Archives: Exempt Facility Bonds

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Carbon Capture Legislation – Potential for a New Type of Exempt Facility Bond

On June 10, 2019, Senators Michael Bennet (D-CO) and Rob Portman (R-OH) introduced Senate Bill 1763 (the “Carbon Capture Bill”), which, if passed, would allow the issuance of exempt facility bonds for “qualified carbon dioxide capture facilities.”  The Carbon Capture Bill has bipartisan support as this bill encourages continued use of carbon-generating natural resources by providing … Continue Reading

IRS Releases Helpful Private Letter Ruling for Calculating the Weighted Average Economic Life of Bond-Financed Property (but Mind the Footnote)

On May 3, 2019, the Internal Revenue Service released Private Letter Ruling 201918008.  The IRS concluded in that PLR that an issuer of exempt facility bonds used a reasonable method, under all the facts and circumstances, to determine whether the term of an operating agreement entered into with a private party exceeded 80% of the … Continue Reading

IRS Allows Multifamily Housing Bonds to Finance Projects with Group Preferences

On April 3, 2019, the IRS published Rev. Proc. 2019-17, which provides that multifamily housing projects (or, for those of you who prefer Grey Poupon, “qualified residential rental projects”) won’t violate the general public use requirement even if the landlord offers units of the project to certain specific groups. Congress had made this point clear for low-income … Continue Reading

Revenue Procedure 2019-17 – The IRS Issues Helpful Guidance on Qualified Residential Rental Projects

On April 3, 2019, the Internal Revenue Service issued Rev. Proc. 2019-17, which provides that a qualified residential rental project will not fail the public use element of Internal Revenue Code Section 142(d), and therefore can be financed with exempt facility bonds (assuming, of course, that other requirements are satisfied[1]), if the project contains units that … Continue Reading

The Shutdown Can’t Stop the Release of the Final TEFRA Regulations

The most recent partial shutdown of the federal government has halted many operations of the U.S. Department of the Treasury, including those of the Internal Revenue Service.  The shutdown has, however, evidently left untrammeled the Treasury Department’s ability to promulgate regulations.  On Friday, December 28, the Treasury released final regulations under Internal Revenue Code Section … Continue Reading

First New Concourse Opens at LaGuardia Airport

On June 1, 2016, the New York Transportation Development Corporation issued over $2.25 billion in tax-exempt bonds as part of a public-private partnership to redevelop the Central Terminal building (known as Terminal B to passengers) at LaGuardia Airport in New York City.  As The Bond Buyer reported, the deal broke all kinds of records – it … Continue Reading

The Final Allocation and Accounting Regulations – What Do They Mean For “Phantom Investment Proceeds”?

The flexibility to reallocate proceeds to expenditures using an accounting method other than direct tracing has been a well-recognized and much-appreciated opportunity under the allocation and accounting rules of IRC section 141. The former proposed section 141 regulations (REG-140379-02, Sept. 26, 2006) (“Proposed Regulations”), now replaced by the final section 141 regulations issued October 27, … Continue Reading

Roddy Devlin and Bruce Gabriel on P3s in 2015 and Beyond

The Bond Buyer ($) has a piece by our own Roddy Devlin and Bruce Gabriel today, wrapping up the year in public-private partnerships in 2015, and looking forward to the future. They note one particularly important tax-focused point – Congress has enacted the Fixing America’s Surface Transportation Act, which removes the prohibition against combining tax-exempt bonds for … Continue Reading

Roddy Devlin and Greg Johnson on Public-Private Partnerships

Roddy Devlin and Greg Johnson, two of our experts on Public-Private Partnerships (which you may know as “P3s”), have an excellent overview in The Bond Buyer today ($) of how the federal, state, and local governments in the United States are warming up to the idea of using P3s for infrastructure projects. If you’re more of a … Continue Reading

Qualified Public Infrastructure Bonds – Fancy New Name; Familiar Old Rules

The new tax-advantaged bond programs in the 2009 Stimulus Act (P.L. 111-5) appeared out of nowhere (or, in the case of direct pay bonds, almost out of nowhere), and left many in the tax-exempt bond community swimming in new concepts for several months. Once everyone finally worked through the new questions (just what was a “permitted sinking fund … Continue Reading

The Bond Buyer Publishes Commentary by Squire Patton Boggs Attorneys on Qualified Public Infrastructure Bonds

The Bond Buyer recently published a commentary ($) prepared by Squire Patton Boggs’ lawyers Mike Cullers and Roddy Devlin,  on the proposal in the Obama Administration’s federal government budget for fiscal year 2016 to expand exempt facility bonds to include a new category – Qualified Public Infrastructure Bonds.  Please see this commentary for a primer on the applicable … Continue Reading
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