As governments continue to grapple with how to generate the massive funds needed for infrastructure updating and modernization, a new rule from the IRS (cleverly labelled '63-20') enables creation of non-profit organizations that can issue tax-exempt bonds to fund infrastructure projects - if the organization meets certain criteria. Those are listed and clearly explained in this article.
PPP's can be established and funded in a wide variety of ways, and I think they are a key tool to meeting our infrastructure needs. This rule provides another helpful lever to make PPP's more effective.
. . . a 63-20 financing could result in lower overall project costs (and consequently availability payments) as a result of the lower financing costs obtained by the tax-exempt interest rate while incentivizing the private sector to invest capital and to assume long-term management responsibilities for the relevant assets.