State and local governments and 501(c)(3) organizations have been given very flexible guidance by the IRS for longer-term private management of tax-exempt bond financed projects to facilitate general operations and major infrastructure initiatives. These safe harbors apply to any management contract that is entered into on or after August 22, 2016.

On September 14, 2016, at 12 p.m. ET, Ballard Spahr will host a webinar where we will explore how these flexible guidance rules will affect negotiations with service providers, how they can be used in combination with the mixed-use allocation rules, the influence this guidance can have on furthering public-private partnerships (P3), as well as what the guidance means for upcoming bond financings.

Our webinar will cover compensation guidelines for qualifying contracts and other topics including:

  • New guidelines for determining if the prohibition on compensation based upon net profits is violated;
  • The standards of quality of service, performance, and productivity used to determine the permissibility of incentive compensation;
  • Permissible arrangements, such as subordination of fees and fee reductions, that will not result in the service provider bearing net losses under the safe harbors;
  • Documenting the control that state or local government or 501(c)(3) organization may exercise over the managed property;
  • Specific representations of the parties to ensure consistent tax treatment of management contracts; and
  • The effective date of the safe harbors and continuing applicability of the safe harbor guidance from 1997

An summary of the new guidance can be found here: New IRS Management Guidance is Flexible, Furthers P3s.

Date & TIme

Wednesday, September 14, 2016
12:00 PM - 1:00 PM ET


Linda B. Schakel
Public Finance

Vicky Tsilas

Public Finance

This program is open to Ballard Spahr clients and prospective clients interested in recent developments in the IRS Management Contract Guidance. There is no cost to attend. This program is not eligible for CLE credits.

Please register at least two days before the webinar. Login details will be sent to all approved registrants. For more information, contact Lisa Prickril at


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