Rep. Randy Hultgren, R-Ill., and Rep. Dutch Ruppersberger, D-Md., co-chairs of the Municipal Finance Caucus, introduced legislation Tuesday to restore the tax exemption for advance refunding bonds that was repealed in the Tax Cuts and Jobs Act.
“States and local governments need flexibility for managing their finances so they can invest in infrastructure like roads, bridges, hospital, libraries and schools to support our communities,” Hultgren said in comments Tuesday before state treasurers at their legislative conference in Washington.
“In recent years, tax-exempt advance refunding bonds have saved Illinois taxpayers $80 million per year on average,” Hultgren said. “Given that interest rates are expected to increase, this tool is especially important to states and local governments responsibly planning for the future.”
Advance refunding bonds are a bond issuance used to pay off another outstanding bond.