Daily Tax Report: State

House Infrastructure Bill Would Bring Back Muni Debt Refinancing

June 22, 2020, 7:05 PM

New language in an infrastructure bill introduced by House Democrats would undo limitations on advance refunding bonds put in place by the 2017 tax law in addition to offering other tax incentives aimed at financing building and rehabilitation projects.

  • NOTE: State and municipal governments use the bonds as a tool for refinancing debt at lower interest rates
    • To offset the budgetary impact of tax cuts the 2017 tax law limited a previous tax-exemption for advance refunding bonds
  • Bill would create a new tax credit for bond issuers like city, county and state governments to use for qualified infrastructure improvement
    • Credit...

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