RE:     Request for Guidance under I.R.C. § 141 Relating to Application of Private Business Use Rules to Modern Technologies

Dear Mr. Bessent, Mr. Salinger, and Mr. Kies:

The National Association of Bond Lawyers (“NABL”) respectfully submits the attached request for guidance concerning the application of the private business use rules of Section 141 of the Internal Revenue Code of 1986 (“Code”) to uses of bond-financed facilities involving modern technologies.

Section 141 of the Code limits the amount of proceeds of tax-advantaged bonds that may be used in the trade or business of persons other than governmental units.  We believe additional guidance under Section 141 would provide much needed clarity and would promote uniformity in the application of the private business use rules with respect to incidental, remote, and tenuous use. The need for guidance is partially due to changes in technology and to market mechanisms that were not contemplated when the existing guidance was issued.  Examples include technologies such as wireless network technologies (such as 5G networks) and electric vehicle charging stations. In the enclosed comments, we request clarifications to the existing incidental use exceptions to private business use as well as exemptions for certain uses.  These comments were prepared by a working group comprising those individuals listed on Appendix 1 hereto and were approved by the NABL Board of Directors.

NABL is a nonprofit organization and specialty bar association of over 2,000 lawyers and public finance professionals whose purposes include, among other things, providing advice and comment at the federal, state, and local levels with respect to legislation affecting state and municipal obligations.  NABL believes that participating in the guidance process supports clarification of, and facilitates compliance with, tax laws and regulations.  Accordingly, NABL members would welcome the opportunity to discuss with you the enclosed comments to improve the application of Section 141 to modern technologies.

Thank you in advance for your time and attention.  I have asked our Director of Governmental Affairs, Brian Egan, to answer any questions you may have. We look forward to hearing from you.

Best,

M. Jason Akers

President
National Association of Bond Lawyers

CC:     

• Edward Killen, Commissioner, TE/GE, Internal Revenue Service
• Jeffrey Van Hove, Associate Chief Counsel, CC:FIP
• Vassiliki Tsilas, Deputy Associate Chief Counsel (Acting), CC:FIP
• Zoran Stojanovic, Assistant to the Branch Chief, CC:FIP:B5