The American Bankers Association Securities Association last week joined six other industry groups in a letter to Senate leaders supporting a bipartisan bill that would permanently reinstate the federal tax-exemption for interest on advance refunding municipal bonds. S. 4129, the Lifting Our Communities through the Advance Liquidity for Infrastructure Act, was introduced by Sens. Roger Wicker (R-Miss.) and Debbie Stabenow (D-Mich.) and would save state and local issuers an estimated $2.35 billion per year, the groups noted.
The associations also supported S. 4203, the American Infrastructure Bonds Act, a bipartisan bill introduced by Wicker and Sen. Michael Bennet (D-Colo.) that would authorize a direct pay subsidy for American Infrastructure Bonds, allowing state and local governments to attract taxable bond investors, such as pension funds and foreign investors, to invest in infrastructure projects.