The School Infrastructure Finance and Innovation Act creates a new type of tax credit bond called SIFIA bonds to finance the construction and renovation of public school buildings. These bonds would allow investors to receive a federal tax credit equal to 25 percent of the annual interest they would normally receive, making the bonds attractive to purchayers while reducing the cost to schools. The bonds can only be used to build net-zero energy school facilities through public-private partnerships where private construction companies build the schools, operate them temporarily, and then transfer them to school districts at no cost. The legislation establishes a total authorization of $10 billion in bonds, with an annual limit of $2.5 billion per year and $1 billion set aside specifically for rural areas, while individual school districts are capped at $1.5 billion and charter schools at $500 million. School districts must spend all bond proceeds within six years of issuance, and the program expires on December 31, 2029, with the tax provisions effective for bonds issued after December 31, 2024.
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