H.R.2440 - School Infrastructure Finance and Innovation Act; SIFIA Act (119th Congress)
Summary
H.R.2440, the School Infrastructure Finance and Innovation Act (SIFIA Act), proposes to amend the Internal Revenue Code of 1986 to create school infrastructure finance and innovation tax credit bonds. These bonds aim to finance the design, construction, expansion, renovation, furnishing, or equipping of qualified school facilities. The bill sets specific criteria for these bonds, including requirements for net-zero energy buildings and private sector involvement.
Expected Effects
The SIFIA Act is intended to stimulate investment in school infrastructure by providing tax credits to bondholders. This could lead to improved school facilities, particularly in rural areas, and promote energy-efficient building practices. The Act also involves private sector entities in public school projects, potentially bringing innovation and efficiency.
Potential Benefits
- Improved School Facilities: Funds the renovation and construction of public schools.
- Net-Zero Energy Buildings: Encourages energy-efficient and sustainable school designs.
- Rural Area Investment: Sets aside funds specifically for school projects in rural areas.
- Private Sector Innovation: Leverages private sector expertise in school construction and operation.
- Tax Benefits: Provides tax credits to bondholders, incentivizing investment in school infrastructure.
Potential Disadvantages
- Complexity: The structure of the tax credit bonds and the involvement of private entities adds complexity.
- Potential for Inefficiency: Private sector involvement may lead to higher costs or prioritization of profit over educational outcomes.
- Limited Funding: The overall limitation of $10 billion may not be sufficient to address all school infrastructure needs.
- Administrative Burden: The Secretary's allocation process and reporting requirements could create administrative burdens.
- Risk of Non-Compliance: Failure to meet expenditure deadlines could result in bond redemption requirements.
Constitutional Alignment
The bill's focus on education aligns with the general welfare clause of the Constitution's preamble. While education is not explicitly mentioned in the Constitution, the federal government's role in promoting education has been established through various legislative actions. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).