DC Tax Flash: House Rules Committee to Consider Infrastructure Bill, Floor Vote Coming Soon
The House is moving toward consideration of a massive $1.5 trillion infrastructure bill that now includes a set of revenue provisions aimed at financing and incentivizing renewable energy, transportation, construction, and many other sectors. The Rules Committee is set to consider the Moving Forward Act (H.R. 2) on June 29, 2020, with floor consideration expected before the Fourth of July recess.
The bill, as currently drafted, was consolidated from separate drafts prepared by the Transportation Committee and other panels. The Ways and Means Committee did not formally consider the bill's revenue provisions, which are listed below.
More than 300 amendments have been filed ahead of next week's markup in the Rules Committee. These include several tax-related amendments, which are described as follows:
- Provides a 10 percent tax incentive to emergency helicopter manufacturers to retrofit their older-model emergency helicopters with compliant crash-resistant fuel systems in order to increase helicopter safety and decrease the likelihood of post-crash fires.
- Amends the Internal Revenue Code with respect to the low-income housing tax credit (LIHTC) to modify the rules for the acquisition of buildings constructed with LIHTC credits within the previous 10 years, thereby easing the process for local housing authorities and other entities to obtain already constructed properties for the purposes of keeping them as affordable housing.
- Overturns a 2014 FAA policy change and reestablishes previous FAA interpretation and enforcement that the restriction on the use of aviation fuel tax revenues for airport purposes applies to excise taxes and not general sales taxes.
- Strikes the two year extension of the "commence construction date" for the section 45Q tax credit in Section 90403, and extend it by 10 years instead.
The 2,309-page text of the Moving Forward Act to be considered by the Rules Committee is posted here.
The following lists the revenue provisions from the Moving Forward Act:
DIVISION M – REVENUE PROVISIONS
- Sec. 90001. Short Title, etc.: Provides that this division may be cited as the "Renewable Energy, Efficiency and Infrastructure Tax Act of 2020."
TITLE I—INFRASTRUCTURE FINANCING
Subtitle A—Bond Financing Enhancements
- Sec. 90101. Credit to issuer for certain infrastructure bonds (§6431A).
- Sec. 90102. Advance refunding bonds (§149).
- Sec. 90103. Permanent modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions (§265).
- Sec. 90104. Volume cap on private activity bonds (§146).
- Sec. 90105. Modifications to qualified small issue bonds (§144).
- Sec. 90106. Expansion of certain exceptions to the private activity bond rules for first-time farmers (§§147, 144).
- Sec. 90107. Exempt facility bonds for zero-emission vehicle infrastructure (§142).
- Sec. 90108. Exempt-facility bonds for sewage and water supply facilities (§146).
- Sec. 90109. Qualified highway or surface freight transfer facility bonds (§ 142).
Subtitle B—School Infrastructure Bonds
- Sec. 90111. Restoration of Certain Qualified Tax Credit Bonds (§ 54A, § 6431, § 54E).
- Sec. 90112. School Infrastructure Bonds (§ 54BB).
- Sec. 90113. Annual Report on Bond Program.
Subtitle C—Other Provisions Related to Infrastructure Financing
- Sec. 90121. Credit for operations and maintenance costs of government-owned Broadband (§ 6431B).
- Sec. 90122. Treatment of financial guaranty insurance companies as qualifying insurance corporations under passive foreign investment company rules (§ 1297).
- Sec. 90123. Infrastructure Grants to Improve Child Care Safety (§ 418A).
TITLE II—NEW MARKETS TAX CREDIT
- Sec. 90201. Improvement and permanent extension of new markets tax credit (§ 45D).
TITLE III—REHABILITATION TAX CREDIT
- Sec. 90301. Increase in rehabilitation credit (§ 47).
- Sec. 90302. Increase in the rehabilitation credit for certain small projects (§ 47).
- Sec. 90303. Modification of definition of substantially rehabilitated (§ 47).
- Sec. 90304. Temporary extension of period for completing rehabilitation (§ 47).
- Sec. 90305. Elimination of rehabilitation credit basis adjustment (§ 50).
- Sec. 90306. Modifications regarding certain tax-exempt use property (§ 47).
- Sec. 90307. Qualification of rehabilitation expenditures for public school buildings for rehabilitation credit (§ 47).
TITLE IV—GREEN ENERGY
- Sec. 90400. Short title. Provides that this title may be cited as the "Growing Renewable Energy and Efficiency Now Act of 2020" or the "GREEN Act of 2020."
