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Legislation Would Restore the Tax Break for Bonds Used to Refinance State and Local Debt
Route Fifty: A federal tax break for bonds that state and local governments have used in the past to refinance and restructure debt would be reinstated under legislation the bipartisan leaders of the U.S. House municipal finance caucus reintroduced this week.
The tax exemption for interest earned on “advance refunding” bonds was eliminated by the 2017 federal tax overhaul. This change was opposed by state and local government groups. Counties, mayors, and state treasurers, among others, have been pushing to get it reversed.
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