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The Honorable William M. Thomas
2208 Rayburn House Office Building
Washington, DC 20515-0522
Dear Mr. Chairman:
As conferees consider H.R. 4520, the "American Jobs Creation Act of
2004," we write on behalf of the 1,500 member organizations of the American
Public Transportation Association (APTA) to express our support for a provision
in the House bill regarding tax-advantaged leasing transactions.
About APTA
APTA is the trade association for the North American public transportation
industry. Its 1,500 public and private member organizations include transit
systems and commuter rail operators; planning, design, construction and finance
firms; product and service providers; academic institutions, transit associations
and state departments of transportation. APTA members serve the public interest
by providing safe, efficient and economical transit services and products.
Over ninety percent of persons using public transportation in the United States
and Canada are served by APTA members.
APTA's Position
Section 649(b)(2) of H.R. 4520 would permit the Department of Transportation's
Federal Transit Administration (FTA) to review and approve lease proposals
that were submitted to the U.S. Department of Transportation (DOT) after June
30, 2003, and before March 13, 2004, so long as they are approved by the FTA
before January 1, 2005. The affected lease proposals were suspended before
any action was taken by Congress and without any prior notice or opportunity
for comment. We strongly urge that these lease proposals be permitted to be
reviewed for approval by the FTA in accordance with section 649(b)(2) of H.R.
4520.
Over the past 20 years DOT has urged public transit systems to use innovative
financing mechanisms such as tax-advantaged leasing to generate additional
revenue. The transactions covered under section 649(b)(2) now pending before
the FTA would, if approved, provide critically needed new revenues. Revenues
generated through such covered leases would provide for important investments
in our public transportation systems, support job creation, and deliver real
economic benefits around the country. For these reasons, we urge the Conference
Committee to include section 649(b)(2) of H.R. 4520 in its final bill.
Thank you for your interest in this matter. Should you have
any questions about this issue, please have your staff contact APTA's Demaune
Millard at (202) 496-4887 or email dmillard@apta.com.
Sincerely yours,
William W. Millar
President
WWM/amm
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