<div> <div> Hultgren, Ruppersberger Introduce Bipartisan Infrastructure Legislation   Feb 13, 2018 | Press Release       Reinstatement of advance refunding bonds wo ld save millions of dollars for Illinois communities   MDWashington,-02)introducedDC— U.S.legislationRepresentativestorestoreRandythetaxHultgrenexemption(R-forIL-14)advanceandC.A.refundingDutchRuppersbergerbondsthatwas(D-   advantagerepealedinofthefavorableTaxCutsinterestandJobsratesAct.toThisbuildfinancingessentialtoolinfrastructureallowsstatesprojects.andlocal governments to take       “States and local governments need flexibility for managing their finances so they can invest in saidinfrastructure like roads,“Inrecentbridges,years,hospitals,tax-exemptlibrariesadvanceandschoolsrefundingtosupportbondshaveour communities,”savedIllinoistaxpayers   important$80millionRep.Hultgrtoperstatesyearn.andon average.localgovernmentsGiventhatresponsiblyinterestratesplanningareexpectedforthetofuture.”increase, this tool is especially   “I’m proud to lead this bipartisan effort on behalf of local governments in Maryland who rely on this tool   cantofinancetohelpprojectslocalgovernmentsthatbenefitcreateeveryone,”jobs whileCongressmanbuildingroads,Ruppersbergerschools,hospitals,said.“Wefireneedandtopolicedowhat we stations. When counties can issue an advance refunding bond, it saves taxpayers billions nationwide –   taxesandan.” average of nearly $37 million annually here in Maryland. This can translate into lower property       <table> <tbody> <tr> <td> </td> <td colspan="5">Joseph Mancin , Mayor of the Village of Hawthorn Woods</td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td colspan="8">“Utilizing advance refunding bonds has saved my community almost $1 million dollars in the last five</td> <td> </td> </tr> <tr> <td>years, said</td> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="3">. “These savings have been</td> <td> </td> </tr> <tr> <td colspan="8">passed on directly to our residents and would not have been possible without the use of tax-exempt</td> <td> </td> </tr> <tr> <td colspan="8">bonds. I urge Congress to consider restoring the tax-exempt status of these bonds so that we may</td> <td> </td> </tr> <tr> <td colspan="5">continue to invest in our critical infrastructure.”</td> <td> </td> <td colspan="2">Michael Kelly, Mayor</td> <td> </td> </tr> <tr> <td colspan="8">“The City of Harvard has taken advantage of the benefits of this tool in years past to provide savings to</td> <td> </td> </tr> <tr> <td colspan="3">of the C ty of Harvard .</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td colspan="6">bond holders when the situation of reduced interest rates has been realized,” said</td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td> </td> <td> </td> <td> </td> <td colspan="5">“The loss of the tax-exempt status removes the additional incentive which helps</td> <td> </td> </tr> <tr> <td colspan="8">make this an attractive tool and inhibits municipalities like the City of Harvard to better manage their</td> <td> </td> </tr> <tr> <td colspan="2">debt service.”</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td>Brad</td> <td> </td> </tr> <tr> <td colspan="5">Cole, Executive Direct of he Illinois Mu icipal League.</td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td colspan="7">“Local governments rely on many different financial tools to improve their communities,” said</td> <td> </td> <td> </td> </tr> <tr> <td colspan="2">allow cities a one-time</td> <td colspan="2">opportunity</td> <td> </td> <td colspan="3">“Tax -exempt advance refunding bonds</td> <td> </td> </tr> <tr> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="4">to refinance their debt, which then allows them to save money when</td> <td> </td> </tr> <tr> <td colspan="4">lower interest rates are available.”</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> </tbody> </table> While the Tax Cuts and Jobs Act protected the vast majority of municipal bonds—a key tool to finance infrastructure projects—the law repealed the exclusion of interest income earned on advance refunding bonds from federal income taxation. This change to the tax code makes it more expensive for states and local governments to take advantage of a favorable interest rate environment.   <a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">Congressman Hultg</a>during<a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">en fought</a>consideration<a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">topreserve</a>ofthe<a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">tax</a>Tax<a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">-exempt</a>Cutsand<a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">private</a>JobsAct<a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">activ</a>.While<a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">ty </a>the<a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">bonds</a>law <a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">and</a>preserved<a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">adance</a>tax-<a href="https://hultgren.house.gov/newsroom/press-releases/21-republican-members-of-congress-urge-leadership-to-protect-municipal">refunding bonds</a>   exempt private activity bonds, the tax-exemption for advance refunding bonds expired December 31, 2017. This legislation would restore its tax-exempt status. Original co -sponsors include Reps. Randy Hultgren (R-IL-14), C.A. Dutch Ruppersberger (D-MD-02), Luke Messer (R-IN-06), Ed Royce (R-CA-39), Dan Kildee (D-MI-06) and Michael Capuano (D-MA-07) .   ### </div></div>

Lawmakers Introduce Bill to Restore Advance Refunding Bond Exemption

Lawmakers Introduce Bill to Restore Advance Refunding Bond Exemption

U.S. House of Representatives

In a February 13 release, Reps. Randy Hultgren, R-Ill., and C.A. Dutch Ruppersberger, D-Md., announced legislation to restore the tax exemption for advance refunding bonds that was eliminated by the Tax Cuts and Jobs Act (P.L. 115-97).

<a href="/lr/resolve/source-document/1xck0" title="Source document">November 28 letter</a>

In a February 13 release, Reps. Randy Hultgren, R-Ill., and C.A. Dutch Ruppersberger, D-Md., announced legislation to restore the tax exemption for advance refunding bonds that was eliminated by the Tax Cuts and Jobs Act (P.L. 115-97).

In a February 13 release, Reps. Randy Hultgren, R-Ill., and C.A. Dutch Ruppersberger, D-Md., announced legislation to restore the tax exemption for advance refunding bonds that was eliminated by the Tax Cuts and Jobs Act (<a href="/lr/resolve/source-document/1xftl" title="Source document">P.L. 115-97</a>).