IRS Issues PLR Finding Water Purification Bonds Do Not Meet Private Business Tests

April 30, 2026, 8:17 PM UTC

The IRS has issued a private letter ruling on I.R.C. §141 clarifying that municipal water purification facility bonds will not meet private business tests when output is allocated to governmental entities and general public users rather than private entities under specific allocation rules. [PLR 202617001]

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