House members urge Republican leaders to maintain PAB tax exemption

Thirty-nine Republican members of the House of Representatives yesterday urged Republican leaders to maintain tax exemption for private activity bonds in the final conference report on the Tax Cuts and Jobs Act. “Given the Administration’s stated priority for increasing investment in infrastructure, we believe the elimination of tax exempt private equity bonds would be a step in the wrong direction toward fulfilling the President’s goal,” they wrote. “In fact, it will make infrastructure projects more expensive and limit our ability to effectively leverage the public investment from the federal government. PABs are important financing tools in a wide range of projects from hospitals and schools to airports and local water facilities. There are currently well over $10 billion in PABs issued for a variety of projects across the country.” The letter was spearheaded by Rep. Sam Graves (R-MO). AHA also has urged House and Senate conferees to adopt the Senate position maintaining tax exemption for private activity bonds in the final tax bill, among other recommendations.