APTA reacts to proposed U.S. tax overhaul

Written by Mischa Wanek-Libman, editor
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The American Public Transportation Association (APTA) sent a letter to members of the U.S. House of Representatives Committee on Ways and Means to identify its concerns with the proposed overhaul of the U.S. tax system.

APTA says the Tax Cuts and Jobs Act, H.R. 1, “fails to address key priorities of the public transportation industry.” The association applauds the upholding of tax-exempt status of municipal bonds, which are used to finance state and local government-sponsored public works, but says repealing the use of Private Activity Bonds (PABs-another infrastructure financing mechanism) would “undermine Congress’ stated goal of leveraging a $1 trillion investment in our nation’s infrastructure.”

APTA says instead, removing PABs would dissuade private sector investments in infrastructure projects.

APTA also expressed concerns that the proposal would reduce the tax benefits of commuters. The tax proposal preserves the option for employees to pay for some commuter benefits through a pretax payroll deduction, but the tax measure eliminates the option for employers to deduct the cost of those benefits. APTA says this could be a disincentive for employers to offer this benefit, which defrays costs for working families.

APTA’s letter asks Congress to renew or permanently extend the federal tax credits for alternative fuels and related infrastructure, which expired on Dec. 31, 2016. The association also says the tax measure is a missed opportunity to address the solvency of the Highway Trust Fund.

“I urge Congress to use this once-in-a-generation opportunity to reform the tax code to encourage greater investment in our nation’s infrastructure, not discourage it. As introduced, H.R. 1 does not address this fundamental and critical issue for the public transit industry or the country. APTA and its members look forward to working with Congress as the legislative process continues,” said Acting President and CEO of APTA Richard White.

The House Ways and Means Committee is marking up the tax proposal Nov. 6.

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