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Disallows federal tax-exempt bond treatment for debt used to finance or refinance professional sports stadiums and arenas. It defines a “professional stadium bond” by reference to bonds that fund capital expenditures for a facility used at least five days in any calendar year for professional sports exhibitions, games, or training, and applies to bonds issued after enactment.
The bill reduces implicit public subsidies and budget exposure tied to tax-exempt stadium bonds, but it raises borrowing costs, risks cutting development and jobs tied to stadium projects, and creates uncertainty for issuers and investors.
Taxpayers will face fewer implicit public subsidies for professional sports facilities because interest on stadium bonds would become taxable, reducing indirect taxpayer support for such projects.
State and local governments may experience less pressure to approve tax-exempt stadium bonds and therefore reduced budgetary exposure from subsidizing stadium projects.
State and local governments, teams, and other issuers will face higher borrowing costs because interest on stadium bonds would be taxable, raising project financing costs and potentially increasing demands on public funds or user fees.
Local economies, small businesses, and workers could suffer if reduced access to tax-favored financing leads to fewer public–private stadium projects, lowering expected development, jobs, and related local revenue.
Issuers, investors, and taxpayers could face disruption and uncertainty for long-term plans that relied on tax-exempt financing, complicating project planning and investment decisions for bonds issued after enactment.
Introduced March 27, 2025 by James Lankford · Last progress March 27, 2025