At today’s interest rates America’s corporations can raise billions of dollars from the sale of bonds and use the proceeds at favorable interest rate spreads to purchase state issued Jump Start America Bonds to finance major transportation construction projects.

To open the door for the sale of Jump Start America Bonds, Congress should modify our federal corporate income tax laws to permit the use of Jump start America Bonds, valued at par plus accrued interest, to be used, commencing five years after issuance, in payment of federal corporate income tax obligations. This will eliminate the interest rate risk on the sale of Jump Start America Bonds.