WASHINGTON – Private activity bonds would play a major role in President Trump’s latest infrastructure plan, according to a purported leaked version of the plan.
The six-page document makes no reference to the administration but is being circulated by lobbyists and publications as the federal government has been shut down for three days. The government is expected to reopen later today or tomorrow through Feb. 8 after a series of votes by lawmakers.
The document sets forth PAB recommendations in a section called “funding principles.”
It says the tax law would be amended to allow broader categories of public-purpose infrastructure, including reconstruction projects, to take advantage of PABs and encourage more private investments in projects to benefit the public.
The plan would eliminate the alternative minimum tax as well as the prohibition on advance refundings for PABs. It would remove the state volume cap on PABs, as well as the transportation volume cap and expand eligibility in that category to ports and airports.
Congress or regulators would provide change-in-use provisions governing the change of use of tax-exempt bond-financed facilities to preserve the tax-exempt status of governmental bonds. The plan also would provide “change-of-use cures” for private leasing of projects to ensure the preservation of the tax exemption for core infrastructure bonds.
Under a section called “Principles for Infrastructure Improvements,”
the plan would give states the flexibility to toll on interstates and reinvest toll revenues in infrastructure.
The plan also calls for expanding the Clean Water State Revolving Fund, the Transportation Infrastructure Finance and Innovation Act program and the Water Infrastructure Finance and Innovation Act program.