1. Short title This Act may be cited as the Strengthening Pensions through Investment in Infrastructure Act . 2. Treatment of use of public infrastructure property for private business use test for private activity bonds (a) Use by public pension funds treated as government use Section 141(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (10) Use by public pension funds not treated as private business use (A) In general For purposes of this part, use by a public pension fund of public infrastructure property shall not be treated as private business use. (B) Definitions For purposes of this paragraph— (i) Public pension fund The term public pension fund means a pension fund established or maintained for employees or former employees of a State, political subdivision of a State, or an agency or instrumentality thereof. (ii) Public infrastructure property The term public infrastructure property means property with the following characteristics: (I) Consists of roads, bridges, tunnels, docks, wharves, ports, harbors, airports, rail stations, mass transit or commuting centers, water infrastructure (including sewage, waste water, storm water, and solid waste treatment), heating, cooling, or electric utility production, municipal buildings, or other real or tangible property that is used for an essential government function (within the meaning of section 115). (II) Provides services to the general public or is available for general public use. (III) If rates are charged for use of or services provided by such property, such rates are subject to State or local governmental regulatory or contractual control, limitation, or approval. . (b) Effective date The amendment made by this section shall apply with respect to use after the date of enactment of this Act. 3. Public infrastructure property not treated as investment property for arbitrage bonds (a) In general Section 148(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new