Subtitle A—Renewable Electricity and Reducing Carbon Emissions
- Sec. 90401. Extension of credit for electricity produced from certain renewable resources ((§§ 45 and 48(a)(5)).
- Sec. 90403. Extension of credit for carbon oxide sequestration (§ 45Q).
- Sec. 90404. Elective payment for energy property and electricity produced from certain renewable resources, etc. (§ 6431).
- Sec. 90405. Extension of energy credit for offshore wind facilities (§ 48(a)(5)).
- Sec. 90406. Green energy publicly traded partnerships (§ 7704).
Subtitle B—Renewable Fuels
- Sec. 90411. Biodiesel and renewable diesel (§§ 40A, 6426, and 6427).
- Sec. 90412. Extension of excise tax credits relating to alternative fuels (§§ 6426 and 6427).
- Sec. 90413. Extension of second generation biofuel incentives (§ 40).
Subtitle C—Green Energy and Efficiency Incentives for Individuals
- Sec. 90421. Extension, increase, and modifications of nonbusiness energy property credit (§ 25C).
- Sec. 90422. Residential energy efficient property (§ 25D).
- Sec. 90423. Energy efficient commercial buildings deduction (§ 179D).
- Sec. 90424. Extension, increase, and modifications of new energy efficient home credit (§ 45L).
- Sec. 90425. Modifications to income exclusion for conservation subsidies (§ 136).
Subtitle D—Greening the Fleet and Alternative Vehicles
- Sec. 90431. Modification of limitations on new qualified plug-in electric drive motor vehicle credit (§ 30D).
- Sec. 90432. Credit for previously-owned qualified plug-in electric drive motor vehicles (§ 25E).
- Sec. 90433. Credit for zero-emission heavy vehicles and zero-emission buses (§ 45T).
- Sec. 90434. Qualified fuel cell motor vehicles (§ 30B).
- Sec. 90435. Alternative fuel refueling property credit (§ 30C).
- Sec. 90436. Modification of employer-provided fringe for bicycle commuting (§ 132).
Subtitle E—Investment in the Green Workforce
- Sec. 90441. Extension of the advanced energy project credit (§ 48C).
- Sec. 90442. Labor costs of installing mechanical insulation property (§ 45U).
Subtitle F—Environmental Justice
- Sec. 90451. Qualified environmental justice program credit (§ 36C).
Subtitle G—Treasury Report on Data From the Greenhouse Gas Reporting Program
- Sec. 90461. Report on Greenhouse Gas Reporting Program.
TITLE V—DISASTER AND RESILIENCY
- Sec. 90501. Exclusion of amounts received from State-based catastrophe loss mitigation Programs (§ 139).
- Sec. 90502. Repeal of temporary limitation on personal casualty losses (§ 165).
Subtitle A—Low-income Housing Tax Credit Improvements
- Sec. 90601. Extension of period for rehabilitation expenditures.
- Sec. 90602. Extension of basis expenditure deadline.
- Sec. 90603. Tax exempt bond financing requirement.
- Sec. 90604. Minimum Credit Rate.
- Sec. 90605. Increase in State allocations.
- Sec. 90606. Increase in credit for certain projects designated to serve extremely low income households.
- Sec. 90607. Inclusion of Indian areas as difficult development areas for purposes of certain buildings.
- Sec. 90608. Inclusion of rural areas as difficult development areas.
- Sec. 90609. Increase in credit for bond financed projects designated by housing credit agency.
- Sec. 90610. Repeal of qualified contract option.
- Sec. 90611. Prohibition of local approval and contribution requirements.
- Sec. 90612. Adjustment of credit to provide relief during COVID-19 outbreak.
- Sec. 90613. Credit for low-income housing supportive services.
Subtitle B—Other Housing Provisions
- Sec. 90621. Neighborhood Homes Investment Act (§ 42B).
TITLE VII—TRIBAL DEVELOPMENT
- Sec. 90701. Treatment of Indian Tribes as States with respect to bond issuance (§ 7871).
- Sec. 90702. Treatment of Tribal foundations and charities like charities funded and controlled by other governmental funders and sponsors (§ 7871).
- Sec. 90703. New markets tax credit (§ 45D).
TITLE VIII—HIGHWAY TRUST FUND AND RELATED TAXES
- Sec. 90801. Extension of Highway Trust Fund expenditure authority (§§ 9503 and 9504).
- Sec. 90802. Extension of highway-related taxes (§ 4041, 4051, et seq.).
- Sec. 90803. Additional transfers to highway trust fund (§ 9503).
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