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Advocacy Center

CDFA is the voice of development finance on Capitol Hill and with the federal Administration by providing leadership on policy decisions that impact the industry. CDFA is a bipartisan organization that supports sound public policy and the leadership involved in making important decisions affecting development finance.

Each year CDFA produces a Policy Agenda and works with legislators and federal officials to advance these initiatives. Additionally, CDFA holds briefings, trainings, and advises legislative and federal stakeholders on numerous topics.

Want regular updates on legislative and federal affairs? CDFA publishes the highly popular Legislative & Federal Affairs Update each month. This free newsletter features development finance news, resources, case studies, and the latest from Capitol Hill and the federal government.

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-Latest Developments

Infrastructure Bill Passed

Details of Bipartisan Infrastructure Bill
Bipartisan Infrastructure Investment & Jobs Act Passed

The House of Representatives has passed the Infrastructure Investment & Jobs Act, which is informally known as the Bipartisan Infrastructure Framework (BIF). The bill was passed by the Senate in August. It now heads to President Biden's desk. Some of the key elements of the proposal that relate to development finance include:
  • $550 billion in New Spending over 5 Years
    • Roads, bridges, major projects: $110 billion above baseline
    • Public transit: $39 billion
    • Passenger and freight rail: $66 billion
    • Broadband: $65 billion
    • Airports: $25 billion
    • Water Infrastructure: $55 billion
    • Ports and Waterways: $17 billion
    • Power and Grid: $65 billion
    • Resiliency: $47 billion
    • EV Charging: $7.5 billion
  • Private Sector Leveraging Provisions
    • Broadband - adds broadband as an allowable category of Private Activity Bonds (based on S.1676)
    • Carbon Capture - adds carbon capture and direct air capture technology as an eligible category of Private Activity Bonds (based on S.1829)
    • Surface Transportation - increases the current volume cap on tax-exempt highway or surface freight transfer facility bonds from $15 billion to $30 billion (based on S.881)
    • Includes CDFA’s recommendation of adding EV Charging Stations as an eligible use of Surface Transportation Block Grant (STBG) funds
  • Brownfields
    • $1.5 billion for Brownfields Grants to states and tribes
    • $3.5 billion for the Superfund remedial account
  • Energy Provisions
    • Reinstates the 48C Tax Credit for Manufacturing and Industry
    • Creates an Energy Efficiency Revolving Loan Fund with DOE’s State Energy Program to be initially capitalized with $250 million
    • Authorizes $550 million for the Energy Efficiency and Conservation Block Grant Program
Section-by-Section Summary
Full Text of the Bipartisan Infrastructure Bill

Development Finance Solutions

for Building Back Better
Development Finance Solutions for Building Back Better
Policy Priorities for the Biden-Harris Administration

Access to affordable, flexible, and efficient public and private capital remains the primary barrier to economic development in the United States. Over the past four decades, federal support for capital formation and capital access has shifted from a heavily subsidized system to one focused on leverage, credit enhancement, and the removal of financing barriers. Despite this migration to a risk-reduced approach, access to capital for numerous sectors – small business, entrepreneurs, manufacturing, clean energy, agriculture, rural infrastructure, urban revitalization – remains a significant challenge.

The ideas offered in this paper provide a roadmap for the Biden-Harris Administration to use development finance solutions for building back better. These recommendations have been carefully crafted to address the multiple, interconnected challenges facing the U.S. economy. They focus on four key policy considerations:
  • Restore Local Economies
  • Preserve Small Businesses
  • Invest in Our Communities
  • Protect Our Environment
CDFA is prepared to assist the Biden-Harris Administration with developing the recommendations and opportunities outlined in this paper. We believe enacting these development finance solutions will immediately unlock capital to fuel investment, create jobs, build infrastructure, and increase the quality of life for every American.

Development Finance Solutions for Building Back Better

View Press Release

Build Back Better Act Advances

Several CDFA Priorities Included
House Committees Advance Infrastructure Bill
Build Back Better Act Heads to House Floor

Several CDFA legislative priorities have been approved by the House Committee on Ways and Means to include in the Build Back Better Act. Notably, the bill includes CDFA's Modernizing Agricultural and Manufacturing Bonds Act. It also includes the restoration of Advance Refunding Bonds, a Bond Category for Electric Vehicle Charging Stations, a permanent extension to the New Markets Tax Credits, and much more.

