Sen. Jo
hn Hoeven (R-North Dakota) teamed up with Sen. Ron Wyden (D-Oregon) to introduce legislation that would bring billions of investment dollars to State and local government to help grow and repair America’s aging infrastructure. The “Move America Act of 2015” would expand tax-exempt private activity bonds and create a new infrastructure tax credit, giving states significant flexibility to pursue infrastructure projects that are badly needed across the country. The American Society of Civil Engineers (ASCE) estimates the country needs over $3.6 trillion of additional investment by 2020.
“Move America bonds and tax credits are an effective way to leverage private-sector dollars to build the infrastructure we need across the country to grow America’s economy and create jobs,” says Sen. Hoeven. “It’s fully paid for so it doesn’t increase the deficit, and we’ve designed it to work with the P3 partnership program, so it could be particularly helpful in funding permanent flood protection in the Red River Valley.” P3 refers to Public-Private Partnerships, a funding mechanism that is gaining popularity around the country.
“Move America will turbo-charge investment and give States and localities the flexibility they need to quickly and efficiently break ground on projects. An injection of private capital, in addition to sustainable funding for transportation programs, will help get America’s economic engine running at full speed,” says Sen. Wyden.
The Move America program is designed to leverage additional private investment in public infrastructure. The program creates Move America Bonds to expand tax-exempt financing for public-private partnerships, and Move America Credits to leverage additional private equity investment at a lower cost for States. Through cheaper and more flexible access to debt and equity, the Move America Act gives states the tools they need to expand investment in roads, bridges, ports, rail, and airports.