WASHINGTON -- A group of rural electric cooperatives that distribute electricity to farmers and businesses in Indiana cannot issue tax-exempt bonds because they are not political subdivisions, the Internal Revenue Service ruled last week.

Bond lawyers said the private letter ruling is not surprising and tracks a 1983 IRS revenue ruling and previous congressional debates on the matter. But the lawyer who requested the ruling said it contains a message for the bond community.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.