Provisions in the Build Back Better Act

Section-by-Section Summary of Subtitles F, G, H, & J
Full Text of Subtitle F - Infrastructure Financing
Full Text of the Build Back Better Act
View Detailed Summary on the CDFA Legislation Tracker

Several of the provisions included in this bill were originally put forth by CDFA in our Development Finance Solutions for Building Back Better: Policy Priorities for the Biden-Harris Administration. The following measures are included in the infrastructure bill:

Infrastructure Financing and Community Development:
  • Credit to issuer for certain infrastructure bonds (CDFA priority)
  • Advance refunding bonds (CDFA priority)
  • Permanent modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions
  • Modifications to qualified small issue Industrial Development Bonds (CDFA's top priority)
  • Expansion of certain exceptions to the private activity bond rules for first-time farmers (CDFA's top priority)
  • Certain water and sewage facility bonds exempt from volume cap on private activity bonds (CDFA priority)
  • Exempt facility bonds for zero-emission vehicle infrastructure (CDFA priority)
Other Provisions Related to Infrastructure Financing:
  • Creates a 30% Credit for government-owned broadband
  • Permanent extension of New Markets Tax Credit (NMTC) (CDFA priority)
  • Temporarily increases the historic rehabilitation tax credit (HTC) percentage to 30%
  • Permanently increases the HTC percentage to 30% for certain smaller projects
  • Creates a 30% credit for qualified wildfire mitigation expenditures
Housing Provisions:
  • Increases in State LIHTC allocations.
  • Temporarily reduces the LIHTC 50% requirement to 25%
  • Basis Boost for LIHTC Buildings designated to serve extremely low-income households
  • Basis Boost for inclusion of rural areas as difficult development areas
  • Increase in credit for bond-financed projects designated by housing credit agency
  • Establishes a new federal neighborhood homes credit
Tribal and Territorial Infrastructure:
  • Treats Indian Tribes as States with respect to bond issuance and volume cap
  • Creates a new, permanent, $175 million NMTC allocation for Tribal Statistical Areas
  • Inclusion of Indian areas as difficult development areas for purposes of certain buildings
  • Creates a new economic activity credit related to businesses conducted in U.S. territories or possessions
  • Creates a new, permanent, $100 million NMTC allocation for the territories
Green Energy Provisions:
  • Extension of credit for electricity produced from certain renewable resources.
  • Extension and modification of energy credit.
  • Increase in energy credit for solar facilities placed in service in connection with low-income communities.
  • Elective Payment for energy property and electricity produced from certain renewable resources.
  • Investment credit for electric transmission property.
  • Zero emissions facility credit.
  • Extension of credit for carbon oxide sequestration.
  • Green energy publicly traded partnerships.
  • Zero-emission nuclear power production credit.
  • Extension of excise tax credits relating to alternative fuels.
  • Extension of second generation biofuel incentives.

-CDFA Policy Agenda

Restore Local Economies

Restore Local Economies

The COVID-19 pandemic has exposed social and racial inequities and increasing income inequality in communities across the nation. In order to restore local economies, bedrock financing tools must be expanded and reformed to meet the needs of local governments to serve all residents and fuel local economic recovery. CDFA recommends:
  • Reforming Manufacturing and Agricultural Bonds - Passing the Modernizing Agricultural and Manufacturing Bonds Act will update the tax code's private activity bond rules for Industrial Development Bonds and Agricultural Bonds.

  • Creating Permanent Disaster Recovery Bonds - Create a permanent bond financing tool that can be accessed immediately after disaster strikes, and that can leverage private investment for longer-term redevelopment of essential infrastructure.

  • Reinstating Advance Refundings - Tax-exempt advance refunding bonds were used by local governments to refinance existing debt at lower interest rates - until they were removed by the 2017 Tax Cuts and Jobs Act. State and local governments need a low-cost option for refinancing their debt.

Preserve Small Businesses

Preserve Small Businesses

Small businesses have been disproportionately impacted by the COVID-19 pandemic, particularly those that are owned by persons of color or those that are located in low-income neighborhoods. If enacted, several policies would assist in the preservation of small businesses through locally-driven financing initiatives. CDFA recommends:
  • Reauthorize the State Small Business Credit Initiative - Reauthorizing the SSBCI program is a practical, pragmatic, and proven solution for helping America’s small businesses access low-cost capital.

  • Create Local Economy Preservation Funds (LEPFs) - LEPFs would allow states, cities or regions to establish holding trusts to acquire struggling, but viable, businesses that face closure, contraction or external acquisition during the crisis.

  • Strengthen the SBA Microloan Program - Reform the SBA Microloan Program to meet the urgent lending needs of small businesses while addressing the disproportionate impact of COVID-19 on minority-owned businesses.

  • Enact the RELIEF Act for Main Street - A Main Street Lending Program would provide funds to cities, counties, and states to seed and scale local small business relief funds that are flexible and can be tailored to meet local needs.

