Camp Tax Reform Proposal Would Greatly Limit Tax-Exempt Bonds and Tax Credit Programs

    March 2014

    Representative Dave Camp (R-MI), Chairman of the House Ways & Means Committee, recently released a comprehensive tax reform proposal (Camp Proposal) that would fundamentally reshape the tax-favored bond landscape by eliminating private activity bonds (including qualified 501(c)(3) bonds) and advance refundings, among other changes.

    There have been a number of proposals in recent years to change certain tax-favored bond rules that were viewed as having little chance of passage. But the Camp Proposal requires more attention even though most commentators believe it similarly has little chance of passage. The Ways & Means Committee bears the principal responsibility for drafting new tax legislation, so a proposal that comes directly from the Chairman is likely to be given greater consideration than a proposal sponsored by a rank-and-file member of Congress.