As we move through 2025, significant changes in federal tax policy are on the horizon. The White House and Congress have pledged to pass a tax bill this year, and lawmakers are actively working on legislation that would extend provisions of the 2017 Tax Cuts and Jobs Act set to expire in 2025.

As part of these discussions, Congress is considering a range of proposals to help offset potential revenue reductions associated with the expected tax legislation. Among the options under review is the possible elimination of the tax-exempt status of municipal bonds. As you are aware, municipal bonds provide a longstanding benefit that has played a critical role in helping state and local governments finance essential public projects affordably.

While the timing and final scope of tax legislation remain uncertain, this issue is drawing renewed attention in Washington. Industry groups, including the Government Finance Officers Association (GFOA), are actively engaging with lawmakers to communicate the extensive economic and community benefits provided by tax-exempt municipal financing. Gilmore & Bell is actively monitoring legislative activity, supporting industry advocates and working alongside issuers to advocate for preserving the tax-exempt status of municipal bonds and the longstanding benefits tax-exempt municipal financing provides in your communities.

The GFOA has prepared excellent resources for those who want to engage with outreach, which you can access here: https://www.gfoa.org/take-action-tax-reform.

Please reach out to an attorney at Gilmore & Bell if we can provide additional information or guidance.

Posted: Apr 22, 2025