By Amanda Albright and Danielle MoranBloomberg
Zoos, ballet dancers and guide dogs are just some of the beneficiaries of what could be the biggest December for municipal bond sales in more than 30 years. Tax reform has electrified a market that is open to issuers of all stripes and once financed a Biblical theme park in Kentucky.
Both the House and Senate would limit a debt-refinancing tool known as advance refundings. The House bill in its current form would take away the tax break for so-called private activity bonds, which allow hospitals, airports, housing developers and other businesses to finance projects at low interest rates.
There’s still a chance the rules won’t change. On Tuesday, House Ways and Means Chairman Kevin Brady said the proposed removal of the tax exemption for private activity bonds is being re-examined, raising the possibility that lawmakers aren’t necessarily going to roll back the tax breaks for the bonds completely.The risk that Congress may pull back subsidies from a large chunk of the municipal-bond market has caused a potentially record-setting rush to borrow before the end of the year. Among them are the following muni-bond deals, all sold or marketed since tax reform talks kicked into high gear in November.
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