In the past few years, the IRS has changed its guidance on whether “management contracts” result in private business use for purposes of the restrictions on use of property financed with tax-exempt bonds. This update describes the new guidance and responds to questions that have arisen in their implementation.
The new rules are “safe harbors” set forth in IRS Rev. Proc. 2017-13. They apply to service contracts entered into or renewed on or after August 18, 2017 (except for certain renewals made pursuant to an option to renew).
Please see full publication below for more information.
