AGC-Supported Private Activity Bonds Legislation Re-Introduced

After a great deal of effort this Congress, legislation removing the volume cap on private activity bonds for water and sewer infrastructure was re-introduced in the House. Sponsoring the legislation this time around, in the wake of the retirement of our previous Republican champion Rep. Geoff Davis (R-Ky.), is Rep. Jimmy Duncan (R-Tenn.) with lead Democrat Rep. Bill Pacrell (D-N.J.). Private activity bonds are a form of tax-exempt financing used to attract private investment for projects that have public benefit, usually in the form of a public-private partnership arrangement. Each state has a cap on the volume of these bonds in can issue in a given year, set by Congress. This legislation would exempt water and sewer projects from the annual state volume cap. This is expected to unlock two to five billion dollars for private investment in water and sewer infrastructure projects. AGC will be working to secure co-sponsors for this legislation and will be advocating for its inclusion in future infrastructure and/or tax legislation. For more information, please contact Scott Berry at (703) 837-5321 or berrys@agc.org