As The Rolling Stones sang, \u201cYou can\u2019t always get what you want, but … you get what you need.\u201d \u00a0The long-awaited final version of the tax bill was anounced on Friday, December 15, 2017. \u00a0For charter schools, the outcome was mostly what we needed.<\/p>\n
Private Activity Bonds (PABs), which include 501 c 3 bonds that are the basis of the vast majority of charter school tax-exempt bond issues, were NOT eliminated as originally proposed by the House. \u00a0Neither were New Markets Tax Credits (NMTCs), so two very important sources of facility funding for charter schools will remain. \u00a0Advanced refundings (AR), which refinance outstanding tax-exempt bonds more than 90 days prior to the call date on the outstanding bonds, were eliminated beyond December 31, 2017. \u00a0This will have a minor impact for charter schools, for example in states where some sort of enhancement is available (as schools which didn\u2019t originally qualify for state enhancement later become qualified). \u00a0However, given that the interest rate environment has been low for a while, I don\u2019t expect a huge impact here. \u00a0Finally, we can analyze the benefit of shortening the optional call date on new issues going forward to help offset the loss of AR. \u00a0Also eliminated were bonds whose name began with \u201cQualified\u201d, such as Qualified Zone Academy Bonds (QZABs) and Qualified School Construction Bonds (QSCBs), whether on a tax-credit or direct pay basis. In the case of QSCBs, most of that allocation had been used anyway, but the loss of QZABs will have a minor impact for charter school facility finance. \u00a0Other items eliminated were energy-related tax credit bonds called\u00a0Qualified Energy Conservation Bonds (QECBs) and Clean\u00a0Renewable Energy Bonds (CREBs). \u00a0 The final bill is expected to pass both houses when they vote the week of December 18. \u00a0After much drama and many twists and turns, charter school facility finance will largely be Business As Usual (BAU).<\/p>\n","protected":false},"excerpt":{"rendered":"
As The Rolling Stones sang, \u201cYou can\u2019t always get what you want, but … you get what you need.\u201d \u00a0The long-awaited final version of the tax bill was anounced on Friday, December 15, 2017. \u00a0For charter schools, the outcome was mostly what we needed. Private Activity Bonds (PABs), which include 501 c 3 bonds that… read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-89","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/posts\/89","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/comments?post=89"}],"version-history":[{"count":6,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/posts\/89\/revisions"}],"predecessor-version":[{"id":101,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/posts\/89\/revisions\/101"}],"wp:attachment":[{"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/media?parent=89"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/categories?post=89"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/tags?post=89"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}