  • Enact the Farming Support to States Act - Provide funding to state departments of agriculture to support food and agriculture systems, enabling states to tailor their responses to meet the needs of their unique food systems.

Invest in Our Communities

Invest in Our Communities

Strong communities require investments in disadvantaged areas and sustainable infrastructure projects. Partnerships between the federal, state, and local governments must also exist. There are numerous policies that, if enacted, would ensure steady investment in communities that need it the most. CDFA recommends:
  • Reform Opportunity Zones - Conduct a thoughtful evaluation of how Opportunity Zones can be reformed to fulfill their promise of attracting long-term, patient capital to the places that need it most.

  • Permanently Authorize the New Markets Tax Credit - The New Markets Tax Credit program should be made permanent, as it is a vital tool to drive investment into communities struggling with unemployment, high poverty, and overall disinvestment.

  • Create Qualified Infrastructure Bonds - Qualified Infrastructure Bonds would allow municipalities to issue taxable bonds and receive a direct subsidy from the federal government equal to a percentage of the bond’s interest.

  • Create an Infrastructure Pre-Development Fund - A federal Infrastructure Pre-Development Fund would address long-term financing gaps while catalyzing public-private partnerships to support resilient, community-led infrastructure projects.

  • Create a Federal TIF Bond Guarantee Program - To overcome the challenge of issuing Tax Increment Finance (TIF) bonds, we advocate the creation of a federal bond credit enhancement program for bonds secured with revenue generated by a qualified TIF district.

  • Permanently Authorize the EB-5 Program - Permanently authorize the EB-5 Program to continue its success as a catalyst for direct foreign investment in American job-generating projects.

Protect Our Environment

Protect Our Environment

Climate change is rapidly accelerating and the wide-reaching impacts are being felt by all Americans. Several financing reforms must be immediately enacted in order to protect our environment and leave our planet in a better state for the future. CDFA recommends:
  • Enact the Investing in Competitive Clean Energy Act - The Investing in Competitive Clean Energy (ICCE) Act would be an efficient means of attracting significant private investment to clean energy.

  • Create a Bond Category for Electric Vehicle Charging Stations - The creation of a new Exempt Facility Bond category for vehicle recharging stations would complement existing federal programs by making bonds available for the rapid expansion of this type of clean energy infrastructure.

  • Make the Investment and Production Tax Credits Permanent - The Solar Investment Tax Credit (ITC) and Renewable Electricity Production Tax Credit (PTC) should be made permanent to ensure continued investment in clean, renewable energy technologies.

  • Remove Volume Cap from Water and Sewer Bonds - Water and sewer private activity bonds should be removed from state volume cap requirements to allow for more water and sewer infrastructure projects to be financed by bonds than is currently possible.

-Legislation Tracker

CDFA tracks economic development legislation in Congress. Below you can see legislation relevant to development finance in the current Congress. Click on a legislative item to see a brief summary and learn more about it.

-H.R.3684 - Infrastructure Investment and Jobs Act



Section-by-Section Summary
Full Text of the Bipartisan Infrastructure Bill
  • $550 billion in New Spending over 5 Years
    • Roads, bridges, major projects: $110 billion above baseline
    • Public transit: $39 billion
    • Passenger and freight rail: $66 billion
    • Broadband: $65 billion
    • Airports: $25 billion
    • Water Infrastructure: $55 billion
    • Ports and Waterways: $17 billion
    • Power and Grid: $65 billion
    • Resiliency: $47 billion
    • EV Charging: $7.5 billion
  • Private Sector Leveraging Provisions
    • Broadband - adds broadband as an allowable category of Private Activity Bonds (based on S.1676)
    • Carbon Capture - adds carbon capture and direct air capture technology as an eligible category of Private Activity Bonds (based on S.1829)
    • Surface Transportation - increases the current volume cap on tax-exempt highway or surface freight transfer facility bonds from $15 billion to $30 billion (based on S.881)
  • Brownfields
    • $1.5 billion for Brownfields Grants to states and tribes
    • $3.5 billion for the Superfund remedial account
  • Energy Provisions
    • Reinstates the 48C Tax Credit for Manufacturing and Industry
    • Creates an Energy Efficiency Revolving Loan Fund with DOE’s State Energy Program to be initially capitalized with $250 million
    • Authorizes $550 million for the Energy Efficiency and Conservation Block Grant Program
    The following measures are included in the Infrastructrure Investment and Jobs Act (Bipartisan Infrastructure Bill):
  • extends FY2021 enacted levels through FY2022 for federal-aid highway, transit, and safety programs;
  • reauthorizes for FY2023-FY2026 several surface transportation programs, including the federal-aid highway program, transit programs, highway safety, motor carrier safety, and rail programs;
  • addresses climate change, including strategies to reduce the climate change impacts of the surface transportation system and a vulnerability assessment to identify opportunities to enhance the resilience of the surface transportation system and ensure the efficient use of federal resources;
  • revises Buy America procurement requirements for highways, mass transit, and rail;
  • establishes a rebuild rural bridges program to improve the safety and state of good repair of bridges in rural communities;
  • implements new safety requirements across all transportation modes; and
  • directs DOT to establish a pilot program to demonstrate a national motor vehicle per-mile user fee to restore and maintain the long-term solvency of the Highway Trust Fund and achieve and maintain a state of good repair in the surface transportation system.

