WASHINGTON -- The Internal Revenue Service has broken new ground by ruling that a nonprofit laboratory doing research for both public and private entities can be partly financed with tax-exempt bonds based on the mix of revenues derived from the lab's work.

The conclusion was reached in a recently published private letter ruling issued at the request of an unidentified 501(c)(3) foundation. Several bond lawyers yesterday said the ruling is positive and charts new ground.

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.