New infrastructure bank gives private investors 10% tax credits, exempts itself from taxation
H.R. 1235 — Federal Infrastructure Bank Act of 2025 · Filed by Daniel Webster (R-FL) · 3 cosponsors · Introduced Feb 12, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill creates a new Federal Infrastructure Bank, structured as a private corporation with a holding company, to lend money to and invest in U.S. infrastructure projects (roads, bridges, ports, airports, rail, water systems, etc.). The bank will be funded by issuing bonds and equity securities, with at least 10% of its lending directed to rural projects. Investors in the holding company receive a 10% federal tax credit on their equity investments over five years. The bank is exempt from federal and state taxation, and foreign entities are barred from owning more than 25% of its securities.
Why we flagged it
The bill's core function is establishing a lending bank for infrastructure, but its operative mechanism is a tax-credit subsidy to private equity investors and a broad tax exemption for the bank itself. The infrastructure purpose is genuine, but the financial structure prioritizes private investor returns.
What the text implies
- The 10% federal tax credit (Section 10) is available for 5 years on equity investments, creating a $1+ billion annual tax expenditure if the bank reaches scale, with no sunset or cap stated.
- The bank's tax exemption (Section 9) applies to all earnings and reserves, meaning profits from lending are never taxed federally or locally—a permanent subsidy to private shareholders.
- The Formation Agent (a private entity selected by Treasury) receives equity in the Holding Company equal to its shareholders' holdings, creating a private profit center from a government-chartered institution.
- The bank may issue bonds purchased by the Federal Reserve and Treasury (Section 6(b)(3)), creating a potential conduit for public money to flow to private equity holders without explicit appropriation.
- Section 5(c) permits cross-subsidization of non-revenue projects with revenue projects, allowing the bank to cherry-pick profitable infrastructure while shifting losses to the public balance sheet.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Citizens benefit from increased infrastructure financing and a 10% rural lending mandate, but the structure transfers substantial public wealth to private investors through tax credits and exemptions while insulating the bank from taxation. The public funds infrastructure indirectly through foregone tax revenue while private shareholders capture equity returns.
Who stands to gain
- Private equity investors (10% tax credit on Holding Company equity)
- Infrastructure project developers and operators (access to long-term financing)
- Formation Agent shareholders (equity transfer at establishment)
- Bond investors (access to federally backed securities)
Named in the bill
Federal Infrastructure Bank, Federal Infrastructure Bank Holding Company, Formation Agent, Secretary of the Treasury, Board of Governors of the Federal Reserve System, Comptroller of the Currency, State infrastructure banks, Internal Revenue Code Section 45BB
Where it stands
3 cosponsors: 3 Democrats.
- Feb 12, 2025 — Introduced · Congress.gov: “Introduced in House”
- Feb 12, 2025 — Referred to House Committee on Ways and Means and House Committee on Financial Services · Congress.gov: “Referred to the Subcommittee on Highways and Transit”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Money around this bill
2 lobbying clients named this bill on 3 disclosure filings across 3 quarters, Dec 2025 to Jun 2026. Those filings disclosed $1,120,000 in lobbying spend. A filing names 18 bills on average, so that figure is what each filing reported, not a share belonging to this bill.
More lobbying clients named this bill than 41% of bills with at least one filing.
Daniel Webster, the sponsor, reported $199,000 in PAC receipts in the 2026 cycle.
- American Public Transportation Association — $1,100,000 on 2 filings
- Alliance for Financing U.S. Infrastructure, Inc. — $20,000 on 1 filing
Lobbying Disclosure Act filings through Jul 16, 2026. A filing shows who paid to lobby on a bill it names, not what changed.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (14,612 characters) on May 5, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
Money — Senate Lobbying Disclosure Act filings whose specific-issue field names this bill for quarters ending Dec 2025 to Jun 2026. A filing's amount is reported whole beside the median number of bills a filing names; it is never divided across them. PAC receipts are FEC-reported contributions to the sponsor's candidate committee in the 2026 cycle.
As of — lobbying records through Jul 16, 2026 · page rendered 2026-10-20.
“New infrastructure bank gives private investors 10% tax credits, exempts itself from taxation” QuorumCivic. https://share.quorumcivic.app/bill/119/hr1235 Report an error
The week in bills
One email, Sunday: what Congress passed, what it changed, and who paid.
One link arrives to confirm the address. It is used for this email and nothing else, and every issue carries an unsubscribe link.