The US Congress has passed the final Tax Cuts and Jobs Act legislation, including provisions related to tax-empt bond financing and wind energy production tax credits.
The American Association of Port Authorities (AAPA) has welcomed the legislation, which the organisation says addressed several important tax related policy priorities.
"Public port authorities throughout the country are investing billions of dollars in needed infrastructure improvements. With private activity bonds (PABs) providing a significant source of financing for these projects, AAPA worked with several transportation and bond-related coalitions to strongly advocate against the elimination of tax exempt status for PABs," explained Kurt Nagle, AAPA's president and ceo.
"We're extremely pleased that the final legislation keeps the tax-exempt status for PABs. This provision will help foster investments, not just in and around ports, but also in needed infrastructure development throughout the nation.
"It was estimated that ports would have had to pay approximately USD19 million in extra debt service costs for every USD100 million borrowed had the PAB tax exemption been lost. These significantly increased costs would have harmed ports' ability to make needed investments, and likely would have delayed or even killed some projects," said Nagle.
The organisation also praised the continuation of the existing level of wind energy production tax credits as another "win" for ports, and for all engaged in wind energy.
The association, along with other groups, had also urged continuation of the tax-exemption on advance refunding of municipal bonds. However, the final legislation takes away the tax-exempt status of advance refunding, which is likely to increase the cost of public infrastructure investments.