Senate Defeats Bond Cap Increase.

• Position: Brief Article

Legislation to provide a full and immediate increase in the private activity bond cap has been derailed in the Senate. The proposed increase, designed to provide tax relief to distressed communities, was rejected when the Senate failed to approve a budget waiver needed to allow the overall measure to be considered as part of the inheritance tax repeal. Senators voted 57 to 40 to allow the consideration of the private-activity cap amendment, but the measure failed to reach the 60 percent majority needed to circumvent procedural rules. Nonetheless, supporters of the bond cap increase were encouraged to see that a...