House bill threatens financing tool for future low-income housing, other nonprofits

A provision in the House Republican tax reform bill could eliminate funding for hundreds of new low-income apartments and home loans in Maine, and might substantially increase construction costs for hospitals, colleges and other institutions.

Maine’s congressional delegation is rallying to try to save an obscure program called private activity bonds that was eliminated in the House version of a tax bill pending in Congress. Private activity bonds allow private, nonprofit institutions to sell bonds, with tax-free interest, to pay for capital improvements such as new buildings and infrastructure and to fund other programs like student loans.

Peter McGuire

Portland Press Herald