Summary

Creates a new privately owned Federal Infrastructure Bank and companion Holding Company, gives investors a five-year 10% equity tax credit, and makes the Bank and Holding Company largely tax-exempt. The law sets up governance and formation steps, limits foreign involvement, authorizes the Bank to finance revenue-producing infrastructure (equity, loans, guarantees), requires Federal Reserve supervision, and establishes an Infrastructure Guarantee Fund and rules for Treasury/Fed purchases of some bonds. It also says the federal government will not guarantee the Bank’s or Holding Company’s assets.

Key Points

• Creates a private Federal Infrastructure Bank (Delaware corporation) owned by a new Holding Company to finance U.S. revenue-producing infrastructure.
• Offers a 10% equity tax credit to investors in the Holding Company, claimed at investment and across the next four taxable years (five years total).
• Exempts the Bank and Holding Company from most federal and state/local income/franchise taxes (property taxes remain payable on real property).
• Assigns Federal Reserve supervisory authority to ensure safety and soundness of the Holding Company and Bank.
• Authorizes equity investments, loans, guarantees, and an Infrastructure Guarantee Fund, with minimum support targets for rural projects.
• Imposes capital, foreign ownership, voting, and prohibited-activity rules, including bans on funding projects linked to certain foreign actors.
• Requires rapid formation steps: a Formation Agent selected within 60 days and formation of the Holding Company/Bank on a short timetable.
• Permits limited Treasury and Federal Reserve purchases of bonds under capped authorities but states that the federal government does not guarantee Bank or Holding Company assets.
• Requires at least 10% risk-based capital for both the Bank and Holding Company before certain activities proceed.
• Creates potential fiscal and market impacts that depend on how Treasury/Fed purchase authorities and regulatory oversight are implemented.

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