The U.S. House of Representatives Republican tax bill released yesterday would impact state and local government issuers of tax-exempt bonds in a few significant ways.

It would eliminate the tax exemption from advance refunding bonds issued after Dec.31, as well as tax credit bonds issued after 2017.

It would eliminate the tax exemption for private activity bonds (including 501(c)(3) bonds) issued after Dec.31.

It would also eliminate the tax exemption for bonds for professional sports stadiums issued after today and eliminate all tax credit bonds issued after Dec. 31.

Issuers contemplating the issuance of advance refunding bonds, tax credit bonds or private activity bonds should carefully consider issuing their bonds this year.

It is also worth noting that while the overall goal of the bill was to simplify the tax code, there will be critical impacts on state and local governments with the deduction of state and local income taxes and sales taxes.

Learn more:
“Tax Reform: What D.C.’s Actions Could Mean for Public Agencies,” a BB&K webinar presented Wednesday.
“The Proposed Tax Plan: What Public Agencies Should Know,” BBKnowledge

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