the credit determined under
section 45S,''.
(d) Technical Amendment.--Section 6501(m) of the Internal Revenue
Code of 1986 is amended by inserting ``45S(e),'' after ``45H(g),''.
(e) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 45S. Job training credit.''.
(f) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to expenses paid or incurred after the date of the
enactment of this Act, in taxable years ending after such date.
(2) Minimum tax.--The amendments made by subsection (c)
shall apply to credits determined under section 45S of the
Internal Revenue Code of 1986 in taxable years ending after the
date of the enactment of this Act, and to carrybacks of such
credits.
SEC. 302. QUALIFIED JOB TRAINING PARTNERSHIPS CREDIT.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48D the following new section:
``SEC. 48E. QUALIFIED JOB TRAINING PARTNERSHIPS CREDIT.
``(a) In General.--For purposes of section 46, the Qualified Job
Training Partnership credit for any taxable year is an amount equal to
the percentage determined by the Secretary (not to exceed 100 percent)
of the qualified investment for such taxable year with respect to any
Qualified Job Training Partnership.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is the aggregate
amount of the costs paid or incurred in such taxable year by
one or more eligible private business employers for expenses
necessary for and directly related to the conduct of a
Qualified Job Training Partnership in the form of contributions
of cash, cash equivalent, equipment, or any combination of the
three where 100 percent of the investment is used for the
planning, implementation, or operation of a Qualified Job
Training Partnership and the training financed through the
investment must result in a type of certificate or credential
recognized by a State accrediting body, Federal Apprenticeship
Agency, or any other national accrediting body recognized by
the Department of Education as an independent, third-party
accrediting body.
``(2) Limitation.--The amount which is treated as qualified
investment for all taxable years with respect to any Qualified
Job Training Partnership shall not exceed the amount certified
by the Secretary as eligible for the credit under this section.
``(3) Exclusions.--The qualified investment for any taxable
year with respect to any Qualified Job Training Partnership
shall not take into account any cost for student tuition or for
any other expense as determined by the Secretary as appropriate
to carry out the purposes of this section.
``(4) Certain progress expenditure rules made applicable.--
In the case of costs described in paragraph (1) that are paid
for property of a character subject to an allowance for
depreciation, rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990)
shall apply for purposes of this section.
``(c) Qualified Job Training Partnership.--
``(1) In general.--The term `Qualified Job Training
Partnership' means a formal or informal partnership between at
least 1 eligible private business employer and--
``(A) 1 qualified educational institution, or
``(B) 1 labor organization (as defined in section
2(5) of the National Labor Relations Act),
where the stated goal of the partnership is to train students
in job-ready skills.
``(2) Eligible private business employer.--The term
`eligible private business employer' means--
``(A) a business entity at least 50 percent of the
gross income of which is derived from qualified
production activities (within the meaning of section
199(c)), or
``(B) any type of domestic business entity the
average number of full-time employees of which for the
taxable year is not more than 500.
``(3) Qualified educational institution.--The term
`qualified educational institution' means any institution of
higher education described in section 101 of the Higher
Education Act of 1965 which provides a 2-year program that
culminates in an associate degree.
``(d) Qualified Job Training Partnership Program.--
``(1) Establishment.--
``(A) In general.--Not later than 60 days after the
date of the enactment of this section, the Secretary,
in consultation with the Secretary of Labor, shall
establish a Qualified Job Training Partnership program
to consider and award certifications for qualified
investments eligible for credits under this section to
Qualified Job Training Partnerships.
``(B) Limitation.--The total amount of credits that
may be allocated under the program shall not exceed
$1,000,000,000.
``(2) Certification.--
``(A) Application period.--Each applicant for
certification under this paragraph shall submit an
application containing such information as the
Secretary may require during the period beginning on
the date the Secretary establishes the program under
paragraph (1).
``(B) Time for review of applications.--The
Secretary shall take action to approve or deny any
application under subparagraph (A) within 30 days of
the submission of such application.
