Background
As part of the 1982 Tax Equity and Fiscal Responsibility Act
(TEFRA), Congress implemented new rules pertaining
to the issuance of tax-exempt private activity bonds. The so-called
TEFRA regulations required a local government issuer to, among
other things, satisfy a "public approval" process prior
to issuing taxexempt bonds for the benefit of a private party.
While the IRS has long considered amending the TEFRA regulations,
no official amendment has occurred in more than three decades. This
changed, however, with the Treasury Department's publication of
new regulations on December 31, 2018.
Beginning April 1, 2019, issuers of qualified private activity
bonds will be governed by a new set of TEFRA regulations (the
Final TEFRA Regulations). The Final TEFRA
Regulations, which stem from the Treasury Department's 2017
Proposed Regulations (REG 128841-07, September 28, 2017), retain
many of the procedures and requirements described in the 2017
Proposed
