What does Preamble of HR 6923 do?

This bill, formally titled 'To incentivize innovative transportation corridors to reduce carbon and GHG emissions, to provide a tax structure that allows for certain investments in public transportation systems, and to enable the fossil fuel workforce to transition to sustainable work sectors,' aims to reduce carbon and GHG emissions. The bill intends to incentivize the development of innovative transportation corridors. It proposes a tax structure to facilitate investments in public transportation systems. The legislation seeks to support the transition of the fossil fuel workforce into sustainable work sectors.

What does SHORT TITLE. of HR 6923 do?

This bill is formally titled the Jobs for a Carbon Free Transportation System Act.

What does LOW CARBON CORRIDOR GRANT PROGRAM. of HR 6923 do?

This section establishes a Low Carbon Corridor Grant Program to provide grants to eligible entities for projects developing low carbon corridors. Eligible entities include State, local, or tribal governments, subdivisions thereof, or metropolitan planning organizations. Projects funded by the program must lower carbon emissions, increase transportation inter-connectivity, and increase transportation infrastructure reinvestment. Funds may be used for various low carbon and investment mechanisms, such as high occupancy vehicle lanes, value capture, transit-oriented development, carbon fees, automated vehicle lanes, Smart Cities connectivity, high-speed rail, and pedestrian/bicycle facilities. Projects carried out with grants under this program are subject to labor requirements including the Davis-Bacon Act, the Walsh-Healy Act, the McNamara-O'Hara Service Contract Act, the Work Hours and Safety Standards Act, and the Fair Labor Standards Act. Grant recipients may enter into strategic partnerships with nonprofit organizations or universities to develop plans for low carbon corridors. The Secretary of Transportation and the Administrator of the Environmental Protection Agency will jointly monitor carbon emission reductions resulting from the program. Projects must ensure that iron, steel, and manufactured products used are produced in the United States, with limited waiver authority. The term 'produced in the United States' has specific definitions related to manufacturing processes and component costs.

What does DEFINITIONS. of HR 6923 do?

This section defines terms used within the title. “Affordable transit-oriented development” is defined as development near public transportation stations that promotes affordable housing and commercial space. “Captured assessed value” refers to the percentage or sum of increased assessed value used to finance project costs. “Current assessed value” is the assessed value of taxable real property within a tax increment district as of October 1st. A “financial plan” outlines project costs and revenue sources for a district’s strategic plan. “Increased assessed value” is the amount by which the current assessed value exceeds the original assessed value; it is zero if the current value is less than or equal to the original. “Local government” includes counties, cities, and combinations of political subdivisions. A “nominated area” is an area nominated by local governments and the State for designation under section 7. “Original assessed value” is the assessed value of taxable real property within a tax increment district as of October 1st of the year before establishment. “Public transportation” has the meaning given in section 5302 of title 49, United States Code. “Tax increment” means capital gain taxes assessed by the Federal Government on the increased assessed value of property in a tax increment district. A “tax increment district” is an area wholly within a municipality's corporate limits established and designated in accordance with section 7.

What does VALUE CAPTURE POLICY AND PLANNING PROGRAM. of HR 6923 do?

This section amends Title 49 of the United States Code to establish a 'Technical Assistance and Value Capture Policy and Planning Program'. The Secretary is authorized to provide grants to States and local governments to develop value capture mechanisms that promote mobility, public transportation, and affordable transit-oriented development. The Secretary must establish voluntary value capture standards within two years of enactment, collaborating with state transportation departments, metropolitan planning organizations, and regional governments. The Secretary may contract with nonprofit organizations to provide technical assistance related to value capture. A report detailing examples of state and local laws and policies promoting value capture for public transportation and affordable transit-oriented development must be created within 15 months of enactment. The Secretary will identify and disseminate best practices for value capture mechanisms to various congressional committees. The term 'value capture' is defined as collecting a portion of the economic value created by government investments and repurposing it to fund further investments. The term 'affordable transit-oriented development' is defined as development near public transportation stations that promotes affordable housing and commercial space.

What does DESIGNATION OF FEDERAL VALUE CAPTURE TAX INCREMENT FINANCING of HR 6923 do?

This section establishes a process for designating Federal value capture tax increment financing (TIF) districts. The Secretary of Transportation designates districts from eligible areas nominated by state and local governments to finance public transportation, affordable housing, and community development. Designations are effective until December 31, 2030, or earlier termination by state/local governments or the Secretary. The Secretary may revoke a designation if the local government or state fails to comply with requirements or benchmarks outlined in section 4. Areas must be nominated by local governments and the relevant state(s), and meet federal requirements and value capture policy standards as described in section 4. Applicants must submit a detailed application including a TIF district strategic plan and a financial plan. The strategic plan must include boundaries, tax identification numbers, descriptions of current and anticipated improvements, and a maintenance plan.

