TEDB Extension and Request for Comments
TEDB Extension and Request for Comments
On October 31, 2011, the Internal Revenue Service (the “IRS”) published an Announcement regarding the existing tribal economic development bond (“TEDB”) program.
The IRS is offering an optional three-month extension process for existing volume cap allocations. Under current IRS guidelines, existing allocations expire December 31, 2011. The new extension process requires written extension requests to be submitted by November 30, 2011.
In addition, the Announcement proposes certain changes to the existing IRS allocation methodology for TEDBs. The proposed changes would govern the reallocation of the national $2,000,000,000 volume cap for TEDBs, upon the expiration or forfeiture of existing allocations. The IRS estimates that up to 95% or more of the $2 billion in Volume Cap allocations for TEDBs may become available for reallocation as of January 1, 2012. The IRS is seeking public comment on its proposed reallocation process, and the deadline for submitting comments is December 12, 2011.
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