“To amend the Internal Revenue Code of 1986 to allow certain advance refunding bonds for public school districts to be tax-exempt.”
No CRS summary available for this bill.
This section permits state and local governments to issue tax-exempt advance refunding bonds for public school facilities (i.e., construction, rehabilitation, repair, or land acquisition), applying IRC §149(d) rules as in effect on December 21, 2017 (before the prohibition on such refundings), provided 100% of available project proceeds are used for those purposes and the issue avoids abusive arbitrage transactions (i.e., those exploiting arbitrage for material financial advantage beyond interest savings). It also disregards a specified restriction on the initial temporary period for spending bond proceeds (under IRC §148(f)(4)(C)) for such bonds. The amendments apply to advance refunding bonds issued after enactment.