What does ELIGIBILITY CRITERIA. of HR 6923 do?

This section outlines eligibility criteria for designation under section 5. A nominated area must have a contiguous area designated as a transit-oriented development or transit-serve corridor by a State or local government or agency. The nominating entity must also have created a tax increment financing district or other value capture meeting standards described in section 4.

What does VALUE CAPTURE TAX INCREMENT FINANCING DISTRICTS; SPECIAL RULE of HR 6923 do?

This section establishes a process for the Secretary of the Treasury, in consultation with the Secretary of Transportation, to certify values within designated Federal value capture tax increment financing districts. The Secretary must certify the original assessed value of Federal capital gain taxes, annual assessed value of capital gains collected, and the amount of assessed value increase or decrease. The Secretary will also analyze the maximum amount of Federal guarantees available for qualified transit-oriented development bonds. A 'Federal value capture tax increment financing district' is defined as a redevelopment area where future property tax revenue increases are dedicated to finance infrastructure improvements to stimulate economic development. The Secretary of the Treasury must issue rules and regulations within one year of the Act's enactment to implement this section. The Secretary must notify relevant Congressional committees at least 30 days before issuing a letter of intent to establish a district, including nomination applications and evaluations. An 'assessment agreement' establishes the tax base, dedicated tax collections, fund collection procedures, and approved uses for funds within a district.

What does EXPANSION OF LONG-TERM LOCAL FUNDING FOR PUBLIC INFRASTRUCTURE of HR 6923 do?

This section amends the Internal Revenue Code of 1986 to create a new section, 147A, defining 'qualified transit-oriented development bonds'. These bonds are private activity bonds used for acquiring, constructing, reconstructing, or improving land within a half-mile of major public transportation facilities. Issuance of these bonds requires adherence to local government policies promoting affordable housing, high-density development, and value capture. The bonds must be primarily secured by taxes of general applicability and reserve a portion of increased real property tax revenues for debt service. There is a volume cap on the amount of transit-oriented development bonds an issuing authority can issue in a calendar year, tied to their 'Move America' volume cap. Each state can allocate its transit-oriented development volume cap among governmental units. The Davis-Bacon Act requirements apply to projects financed with these bonds within federal value capture tax increment financing districts. The amendments apply to taxable years beginning after the Secretary determines the procedure described in section 8(a)(1).

What does FINDINGS. of HR 6923 do?

This section outlines findings related to the transition away from fossil fuels in California. It acknowledges the historical economic contributions of fossil fuel industries while noting negative impacts on local residents, including unemployment, poverty, and environmental hazards. The goal is to develop a future economy based on equity, sustainability, and shared prosperity through community transition grants. Regional coalitions are necessary to support workers and communities affected by the transition, involving diverse stakeholders. These coalitions should focus on identifying in-demand skills and workforce strategies to facilitate worker transitions to sustainable jobs. Strategies must include pathways for impacted workers and frontline communities who have historically borne the costs of pollution. Worker, resident, and community leader input is considered essential for developing regional solutions. The transition should ensure that the fossil fuel workforce is included in the conversation and shapes the transition process.

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Jobs for a Carbon Free Transportation System Act — HR. 6923

Last updated: 12/23/2025 · Introduced: 12/23/2025

Author: Mark DeSaulnier (D-CA)

TL;DR (AI)

This bill establishes a Low Carbon Corridor Grant Program to fund projects that reduce carbon emissions, improve transportation connectivity, and reinvest in transportation infrastructure.
It creates a Technical Assistance and Value Capture Policy and Planning Program to help states and local governments develop strategies for funding transportation and affordable housing through value capture mechanisms.
The bill allows for the designation of Federal value capture tax increment financing districts to support public transportation, affordable housing, and community development projects.
It expands access to tax-exempt bonds for transit-oriented development near public transportation facilities, requiring adherence to local policies promoting affordable housing and value capture.
The bill establishes a Renewable Energy Transition Grant Program and a National Employment Corps to support workers and communities impacted by the transition away from fossil fuels, providing job training and direct employment opportunities.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title..

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TITLE I

-LOW CARBON CORRIDORS

1 section

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TITLE II

-VALUE CAPTURE

6 sections

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TITLE III

-PROTECTING WORKERS FOR A CLEAN FUTURE ACT

3 sections

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