News / Public Finance Counsel You Know And Trust

Project Identification and Accounting Crucial Under New IRS Regulations

On October 27, 2015, the United States Treasury Department published final allocation and accounting regulations that will apply to most tax-exempt project financings for state and local governments and 501(c)(3) organizations.  The Regulations mostly pertain to projects that have both governmental and nongovernmental use that are financed with a combination of tax-exempt bond proceeds and equity.  While the new regulations are an improvement over an earlier draft of proposed regulations, there are a significant number of new definitions and concepts that governmental bond issuers and 501(c)(3) borrowers will need to take into account in order to comply with restrictions on private use of financed projects.  A short summary memorandum and a complete copy of the Regulations can be found by clicking here.

Posted: Nov 11, 2015


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