CHA News Article

House Passes Tax Reform Legislation
CHA continues to oppose elimination of tax exemption for private activity bonds

The U.S. House of Representatives today passed the Tax Cuts and Jobs Act (House Resolution 1) by a vote of 227-205. The legislation passed largely along party lines, with three members of the California Republican delegation — Reps. Darrell Issa, Tom McClintock and Dana Rohrabacher — voting no. The bill includes a provision that would eliminate the tax exemption for private activity bonds, including qualified 501(c)(3) hospital bonds, which will directly impact hospitals’ ability to access capital for mandated infrastructure projects. Currently, the Senate version of the legislation does not contain this provision. Formal legislative text is expected from the Senate next week. CHA will continue to advocate for the provision’s removal as the House and Senate work to reconcile their versions of the bill.