The U.S. Department of the Treasury (Treasury) has issued guidance providing immediate relief to issuers in certain circumstances:
- Provides temporary guidance regarding the public approval requirement under § 147(f) of the Internal Revenue Code (Code) for tax-exempt qualified private activity bonds, available here.
- Expands the temporary rule allowing governmental issuers to purchase certain of their own tax-exempt bonds, available here.
Temporary guidance regarding the public approval requirement:
A hearing conducted between May 4, 2020 and December 31, 2020 that is held by teleconference accessible to the residents of the approving governmental unit by calling a toll-free telephone number will be treated as held in a location that, based on the facts and circumstances, is convenient for residents of the approving governmental unit for the purpose of § 1.147(f)-1(d)(2). Provided the requirements of the preceding sentence are satisfied, governmental units are not precluded from offering additional access to the hearing by other telephone numbers or by internet-based meeting technology. Issuers may apply this revenue procedure retroactively to public hearings held telephonically before May 4, 2020 in response to the COVID-19 pandemic.
Expanded temporary rule allowing governmental issuers to purchase certain of their own tax-exempt bonds:
Solely for purposes of § 103 and §§ 141 through 150, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) will treat a tax-exempt qualified tender bond or tax-exempt commercial paper that is purchased by its governmental issuer on a temporary basis as continuing in effect without resulting in a reissuance or retirement of the purchased tax-exempt bond if the governmental issuer purchases the tax-exempt qualified tender bond or tax-exempt commercial paper during the permitted holding period and holds the bond or paper no later than the end of the permitted holding period.
On March 25, in response to the COVID-19 pandemic, NABL sent a letter to the U.S. Treasury asking it to address certain tax issues that may affect the functioning of the tax-exempt bond markets during the current outbreak of the novel coronavirus disease.
In the letter, NABL asked for the following:
(1) Clarity that, at least for a temporary period, TEFRA hearings are not required to be held in person; and
(2) Relief as it relates to the impact of self-liquidity on extinguishment and reissuance analysis.
You can find NABL’s letter here.
For any questions, please contact Jessica Giroux, Director of Governmental Affairs at [email protected], (518) 469-1565.