Legal Alert

Your Role in Protecting Tax-Exempt Bonds During Legislative Changes

by Benjamin W. Johnson, Marybeth Orsini, and Andrew T. Wang
February 3, 2025

Summary

President Trump has indicated that one of his key economic priorities is to extend the expiring provisions of the Tax Cuts and Jobs Act (TCJA). However, Congress still needs to resolve disagreements on the cost and funding of extending these provisions, with legislators looking at a variety of federal tax law provisions not historically under consideration, including tax-exempt bonds. To emphasize the importance of tax-exempt bonds as a critical financing tool for municipalities and other beneficiaries, individuals can contact their senators and representatives or submit projects to the Government Finance Officers Association (GFOA) Built by Bonds database, highlighting their positive benefits for their area of the country.

The Upshot

The Bottom Line

With a new tax bill on the horizon, it’s crucial to advocate for the continuation of tax-exempt bonds. You can help by contacting your elected officials and submitting your project to GFOA’s Built by Bonds database, ensuring tax-exempt financing remains available for your projects.

Since taking office, President Donald Trump has hit the ground running, with one of his administration’s top priorities being the extension of the expiring provisions of the Tax Cuts and Jobs Act (TCJA), which he signed into law in 2017. The TCJA is well known for its provisions lowering income tax rates for corporations and individuals while increasing certain deductions and credits, which have effectively reduced the federal government’s tax revenue. However, before a tax bill can be drafted and passed, Congress must resolve disputes on the total cost of extending the expiring provisions and how to pay for them. Some federal legislators are beginning to review the cost of numerous federal programs and tax provisions, including federally tax-exempt bonds.

Given these ongoing discussions, it is now more important than ever to engage in efforts that protect tax-exempt bonds, which continue to play a critical role in funding projects across the country. 

1. Advocate With Your Senators and Congressional Representatives

You can easily reach out to your elected officials and voice your support for the continuation of tax-exempt bonds, whether through a personal conversation, email, or letter. If you have established connections with your representatives, consider leveraging that rapport to emphasize the importance of tax-exempt bonds as a source of financing for your projects.   

2. Submit Your Project to the Built by Bonds Database

The Government Finance Officers Association (GFOA) hosts the Built by Bonds database, which highlights the positive impact of tax-exempt bonds across the country. Whether your project is large or small, entering it into the database helps show the tangible benefits these bonds provide to communities around the nation.

Submit your project details here: GFOA Built by Bonds Submission Form

An online resource from the University of Chicago provides information for each U.S. congressional district about state and local government units that use municipal bonds, the types of infrastructure investments financed, and patterns of municipal bond borrowing and investments both within and across regions. 

The more projects included, the stronger our collective advocacy will be. 

We encourage you to take a few moments to participate in these actions. Your engagement can help ensure that tax-exempt bonds continue to be a key option for financing a wide variety of important public and infrastructure projects.

If you have any questions or need assistance, please feel free to reach out to our Public Finance Group.

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