Maintain and Expand Tax-Exempt Financing Options for Airports 

 

We urge Congress to preserve and restore tax-exempt financing for airport bonds.

 

Airports strongly support maintaining the tax-exempt status of municipal bonds and eliminating the Alternative Minimum Tax (AMT) burden on Private Activity Bonds (PABs).

 

• Airports need continued access to low-cost municipal financing without additional tax burdens. 

 

• Retaining the tax exemption for municipal bonds while eliminating the AMT burden on PABs is yet another way Congress can help airports finance critical infrastructure projects without federal funds. 

 

• Airports frequently turn to the capital markets to finance long-term construction projects. Airports are unique in the transportation bond marketplace because they use both general obligation municipal bonds as well as PABs. 

 

• The continuation of tax-exempt bonds and access to PABs that are not subject to the AMT are necessary for not only low cost financing but also for the ability of airports to raise the funds necessary to meet their capital needs.