``(C) Multi-year applications.--An application for
certification under subparagraph (A) may include a
request for an allocation of credits for more than 1
year.
``(3) Selection criteria.--In determining the Qualified Job
Training Partnerships with respect to which qualified
investments may be certified under this section, the
Secretary--
``(A) shall give priority to those applications
which demonstrate--
``(i) the greatest probability that those
who complete the program will secure
employment;
``(ii) the greatest potential for providing
workers who complete the program with skills
that can provide long-term job and income
security;
``(iii) the strongest market demand for the
type of training offered;
``(iv) the greatest probability that the
program would create a net increase in job
training opportunities;
``(v) a strong need in the community for
skills training;
``(vi) the ability to allow nontraditional
learners to complete the training; and
``(vii) the ability and capacity to
implement the program in a reasonable period of
time; and
``(B) shall take into additional consideration
which applications show--
``(i) the ability to leverage additional
sources of capital; and
``(ii) the greatest ability to offer
training programs that result in a certificate
or credential (within the meaning of subsection
(b)(1)) that is stackable or portable or both.
``(4) Review and additional allocation.--
``(A) Review.--Not later than 1 year after the date
of enactment of this section, the Secretary shall
review the credits allocated under this section as of
such date.
``(B) Additional allocation.--If the Secretary
determines at the time of the review that credits under
this section are available for allocation pursuant to
the requirements set forth in paragraph (2), the
Secretary is authorized to allocate such available
credits through the conduct of an additional program or
programs for applications for certification.
``(5) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection, publicly disclose
the identity of the applicant and the amount of the credit with
respect to such applicant.
``(e) Special Rules.--
``(1) Basis adjustment.--For purposes of this subtitle, if
a credit is allowed under this section for an expenditure
related to property of a character subject to an allowance for
depreciation, the basis of such property shall be reduced by
the amount of such credit.
``(2) Denial of double benefit.--
``(A) Bonus depreciation.--A credit shall not be
allowed under this section for any investment for which
bonus depreciation is allowed under section 168(k),
1400L(b)(1), or 1400N(d)(1).
``(B) Deductions.--No deduction under this subtitle
shall be allowed for the portion of the expenses
otherwise allowable as a deduction taken into account
in determining the credit under this section for the
taxable year which is equal to the amount of the credit
determined for such taxable year under subsection (a)
attributable to such portion. This subparagraph shall
not apply to expenses related to property of a
character subject to an allowance for depreciation the
basis of which is reduced under paragraph (1).''.
(b) Inclusion as Part of Investment Credit.--Section 46 of the
Internal Revenue Code of 1986 is amended--
(1) by adding a comma at the end of paragraph (4),
(2) by striking ``and'' at the end of paragraph (5),
(3) by striking the period at the end of paragraph (6) and
inserting ``, and'', and
(4) by adding at the end the following new paragraph:
``(7) the Qualified Job Training Partnerships credit.''.
(c) Conforming Amendment.--Section 49(a)(1)(C) of the Internal
Revenue Code of 1986 is amended by striking ``and'' at the end of
clause (v), by striking the period at the end of clause (vi) and
inserting ``, and'', and by adding at the end the following new clause:
``(vii) the basis of any property to which
paragraph (1) of section 48E(e) applies which
is part of a Qualified Job Training Partnership
under such section 48E.''.
(d) Clerical Amendment.--The table of sections for subpart E of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 48D the
following new item:
``Sec. 48E. Qualified Job Training Partnership credit.''.
(e) Grants for Qualified Investments in Qualified Job Training
Partnerships in Lieu of Tax Credits.--
(1) In general.--Upon application, the Secretary of the
Treasury shall, subject to the requirements of this subsection,
provide a grant to each person who makes a qualified investment
in a Qualified Job Training Partnership in an amount not to
exceed 100 percent of such investment.
