IRS Rev. Rul.: Private Activity Bond Rules Do Not Apply, Others Do, for Tax-Exempt Qualification (IRC §149)

The IRS released a revenue ruling holding that because bonds issued by the Alaska Railroad Corporation (Railroad Corporation) to finance the construction, acquisition, and improvement of certain property constitutes an activity consistent with and related to the operation of the state railroad as contemplated by the Alaska Railroad Transfer Act of 1982, bonds issued by the Railroad Corporation to finance the construction, acquisition, and improvement of certain property are not required to satisfy the rules in I.R.C. §§141 through 147 to qualify as tax-exempt bonds under I.R.C. §103(a). However, such bonds are required to satisfy the rules in I.R.C. §§148, ...