Tax-Exempt Municipal Bonds
NATaT supports maintaining the tax-exempt status of municipal bonds as a critical tool for generating investments in vital public infrastructure for localities, saving state and local governments hundreds of billions of dollars in interest costs over the last century.
Advance Refunding Bonds
Prior to the enactment of the Tax Cuts and Jobs Act of 2017, states and localities could issue tax-exempt advance refunding bonds. Such bonds were used to refund debt to lock in rates or restructure debt prior to a bond’s typical 10-year call date. As a result of the Tax Cuts and Jobs Act, issuers now must either wait for a bond’s call date to refund it or issue an advance refunding bond as taxable debt – no longer tax exempt; combined this can mean higher costs and less flexibility. NATaT supports preserving tax-exempt municipal bonds and reinstating tax-exempt advanced refunding bonds.
Tax-Exempt Status of 501(c) Organizations
NATaT supports maintaining the tax-exempt status of 501(c) organizations. Any change to the tax-exempt status of nonprofit associations would be woefully disruptive to the critical work NATaT and our member state organizations are doing on behalf of towns and townships across the country.
State and Local Tax Deductions
NATaT supports efforts to eliminate or increase the cap on state and local tax (SALT) deductions. The $10,000 cap on taxpayers’ ability to deduct SALT from their federally taxable income raises concerns among state and local governments, as those revenues support a variety of services, including funding for transportation, infrastructure, and public safety.
Low-Income Housing Tax Credit Program
NATaT supports actions to strengthen and expand the federal Low-Income Housing Tax Credit (LIHTC) Program, which plays a key role in financing affordable housing, to increase available credits and make tax credit equity usage more efficient.
