NABL Signs Letter to Congress Supporting Extension of ARRA Amendments to Section 265
Mar 12, 2010
NABL joined other municipal finance groups as a signatory to a letter to key Members of Congress supporting extension of temporary amendments to Section 265 of the Internal Revenue Code that were enacted in the American Recovery and Reinvestment Act (ARRA). The letter, which includes as an attachment an analysis of the provisions prepared by NABL, was sent to Congressional leadership in the House and the Senate and to key congressional committees. The letter explains how the amendments, which raised the "bank qualified" (BQ) limit and created a de minimis exception enabling banks to hold more municipal debt, have enabled many small governmental issuers and Section 501(c)(3) conduit borrowers of tax-exempt bonds to access critical financing in an economic environment that remains challenging. The letter follows a NABL Member Advisory, Extending ARRA Relief for Debt Issuance of Small Government Entities and 501(c)(3) Organizations, issued on February 3, 2010, that evaluated the case for extending these provisions. Other groups that signed the letter included: American Council on Education, American Hospital Association, Council of Development Finance Agencies, Government Finance Officers Association, National Association of College and University Business Officers, National Association of Counties, National Association of Health and Educational Facilities Finance Authorities, National Association of Independent Colleges and Universities, National Association of State Auditors, Comptrollers, and Treasurers, National League of Cities, and the U.S. Conference of Mayors.
The letter is available on the NABL web site here.