AHA, others urge Congress to protect tax-exempt private activity bonds

AHA News Now

A coalition of 35 national organizations, including the AHA, today urged House and Senate leaders to “protect in full” the current federal income tax treatment of private activity bonds, as envisioned by the Senate version of the Tax Cuts and Jobs Act. “Our support of all tax-exempt bonds is grounded in the harsh reality that a loss or restriction of the tax-exemption of interest on these bonds would immediately increase costs to state and local governments and nonprofit organizations (such as nonprofit hospitals, universities and schools), in financing needed public services and the vital infrastructure that supports the economy,” the organizations wrote. “This increase in cost will ultimately be borne by taxpayers, homeowners, renters, students, health care patients, commuters, air travelers, businesses relying on seaports, and other constituents.” The group also expressed concern with a provision in both the House and Senate versions of the bill that would eliminate tax exemption for advance refunding bonds, and asked congressional leaders to delay the effective date to Dec. 31, 2018 or limit the provision to advance refunding of bonds issued after Dec. 31, 2017. House Speaker Paul Ryan (R-WI) and Democratic Leader Nancy Pelosi (D-CA) this week named members to the conference committee that will reconcile differences between the House and Senate bills. Senate leaders are expected to name conferees later today.

Topic: Advocacy and Public Policy
Tag: bonds

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