How might an obscure tax shelter called a SILO contributed to the D.C. Metro Red Line crash that killed nine this week?
The D.C. Metro accident that killed nine riders this week has renewed calls for rail safety upgrades and reminders that car travel remains far riskier than transit. But the crash is also shedding light on a problem that goes beyond Washington: tax shelter deals between banks and struggling transit agencies -- deals that were given a retroactive pass by Congress even though the IRS considers them illegal.
The tax shelters at issue are called "sale in, lease out" deals, also known as SILOs. Starting in the 1980s, local transit agencies began selling rail cars and other equipment to Wall Street firms, which would then turn around and lease the goods back to the agencies.
Why would either side want to get into such arrangements? Sarah Lawsky, an associate professor at George Washington University Law School, has explained the situation in detail. But the short answer is that banks got tax write-offs for their newly leased transit equipment, while local agencies got a cash benefit for giving away tax deductions they could not use.
Thanks to Aaron Naparstek
FULL STORY: The Wall Street Tax Shelter That Crashed Your Local Transit Agency
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning
SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.
The Tiny, Adorable $7,000 Car Turning Japan Onto EVs
The single seat Mibot charges from a regular plug as quickly as an iPad, and is about half the price of an average EV.
With Protected Lanes, 460% More People Commute by Bike
For those needing more ammo, more data proving what we already knew is here.
In More Metros Than You’d Think, Suburbs are Now More Expensive Than the City
If you're moving to the burbs to save on square footage, data shows you should think again.
The States Losing Rural Delivery Rooms at an Alarming Pace
In some states, as few as 9% of rural hospitals still deliver babies. As a result, rising pre-term births, no adequate pre-term care and "harrowing" close calls are a growing reality.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Smith Gee Studio
City of Charlotte
City of Camden Redevelopment Agency
City of Astoria
Transportation Research & Education Center (TREC) at Portland State University
US High Speed Rail Association
City of Camden Redevelopment Agency
Municipality of Princeton (NJ)