Referred to the House Committee on Ways and Means.
This bill amends the Internal Revenue Code to reinstate advance refunding of municipal bonds that was previously restricted. It authorizes advance refunding for certain private activity bonds (excluding qualified 501(c)(3) bonds) and other bonds, subject to limits on the number and timing of advance refundings, redemption timing, investment-of-proceeds restrictions, and anti-abuse rules.
Progressives stress public service benefits; conservatives stress tax-expenditure concerns.
Narrow, popular with local issuers and relatively technical; revenue loss may still prompt some opposition.
This bill amends the Internal Revenue Code to reinstate advance refunding of municipal bonds that was previously restricted.
It authorizes advance refunding for certain private activity bonds (excluding qualified 501(c)(3) bonds) and other bonds, subject to limits on the number and timing of advance refundings, redemption timing, investment-of-proceeds restrictions, and anti-abuse rules.
The bill adds special rules requiring that refundings produce present-value debt-service savings to trigger certain redemptions, establishes a minimum 90-day earliest redemption date in some cases, and clarifies treatment of the initial temporary period.
Technically narrow and administrable, but creates revenue loss and needs bipartisan dealmaking or inclusion in a larger tax package.
How solid the drafting looks.
Progressives stress public service benefits; conservatives stress tax-expenditure concerns.
These are examples from the analysis, not a ranked list of the most-affected groups.
Progressives stress public service benefits; conservatives stress tax-expenditure concerns.
Likely cautiously supportive: sees reinstating advance refunding as a tool to lower local borrowing costs and free funds for public services.
Concerned about allowing private activity bonds and potential arbitrage or misuse without strong community benefit and oversight.
Pragmatic, somewhat favorable but wants fiscal and technical details.
Views bill as returning a useful municipal finance tool while flagging potential budgetary cost and abuse risks needing guardrails and a CBO score.
Moderately supportive on grounds it helps state and local governments refinance and reduce costs.
Skeptical about restoring a federal tax preference and cautious about subsidizing private actors and financial-industry arbitrage opportunities.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically narrow and administrable, but creates revenue loss and needs bipartisan dealmaking or inclusion in a larger tax package.
The bill has not accumulated any surfaced votes yet.
Progressives stress public service benefits; conservatives stress tax-expenditure concerns.
Technically narrow and administrable, but creates revenue loss and needs bipartisan dealmaking or inclusion in a larger tax package.
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