IRS Proposes Update And Streamlining Of Public Approval Under TEFRA

The Internal Revenue Service (the "IRS") and The U.S. Department of the Treasury (the "Treasury") proposed regulations on September 28, 2017 to update and streamline the public approval requirement applicable to tax-exempt private activity bonds issued by State and local governments (the "Proposed Regulations") as imposed under the Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA Notice"). Issuers must comport with the TEFRA Notice requirement (see section 147(f)) when issuing all types of tax-exempt private activity bonds, as defined in section 141(e).

Issuers can opt to immediately use the Proposed Regulations between the proposal date and the effective date, which still must be determined with respect to any new issuance for which public approval occurs after September 27, 2017. Otherwise the Proposed Regulations are prospectively effective upon being made final. Public Comments are being accepted on the Proposed Regulations for 90 days.