-Build Back Better Act

Several CDFA legislative priorities have been approved by the House Committee on Ways and Means to include in the Build Back Better Act. Notably, the bill includes CDFA's Modernizing Agricultural and Manufacturing Bonds Act. It also includes the restoration of Advance Refunding Bonds, a Bond Category for Electric Vehicle Charging Stations, a permanent extension to the New Markets Tax Credits, and much more.

Section-by-Section Summary of Subtitles F, G, H, & J
Full Text of Subtitle F - Infrastructure Financing
Full Text of the Build Back Better Act

The following measures are included in the Build Back Better Act:

Subtitle F - Infrastructure Financing and Community Development
Part 1 - Infrastructure Financing
  • Subpart A - Bond Financing Provisions

    • Sec. 135101. Credit to issuer for certain infrastructure bonds
      Based on the successful Build America Bonds program enacted in the 2009 American Recovery and Reinvestment Act, issuers of qualified infrastructure bonds would receive a tax credit equal to an applicable percentage of the interest, providing direct financing support for infrastructure investments made by state and local governments.

    • Sec. 135102. Advance refunding bonds.
      This provision would once again allow interest on advance refunding bonds issued by state and local governments to be exempt from tax. This provision applies to advance refunding bonds issued more than 30 days after date of enactment of this Act.

    • Sec. 135103. Permanent modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions.
      This provision revises the definition of qualified small issuers by increasing the $10 million limit to $30 million (indexed annually for inflation). In addition, this provision treats qualified 501(c)(3) bonds as tax-exempt obligations for purposes of the small issuer exception, and makes permanent certain rules related to qualified financings.

    • Sec. 135104. Modifications to qualified small issue bonds. (CDFA's Top Priority!)
      This provision expands the definition of eligible manufacturing facilities eligible for financing through qualified small issue bonds to include facilities used for the creation or production of intangible property, and facilities functionally related and subordinate (or directly related and ancillary) to facilities used for the manufacturing, creation, or productions of tangible or intangible property. This provision also raises the aggregate cap for prior issues from $10 million to $30 million, indexed annually for inflation.

    • Sec. 135105. Expansion of certain exceptions to the private activity bond rules for first-time farmers. (CDFA's Top Priority!)
      This provision increases the limitation on the exemption of the use of private activity bond proceeds for first-time farmers from $450,000 to $552,500, indexed annually for inflation. The provision also repeals the separate, lower dollar limitation on the purchase of used farm equipment.

    • Sec. 135106. Certain water and sewage facility bonds exempt from volume cap on private activity bonds.
      This provision exempts from the private activity bond volume cap exempt facility bonds for existing water and sewage facilities as of July 1, 2020.

    • Sec. 135107. Exempt facility bonds for zero-emission vehicle infrastructure.
      This provision expands the definition of exempt facility bond eligible for tax-exempt private activity bond financing to include any bond issued if 95 percent or more of the net proceeds are to be used to provide zero-emission vehicle infrastructure.
  • Subpart B – Other Provisions Related to Infrastructure Financing

    • Sec. 135111. Credit for operations and maintenance costs of government-owned broadband.
      This provision creates a 30% tax credit for State, local, and tribal governments for the operations and maintenance costs of government owned broadband systems.

    • Part 2 - New Markets Tax Credits
      • Sec. 135201. Permanent extension of new markets tax credit.
        This provision makes the New Markets Tax Credit program permanent. For the 2022 and 2023 allocation rounds, it provides an additional allocation amount of $2 billion (for a total of $7 billion in 2022) and $1 billion (for a total of $6 billion in 2023). It sets the allocation amounts at $5 billion for 2024 and all years thereafter. Beginning in 2024, it indexes the annual allocation amount to inflation. Finally, the provision provides AMT relief to taxpayers claiming the NMTC.

