IRS Ends 5 Percent Limit on Residual Material in Exempt Facility Bonds

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IRS issues final rules removing a 5 percent size limitation on residual material used in solid waste disposal tax-exempt bond financings, easing long-standing concerns that it had unduly restricted the scope of residual material that could be used. The issue is one of many clarified in T.D. 9546, which provides a final definition of “solid waste disposal facilities” for exempt facility bonds. “People were very concerned that just as a factual matter, a lot of things that would commonly be thought of as waste would not meet that test,” says Scott Lilienthal, partner with Hogan Lovells.