LIFT Act

The LIFT Act creates a tax credit for issuers of "American infrastructure bonds" used for infrastructure projects like roads, bridges, and utilities. Issuers of qualifying bonds will receive a credit equal to 30-42% of the interest paid on those bonds, depending on the year the bond was issued (42% for 2024-2028, decreasing to 30% after 2031). To qualify, bonds must be used for infrastructure capital expenditures or operations/maintenance, not be private activity bonds, and meet specific tax-exempt criteria under Section 103. The bill also modifies rules for advance refunding bonds and increases the small issuer exception for tax-exempt interest allocation rules from $10 million to $30 million. This policy makes it more affordable for local governments and public entities to finance infrastructure projects through tax-exempt bonds.