More than 450 utilities support retention of tax exemption for bonds
“Municipal tax-exempt bonding authority is a major value to the American people as it enables necessary infrastructure enhancements to be done in a timely manner. DEMEC members continue to provide the most reliable electric service in the state thanks to savings realized through tax-exempt municipal bonds that make system improvements possible at a much lower cost.”
– Patrick E. McCullar, DEMEC President & CEO
The American Public Power Association released a letter from more than 450 public power utilities to congressional Republican leaders and administration officials in support of their decision to retain the current-law tax exemption for municipal bonds in a tax reform framework announced by President Donald Trump last month.
“(Y)our decision to maintain the current-law tax-exemption for municipal bonds — in place since the tax code’s inception in 1913 – is good for our utilities, good for our customers and communities, and good for the country,” the utilities wrote.
Over the last decade, public power utilities have used tax-exempt municipal bonds to finance more than 1,200 projects worth $97 billion. Financing these electric system investments with taxable debt would have increased costs by an estimated $4.5 billion every year — costs that would be borne by public power customers.
Signatories to the letter included public power utilities large and small. These utilities serve — either directly or through the wholesale supply of electricity to other public power utilities — retail electric customers in 47 states, the vast majority of the more than 49 million Americans served by public power.
For more information, visit https://www.publicpower.org/publication/more-450-utilities-support-retention-tax-exemption-bonds.