Lend Your Voice to Preserve Tax Exempt Financing- Action Required by October 15th
During the August Conference, the CASA Federal Legislative Committee reviewed a number of pressing federal policy issues. Among these was the continued availability of tax exempt financing at the local level of government. As part of the ongoing tax reform discussion, Congress is considering whether this important infrastructure financing tool should be discontinued or restricted. The Administration has asked Congress to limit the tax benefits of this important financing tool to those taxpayers that fall within the 28 percent tax bracket. The elimination of all tax exempt financing at the local level of government also continues to be a risk.
An evaluation from a number of CASA agencies suggests that such a restriction would impose dramatic financial costs on CASA ratepayers, including hundreds of thousands of dollars in capital costs attributable to increased borrowing costs.
CASA is working with a broad coalition of public sector trade groups to advocate on behalf of the continued and unrestricted use of tax exempt bonds for public infrastructure. The growing uncertainty regarding how tax reform may unfold demands a heightened effort to identify the importance of this financing tool to clean water projects.
Please contact your members of Congress and urge them to reject any tax reform proposal that would curtail or eliminate the use of tax exempt bonds. In order to facilitate your contact with Members, CASA is attaching a model letter for your use. We request that you provide a copy of any communication that you send (and any response received) to the CASA Office.
If you have any questions on the letter, please contact either
Bobbi Larson (email@example.com) or
Eric Sapirstein (firstname.lastname@example.org).