The School Infrastructure Finance and Innovation Act (SIFIA Act) creates a new tax credit bond program to finance public school construction and renovation projects. Under the program, private for-profit companies can partner with school districts to build, expand, or renovate school buildings that meet net-zero energy standards, then operate and eventually transfer them to the school district. Investors who hold these bonds receive a quarterly federal tax credit equal to 25 percent of an annual credit based on the bond's face amount, with the credit calculated to allow bonds to be issued without interest costs to school districts. The program is capped at $10 billion in total bonds ($2.5 billion per year through 2030), with $1 billion reserved for rural areas, and individual school districts limited to $1.5 billion in bonds. To participate, private developers must demonstrate experience with similar net-zero school projects and have maintained certain building systems for at least four years, while the Treasury Department can directly purchase unsold bonds to ensure financing availability.
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