The tax overhaul passed by the House on Thursday would make planned reconstruction projects at the Washington region's airports more expensive and could undercut other key infrastructure ventures, state and local officials said.

The House bill ends federal tax benefits on a kind of debt known as private activity bonds. The bonds are issued by governments or quasi-governmental organizations, such as airport authorities, and are used to finance projects that benefit both the public and private firms, such as a terminal that benefits travelers and restaurant owners.

As it stands today, investors who buy those bonds are willing to accept low interest rates because they don't have to pay federal tax on the interest earnings, said Emilie R. Ninan, a bond attorney and the public finance chair at law firm Ballard Spahr. The House bill eliminates the federal tax exemption. That means investors' "costs are going to go up, and as a result they'll have to pass that along," Ninan said.

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