WASHINGTON -- The IRS' proposed rule on sewage facilities would prohibit using tax-exempt private-activity bonds to finance many wastewater treatment facilities that are needed to meet state and federal environmental requirements, market participants said this week.

State and local officials, bond lawyers, and securities firms complained in written comments sent to the Internal Revenue Service that the proposed rule is too restrictive

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

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