Infrastructure Investment and Jobs Act Expands List of Projects Eligible for Financing through Bonds
On November 15, 2021, President Biden signed into law the Infrastructure Investment and Jobs Act (H.R. 3684) (the “Act”). The Act authorizes investing over $550 million in new infrastructure, coupled with various reauthorizations of existing programs. Authorized infrastructure includes public transportation, clean drinking water and broadband internet.
The Act adds “Qualified Broadband Project” and “Qualified Carbon Dioxide Capture Facilities” to the list of projects eligible for financing through exempt facility bonds under Internal Revenue Code (“IRC”) Section 142(a). This expansion allows for the use of private activity bonds on or after January 1, 2022 to finance high-speed broadband projects in historically underserved (mostly rural) communities and to finance certain carbon capture and direct air capture facilities and equipment.
The Act also increases the volume cap for highway or surface freight transfer facility bonds from $15 billion to $30 billion under IRC Section 142(m)(2)(a) effective November 15, 2021.
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