Leslie Powell, a partner in Kutak Rock’s public finance practice, was recently quoted in a Financial Times article examining the record pace of municipal bond issuance in 2025. The article highlights the concern among those in the tax-exempt bond industry that Congress may scale back or eliminate the tax exemption for private activity bonds as part of ongoing federal tax reform efforts.
The piece notes that while the U.S. House of Representatives has approved a version of the tax package that preserves the tax break for now, significant negotiations are expected to move quickly in the Senate due to the desire to have legislation on the President’s desk by July 4. The uncertainty has driven some issuers to accelerate financing activity, contributing to what could become a record-setting year for municipal bond sales.
Reflecting on the 2017 legislative cycle, Leslie described the current moment as one requiring vigilance: “There is still a reason to be really watchful and mindful and not complacent,” she said, adding that the earlier threat to the tax exemption “caused a real sense of shock and surprise” in the industry.
Kutak Rock remains focused on this evolving issue. Recognizing the importance of tax-exempt and private activity bonds to our clients, the firm has engaged a Washington, D.C.-based lobbying firm to support advocacy and education around the value of these financing tools. The team is closely monitoring congressional activity and working to ensure decision makers understand how proposed tax changes could affect the tax-exempt bond market and its participants.
Kutak Rock’s Capitol Connection newsletter provides timely updates as the Senate finalizes its version of the tax legislation. For more information, or to receive the newsletter, please reach out to your Kutak Rock attorney or a member of Kutak Rock’s Tax Reform Advocacy Group at taxreform@kutakrock.com.
Read the full Financial Times article here. (Subscription may be required)
Leslie routinely serves as bond counsel and underwriter’s counsel in single and multifamily housing financings. Additionally, she has represented financial institutions in a wide range of lending transactions with a focus on public financings, including direct bond purchases and draw down bond financings. Leslie also has experience representing banks in a variety of structured investment transactions involving financial products such as forward delivery agreements, repurchase agreements and investment agreements. Leslie is a member of the firm’s Executive Committee.