Immediate Contact Needed to Your U.S. Representative and Senators
Wednesday, November 08, 2017 9:58 AM
The Tax Cuts and Jobs Act, H.R. 1, was released and is
being debated this week in the U.S. House Ways and Means Committee. There
is a significant problem for the Kentucky not-for-profit hospitals included in the bill. The proposal would eliminate the tax-exemption for
private-activity bonds (PABs), including qualified 501(c)(3) hospital bonds
and advance refunding bonds. The ability to obtain tax-exempt financing is
a key benefit of hospital tax-exemption that works to make access to vital
hospital services available in communities large and small across the
These bonds play a critical role in helping not-for-profit hospitals and
health systems access low-cost capital, enabling them to keep
infrastructure expenditures low so they can efficiently fulfill their
mission and focus on the work they do for the public good. Tax-exempt bonds
reduce hospitals’ borrowing costs because they normally can be sold at a
lower rate of interest than taxable debt of comparable risk and maturity.
PABs are also widely used for nonprofit health, airport projects,
affordable housing and education facilities, all of which contribute to
vibrant local communities.
Please contact your U.S. Representative and U.S. Senators
immediately and urge him to oppose the provision in the Tax Cuts & Jobs
Act (H.R. 1) that would eliminate the tax-exemption for PABs, including
qualified 501(c)(3) hospital bonds. PABs provide a critical source of
funding for a variety of important projects, including financing for
non-profit hospitals, colleges, schools, public-private partnerships,
including multi-family housing projects, toll-roads, airports and even
state-run student loan programs. These projects and programs foster job
creation and economic development and provide reduced costs for health care
and education. The House Ways and Means Committee is working to pass H.R. 1
this week with the goal of passing it through the Senate and completely
through the process by the Thanksgiving holiday, so it is imperative for
your Representative and Senators to hear from you now. A copy of the
Kentucky congressional delegation's contact information is available for your convenience.
Thank you for your prompt action! This bill will move through Congress quickly this week. Please send KHA copies of your requests and responses that you receive.
If you have questions, please contact Sarah S. Nicholson
at KHA (firstname.lastname@example.org).