    • Part 3 - Historic Rehabilitation Tax Credit
      • Sec. 135301. Rehabilitation Tax Credit - Determination of credit percentage.
        This provision increases the historic rehabilitation tax credit (HTC) percentage from 20 percent to 30 percent for 2020 through 2025. The credit percentage is phased down to 26 percent in 2026, 23 percent in 2027, and returns to 20 percent in 2028 and thereafter.

      • Sec. 135302. Increase in the rehabilitation credit for certain small projects.
        This provision permanently increases the HTC percentage from 20 percent to 30 percent for certain smaller projects to ensure rural and non-urban areas have a better ability to take advantage of the credit.

      • Sec. 135303 - Sec. 135306. Other Modifications to the Rehabilitation Tax Credit.

  • Part 4 - Various Disaster Relief & Recovery Provisions

  • Part 5 - Housing
    • Sec. 135501. Increases in State allocations of the Low Income Housing Tax Credit (LIHTC)
      The provision increases the 9% housing credit and the small state minimum by 50 percent and phases in this increase over five years. In calendar years 2026 through 2028, the amounts are adjusted for inflation.

    • Sec. 135502. Tax-exempt bond financing requirement for LIHTC.
      This provision temporarily reduces the 50% requirement to 25%, to enable housing credit deals to unlock more 4% credits.

    • Sec. 135503. Buildings designated to serve extremely low-income households.
      The provision provides a 50% basis boost for LIHTC buildings that designate at least 20% of their occupied units for extremely low-income tenants and limit rent to no more than 30% of the greater of: 30% of area median income or the federal poverty line.

    • Sec. 135504. Inclusion of rural areas as difficult development areas.
      The provision gives states the ability to provide up to a 30 percent basis boost to properties in rural areas if needed for financial feasibility, by qualifying rural areas as Difficult Development Areas.

    • Sec. 135507. Increase in credit for bond-financed projects designated by housing credit agency.
      The provision modifies the rule which treats as difficult development areas for purposes of determining eligible basis, those buildings designated by housing credit agencies as requiring an increase in credit.

    • Sec. 135511. Neighborhood homes credit.
      This provision establishes a new federal tax credit to encourage the rehabilitation of deteriorated homes in distressed neighborhoods. States would receive Neighborhood Homes Investment Act (NHIA) tax credit authority and administer and allocate credits on a competitive basis.

  • Part 6 - Investments in Tribal Infrastructure
    • Sec. 135601. Treatment of Indian Tribes as States with respect to bond issuance.
      This provision amends rules related to the issuance of tax-exempt debt by Indian tribal governments. There is no volume cap for governmental bonds issued by an Indian tribal government. For private activity bonds, it instructs the Secretary to establish and allocate a national bond volume cap for such governments.

    • Sec. 135602. New markets tax credit for Tribal Statistical Areas.
      This provision creates a new, permanent, annual $175 million New Markets Tax Credit allocation for low-income communities in tribal areas and for projects that serve or employ tribe members.

    • Sec. 135603. Inclusion of Indian areas as difficult development areas for purposes of certain buildings.
      The provision modifies the definition of a Difficult Development Area (DDA) to automatically include projects located in an Indian area, making these projects eligible for the 30 percent basis boost.

  • Part 7. Investments in Territories
    • Sec. 135701. Possessions economic activity credit.
      This provision creates a new economic activity credit related to active businesses conducted in U.S. territories or possessions.

    • Sec. 135702. Additional new markets tax credit allocations for the territories.
      This provision creates a new, permanent, annual $100 million New Markets Tax Credit allocation for low-income communities in U.S. territories.

Subtitle G - Green Energy
Part 1 – Renewable Electricity and Reducing Carbon Emissions
  • Sec. 136101. Extension of credit for electricity produced from certain renewable resources.
    The provision extends the production tax credit (PTC), which allows energy producers to claim a credit based on electricity produced from renewable energy resources.

  • Sec. 136102. Extension and modification of energy credit.
    The provision extends the investment tax credit (ITC), which allows taxpayers to claim a tax credit for the cost of qualified energy property. In most cases, the provision extends the credit for property for which construction begins by the end of 2032, and then phases down the credit value over two years.

  • Sec. 136103. Increase in energy credit for solar facilities placed in service in connection with low-income communities.
    This provision provides for an enhanced incentive for solar facilities qualifying for the section 48 ITC with respect to which the Secretary makes an allocation of environmental justice solar capacity limitation.

  • Sec. 136106. Zero emissions facility credit.
    This provision provides for a 30% credit, to be allocated by the Secretary, for qualified investment with respect to any zero emissions facility of the taxpayer.

