The Senate Finance Committee’s tax reform working groups have released reports providing policy options and recommendations from committee members on comprehensive tax reform. A report from the Community Development and Infrastructure Group, which has jurisdiction over bonds, does not recommend any changes to the tax treatment of municipal bonds, focusing instead on providing funds to the Highway Trust Fund. The muni bond exclusion did not make it in the top ten on a list of the most expensive individual income tax expenditures; however, the exclusion of bond interest for corporations, listed in the Business Income Tax Working Group’s report, was the 3rd most expensive corporate tax expenditure.
The reports can be seen here.