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investments in public infrastructure. • Make it easier for more small counties, towns, <br /> Tax-exempt municipal bonds have been, and and villages to sell their bonds to banks by <br /> will remain, the most powerful and effective increasing the $10 million small issuer"bank- <br /> tool for financing public investments in public qualified" exception, a limit which has not been <br /> infrastructure. Congress could incentivize further updated permanently since 1986. <br /> investments in infrastructure, and it should focus <br /> on improving this incredibly powerful financing tool • End the sequestration of tax credit payments to <br /> with comprehensive municipal bond modernization Build America Bond issuers. <br /> legislation. <br /> These are consensus proposals developed by the <br /> A review of tax-exempt financing laws provides American Public Power Association and other state <br /> an opportunity to address the errors of the past, and local stakeholders. Implementation of these <br /> update provisions not amended in more than 30 proposals would go a long way toward facilitating <br /> years, and generally modernize the treatment of new investment in publicly-owned infrastructure. <br /> tax-exempt municipal bonds. <br /> MMUA Position <br /> Congress should: To jump-start the development of much-needed <br /> infrastructure by local governments, <br /> • Repeal the ban on advance refunding of bonds. Congress should support the continued use o.f tax- <br /> This ban has reduced the ability to refinance past exempt bonds and reinstate advance refunding of <br /> debt and increased the cost of issuing new debt. bonds. Congress should also increase the small- <br /> issuer"bank-qualified" exception from $10 million <br /> • Revisit private-use rules created more than to $30 million, exempt payments to Build America <br /> 30 years ago that are needlessly complex and Bond issuers from federal budget sequestration, <br /> punitively single out public power. and repeal outdated private-use rules. <br /> Tax-exempt bonds help finance <br /> municipal water projects,and <br /> a host of other public-interest ,t„.. <br /> infrastructure. .41it <br /> F � � <br /> .44 <br /> 2019 Federal Position Statements/5 <br /> 131 <br />