NACWA Requests Advance Refunding of Tax-Exempt Bonds in House's "Tax Reform 2.0"
(October 2, 2018) - The House voted to pass several bills last week comprising Tax Reform 2.0, a House Republican legislative package that would make permanent certain short-term tax cuts for individuals and small businesses.
In the lead up to the House passage of Tax Reform 2.0, NACWA joined numerous municipal finance associations requesting a vote to reinstate Advance Refunding of tax-exempt municipal bonds. As NACWA has reported, last year’s tax reform retained the tax-exempt status of municipal bonds—a critical financing tool for water infrastructure—but eliminated the option for bond issuers to pursue advance refunding.
Legislation to reinstate advance refunding had been introduced earlier this year by Reps. Randy Hultgren (R-IL) and Charles Albert “Dutch” Ruppersberger (D-MD).
Late las week, because the Tax Reform 2.0 package was considered certain not to pass the Senate, our congressional advocates for this issue decided to hold off their efforts and champion a vote at another time when it could be considered in tandem with another piece of legislation with a better chance of being signed into law.
NACWA will continue to monitor developments, and look for opportunities to address this issue. Contact Kristina Surfus, NACWA Legislative Director, to discuss.