Public Finance and Infrastructure Investment Act of 1993

Public Finance and Infrastructure Investment Act of 1993 - Amends the Internal Revenue Code with respect to private activity bonds to repeal: (1) the disproportionate private business use test; and (2) the lower private business test for certain output facilities. Increases the private loan financing test for such bonds. Increases the annual issuance limit for small issuers whose governmental bonds are not subject to rebate. Repeals the $100,000 limitation on unspent proceeds under the one-year exception from arbitrage rebate requirements. Repeals the debt service-based limitation on investment in certain nonpurpose investments. Exempts the following bonds from the arbitrage rebate requirements under specified circumstances: (1) tax-exempt bonds; (2) bonds which are not private activity bonds; and (3) private activity bonds issued to finance property to be owned by a governmental unit or a tax-exempt organization. Increases the amount of tax-exempt obligations excepted from the pro rata allocation of interest expense of financial institutions to tax-exempt interest for qualified small issuers. Lowers the State ceiling on the volume cap for private activity bonds and provides an inflation adjustment. Provides a tax-exemption for distressed community economic development bonds. Excepts 50 percent of such bonds from the volume cap. Allows a deduction for such bonds as qualified tax-exempt obligations.