US Senator John Hoeven and Senate Finance Committee Ranking Member Ron Wyden have reintroduced the Move America Act, bipartisan legislation that seeks to expand tax-exempt private activity bonds and create a new infrastructure tax credit, helping fund infrastructure projects through private-public partnerships.

The bonds and tax credits created under the legislation would complement federal funding sources and serve as cost-effective, flexible solutions for states and local governments, supporting the construction of a wide array of critical infrastructure, such as roads, bridges, transit, ports, rail, airports, water and sewer facilities and broadband.

The need for the legislation is evident in the American Society of Civil Engineers' estimation that the US will need an additional $2 trillion of infrastructure investment by 2025, above current projections, to support the economy and remain competitive. Greater use of private capital through public-private partnerships is seen as critical to meeting this demand.

The Act would create Move America Bonds, which would allow states to issue tax-exempt bonds in partnership with private entities, lowering their overall borrowing cost. Each state would receive a bond allocation, based on population size.

The Act would also give smaller states the ability to trade in some or all of their bond allocation for federal tax credits at a 25% rate. Credits would be available for direct investment in a project, reducing capital costs and expanding the potential investment pool. States could elect to use the credits to capitalize state infrastructure banks or other infrastructure revolving funds, allowing greater usage of the private-public partnership model on non-revenue projects.

According to the Joint Committee on Taxation, Move America would leverage US$8 billion in federal investment into US$226 billion worth of bond authority over the next 10 years or up to US$56 billion over 10 years in tax credits.