  • Sec. 136107. Extension of credit for carbon oxide sequestration.
    The provision extends the credit for carbon oxide sequestration facilities that begin construction before the end of 2031.

  • Sec. 136108. Green energy publicly traded partnerships.
    The provision expands the definition of qualified income for publicly traded partnerships from certain income derived from minerals and natural resources to include income derived from green and renewable energy.
Part 2 – Renewable Fuels
  • Sec. 136203. Sustainable aviation fuel credit.
    Beginning in 2023, this provision provides a refundable blenders tax credit for each gallon of sustainable aviation fuel sold as part of a qualified fuel mixture.

  • Sec. 136204. Clean Hydrogen.
    This provision creates a new tax credit for the production of clean hydrogen produced by a taxpayer at a qualified clean hydrogen facility beginning in 2022 during the ten year period beginning on the date such facility is placed in service.
Part 3 – Green Energy and Energy Efficiency Incentives for Individuals
  • Sec. 136304. Extension, increase, and modifications of new energy efficient home credit.
    The provision extends the Section 45L new energy efficient home credit through 2031.
Part 4 – Greening the Fleet and Alternative Vehicles
  • Sec. 136405. Alternative fuel refueling property credit.
    The provision extends the alternative fuel vehicle refueling property credit through 2031.
Part 5 – Investment in the Green Workforce
  • Sec. 136501. Extension of the advanced energy project credit.
    The provision revives the Section 48C qualified advanced energy property credit, allowing the Secretary to allocate an additional $2.5 billion in credits for each year from 2022 through and including 2031.
Part 6 – Environmental Justice
  • Sec. 136601. Qualified environmental justice program credit.
    The provision creates a capped refundable competitive credit of $1 billion for each year from 2022 through and including 2031 to institutions of higher education for environmental justice (EJ) programs.

-H.R. 2737 - The Modernizing Agricultural and Manufacturing Bonds Act (MAMBA)



Learn more about MAMBA
    MAMBA modifies Small Issue Industrial Development Bonds and Agricultural Bonds by:
  • Expanding the definition of “manufacturing facility”
  • Eliminating restrictions on “directly related & ancillary facilities”
  • Increasing the maximum IDB size limitation to $30 million
  • Increasing the limitation on small issue bond proceeds for first-time farmers
  • Repealing the separate dollar limitation on the use of small issue bond proceeds for depreciable property
  • Modifying the definition of “substantial farmland”

-H.R. 1319 - The American Rescue Plan Act of 2021



View a Section-by-Section Summary
View the Final Text
View H.R. 1319 on Congress.gov
The American Rescue Plan is the Biden Administration's $1.9 trillion COVID relief package. It includes a wide range of provisions related to economic development, including:
  • Reauthorization of SSBCI with $10 billion
  • $219 billion for States, territories, and Tribal Governments
  • $130 billion to Local Governments
  • Modifications to the PPP and EIDL programs
  • $7.25 billion in additional PPP funding
  • $15 billion in additional EIDL funding
  • Creates a $25 billion Restaurant Revitalizataion Fund at SBA
  • Appropriates $3.6 billion to the USDA to support the food supply chain
  • Appropriates $50 billion to FEMA
  • Appropriates $3 billion to the EDA
  • Provides $30 billion in Federal Transit Administration grants
  • Provides $8 billion in relief for Airports
  • $5 billion for homelessness assistance and supportive services
  • $100 million for Emergency Assistance for Rural Housing
  • $750 million for Housing Assistance for Native Americans

-S. 258 - Small Business Access to Capital Act



View S. 258 on Congress.gov
Learn More about SSBCI
The Small Business Access to Capital Act – which Peters and Stabenow previously introduced in 2020 – builds on the initial program's success by providing $10 billion of new funding split into two categories: $5 billion in formula funds to all states and an additional $5 billion pool of competitive funding.

-S. 831: EB-5 Reform and Integrity Act of 2021



View S. 831 on Congress.gov
Full Text of S. 831
Section-by-Section Summary
Sign on to the Coalition to Save & Create Jobs (CSCJ) to support the future of EB-5. CSCJ is working with Congress to reauthorize EB-5 before the June 30, 2021 sunset date and to save the tens of thousands of American jobs and billions of dollars in economic development funds that would be lost if the Program sunsets. Join the Coalition today or contact info@saveandcreatejobs.org for more information.
  • Reauthorizes the EB-5 Program through 2026
  • Requires Regional Centers to provide annual statements to DHS and to their investors accounting for investor capital and certifying compliance with program requirements
  • Requires Regional Centers to utilize a fund administrator or commission an independent annual audit to prevent the misuse of investor funds
  • Provides additional protections for investors who were defrauded
  • Seeks to address processing times by commissioning a fee study within a year of passage