(2) Application.--
(A) In general.--At the stated election of the
applicant, an application for certification under
section 48E(d)(2) of the Internal Revenue Code of 1986
for a credit under such section for any taxable year
shall be considered to be an application for a grant
under paragraph (1) for such taxable year.
(B) Submission date.--An application for a grant
under paragraph (1) for any taxable year shall be
submitted--
(i) not earlier than the day after the last
day of such taxable year, and
(ii) not later than the due date (including
extensions) for filing the return of tax for
such taxable year.
(C) Information to be submitted.--An application
for a grant under paragraph (1) shall include such
information and be in such form as the Secretary of the
Treasury may require to state the amount of the credit
allowable (but for the receipt of a grant under this
subsection) under section 48E for the taxable year for
the qualified investment with respect to which such
application is made.
(3) Time for payment of grant.--
(A) In general.--The Secretary of the Treasury
shall make payment of the amount of any grant under
paragraph (1) during the 30-day period beginning on the
later of--
(i) the date of the application for such
grant, or
(ii) the date the qualified investment for
which the grant is being made is made.
(B) Regulations.--In the case of investments of an
ongoing nature, the Secretary of the Treasury shall
issue regulations to determine the date on which a
qualified investment shall be deemed to have been made
for purposes of this paragraph.
(4) Qualified investment.--For purposes of this subsection,
the term ``qualified investment'' means a qualified investment
that is certified under section 48E(d) of the Internal Revenue
Code of 1986 for purposes of the credit under such section 48E.
(5) Application of certain rules.--
(A) In general.--In making grants under this
subsection, the Secretary of the Treasury shall apply
rules similar to the rules of section 50 of the
Internal Revenue Code of 1986. In applying such rules,
any increase in tax under chapter 1 of such Code by
reason of an investment ceasing to be a qualified
investment shall be imposed on the person to whom the
grant was made.
(B) Special rules.--
(i) Recapture of excessive grant amounts.--
If the amount of a grant made under this
subsection exceeds the amount allowable as a
grant under this subsection, such excess shall
be recaptured under subparagraph (A) as if the
investment to which such excess portion of the
grant relates had ceased to be a qualified
investment immediately after such grant was
made.
(ii) Grant information not treated as
return information.--In no event shall the
amount of a grant made under paragraph (1), the
identity of the person to whom such grant was
made, or a description of the investment with
respect to which such grant was made be treated
as return information for purposes of section
6103 of the Internal Revenue Code of 1986.
(6) Secretary.--Any reference in this subsection to the
Secretary of the Treasury shall be treated as including the
Secretary's delegate.
(7) Other terms.--Any term used in this subsection which is
also used in section 48E of the Internal Revenue Code of 1986
shall have the same meaning for purposes of this subsection as
when used in such section.
(8) Denial of double benefit.--No credit shall be allowed
under section 46(7) of the Internal Revenue Code of 1986 by
reason of section 48E of such Code for any investment for which
a grant is awarded under this subsection.
(9) Appropriations.--There is hereby appropriated to the
Secretary of the Treasury such sums as may be necessary to
carry out this subsection.
(f) Effective Date.--The amendments made by subsections (a) through
(d) of this section shall apply to amounts paid or incurred after the
date of the enactment of this Act, in taxable years beginning after
such date.
TITLE IV--TRADE PROVISIONS
SEC. 401. FINDINGS; SENSE OF CONGRESS ON APPLICABILITY OF TRADE
AUTHORITIES PROCEDURES TO A BILL IMPLEMENTING A TRADE AND
INVESTMENT AGREEMENT WITH THE EUROPEAN UNION.
(a) Findings.--Congress finds the following:
(1) The United States and the European Union (EU) maintain
a very strong and beneficial commercial relationship.
(2) The United States-EU relationship supports a combined
13 million jobs, and nearly $4 trillion in investment.
(3) The economies of the United States and the EU each
generate more than $16 trillion, which represents 45 percent of
global gross domestic product, and over one-third of global
trade and investment flows.
