Public Finance Alert | January.08.2019
On December 28, 2018, the U.S. Department of the Treasury released final regulations (the “Final TEFRA Regulations”) regarding the requirements for public notice, hearing, and approval of qualified private activity bonds under Section 147(f) of the Internal Revenue Code. The Final TEFRA Regulations replace temporary regulations under Section 103(k) of the Internal Revenue Code of 1954 (the “Existing TEFRA Regulations”) by finalizing rules set forth in proposed regulations issued in September 2017 (the “2017 Proposed Regulations”) with a few notable improvements and clarifications. The main changes to the Existing TEFRA Regulations implemented and/or confirmed by the Final TEFRA Regulations include:
Effective Date. The Final TEFRA Regulations apply to bonds issued pursuant to a public approval occurring on or after April 1, 2019. Because the effective date is keyed to the date of the approval rather than the date of the public notice or the date of the bond issue, the Existing TEFRA Regulations apply to notice content, hearings, and approvals for bonds issued after April 1, 2019, provided that the approvals were obtained before that date.