-H.R. 1321 and S. 456 - New Markets Tax Credit Extension Act of 2021



View H.R. 1321 on Congress.gov
View S. 456 on Congress.gov
View the Full Text
  • Permanently extends the New Markets Tax Credit (NMTC)
  • Authorizes the NMTC at $5 billion in annual credit authority
  • Adjusts the amount for inflation in future years
  • Exempts NMTC investments from the Alternative Minimum Tax

-S. 1403 - Move America Act



Section-by-Section Summary
Full Text
View on Congress.gov
  • Move America Bonds – Allows states to issue tax-exempt bonds in partnership with private entities, lowering their overall borrowing cost
    • States wishing to expand a variety of infrastructure projects would be provided with the option to use Move America Bonds
    • Each state would receive a bond allocation, based on population size
  • Move America Credits – Allows smaller states hesitant to issue more debt, or who are looking to leverage more private equity, the ability to trade in some or all of their bond allocation for federal tax credits at a 25 percent rate
    • Credits are available for direct investment in a project, reducing capital costs and expanding the potential investment pool
    • States can elect to use the credits to capitalize state infrastructure banks or other infrastructure revolving funds, allowing greater usage of the credit on non-revenue projects
    • Move America Credits can be used in conjunction with Move America Bonds or other federal grant or credit assistance programs, like TIFIA

-S.479 - LOCAL Infrastructure Act



View S. 479 on Congress.gov
Learn More at GFOA
  • Reinstates Advance Refunding Bonds

-H.R. 3633 - Greener Transportation for Communities Act



Learn More
View on Congress.gov
  • Allows electric charging and hydrogen refueling infrastructure to qualify for exemptions within the federal tax code, which allows state and local governments to use tax-exempt bonds to finance certain private projects.
  • Allow this infrastructure to qualify as tax exempt if it is installed as part of larger projects built with private activity bonds as part of major infrastructure projects like airports, affordable housing, docks, green buildings and other infrastructure.

-H.R. 848 - GREEN Act



Section-by-Section Summary
Full Text
  • Extends the 30% ITC for solar and geothermal through the end of 2025, before beginning a phasedown
  • The Section 179D energy-efficient commercial buildings deduction would increase from $1.80 to $3 per square foot starting in 2022
  • Section 45L new energy-efficient home credit would be extended through 2026
  • Extends the PTC for wind energy at the current level of 60% through the end of 2026
  • Extends PTC for landfill gas, trash, qualified hydropower, and marine and hydrokinetic renewable energy facilities

-S.1308 - American Infrastructure Bonds Act of 2021



View S. 1308 on Congress.gov
One-Page Summary
Full Text
  • AIBs would allow state and local governments to issue taxable bonds for any public purpose expenditure that is eligible to be financed with tax-exempt bonds.
  • AIBs would be modeled as a “direct-pay” taxable bond. The Treasury Department would make direct payments to the issuer of the bonds at a rate of 28 percent.
  • Improving upon BABs, AIBs would be available to all state and local governments to use as they determine what is best for them.
  • Unlike BABs, AIBs would be exempt from sequestration and the bonds would be available for additional uses in addition to capital improvements.
  • AIBs could be used for any expenditure that is eligible to be financed with tax-exempt bonds

-H.R. 970 - Opportunity Zone Extension Act of 2021



View H.R. 970 on Congress.gov
  • extends the Opportunity Zones elective period until December 31, 2028;
  • extends the Opportunity Zones deferral period until December 31, 2028;

-H.R.1396 - Public Buildings Renewal Act of 2021



View on Congress.gov
View the Full Text
  • Allows tax-exempt financing of certain government-owned buildings by expanding the definition of exempt facility bond to include bonds used for qualified government buildings.
  • A qualified government building is a government-owned building or facility that consists of one or more of the following:
    • an elementary or secondary school;
    • facilities of a state college or university used for educational purposes;
    • a public library;
    • a court;
    • hospital, health care, laboratory, or research facilities;
    • public safety facilities; or
    • offices for government employees.
  • Excludes buildings or facilities that include specified recreational equipment or are used for the primary purpose of providing retail food and beverage services, recreation, or entertainment.
  • Establishes a $5 billion limit on the amount of tax-exempt financing which may be provided for government buildings
  • Establishes procedures for allocating and applying for the financing of a building, including a certification that the project owner will use reasonable efforts to ensure against job losses
  • Allows an exemption from the volume cap for private activity bonds used to finance government buildings.

