November 6, 2017

Tax Cuts and Jobs Act Proposes Sweeping Changes to Financing Tools for Municipalities, Nonprofits, Housing Agencies, and Others

On November 2, 2017, Chairman Kevin Brady of the House of Representatives Ways & Means Committee introduced the Tax Cuts and Jobs Act (the “Bill”). Although the Bill does not completely eliminate the tax-exemption for municipal bonds provided by the Internal Revenue Code of 1986, as amended (the “Tax Code”), the Bill proposes substantial changes that would eliminate major financing structures for a variety of projects. The provisions include:


  • Elimination of Tax-Exempt Private Activity Bonds
  • Elimination of Tax-Exempt Advance Refunding Bonds
  •  Prohibition on Tax-Exempt Financing of Professional Sports Stadiums
  • Elimination of Tax Credit Bonds
  • Elimination of New Markets Tax Credits
  • Elimination of the Historic Tax Credit
  • Effective Termination of the 4% Low-Income Housing Tax Credit
  • Repeal of the Alternative Minimum Tax
  • Reduction of the Corporate Tax Rate

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