[Congressional Record Volume 158, Number 111 (Tuesday, July 24, 2012)]
[Extensions of Remarks]
[Page E1308]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF LEGISLATION TO PERMANENTLY EXEMPT TAX-EXEMPT PRIVATE 
                      ACTIVITY BONDS FROM THE AMT

                                 ______
                                 

                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                         Tuesday, July 24, 2012

  Mr. NEAL. Mr. Speaker, I am pleased to come before the House today to 
introduce legislation with my Republican Ways & Means colleague, Jim 
Gerlach, that would permanently exempt tax-exempt private activity 
bonds from the alternative minimum tax. This bill will help spur 
additional transportation infrastructure investments, reduce borrowing 
costs for students and create jobs and economic growth.
  In 2009, we enacted a two-year AMT exemption that expired at the end 
of 2010. This provision was extremely successful. From January 2009 to 
the end of 2010, thanks to this provision, the airport industry sold an 
unprecedented $12.7 billion in private activity bonds that were exempt 
from the AMT, allowing construction projects to flourish and jobs to be 
created at airports across the country. And I think it's telling that 
in 2011, after the provision expired, airport issuances fell to $4.3 
billion, which is the lowest amount since 2007.
  This exemption also is critical to reducing borrowing cost for 
students around the country. In Massachusetts, the 2009 PAB-AMT relief 
resulted in almost 20,000 students receiving low-cost financing for 
their education. The average student in Massachusetts borrowing $16,000 
for his or her education saved $1,100 in interest over the life of the 
loan.
  Mr. Speaker, we've seen amazing results by exempting PABs from the 
AMT and I encourage my colleagues to support this important bill and 
make this exemption permanent.

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