The IRS has released Notice 2012-3, which provides that projects originally financed with tax-exempt Gulf Opportunity Zone Bonds (“GO Zone Bonds”) may be refinanced on a tax-exempt basis after December 31, 2011, the date on which authority to issue GO Zone Bonds expires.

While tax-exempt private activity bonds generally may be refinanced on a tax-exempt basis, the Gulf Opportunity Zone Act is silent as to the permissibility of current refundings of GO Zone Bonds. Notice 2012-3 clarifies that GO Zone Bonds may be currently refunded on a tax-exempt basis (directly or indirectly in a series of current refundings) so long as the following requirements are met...