The U.S. Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9801) concerning the issue price for purposes of the arbitrage investment restrictions that apply to tax-exempt bonds and tax-advantaged bonds.
The final regulations [PDF 213 KB] concern state and local governments that issue tax-exempt bonds, and adopt with revisions regulations that were proposed in June 2015. In general, the final regulations provide:
The final regulations apply to bonds that are sold on or after a date that is 180 days after December 9, 2016—which is the date when the final regulations will be published in the Federal Register.
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