AGC Weighs in with Treasury Department on Public Private Partnerships

AGC joined industry partners this week in expressing concern to the Secretary of the Treasury on a provision in the recent tax reform law that may be interpreted as having the unintended consequence of creating a substantial disincentive for private investment in public infrastructure through the use of public-private partnerships (P3s). The letter highlights the fact that the interpretation of section 163(j) of the tax bill could cause substantially increased costs at all levels of government as they pursue P3 projects.  Section 163(j) would cause the effective tax rate on P3s to skyrocket by restricting the P3 project company’s deductions for interest payments.
AGC, along with our industry partners, is asking Treasury to issue guidance to clarify the intent of section 163(j) and offered suggested guidance that is consistent with the tax bill and its legislative intents.
For more information, contact Sean O’Neill at oneills@agc.org or (202) 547-8892.


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