With aspects of the Tax Cuts and Jobs Act scheduled to expire in 2025, Congress may consider removing the tax exemption from municipal bonds that support local infrastructure projects.
Municipalities of all sizes rely on tax-exempt municipal bonds as a critical tool to finance infrastructure projects and essential public services. These bonds help fund everything from hospitals to roads, to schools and utilities. These projects are vital to the well-being of communities across the country.
The League’s federal partner, the National League of Cities (NLC) has partnered with the Government Finance Officers of America (GFOA) and is asking municipalities to share local projects that benefited from municipal tax-exempt bonds through its Built By Bonds campaign. They plan to highlight the projects when speaking to members of Congress in the new year. Please review the GFOA map for the types of projects that have been highlighted in other states.
The League has repeatedly supported the federal tax exemption on municipal bonds when Congress considered a repeal, with Conference resolutions in 2017, 2016, 2013, and 2012.
If you do share your story, please let Paul Penna know at ppenna@njlm.org.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.