Fulfill Your Ethics Credit Requirements

This is your last week to register for the Wednesday, December 14, 2016 Ethics Teleconference, Playing it Safe:  Reducing Your Potential Liability in a Bond Transaction” and to fulfill your ethics credit requirements before the end of the year.The teleconference will provide participants with a practical overview of some of the areas where legal liability may arise for bond lawyers and offer strategies to alleviate these risks.  The cost is $195 for members ($295 for non-members).  The deadline to register is Monday, December 12.  All registrants will receive the teleconference materials and dial-in instructions via email on Tuesday, December 13. 

NABL Submits Additional Comments on Safe Harbor Conditions

On November 22, NABL submitted comments regarding revisions to the safe harbor conditions set forth in Revenue Procedure 2016-44.  NABL has requested revisions to Rev. Proc. 2016-44 to address concerns that could limit the usefulness of safe harbors.  The comments are available here.  



Tax Reform On Its Way

The election of Donald Trump and the Republicans holding their majorities in the House of Representatives and the Senate means that there will be an effort, probably a successful one, to enact tax reform.  The exemption of interest on state and local obligations is at serious risk of being curtailed or even eliminated.  The Trump campaign put out its tax reform proposals that largely mirrored the tax reform plans put out by the House Republican leadership earlier in the year.  Neither mentions municipal bonds, but the House proposal does include a provision that says that interest would have a 50 percent exclusion.  It is unclear whether this refers just to currently taxable interest or to all interest, including interest on state and local obligations.  It is also possible that some version of the proposals by the Obama administration to cap the value of the tax exemption at the 28 percent bracket could be proposed.  NABL members should contact their members of Congress, and urge their issuers clients to do so also, and make sure they understand the importance of municipal bonds.  NABL has a tax reform resource page with information and sample letters.

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