NAWC Supported Legislation
Other Supported Infrastructure Financing Legislation:
NAWC Supports the creation of a National Infrastructure Development Corporation as proposed by Representative Rosa DeLauro (D-CT). This national level revolving fund would facilitate and streamline the financing of infrastructure projects. By removing certain infrastructure financing decisions from the political process, infrastructure could be built efficiently and as-needed.
The National Infrastructure Development Corporation would supplement traditional forms of infrastructure finance and provide an additional avenue for fiscally responsible localities to pursue loans for infrastructure improvement.
NAWC Supports accelerated or “bonus” depreciation; a 50% increase, or more, in depreciation rates for infrastructure replaced over a specified period of time. NAWC commends Congress for its continued use of bonus depreciation as an economic stimulus.
NAWC Supports exempting private activity bonds from the alternative minimum tax. Proposals put forth by Senator John Kerry (D-MA) and Representative Richard Neal (D-MA) that were subsequently adopted in the American Recovery and Reinvestment Act of 2009 (ARRA) will go a long way towards making private-activity bonds more attractive to investors and thereby lowering the cost of infrastructure improvement projects.
NAWC Supports a clarification in the definition of Contributions in Aid of Construction (CIAC). CIAC is money or property contributed to a utility (often from a developer) to extend utility service to a development of some sort. The tax status of CIAC has changed over the years; though it typically has not been taxable as income to the utility. However, to raise revenue in the Tax Reform Act of 1986 Congress made CIAC taxable as income to utilities (all utilities, not just water). Congress should consider and pass legislation to clarify the definition of CIAC making all water and wastewater CIAC non-taxable.
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