Inflation Reduction Act
SLGS Window Closing May 2, 2023
The US Department of the Treasury announced the suspension of sales of US Treasury Obligations – State and Local Government Series (i.e., SLGS), effective 10:00 a.m. ET, May 2, 2023. New subscriptions for SLGS received after such time will not...
FY 2021 Sequestration Reduction Rate for Direct Pay Tax Credit Bonds Set at 5.7%
According to the IRS website , the sequester reduction rate applied to payments made to issuers of direct pay tax credit bonds in fiscal year 2021 will be 5.7 percent . This percentage will apply to all subsidy payments scheduled...
IRS Relief for Governmental Issuers Seeking to Temporarily Buy Back VRDOs and Commercial Paper
Responding to volatility in the market and liquidity constraints caused by the COVID-19 pandemic, in Notice 2020-25 (the “Notice”), the IRS provides temporary relief for governmental issuers seeking to purchase their own tax-exempt variable rate demand obligations that are “qualified...
IRS Allows Telephonic TEFRA Hearings in Light of COVID-19
As a result of the prohibitions on public gatherings resulting from the COVID-19 pandemic, issuers of tax-exempt private activity bonds have been facing difficulty complying with the federal tax laws requiring that a public hearing be held to allow interested...
IRS Extends Due Date for First Quarter Form 8038 Filings
Summary As a result of the COVID-19 pandemic, in Notice 2020-23 the IRS extended the due date for issuers of tax-exempt obligations to file Forms 8038 or 8038-G for transactions that closed during the first quarter of 2020. Specifically, the...
Proposed Rules Addressing LIBOR Phase-out Help Ease Reissuance Concerns
Since the 2017 announcement that the London interbank offered rate (“LIBOR”) may be phased out after the end of 2021, the municipal finance industry has been concerned that changes to debt obligations and related financial products necessary to address the...
Webinar: 86th Legislative Session Recap
Bracewell is pleased to host a webinar about how the bills passed during the 86th Legislative Session affect Texas governmental entities, the debt issuance process and ongoing disclosure and transparency requirements. Please join us on August 14 to hear analysis...
SLGS Window Reopening; Sequestration Extended Through FY 2029
The Bipartisan Budget Act of 2019 (the “Act”), which suspends the federal debt limit through July 31, 2021, was signed into law on August 2, 2019. As a result, the U.S. Department of the Treasury has announced that it will...
FY 2020 Sequestration Reduction Rate Set at 5.9%
According to the IRS website , the sequester reduction rate applied to payments made to issuers of direct pay tax credit bonds in fiscal year 2020 will be 5.9 percent . This percentage will apply to all subsidy payments scheduled...
Is the Opportunity Now a Reality? IRS and Treasury Release Second Tranche of Opportunity Zone Regulations
After months of waiting, the IRS and the Treasury Department have released a second set of proposed regulations (the “ Second Tranche ”) relating to the opportunity zone provisions enacted as part of the Tax Cuts and Jobs Act of...
It's Official! Final Public Approval Regulations Now Reflect the 21st Century
Treasury has released final regulations (the “ Final Regulations ”) relating to the public approval requirements for private activity bonds (aka the “TEFRA approval” process). The Final Regulations effectively track the proposed regulations issued in 2017 (the “Proposed Regulations”), but...
How Governments Can Help Put the "Opportunity" in Opportunity Zones
First introduced by the tax reform legislation signed into law in late 2017, Opportunity Zones present a new opportunity for taxpayers to defer and/or eliminate tax liability and, at the same time, spur much needed economic development in underserved communities...
FY 2019 Sequestration Reduction Rate for Direct Pay Tax Credit Bonds Set at 6.2 Percent
According to the IRS website , the sequester reduction rate applied to payments made to issuers of direct pay tax credit bonds in fiscal year 2019 will be 6.2 percent . This percentage will apply to all subsidy payments scheduled...
After the Dust Settles: Recapping Certain Tax Reform Provisions Affecting Exempt Organizations
As is well known, on December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (the “Final Bill”) into law. During the course of this massive legislative effort, various provisions affecting tax-exempt organizations were proposed. While receiving less...
IRS Provides Issuers Of Tax-Advantaged Debt with New "DIY" Tools to Fix Nonqualified Use
On April 11, 2018, the IRS released Revenue Procedure 2018-26 (“Rev. Proc. 2018-26”), which provides an expansion of the remedial actions available to issuers of tax-advantaged bonds. Specifically Rev. Proc. 2018-26 provides: Additional options for issuers seeking to remediate private...