New federal legislation could drive public-private partnerships in Kentucky
The Kentucky Chamber has sent letters to members of the Kentucky congressional delegation urging their support for the Public Building Renewal Act of 2016 (H.R. 5361/S. 3177). This legislation would spur private investment in public building infrastructure by enabling tax exempt financing for certain public buildings.
Passage of the legislation would allow Kentucky to building upon its efforts to revitalize public infrastructure. The Kentucky Chamber led the coalition to pass a comprehensive public private partnership (P3) enabling bill earlier this year. By passing legislation that establishes tax exempt financing of public buildings, Kentucky will be better situated to utilize the new P3 framework authorized by the Kentucky General Assembly.
Transportation projects have been developed across the U.S. and in Kentucky many prospects exists. However, the examples of public facilities such as schools and hospitals developed through P3 arrangements are less common. One reason for this is that transportation projects are eligible for tax exempt financing and combing this type of financing with private investment under a P3 arrangement can reduce project costs.
The Chamber feels it is critical to continue working towards improving our public infrastructure and strongly supports legislation at both the state and federal levels that encourages or allows more private investment in the rehabilitation of our nation’s dilapidated public buildings.