Bill > HR3892

This bill modifies the Internal Revenue Code to make it easier for municipalities to finance lead service line replacement projects. Specifically, the bill clarifies that when a bond is issued to replace privately-owned portions of lead service lines in a public water system, that use will not be considered "private business use" for tax purposes. This is important because private business use can limit the tax-exempt status of municipal bonds. The bill defines key terms such as "lead service line" (drawing from the Safe Drinking Water Act) and "national primary drinking water regulation for lead" to ensure clarity. The goal is to help communities more easily fund critical infrastructure improvements aimed at replacing lead pipes, which can pose significant health risks, particularly to children. The changes will apply to obligations issued after December 31, 2025, giving municipalities time to prepare and plan for lead service line replacement projects. By removing financial barriers, the bill aims to accelerate the replacement of dangerous lead service lines across the United States.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3892/all-info