Washington, D.C. -Ways and Means Committee Democrats today introduced legislation that is vital in helping to finance infrastructure investments, grow our economy and create jobs. H.R. 992, the Building American Jobs Act of 2011, extends eight bond, tax credit and loan guarantee programs for states and municipalities, anchored by the wildly successful Build America Bonds program, which helped finance $181 billion in infrastructure projects in the last two years.
“These proven programs are vital in our effort to rebuild America’s infrastructure - and economy," said Ways and Means Ranking Member Sander Levin (D-MI). “There are still far too many states and municipalities - in addition to the 14 million unemployed Americans -- struggling to regain their footing after the Great Recession and this legislation gives them the tools to make long-needed investments."
The Building American Jobs Act of 2011 includes:
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Build America Bonds - Extend the program through 2012, with a 32 percent subsidy rate in 2011, and 31 percent subsidy rate in 2012. BABs spur job creation and unleash private-sector investments by helping state and local governments finance infrastructure projects - building schools, hospitals, transit systems, and water systems. A state-by-state guide to Build America Bonds financing in 2009 and 2010.
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Recovery Zone Bonds - Make an additional allocation of Recovery Zone bonds to ensure that each local municipality receives a minimum allocation equal to at least its share of national unemployment in December 2009. The bill would also extend the authorization for issuing Recovery Zone bonds through 2011.
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Water & Sewer Bonds - Exempt water and sewer projects from private activity bond cap. The bill would exclude bonds financing facilities that furnish water and sewage facilities from state volume caps. The bill would also exclude bonds financing facilities that furnish water and sewage facilities from certain limitations on tribal government issuances.
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AMT/Private Activity Bonds - Extend both provisions for one year (i.e., exempt from AMT tax-exempt private activity bonds issued in 2011 and current refunding of private activity bonds issued after 2003 and refunded during 2011).
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New Markets Tax Credit -Allow NMTC to be claimed against the AMT with respect to qualified investments made between March 15, 2010 and Jan. 1, 2012.
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Federal Home Loan Bank Bond Guarantees - Extends ability of FHLBs to guarantee tax-exempt bonds through 2011.
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Small Issuer Exception for Bank-Qualified Bonds - Extends the ability of financial institutions to purchase tax-exempt bonds of up to $30 million per issuer (from $10 million) through 2011.
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Low-Income Housing Tax Credit (LIHTC) Exchange Program - Extends the ability of states to receive a portion of their LIHTC allocation as a direct payment through 2011.
The following organizations have sent a letter to Ways and Means Democrats in support of the legislation:
American Association of Airport Executives
American Hospital Association
American Public Power Association
Bond Dealers of America
Council of Development Finance Agencies
Council of Federal Home Loan Banks
Council of Infrastructure Financing Authorities
Government Finance Officers Association
International Municipal Lawyers Association
National Association of Bond Lawyers
National Association of Clean Water Agencies
National Association of Counties
National Association for County Community and Economic Development
National Association of Health and Educational Facilities Finance Authorities
National Association of Local Housing Finance Agencies
National Association of School Boards
National Association of Towns and Townships
National Community Development Association
National League of Cities
National Association of State Auditors, Comptrollers and Treasurers
Securities Industry and Financial Markets Association
United States Conference of Mayors
