Increase or Remove the Cap on Private Activity Bonds (PABs)

NCPPP recommends that Congress expand the highway/intermodal Private Activity Bond (PAB) program. The national limit of $15 billion of PABs funding should be increased or eliminated, while the current exemption from the Alternative Minimum Tax (removed under the American Recovery and Reinvestment Act of 2009 through September 2011), should be made permanent. Eliminating the prohibition on the accretion of interest on PABs, (which is deemed to be working capital), will increase their attractiveness for start-up projects.