Groups Push Congress for TRIP Bonds

WASHINGTON — State transportation officials, engineers, construction firms and transportation advocacy groups are urging lawmakers working on a final highway bill to support the use of new tax-credit bonds to finance transportation projects.

The American Association of State Highway and Transportation Officials, the U.S. Chamber of Commerce and the American Road and Transportation Builders Association were among 10 groups that sent a letter to House and Senate conferees asking that the final legislation include the Transportation and Regional Infrastructure Project, or TRIP, bonds proposed last year by Sens. Ron Wyden, D-Ore., and John Hoeven, R-N.D.

The two-year, $109 billion Senate highway bill contained a “placeholder” for the TRIP bonds program, which would allow state infrastructure banks to issue the taxable tax-credit bonds for transportation projects. The groups hope that conferees, now in their second week of negotiations, will adopt the language of Wyden’s and Hoeven’s still-pending legislation, which authorizes $50 billion over six years for TRIP bonds that would be equally distributed among the states.

Wyden contends TRIP bonds are the next-best alternative to the Build America Bond program, which expired at the end of 2010 but has no chance of being reinstated because of Republican opposition. The GOP-controlled House did not include a TRIP bonds provision in its highway bill.

“These investments will generate significant economic growth, improve transportation infrastructure, and save lives through enhanced transportation safety without a tax increase or adding to deficit spending,” the groups’ letter said.

The legislation would cost just over $12 billion in lost tax revenue over 10 years, according to an estimate from the Joint Tax Committee, which supporters say is a big advantage over the long-term cost of more traditional government financing of the same projects.

Market groups also have publicly supported TRIP bonds, though they have said tax-credit bonds don’t have much appeal in the market compared to other bonds because of their complexity.

Conference Committee chairwoman Sen. Barbara Boxer, D-Calif., said last week that she hopes to have a final bill by early June. The current highway funding extension, the 10th since 2009, expires June 30.

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Transportation industry Washington
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