Introduced on November 9, 2017, the Senate Tax Bill would
maintain private activity bonds ("PABs"). With this
positive development, advocates will press Senate committee members
to reverse their decision to terminate advanced refundings as of
December 31, 2017. Advanced refundings represent almost 27% of the
bond market according to Thompson Reuters. The end of advanced
refundings would have a major impact on issuers and the market.
Advanced refundings provide flexibility to issuers, and their
termination would prevent issuers from taking advantage of
declining interest rate environments prior to the initial call
dates on outstanding bonds. The Senate Finance Committee will take
up deliberations this week shaping the final draft legislation
through their debate. Meanwhile, the House Ways and Means Committee
advanced to the full House its version of the Tax Cuts and Jobs Act
and is currently expected to vote on it on Thursday, November 16.
After both houses of Congress
