On October 27, 2015, the Internal Revenue Service (IRS) released final regulations on allocation and accounting (Final Regulations), and certain remedial actions for purposes of the private activity bond restrictions under the tax rules. Although issuers had to wait nine years for the proposed regulations to be finalized, the IRS provided welcome flexibility for financing projects with tax-exempt bonds and equity under the same plan of finance (mixed-use projects) as well as financing portions of public-private partnership (P3) projects with tax-exempt bonds. While this new flexibility will be a positive change in general, under the new rules planning and structuring opportunities exist for mixed-use projects that have long construction periods, will be completed in multiple phases, or are expected to be financed with multiple issuances of tax-exempt bonds. The Final Regulations generally apply to bonds sold, and deliberate actions that occur, on or after January 25, 2016. Issuers may apply the partnership provisions and the allocation and accounting rules in whole but not in part to any bonds to which the current regulations apply. Understanding how these Final Regulations work will be critical to structuring financings.

Topics

  • How the rules work
  • What the rules mean for structuring financings
  • Practical tips for complying with the rules

Date & Time

Wednesday, December 16, 2015
10:00 - 11:15 AM ET

Presenters

Vicky Tsilas, Partner
Public Finance

Linda B. Schakel, Partner
Public Finance

Kimberly C. Betterton, Partner
Public Finance

This program is open to Ballard Spahr clients and members interested in rulings and regulations that impact various project financing mechanisms. There is no cost to attend. This program is not eligible for continuing education credits.

Please register at least two days before the webinar. Login details will be sent to all approved registrants. For more information, contact Lisa M. Cheresnowsky at cheresnowskyl@ballardspahr.com.

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