American Infrastructure Bonds Act of 2025

S 1480 (American Infrastructure Bonds Act of 2025) creates a tax credit for state and local governments that issue qualifying infrastructure bonds. It allows issuers to receive a 28% credit from the Treasury on each interest payment made on these bonds, paid simultaneously with the interest. The bonds must meet specific criteria: interest would normally be tax-exempt under federal law, they cannot be private activity bonds, and the issuer must elect to use this credit. This provision reduces the cost of issuing infrastructure bonds for governments, making it cheaper to finance projects like roads, bridges, and water systems.