The School Infrastructure Finance and Innovation Act, or SIFIA Act, introduces a new category of tax credit bonds, known as SIFIA bonds , to incentivize the financing of public school infrastructure. These bonds provide a quarterly tax credit to the bondholder, calculated as 25 percent of an annual credit derived from an applicable credit rate and the bond's face amount. The applicable credit rate is set by the Secretary to ensure bonds can be issued without discount or interest cost to the issuer. To qualify as a SIFIA bond, 100 percent of the proceeds must be used for the design, construction, expansion, renovation, furnishing, or equipping of qualified public school facilities . A key requirement is that a private, for-profit entity must agree to construct and operate these facilities, ultimately transferring them to a State or local educational agency for no additional consideration. Furthermore, all buildings financed must be designed as net-zero energy buildings . The program has an aggregate national limit of $10 billion in SIFIA bonds, with an annual cap of $2.5 billion. A significant portion, $1 billion, is specifically set aside for projects located in rural areas. The Secretary allocates these bonds on a first-come, first-served basis, with preferences for projects involving small, minority-owned, or woman-owned businesses, referred to as "preferred concerns." Issuers must commit to spending 100 percent of the bond proceeds within six years of issuance. The private entities involved must demonstrate experience in developing and operating net-zero public schools and leasing them to local education agencies. The bill also mandates reporting requirements on the costs, benefits, and potential improvements in student performance or teacher retention. Other provisions include treating the credit as taxable interest, allowing for the stripping of credits from bonds, and an option for property owners to forgo depreciation on financed assets. The Secretary is also authorized to directly purchase SIFIA bonds that issuers are unable to sell, ensuring market liquidity. These new provisions will apply to obligations issued after December 31, 2025.