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Recently Enacted Legislation of Interest to the Bond Community

Announcement 2006-59 (Announcement of advanced notice of proposed rulemaking)
Bonds issed by or on behalf of Indian tribal governments are excluded from gross income only if the proceeds of such bonds are used for an "essential governmental function."

Notice 2006-65 (Excise Taxes With Respect To Prohibited Tax Shelter Transactions to Which Tax-Exempt Entities are Parties)
The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) includes new excise taxes and disclosure rules that target certain potentially abusive tax shelter transactions to which a tax-exempt entity is a party. The amendments have broad application to tax-exempt entities and their managers.

Gulf Opportunity Zone Act of 2005 - P.L. 109-135
The Gulf Opportunity Zone Act of 2005, signed into law as Public Law 109-135 on December 21, 2005, provides tax benefits for the Gulf Opportunity Zone and certain areas affected by Hurricanes Rita and Wilma. The “GO Zone Act” includes a number of provisions of particular interest to bond issuers.

Katrina Emergency Tax Relief Act (PL 109-73)
The Act waives certain requirements applicable to qualified mortgage bonds under section 143 of the Code for qualified residences by treating such residences as targeted area residences and increases the permitted amount of a qualified home improvement loan with respect to affected residences.

Energy Tax Policy Act of 2005 P.L. 109-58
The Energy Tax Policy Act of 2005, signed into law on August 6, 2005 added section 54 to the Code, introducing a new type of tax credit bond, the clean renewable energy bond (CREB).

The Safe, Accountable, Flexible, Efficient, Transportation Equity Act:: A Legacy for Users (SAFETEA-LU) P.L. 109-59
SAFETEA-LU, signed into law on August 10, 2005 created a new type of exempt facility eligible to be financed with tax-exempt bonds, the qualified highway or surface freight transfer facility.

Page Last Reviewed or Updated: 19-Apr-2014