Bipartisan Bill Would Restore Tax-Exempt Advance Refunding Bonds

Reps. Randy Hultgren (R-IL) and C.A. Dutch Ruppersberger (D-MD) yesterday introduced legislation that would restore tax exemption for advance refunding bonds. The Tax Cuts and Jobs Act recently repealed tax-exemption for these bonds, which lower borrowing costs for hospitals and other tax-exempt entities. “Tax-exempt advance refunding bonds were an important financing tool that allowed 501(c)(3) hospitals to respond to credit market conditions to reduce the cost of capital,” said AHA Executive Vice President Tom Nickels in a letter of support for the bill. “They have resulted in billions of dollars of savings for hospitals and the health care system. Loss of the ability to restructure debt with tax-exempt advance refundings will divert resources from patient care and could diminish access to needed health care services.” Other co-sponsors on the bill include Luke Messer (R-IN), Ed Royce (R-CA), Dan Kildee (D-MI) and Michael Capuano (D-MA).