Jennifer DePaul

WASHINGTON — The American Public Power Association has adopted a resolution that calls for the preservation of tax-exempt financing and supports any proposed legislation that would ease private-use restrictions for public power utilities using tax-exempts to finance facilities.

The liberal think tank the Center for American Progress has proposed a plan to promote a new source of financing for troubled state housing finance agencies — the House America Bond.

Several bond lawyers said they were pleased the IRS settled a tax dispute over a $10.2 million of BABs issued by Half Moon Bay, Calif., in 2009 by reducing its subsidy payment from the federal government to 29% from 35% of interest costs.

SAVANNAH, Ga. — The Treasury Department is planning to propose regulations on issue price and other arbitrage-related issues, including long-term working capital grants, John Cross 3d, Treasury's associate tax legislative counsel, told bond lawyers meeting here Thursday.

SAVANNAH, Ga. — William Daly has been tapped to become director of governmental affairs for the National Association of Bond Lawyers later this month.

WASHINGTON — Issuers of two kinds of direct-pay bonds will have to file separate 8038-CP forms for each maturity of their bonds, the Internal Revenue Service said in revisions to the forms released Wednesday.

WASHINGTON — This year, the volume of municipal debt issuance is expected to increase from the suppressed levels in 2011 caused by curtailed federal spending, federal cuts to Medicaid and Medicare, and pent-up capital requirements and borrowing needs, according to a report Moody's Investors Service released Monday.

Since the 2008 economic downturn, 35 states have reduced their pension benefits to cut costs and improve the long-term sustainability of their plans in the wake of investment losses and budget pressures, according to a report released by the Government Accountability Office on Friday.

In a rare sign of bipartisanship, the Democrat who chairs the Senate Budget Committee and a Republican agreed Thursday that curbing or eliminating tax expenditures should be the centerpiece of a tax-reform package, which is needed to the reduce the nation's federal deficit and improve anemic economic growth.

WASHINGTON — House Minority Whip Steny Hoyer, D-Md., urged Congress on Monday to "go big" on deficit reduction before the November election and said he believes there is "broad consensus" for a comprehensive plan similar to those proposd by the Bowles-Simpson and Domenici-Rivlin commissions.

The Treasury Department is considering issuing interim guidance that would clarify how qualified energy conservation bonds can be used after 12 House Democrats sent a letter to President Obama requesting the guidance, according to congressional staff.

The Internal Revenue Service is auditing $346.6 million of general obligation refunding bonds unlimited tax series and $50.79 million of GO refunding bonds limited tax series issued by the Metropolitan Water Reclamation District of Greater Chicago in May 2006.

Seventeen muni groups are urging members of Congress to reject President Obama's proposal to place a 28% cap on the value of tax-exempt interest, warning it will hurt the market and that its retroactivity will reverse nearly 100 years of legislative history.

Sen. Sherrod Brown, D-Ohio., introduced legislation on Thursday that would extend the repayment period for clean water state revolving fund loans to 30 years from 20 years.

WASHINGTON — As part of its initiative to gauge compliance with arbitrage requirements, the Internal Revenue Service is auditing $43.45 million of Series 2006 general obligation refunding bonds that were issued by the St. Vrain Valley, Colo., School District in April 2006 to advance refund its Series 1997 bonds.

WASHINGTON — The Internal Revenue Service is auditing $31.59 million of Series 2004A first mortgage revenue bonds that were issued by the St. Johns County Industrial Development Authority in August 2004 to help Presbyterian Retirement Communities Inc. and its affiliates finance improvements to eight retirement centers in Florida.

A group of Democrats and an independent lawmaker in the Senate have introduced a bill that would codify the so-called Buffet Rule by imposing a minimum 30% tax rate on taxpayers whose adjusted gross income exceeds $1 million, including capital gains and dividends.

WASHINGTON — Rep. Tim Huelskamp, R-Kan., has introduced legislation that would repeal the individual alternative minimum tax, potentially lowering the borrowing cost and improving the marketability of private-activity bonds.

President Obama's fiscal 2013 budget will propose a 28% cap on the value of tax preferences, including tax-exempt interest for municipal bonds, according to knowledgeable sources.

Senior White House economic advisors have told state and local officials that tax-exempt bond interest is "off the table" and will not be part of the administration's proposed 28% cap on the value of exclusions, deductions and other tax preferences for wealthy taxpayers, according to those familiar with the discussions.