This bill would change the Internal Revenue Code to allow "advance refunding" of certain bonds again. It updates section 149(d) with new numbered rules. The changes: it defines issues that can be advance refunded, treats some private activity bonds (but not qualified 501(c)(3) bonds) differently, and sets conditions for other bonds. Conditions include limits on how many times a bond can be advance refunded depending on when it was issued, rules about when refunded bonds must be redeemed, limits on how long temporary investment periods last, and limits on higher‑yielding nonpurpose investments of refunded bond proceeds. The bill adds an anti‑abuse rule that blocks advance refunding when a device is used mainly to get extra arbitrage profit rather than interest savings. It also adds special counting rules for bonds issued before the law changes and makes a conforming change to section 148(f)(4)(C) about the initial temporary period. The amendments apply to advance refunding bonds issued after the bill becomes law.
If you issue or hold municipal or similar bonds, this bill would allow advance refunding again under the specific rules in the text. The bill covers certain private activity bonds (excluding qualified 501(c)(3) bonds) and other bonds that meet the timing, redemption, investment, and savings tests listed. The bill does not include discussion of how often or by how much entities would use these rules.
No publicly available information in the bill text about budgetary costs, federal revenue effects, or other expenses.
No publicly available information in the bill text about proponents' statements or intended benefits.
No publicly available information in the bill text about opponents' statements or objections.