Legal Alerts Nov 02, 2017

Tax Bill Impacts

Immediate, Critical Impacts on State and Local Governments

The U.S. House of Representatives Republican tax bill released today 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

If you have any questions about the tax plan and its impacts on your agency, please contact the authors of this Legal Alert to the right in the firm’s Public Finance and Government Relations practice groups, or your BB&K attorney.
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Disclaimer: BB&K Legal Alerts are not intended as legal advice. Additional facts or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information in this communiqué.

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