The National Association of State Treasurers (NAST) is urging Congress to reinstate a tax preference that was eliminated in the GOP tax-cut law, arguing that doing so would help state and local governments finance infrastructure projects.
The group wants Congress to restore the tax exemption for advance refunding bonds, which state and local governments issue to refinance their debt.
"Advance refunding bonds save money for taxpayers and free up money for additional infrastructure projects, by allowing state and local issuers to refinance bonds at a lower interest rate," NAST wrote in a letter this week to House and Senate leaders of both parties. "Last year, more than $100 billion in advance refunding bonds were issued, saving hundreds of millions of taxpayer dollars that could then be reinvested back into vital infrastructure projects."
