Private activity bonds

The California Housing Finance Agency made its first use of a program that enables it to issue bonds beyond its yearly private activity bond cap.

Without giving a reason, Florida’s bond-funded passenger rail developer severed ties with Virgin and said the train system’s name will revert to Brightline.

The letter, which includes signatures by 42 Republicans, requests an enhancement to the 4% Low-Income Tax Credit.

Federal authorities arrested Ohio House Speaker Larry Householder on charges he took bribes to support legislation that benefited bankrupt FirstEnergy.

A new law allows state agency Space Florida to sell revenue bonds for private aerospace firms without requiring approvals from the state governor or cabinet.

Citing market turmoil from the pandemic, a California conduit issuer gave the Virgin Trains USA project a five-month extension to sell $3.25 billion of debt.

Highlights of a House Democrat legislative package include a new series of taxable direct-pay bonds that would start with a federal 42% subsidy for interest expenses.

The Move America Forward Act would permanently reinstate Build America Bonds, advance refundings and expand the issuance of private activity bonds.

PABs represented 25.4% of all tax-exempt bonds issued in 2017, up from 21.5% in 2016.

Indian River County petitioned the court to overturn its unsuccessful appeal against the U.S. Department of Transportation and the passenger train operator.

IRS General Counsel Michael Desmond said Wednesday his office has received “a number of requests” for extending deadlines.

The IRS also announced temporary guidance providing relief for the calendar year 2020 regarding the reacquisition of qualified tender bonds and commercial paper.

Virgin Trains USA hopes to sell tax-exempt bonds from its $600 million California allocation this summer.

"Like all businesses, we are operating in a period of uncertainty which may last several months," Virgin Trains/Brightline President Patrick Goddard said.

The IRS has informally responded to a letter from NABL asking for a reduction in the high fee it charged for private letter rulings.

More private money would be invested in infrastructure if Congress expands the use of PABs and P3s.

Some muni market members don’t see hope for an infrastructure bill passing in 2020, even though Trump called for it in his address.

The $760 billion, 5-year plan also calls for expanding qualified private activity bonds, reinstating tax credit bonds, and more bond-friendly provisions.

The California Debt Limit Allocation Committee wants more information on the request for $600 million of private activity bond allocation.

Indian River County won’t pursue the federal litigation further, but it will proceed with a lawsuit in state court over the use of its railroad crossings.