Senate Finance Committee to Stop Leveraged Lease Deals of Tax-Exempt Property

The Bond Buyer recently reported that Senate Finance Committee chairman Charles Grassley, R-Iowa, is threatening to add a retroactive effective date to a provision in a pending corporate tax bill that would prevent leveraged lease deals of tax-exempt property The move has halted an estimated $2 billion worth of lease transactions involving public transit and other municipal and state owned assets that are in the pipeline. The provision to stop leveraged leases is one of several abusive tax shelter initiatives included in the corporate tax bill, which was approved by the Senate Finance Committee on Sept. 18 and sent to the full Senate on Nov. 7.
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