2025 GMA Annual Convention Registration - Register Now
The 119th Congress will be weighing the option of extending tax cuts to corporations and individuals provided by the 2017 Tax Cuts and Jobs Act, the provisions of which are set to expire at the end of 2025. This means that lawmakers will be searching for sources of revenue to offset the anticipated extension as well as anticipated reductions in federal government spending nearly across the board.
One of those revenue sources, or "pay-fors," under consideration is the tax exemption on municipal bonds, which makes the interest income earned on these bonds tax-deductible for investors. Protecting this tax-exempt status has been a long-standing policy priority of GMA as these bonds equip local governments with a financing tool to fund capital projects at lower interest rates and without having to burden taxpayers.
This is a key federal priority for 2025.
GMA opposes any effort by Congress to eliminate this tax exemption to offset other proposed tax cuts. In a municipal bond market where 80% of active bonds are currently tax-exempt, such an act would effectively neutralize a financing tool for communities to invest in their future and wipe out significant savings for taxpayers.
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