(4) The United States-EU single commercial relationship is
the world's largest and the EU remains the largest market for
United States exports and the largest source of imports into
the United States.
(5) Congress welcomes the work of the High Level Working
Group report and the decision of President Obama to launch
negotiations for a potential bilateral trade agreement.
(6) The Transatlantic Trade and Investment Partnership
(TTIP) represents a key strategic opportunity for the United
States and the EU.
(7) The groundbreaking TTIP will deepen ties between the
United States and the EU, increase exports, grow both
economies, and support hundreds of thousands of jobs on both
sides of the Atlantic Ocean.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the applicability of section 151 of the Trade Act of
1974 (19 U.S.C. 2191; relating to trade authorities procedures)
to a bill implementing a trade and investment agreement with
the European Union (EU) resulting from negotiations with the
EU, as notified to the United States Congress on March 20,
2013, should be determined without regard to any prenegotiation
notification and consultation requirements that would otherwise
be applicable; and
(2) the Administration should press for a quick conclusion
of this comprehensive and ambitious agreement.
SEC. 402. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAM.
(a) Extension of Termination Provisions.--Section 285 of the Trade
Act of 1974 (19 U.S.C. 2271 note) is amended by striking ``2013'' each
place it appears and inserting ``2020''.
(b) Training Funds.--Section 236(a)(2)(A) of the Trade Act of 1974
(19 U.S.C. 2296(a)(2)(A)) is amended--
(1) in clause (i), by striking ``and 2013'' and inserting
``through 2020''; and
(2) in clause (ii), by striking ``2013'' each place it
appears and inserting ``2020''.
(c) Reemployment Trade Adjustment Assistance.--Section 246(b)(1) of
the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking
``2013'' and inserting ``2020''.
(d) Authorizations of Appropriations.--
(1) Trade adjustment assistance for workers.--Section
245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) is amended
by striking ``2013'' and inserting ``2020''.
(2) Trade adjustment assistance for firms.--Section 255(a)
of the Trade Act of 1974 (19 U.S.C. 2345(a)) is amended--
(A) by striking ``and 2013'' and inserting
``through 2020''; and
(B) by striking ``October 1, 2013, and ending on
December 31, 2013'' and inserting ``October 1, 2020,
and ending on December 31, 2020''.
(3) Trade adjustment assistance for farmers.--Section
298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is
amended--
(A) by striking ``and 2013'' and inserting
``through 2020''; and
(B) by striking ``October 1, 2013, and ending on
December 31, 2013'' and inserting ``October 1, 2020,
and ending on December 31, 2020''.
(e) Amendments to Trade Adjustment Assistance Extension Act of
2011.--
(1) Application of prior law.--Section 233(a) of the Trade
Adjustment Assistance Extension Act of 2011 (title II of Public
Law 112-40; 125 Stat. 416; 19 U.S.C. 2271 note prec.) is
amended--
(A) in the matter preceding paragraph (1), by
striking ``2014'' and inserting ``2021''; and
(B) by striking paragraphs (3) through (7) and
inserting the following:
``(3) section 245(a) of that Act shall be applied and
administered by substituting `2021' for `2007';
``(4) section 246(b)(1) of that Act shall be applied and
administered by substituting `December 31, 2021' for `the date
that is 5 years' and all that follows through `State';
``(5) section 256(b) of that Act shall be applied and
administered by substituting `the 1-year period beginning on
January 1, 2021' for `each of fiscal years 2003 through 2007,
and $4,000,000 for the 3-month period beginning on October 1,
2007';
``(6) section 298(a) of that Act shall be applied and
administered by substituting `the 1-year period beginning on
January 1, 2021' for `each of the fiscal years' and all that
follows through `October 1, 2007'; and
``(7) section 285 of that Act shall be applied and
administered--
``(A) in subsection (a), by substituting `2021' for
`2007' each place it appears; and
``(B) by applying and administering subsection (b)
as if it read as follows:
```(b) Other Assistance.--
```(1) Assistance for firms.--
```(A) In general.--Except as provided in
subparagraph (B), assistance may not be provided under
chapter 3 after December 31, 2021.
