1. Established. Informed. Engaged.
Private Activity Bonds: The Road Ahead Matthew Hoekstra, Principal Williams & Jensen February 7, 2018
Established. Informed. Engaged.

2. PABs and Tax Reform Original House Tax Proposal:
“Interest on newly issued PABs would be included in income and thus subject to tax. The provisions would be effective for bonds issued after “
Raises $38.9B over 10 years
Senate proposal was silent on PABs, and this provision was left out of the final bill
Bill terminated tax-exempt advanced refunding bonds and tax credit bonds issued after December 31, 2017
Impact

3. Opportunities - Infrastructure
Trump Transportation Funding Principles: Amends 26 U.S.C. 142 to allow broader categories of public purpose infrastructure, including reconstruction projects, to take advantage of PABs and would encourage more private investment in projects to benefit the public.
Elimination of the AMT provision and the Advance Refunding prohibition on PABs
Elimination of the transportation volume caps on PABs and expend eligibility to ports and airports
Removal of state volume cap on PABs
Provide change-of-use provisions to preserve the tax exempt status of governmental
Require public attributes for core public infrastructure projects
Provide change-of-use cures for private leasing of projects to ensure preservation of tax exemption for core infrastructure bonds
Advanced Refunding Legislation
Other PABs Enhancements, i.e. the Student Loan Opportunity Act (H.R. 480)

4. Threats
Nearly $40 billion pay-for that House Ways & Means Committee (and full House) is on the record supporting
As proposals like increasing the gas tax inevitably fall out of favor, Congressional leaders will look to other ways to finance infrastructure bill
There is a strong sentiment among some on Ways & Means and others in the House that there are abuses with PABs – the passage of tax reform did nothing to address their concerns
Variety of proposals to repeal or “reform”
New types of bonds