Research Policy Analysis and Coordination

University Facilities and the Tax Reform Act 

The University finances certain facilities in whole or in part with proceeds of tax-exempt or other tax-advantaged bonds.  Federal tax law, including the Tax Reform Act of 1986, places limits on the private business use of such bond-financed facilities. UC may not permit such bond financed facilities to be used in any manner that would violate the Internal Revenue Service (IRS) private business use rules or otherwise cause the interest to become taxable under federal tax law income tax provisions.