Expansion of long-term local funding for public infrastructure and affordable transit-oriented development

(a) In general Subpart A of part IV of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 147A. Qualified transit-oriented development bonds (a) In general In this section, the term qualified transit-oriented development bond means any private activity bond issued as part of an issue for the purposes of the acquisition, construction, reconstruction, or improvement of land or property that is within one half-mile of an existing or planned major public transportation facility including fixed-guideway transit stations (rail and bus rapid transit), designated High Speed Rail or existing intercity rail stations, or an intermodal transportation station. (b) A bond shall not be treated as a qualified transit-oriented development bond unless the issue described in subsection (a) is issued pursuant to relevant local government-adopted policies, as determined by the Secretary, that— (1) promote long-term affordable housing or affordable commercial spaces, (2) promote high-density, mixed-use development near public transportation stations, (3) encourage value capture and value sharing that promotes greater investment in public transportation and affordable transit-oriented development, including any strategy developed under section 5341, (4) the payment of the principal and interest on such issue is primarily secured by taxes of general applicability imposed by a general purpose governmental unit, (5) a 25 to 50 percent increase, as determined by the Secretary, in real property tax revenues (attributable to increases in assessed value) by reason of the carrying out of such purposes in such area is reserved exclusively for debt service on such issue (and similar issues) to the extent such increase does not exceed such debt service, or (6) other value capture mechanisms including user fees, sales tax revenues, or other revenue sources dedicated to the project by property owners and businesses. (c) Transit-Oriented Development Volume Cap (1) In general The aggregate face amount of Transit-oriented development bonds issued pursuant to an issue, when added to the aggregate face amount of transit-oriented development bonds previously issued by the issuing authority during the calendar year, shall not exceed such issuing authority's Move America volume cap for such year. (2) Allocation of volume cap Each State may allocate the transit-oriented development volume cap of such State among governmental units (or other authorities) in such State having authority to issue private activity bonds. (d) Application of Davis-Bacon Act requirements with respect to Federal value capture tax increment financing districts Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of qualified transit-oriented development bonds.. (b) Conforming amendment The table of sections for subpart A of part IV of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 147A. Qualified transit-oriented development bonds.. (c) Effective date The amendments made by this section shall apply to taxable years beginning after the Secretary has determined the procedure described in section 8(a)(1).