-S. 98 - Neighborhood Homes Investment Act



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  • creates a federal tax credit that covers the cost between building or renovating a home in these areas and the price at which they can be sold;
  • requires that homes constructed or revitalized under the program must be sold to homeowners making less than 140 percent of the area median income;
  • The maximum credit amount is the lesser of 35% of total development costs (property acquisition plus construction and/or rehabilitation cost) or 80% of the national median home sale price;
  • credits are awarded to project sponsors—developers, lenders, or local governments—through a competitive statewide application process administered by each state’s housing finance agency;
  • State agencies would have annual allocation of either $6 per capita or $8 million, whichever is higher.

-S.2820 - Decent, Affordable, Safe Housing for All (DASH) Act



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Summary
Section-by-Section Summary
  • Provides $10 billion for the Housing Trust Fund over 10 years;
  • Provides $65 million a year for 5 years for the administrative and capacity-building needs of the states housing needs;
  • Authorizes $10 million over 5 years for a Modular Construction Pilot Program
  • Permanent Reauthorization of the Multi-Family Preservation and Revitalization (MPR) program
  • Extend Deadline for Rehabilitation Expenditures for LIHTC Projects
  • Extend Deadline for Basis Expenditures for up to 3 Years
  • Lowers the “financed-by” threshold from 50% to 25% for private activity bond financed housing for 3 years;
  • Increase in 9% LIHTC allocations;
  • 50% Basis Boost for Projects Serving Extremely Low-Income Households and 10% Set-Aside;
  • Inclusion of Indian & Rural Areas as Difficult Development Areas;
  • Increase in Credit for Bond-Financed Projects Designated by Housing Credit Agency;
  • Repeal Qualified Contracts to Preserve LIHTC Affordable Housing;
  • Adjustment of Credit to Provide Relief During COVID-19 Outbreak
  • Credit for Low-Income Housing Supportive Services
  • Establishes a new Middle Income Housing Tax Credit (MIHTC)
  • Establishes provisions in the Neighborhood Homes Investment Act (NHIA)
  • Establishes a First-time Homebuyer Refundable Credit

-H.R. 1799 - Paycheck Protection Program (PPP) Extension Act



Full Text
  • Extends the Paycheck Protection Program (PPP) by two months, through May 31, 2021
  • Small businesses will have two additional months to submit an application for a PPP loan
  • The SBA will have until June 30, 2021 to close any pending applications

-S. 1136 and H.R. 2573 - Affordable Housing Credit Improvement Act of 2021



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View S. 1136 on Congress.gov
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  • lower the financed-by threshold for private activity bonds (50% test) from 50% to 25% starting in 2022;
  • increase 9% LIHTC authority by 25% in 2021 and 2022;
  • extend the discretionary 30% basis boost for 9% LIHTC properties to PAB-financed properties
  • provide a 30% basis boost for properties in rural and Native American areas;

-H.R.806 - Clean Energy and Sustainability Accelerator Act



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Full Text
  • Establish an independent non-profit capitalized with $50 billion initially, and then with an additional $10 billion every year for five years.
  • Provide financing to eligible regional, state and local green banks, make investments directly into projects that reduce carbon emissions, support workers and communities negatively impacted by the climate transition, and provide technical assistance for the start up of new green banks around the United States.
  • Require that 40 percent of all investments be directed into disadvantaged communities facing climate impacts.

-S. 203 - Healthy Food Access for All Americans Act



Section-by-Section Summary
Full Text
  • Create a 15% tax credit for new grocery store construction in a food desert
  • Create a 10% tax credit for companies that retrofit an existing store’s healthy food section in a food desert
  • Create a grant for 15% of construction costs for certified food banks that build new permanent structures in food deserts
  • Create a grant for 10% of annual operating costs for nonprofit certified temporary access markets, such as farmers markets, mobile markets and some food banks, that operate in a food desert.

-S.1931 - Surface Transportation Reauthorization Act of 2021



Section-by-Section Summary
View on Congress.gov
Analysis from NACo
  • The bill authorizes $303.5 billion over five years to upgrade highways, roads, and bridges with a new focus on addressing climate change, improving safety, and lifting up all Americans
  • Authorizes $18 billion in climate programs, including $6.4 billion for reducing greenhouse gas emissions and $8.7 billion to increase resilience to climate change and extreme weather
  • Includes $2.5 billion to create alternative fuel corridors along the National Highway System and build out electric vehicle charging infrastructure in communities across the country
  • Establishes a $500 million pilot program to help reconnect and revitalize areas divided by highway construction that pose barriers to economic development and opportunity.

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