On February 13, 2018, Representatives Randy Hutgren (R-IL), Dutch Ruppersberger (D-MD) and Luke Messer (R-IN), with full support of the BDA, plan to introduce bipartisan legislation that would fully reinstate the advanced refunding of municipal bonds.
Background
Municipal advanced refunding were repealed in the Tax Cuts and Jobs Act. Groundwork was laid by the BDA for potential fixes in 2018. Passage of this bill would fully reinstate the ability of state and local governments to advance refund tax-exempt municipal bonds, including private activity bonds and qualified 501 c (3) bonds.
2018 will be pivotal in this effort as Congress is expected to produce multiple technical fix packages in response to the passage of the Tax Cuts and Jobs Act.
Next Steps
Later today, the bill is expected to be formally announced. At that time, the BDA will send a Call to Action to membership. The BDA is currently coordinating lobbying efforts with the MBFA and the issuer community and grassroots engagement will be critical in the process of gaining support for this legislation. Your Member of Congress need to hear from you and any issuer clients.
On February 14, 2018, with support of the BDA, Representatives Randy Hutgren (R-IL), Dutch Ruppersberger (D-MD) and LukeMesser (R-IN) introduced bipartisan legislation, H.R. 5003, that would fully reinstate municipal advance refundings including private activity bonds and qualified 501c (3) bonds. A copy of the bill can be viewed here.
2018 will be pivotal in this effort as Congress is expected to produce multiple technical fix packages in response to the passage of the Tax Cuts and Jobs Act and is working towards a robust debate on infrastructure.
Call to Action
Now is the time to reach out to your Members of Congress and urge them to support H.R. 5003!
It is also vital that your issuer clients reach out to their Member of Congress. Their voice is needed for this legislation to advance.
A draft sample letter for you to send can be viewed here.
You can find your House of Representatives contact information to submit the letter here.
Please send us a copy your final letter so that we can follow-up with Member of Congress staff members.
We also ask that you call your Members office and ask to discuss co-signing the bill with the tax legislative-aide. Multiple points of contact within the office will be beneficial.
Bond Dealers of America
February 14, 2018