Here is the detailed explanation of the Senate Democrats’ infrastructure proposal. It changes some of last year's tax bill provisions, such as modifying the individual corporate and income tax rates, in order to finance a variety of infrastructure projects.
Note on page 28 the proposal states that “it will ensure that state and local governments have flexibility to fund finance infrastructure projects as efficiently as possible, by eliminating arbitrary tax barriers for infrastructure projects that benefit the public. In addition, we will create a new direct – pay bond program for qualified infrastructure projects, deepening the lending market and allowing large investors, like pension funds, to more easily invest in building America's infrastructure.” With this level of detail it's pretty unclear what, if anything, there is here for nonprofit bond financing and more fundamentally this is more of political not practical legislation.
I believe that we will see some hearings on the president's and the Democrats’ proposals and other proposals but there probably will not be significant legislative action until possibly after the mid-term election. At that time, depending on who is in charge in the Congress, perhaps we will see legislative action which incorporates elements from various proposals. Most observers do not give infrastructure legislation much of a chance but that was said of tax legislation as well.
From our point of view, we are using this as an opportunity to pursue bank deductibility liberalization and we are supportive of attempting to reverse or modify the advance refunding ban. Legislation to that effect has been introduced although it has little chance of success. But, as with BQ, keep hope alive,right?
On the defensive side, we are concerned that in tax hearings on infrastructure Ways and Means Chairman Brady’s concept will surface that nonprofit and low income housing finance are not properly part of the private activity bond category and should not be subsidized. Although we built a strong case for our type of bonds last year we must continue to new renew and strengthen the case.
Note on page 28 the proposal states that “it will ensure that state and local governments have flexibility to fund finance infrastructure projects as efficiently as possible, by eliminating arbitrary tax barriers for infrastructure projects that benefit the public. In addition, we will create a new direct – pay bond program for qualified infrastructure projects, deepening the lending market and allowing large investors, like pension funds, to more easily invest in building America's infrastructure.” With this level of detail it's pretty unclear what, if anything, there is here for nonprofit bond financing and more fundamentally this is more of political not practical legislation.
I believe that we will see some hearings on the president's and the Democrats’ proposals and other proposals but there probably will not be significant legislative action until possibly after the mid-term election. At that time, depending on who is in charge in the Congress, perhaps we will see legislative action which incorporates elements from various proposals. Most observers do not give infrastructure legislation much of a chance but that was said of tax legislation as well.
From our point of view, we are using this as an opportunity to pursue bank deductibility liberalization and we are supportive of attempting to reverse or modify the advance refunding ban. Legislation to that effect has been introduced although it has little chance of success. But, as with BQ, keep hope alive,right?
On the defensive side, we are concerned that in tax hearings on infrastructure Ways and Means Chairman Brady’s concept will surface that nonprofit and low income housing finance are not properly part of the private activity bond category and should not be subsidized. Although we built a strong case for our type of bonds last year we must continue to new renew and strengthen the case.
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