```(B) Exception.--Notwithstanding subparagraph
(A), any assistance approved under chapter 3 on or
before December 31, 2021, may be provided--
```(i) to the extent funds are available
pursuant to such chapter for such purpose; and
```(ii) to the extent the recipient of the
assistance is otherwise eligible to receive
such assistance.
```(2) Farmers.--
```(A) In general.--Except as provided in
subparagraph (B), assistance may not be provided under
chapter 6 after December 31, 2021.
```(B) Exception.--Notwithstanding subparagraph
(A), any assistance approved under chapter 6 on or
before December 31, 2021, may be provided--
```(i) to the extent funds are available
pursuant to such chapter for such purpose; and
```(ii) to the extent the recipient of the
assistance is otherwise eligible to receive
such assistance.'.''.
(2) Continuation of benefits.--Section 233(b) of the Trade
Adjustment Assistance Extension Act of 2011 is amended by
striking ``2014'' each place it appears and inserting ``2021''.
TITLE V--MINIMUM WAGE INCREASE AND BUSINESS TAX RELIEF
SEC. 501. MINIMUM WAGE INCREASES.
(a) Minimum Wage.--
(1) In general.--Section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to read
as follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) $8.20 an hour, beginning on the first day of
the first month that begins 1 year after the date of
enactment of the Invest in United States Act of 2014;
``(B) $9.15 an hour, beginning 1 year after that
first day;
``(C) $10.10 an hour, beginning 2 years after that
first day; and
``(D) beginning on the date that is 3 years after
that first day, and annually thereafter, the amount
determined by the Secretary pursuant to subsection
(h);''.
(2) Determination based on increase in the consumer price
index.--Section 6 of the Fair Labor Standards Act of 1938 (29
U.S.C. 206) is amended by adding at the end the following:
``(h)(1) Each year, by not later than the date that is 90 days
before a new minimum wage determined under subsection (a)(1)(D) is to
take effect, the Secretary shall determine the minimum wage to be in
effect pursuant to this subsection for the subsequent 1-year period.
The wage determined pursuant to this subsection for a year shall be--
``(A) not less than the amount in effect under subsection
(a)(1) on the date of such determination;
``(B) increased from such amount by the annual percentage
increase in the Consumer Price Index for Urban Wage Earners and
Clerical Workers (United States city average, all items, not
seasonally adjusted), or its successor publication, as
determined by the Bureau of Labor Statistics; and
``(C) rounded to the nearest multiple of $0.05.
``(2) In calculating the annual percentage increase in the Consumer
Price Index for purposes of paragraph (1)(B), the Secretary shall
compare such Consumer Price Index for the most recent month, quarter,
or year available (as selected by the Secretary prior to the first year
for which a minimum wage is in effect pursuant to this subsection) with
the Consumer Price Index for the same month in the preceding year, the
same quarter in the preceding year, or the preceding year,
respectively.''.
(b) Base Minimum Wage for Tipped Employees.--Section 3(m)(1) of the
Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(1)) is amended to
read as follows:
``(1) the cash wage paid such employee, which for purposes
of such determination shall be not less than--
``(A) for the 1-year period beginning on the first
day of the third month that begins after the date of
enactment of the Fair Minimum Wage and Business Tax
Relief Act of 2013, $3.00 an hour;
``(B) for each succeeding 1-year period until the
hourly wage under this paragraph equals 50 percent of
the wage in effect under section 6(a)(1) for such
period, an hourly wage equal to the amount determined
under this paragraph for the preceding year, increased
by the lesser of--
``(i) $0.50; or
``(ii) the amount necessary for the wage in
effect under this paragraph to equal 50 percent
of the wage in effect under section 6(a)(1) for
such period, rounded to the nearest multiple of
$0.05; and
``(C) for each succeeding 1-year period after the
year in which the hourly wage under this paragraph
first equals 50 percent of the wage in effect under
section 6(a)(1) for the same period, the amount
necessary to ensure that the wage in effect under this
paragraph remains equal to 50 percent of the wage in
effect under section 6(a)(1), rounded to the nearest
multiple of $0.05; and''.
