AGC was instrumental in advancing the debate for a private activity bond (PAB) provision during the debate on the surface transportation reauthorization and funding measure last week in the House. The Performance Based Building Coalition is promoting the creation for a new category of Exempt Facility Bonds for public buildings (e.g. courthouses and universities) that would utilize public-private partnerships (P3s) to advance public projects and unlock the doors for private investment in our nation’s public building infrastructure.
During the debate for adding financing provisions to the House version of the highway bill, AGC and coalition partners were able to introduce a PABs amendment offered by Rep. Lee Zeldin (R-N.Y.). During the consideration phase at the House Rules Committee. The amendment’s merits were considered favorable, but due to a procedural House Budget rule known as Pay-Go, the amendment was not added to the underlying bill for debate on the floor. The Joint Committee on Taxation, the official scorekeepers, gave the PABs amendment a low budgetary impact score, due to the fact that Exempt Facility Bonds for public buildings would decrease the amount of tax-exempt debt at the state and local levels. With the momentum of a bill sponsor, favorable budget score, and support from various key members of Congress, AGC will continue to promote the financing legislation in upcoming must-pass legislation toward the end of the year.
For more information, please contact Brian Lenihan at lenihanb@agc.org or (202) 547-4733.