Federal Action Agenda

The Tax Cuts and Jobs Act (TCJA) of 2017 was the largest change to the U.S. tax code in more than three decades. Major discussions around tax policy are likely to occur throughout this Congress.  

NLC calls on Congress to preserve the tax exemption on municipal bonds, and that means all municipal bonds, including Private Activity Bonds (PABs), eliminate the $10,000 cap on the State and Local Tax (SALT) deduction, and restore the tax exemption for advance refunding bonds. By restoring this essential tax exemption, cities, towns and villages would be able to refinance their debt to achieve lower interest rates, saving local taxpayer dollars and freeing up capital for additional infrastructure investments. 

Action and Legislation

Support H.R. 2772 to Protect and Expand Financing Tools for Municipal Infrastructure 
NLC calls on Congress to cosponsor H.R. 2772, the Investing in Our Communities Act, a bipartisan bill that would restore the tax exemption on advance refunding bonds. Local governments own and maintain the lion’s share of the nation’s infrastructure. By restoring this essential tax exemption, cities, towns and villages would be able to refinance their debt to achieve lower interest rates, saving local taxpayer dollars and freeing up capital for additional infrastructure investments. 

Resources

Curated Blogs