AHA Urges Action on Removal of Tax Exemption for Private Activity Bonds

Posted on November 10, 2017

The American Hospital Association (AHA) issued an action alert the week of Nov. 6 urging nonprofit hospitals to contact U.S. representatives about a provision in the Tax Cuts & Jobs Act, the federal tax reform package that would eliminate the tax exemption for private activity bonds, including qualified 501(c)(3) hospital bonds. The bonds play a critical role in helping nonprofit hospitals and health systems access low-cost capital, enabling them to keep infrastructure expenditures low, so they can efficiently fulfill their mission and focus on the work they do for the public good.

The Public Finance Network, a coalition that includes the AHA, urged members of the House Ways and Means Committee to reject the proposal. Unfortunately, the committee reported the bill Nov. 9. Municipal Bonds for America, a nonpartisan coalition of municipal bond issuers and state and local government officials that also includes the AHA, similarly urged House and Senate leaders to abandon the proposal. The proposed Senate version of the tax reform bill preserves the use of private activity bonds.

Featured in Monday Report. Click to view the full edition. Michigan hospitals that could be impacted by the provision are urged to contact their congressional representatives immediately and ask them to oppose the provision in the Tax Cuts & Jobs Act that would eliminate the tax exemption for private activity bonds. Contact information for members of Congress is available online via the MHA’s Legislative Action Center. Members with questions should contact Laura Appel at the MHA.

Tags: federal tax reform, infrastructure, bond

Posted in: Issues in Healthcare

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