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It is no surprise that 2025 is a big year for tax reform. Many of the provisions in the Tax Cuts and Job Act (TCJA) are expiring, and negotiations are already under way for how to extend them. Once again, tax-exempt bonds may be in jeopardy.

With this focus on tax reform and its important implications for you, Kutak Rock is dedicated to keeping you informed and actively engaging on this issue.

We’d like to introduce you to Capitol Connection – our platform for connecting our clients and community to the rapidly changing discussions in Washington, D.C. and, most immediately, how tax reform could impact the tax-exempt bond industry.

What You Need to Know

The Senate spent Friday evening debating its revised budget framework. As passed on Saturday, it moves the Senate away from the two-bill strategy toward a one-bill strategy–the approach preferred by the House. We anticipate considerable debate this week as the House picks up where the Senate left off. Bottom line: the timeline for tax reform appears to be accelerating.

At Kutak Rock

While specific pay-fors of tax reform have not yet been identified in detail, private activity bonds could be at risk, as they were in 2017, and tax-exempt municipal bonds are not immune from threat either. We know tax-exempt bonds are vital to your business, and if they are restricted or eliminated, the impact could be monumental. That’s why it’s more important than ever to closely monitor what is happening and proactively advocate for the preservation of tax-exempt municipal and private activity bonds during this year’s tax-reform season. 

Kutak Rock Advocacy

To lead this charge, Kutak Rock has engaged an outside lobbying firm to help advocate for these financing tools and closely monitor the day-to-day tax policy discussions. The lobbying firm has a track record of success impacting legislation, advancing policy positions, building relationships with federal stakeholders, and navigating the government budget process. Often, they are in the room while decisions are being made. Through this partnership, you can expect us to communicate regularly about what’s happening on Capitol Hill and provide information on tax reform negotiations as they happen.

Advocacy is the cornerstone of progress. At some point we may reach out with a call to action. By sharing your voice and lived experience, you can help policymakers understand the real-life impact of their decisions on the vital services, support and infrastructure that their constituents rely on. 

We look forward to working with you in the coming months as we focus on these advocacy efforts. If you have questions or are interested in learning more about our advocacy efforts, please reach out to your Kutak Rock attorney or a member of Kutak Rock’s Tax Reform Advocacy Group at 
taxreform@kutakrock.com. You may also visit us at www.kutakrock.com.