This afternoon, the Tax Cuts and Jobs Act will be showcased in an open conference meeting, the first public debate on the package since passage of both the House and Senate. The meeting will be followed by President Trump giving a speech many view as the final remarks before the conference committee moves to finalize their report by Friday, December 14th.
By all accounts, the meeting today is a formality, with most negotiations happening at the staff level and out of the public eye. But this is a necessary step in what seems like a process that is picking up in speed and urgency.
The surprise outcome of the special election in Alabama last night likely cemented the passage of the tax package in 2017. The crucial loss of a Republican vote narrowed the already slight majority to 51-49, forcing Republican leadership to expedite the vote to before Senator-elect Jones is sworn in.
Some Clarity on PABS Emerging
While Chairman Brady has not publically changed his stance on private-activity bonds for “infrastructure only,” intelligence from Capitol Hill is emerging that shows support for PABs from both House and Senate leadership.
The Senate is holding the line, lead by Majority Whip and conferee John Cornyn (R-TX). Senator Cornyn has been a vocal supporter of maintaining PABs in both public and private deliberations and continues to be a champion.
On the House side, Transportation and Infrastructure Subcommittee on Highways and Transit Chairman Sam Graves (R-MO) has taken the lead, circulating a letter of support for PABs that has accumulated over 20 Republican signatures.
The BDA and MBFA continue to work with our partners on Capitol Hill to ensure that PABs will be fully retained and will continue to receive updates by the hour as the debate progresses.
BDA Strategy
As deliberations progress on Capitol Hill, the BDA has continued to engage and collaborate with our issuer partners in an effort to maintain current law concerning private-activity bonds and delay the effective repeal date of municipal advance refundings. Under proposed law, all changes within the tax package are set to take effect on December 31, 2017, a problematic date for many stakeholders.
With support of the BDA and MBFA, issuers and industry represenatives are rallying together to have a singular message on the Hill, to support a one-year delay in the effective date of the municipal advance refundings repeal and permit the grandfathering of outstanding bonds while working tirelessly to fully preserve private-activity bonds.
The goal of this effort is to create an opportunity in 2018 to fight for further transition relief and promote possible no-cost alternatives to full repeal.
Groundwork has been laid for policy alternatives and the BDA and MBFA will continue to discuss opportunities with issuers and partners on Capitol Hill to modify our approach when necessary.
Next Steps
As the conference committee looks towards Friday for a public release of the final legislation and votes expected in both Chambers next week, the BDA will continue to provide updates as they become available.
