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Tax relief for bonds funding private lead water pipe replacement.

This Act modifies tax rules for bonds to facilitate the financing of lead service line replacement projects, including those on private property. By clarifying that this use is not considered 'private business use,' public water systems can more easily raise funds to remove lead from drinking water. This change is crucial for meeting national lead safety standards and directly improving public health and water quality for citizens.
Key points
Tax changes: Using bond proceeds to replace privately-owned lead service lines will not be classified as 'private business use' for tax purposes.
Citizen benefit: Easier financing enables faster replacement of hazardous lead pipes, improving drinking water quality and public health.
Applies to obligations issued after December 31, 2023.
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Additional Information
Print number: 118_S_726
Sponsor: Sen. Bennet, Michael F. [D-CO]
Process start date: 2023-03-09