August 2017

August 2017 update on FY 2018 federal budget sequestration affecting build America bonds and other direct pay subsidy bonds

Under current law, direct pay bond subsidy payments are subject to federal budgetary sequestration through fiscal year 2025.  On August 2, 2017, the Internal Revenue Service released a statement noting that the percentage reduction that will be applied to…

December 2016

IRS Releases Final Issue Price Regulations for Tax-Exempt Bonds

On December 8, 2016, the Treasury Department and the Internal Revenue Service released Treasury Decision 9801, which sets forth final regulations providing a revamped definition of the “issue price” of tax-exempt bonds under the arbitrage bond rules of…

August 2016

IRS Releases New Management Contract Safe Harbor Guidance for Tax-Exempt Bond Financed Facilities

On August 22, 2016, the Internal Revenue Service released Revenue Procedure 2016-44 (“RP 2016-44”), which lays out a new and significantly liberalized safe harbor model for management contracts affecting facilities that are financed with tax-exempt bon…

July 2016

Treasury and IRS Release Arbitrage Bond Regulations

On July 18, 2016, the United States Department of the Treasury and the Internal Revenue Service published a package of regulations revising and updating the “arbitrage bond” rules of Section 148 of the Internal Revenue Code. With certain exceptions, Se…

February 2016

February 2016 Update on Federal Budget Sequestration that Affects Build America Bonds and Other Direct Pay Subsidy Bonds

Under current law, direct pay bond subsidy payments are subject to federal budgetary sequestration through fiscal year 2025. On February 9, 2016, the Office of Management and Budget released the nondefense mandatory sequester percentage for fiscal year…

December 2015

Treasury Releases Final Allocation and Accounting Regulations

In late October 2015, the United States Department of the Treasury released comprehensive final regulations governing allocations and accounting under the “private activity bond” rules of Section 141 of the Internal Revenue Code. Section 141 of the Cod…