On Thursday, November 2, 2017, the House leadership released its long-awaited proposed tax bill for consideration by the Ways and Means Committee. Representatives of the tax exempt bond community had previously had discussions with the Administration and with House members who had assured them that tax exempt bonds were not “on the table” in this year’s tax legislation. In fact, the Administration had actually proposed expanding the purposes for which tax exempt private activity bonds could be issued as part of the Administration’s infrastructure financing initiative.

Much to the surprise of the tax exempt bond community, the House leadership proposal contains sweeping reforms of the existing tax exempt bond rules, including...