Tax-exempt bonds

The municipal bond industry received no indication from Trump on whether his administration might support expanded use of tax-exempt bonds as part of infrastructure legislation this year.

The National Association of State Treasurers wants Congress to know its top priority is preserving the muni tax exemption.

GFOA’s goal is to get a majority of House members to sign a letter pledging not to touch the tax exemption as they debate new infrastructure funding proposals.

Rep. John Yarmuth of Kentucky wants to end automatic across-the-board budget cuts that include a reduction in the subsidy for direct-pay Build America Bonds.

The legislation would leverages $8 billion in federal investment into $226 billion worth of bond authority over the next 10 years.

It’s unclear if monthly federal subsidy payments on Build America Bonds will be made.

The Federal Register publication of the finalized PAB regulation takes effect April 1, but part of it can be implemented by issuers immediately.

The Internal Revenue Service has told bond attorneys that the law doesn’t explicitly say that veterans are a special needs population under the rules for the tax-exemption for multifamily private activity bonds.

The IRS letter ruling publicly released Friday allows floating private equity to be used for a prohibited use for a tax-exempt bond-financed airport terminal renovation.

The change in control of the House does end the threat of Republicans terminating the tax-exemption of private activity bonds to help pay for additional tax cuts, but the cost includes the loss of some industry allies such as Rep. Randy Hultgren, R-Ill.