US infrastructure bill targets companies" overseas cash A bipartisan plan to use companies flush with overseas cash to help rebuild roads and bridges in the US is gaining new support in Congress. The plan would allow US companies to repatriate a certain amount of money held overseas without paying taxes. But they would have to put some money towards investing in bonds sold to fund the rebuilding of America's dilapidated infrastructure. This type of transportation bill is usually paid for through tax rises. Giving incentives to companies with overseas cash is being pitched as a way to pay for new highways that could win over Republicans, who often oppose tax increases. The plan, first proposed by Democratic Congressman John Delaney, now has a companion bill in the Senate, which reflects growing potential for the legislation. It was introduced by Democrat Michael Bennet and Republican Roy Blunt. The Senate bill also has nine co-sponsors, including prominent Republican Lindsay Graham and Democrat Mark Warner. The proposal in the House of Representatives also has gained additional support, with 25 Democratic and 25 Republican co-sponsors. But Congressional leaders have not indicated on which idea they agree. Other ideas to pay for infrastructure improvements include a gas tax, a sales tax on oil producers and corporate tax revisions. Many US roads and bridges are in poor condition following budget cuts and the current transportation bill expires in November. Congress is focusing on cash held overseas by US companies because many have been keeping profits in other countries to avoid paying the tax of up to 35 per cent for repatriated cash, which is one of the highest rates in the developed world. Last November, Democratic Senator Max Baucus proposed imposing a one-off 20 per cent tax on repatriated overseas cash held by US companies. Since then, Mr Baucus has been nominated to be the next US ambassador to China. US companies were criticised for failing to use their cash to create jobs in the US the last time they were given a tax holiday for repatriating cash, instead using it to reward shareholders. Of US companies, technology groups hold most of the estimated $2tn in cash held overseas. While companies such as Cisco have used some of the money to make overseas acquisitions, most of it sits idle in low-yielding investments. Last spring, a Senate panel said Apple used a complex web of offshore entities and US tax loopholes to avoid paying taxes on $44bn in offshore income over four years. Apple chief executive Tim Cook testified in Senate that the company pays all the required taxes in every region where it operates. The issue has also become a critical part of the global debate on taxation for multinational companies, with the subject coming up at the Group of 8 and Group of 20 summits of countries last year. Apple declined to comment on the infrastructure bill. Some tech companies are more focused on broad tax reform to tackle the issue of overseas cash, which could be addressed this year. But there are midterm elections in November, making it difficult to get any broad bills through Congress. Mr Delaney has carried out extensive due diligence and has talked to corporations that have expressed interest in the initiative, but an aide declined to identify them. The US Chamber of Commerce is also keeping track of the bill. Under the plan, companies could bring back a certain amount of overseas cash tax-free for every $1 they invest in bonds that would fund the rebuilding of roads and bridges. The bonds would pay an interest rate of 1 per cent. Additional reporting by Tim Bradshaw