1. Short title This Act may be cited as the American Infrastructure Bonds Act of 2023 . 2. Credit for American infrastructure bonds allowed to issuers (a) In general Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by inserting after section 6430 the following new section: 6431. Credit to issuer of american infrastructure bonds (a) In general The issuer of an American infrastructure bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b). (b) Payment of credit (1) In general The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 28 percent of the interest payable under such bond on such date. (2) Interest payment date For purposes of this subsection, the term interest payment date means each date on which the holder of record of the American infrastructure bond is entitled to a payment of interest under such bond. (c) American infrastructure bond (1) In general For purposes of this section, the term American infrastructure bond means any obligation if— (A) the interest on such obligation would (but for this section) be excludable from gross income under section 103, (B) the obligation is not a private activity bond, and (C) the issuer makes an irrevocable election to have this section apply. (2) Applicable rules For purposes of applying paragraph (1)— (A) for purposes of section 149(b), a bond shall not be treated as federally guaranteed by reason of the credit allowed under this section, and (B) a bond shall not be treated as an American infrastructure bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond. (d) Special rules (1) Interest on American infrastructure bonds includible in gross income for Federal income tax