Noting that Congress is expected to convene a post-election session to focus on passage of an economic stimulus bill, AAAE President Charles Barclay renewed the association's proposal for the legislation to include provisions that would benefit airports.
Barclay pledged AAAE's support of an economic package that will provide needed infrastructure improvements throughout the nation.
AAAE is urging lawmakers to: 1) include $1 billion in additional AIP funding; 2) eliminate the Alternative Minimum Tax (AMT) penalty on airport private activity bonds; and 3) give airports greater flexibility to use PFC revenue for debt service.
Barclay said that including $1 billion in additional AIP funding in the economic stimulus package would help to revive the economy by creating approximately 35,000 jobs. It also would expedite the construction of critical safety, security and capacity projects at airports around the country, he said.
Barclay further pointed out that federal tax law unfairly classifies a vast majority of airport bonds as private activity bonds. Interest payments on private activity bonds are subject to the AMT even though airports use the bonds to finance runways, taxiways and other critical facilities that benefit the public. Since private activity bonds are subject to the AMT, airport bond issuers are charged higher interest rates on their borrowing, he said.
Congress also should give airports greater flexibility to use PFC revenue for debt service, Barclay said. As a result of current market conditions, airports are facing a significant spike in debt service costs. To help mitigate this increase, the economic stimulus bill should give airports greater flexibility to use PFC revenue for debt service, he said.