(c) Publication of Notice.--Section 6 of the Fair Labor Standards
Act of 1938 (as amended by subsection (a)) (29 U.S.C. 206) is further
amended by adding at the end the following:
``(i) Not later than 60 days prior to the effective date of any
increase in the minimum wage determined under subsection (h) or
required for tipped employees in accordance with subparagraph (B) or
(C) of section 3(m)(1), as amended by the Fair Minimum Wage and
Business Tax Relief Act of 2013, the Secretary shall publish in the
Federal Register and on the website of the Department of Labor a notice
announcing the adjusted required wage.''.
(d) Effective Date.--The amendments made by subsections (a) and (b)
shall take effect on the first day of the first month that begins 1
year after the date of enactment of this Act.
SEC. 502. WORK OPPORTUNITY CREDIT MADE PERMANENT.
(a) In General.--Section 51(c) of the Internal Revenue Code of 1986
is amended by striking paragraph (4).
(b) Effective Date.--The amendment made by subsection (a) shall
apply to individuals who begin work for the employer after December 31,
2013.
SEC. 503. INCREASED EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN REAL
PROPERTY AS SECTION 179 PROPERTY MADE PERMANENT.
(a) In General.--Subsection (b) of section 179 of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``shall not exceed--'' and all that follows
in paragraph (1) and inserting ``shall not exceed $500,000.'',
and
(2) by striking ``exceeds--'' and all that follows in
paragraph (2) and inserting ``exceeds $2,000,000.''.
(b) Computer Software.--Clause (ii) of section 179(d)(1)(A) of such
Code is amended by striking ``and which is placed in service in a
taxable year beginning after 2002 and before 2014,''.
(c) Special Rules for Treatment of Qualified Real Property.--
Subsection (f) of section 179 of such Code is amended--
(1) by striking ``beginning in 2010, 2011, 2012, or 2013''
in paragraph (1), and
(2) by striking paragraph (4).
(d) Election.--Paragraph (2) of section 179(c) of such Code is
amended to read as follows:
``(2) Revocation of election.--Any election made under this
section, and any specification contained in any such election,
may be revoked by the taxpayer with respect to any property,
and such revocation, once made, shall be irrevocable.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
SEC. 504. PERMANENT EXTENSION OF TREATMENT OF QUALIFIED LEASEHOLD
IMPROVEMENT PROPERTY, QUALIFIED RESTAURANT PROPERTY, AND
QUALIFIED RETAIL IMPROVEMENT PROPERTY AS 15-YEAR PROPERTY
FOR PURPOSES OF DEPRECIATION DEDUCTION.
(a) Qualified Leasehold Improvement Property.--Clause (iv) of
section 168(e)(3)(E) of the Internal Revenue Code of 1986 is amended by
striking ``placed in service before January 1, 2014''.
(b) Qualified Restaurant Property.--Clause (v) of section
168(e)(3)(E) of the Internal Revenue Code of 1986 is amended by
striking ``placed in service before January 1, 2014''.
(c) Qualified Retail Improvement Property.--Clause (ix) of section
168(e)(3)(E) of the Internal Revenue Code of 1986 is amended by
striking ``, and before January 1, 2014''.
(d) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2013.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Aviation.
Referred to the Subcommittee on Highways and Transit.
Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.
Referred to the Subcommittee on Water Resources and Environment.
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Sponsor introductory remarks on measure. (CR H1661-1662)
Referred to the Subcommittee on Workforce Protections.