{ "tool_id": "art-569-muni-arbitrage-spending-exception-checker", "note": "Vector 1 elects the 6-month exception, no reasonable retainage: 100% of gross proceeds spent by the 6-month milestone date, evaluated well after it -- MET. Vector 2 elects the 18-month exception WITH reasonable retainage (schedule becomes 6mo=15%/12mo=60%/18mo=95%/30mo=100%): the 6mo milestone is met, the 12mo milestone is short of the required 60% (evaluated after 12mo, so it FAILS rather than PENDING), and the 18mo/30mo milestones are both still in the future relative to as_of_date so they PENDING -- overall_status FAILED because any failed milestone dominates. Vector 3 omits elected_exception entirely and exercises the did_not_run/required_inputs_incomplete path. Amounts are synthetic, stated in integer minor units (cents). golden_hash computed at fixture generation time.", "vectors": [ { "name": "6-month-exception-fully-spent-met", "policy_parameters": { "issue_date": "2026-01-15", "as_of_date": "2026-12-01", "gross_proceeds_minor": 10000000000, "elected_exception": "6_MONTH", "reasonable_retainage": false, "expenditure_schedule": [ { "date": "2026-02-01", "amount_minor": 4000000000, "description": "construction draw 1" }, { "date": "2026-04-15", "amount_minor": 3500000000, "description": "construction draw 2" }, { "date": "2026-07-10", "amount_minor": 2500000000, "description": "construction draw 3" } ] }, "output_payload": { "decision": { "gate_policy": "auto_pass", "execution_state": "ran", "reason": null }, "overall_status": "MET", "elected_exception": "6_MONTH", "reasonable_retainage": false, "issue_date": "2026-01-15", "as_of_date": "2026-12-01", "gross_proceeds_minor": 10000000000, "de_minimis_minor": null, "de_minimis_cap_minor": 15000000, "total_expenditures_minor": 10000000000, "milestones": [ { "months_after_issue_date": 6, "milestone_date": "2026-07-15", "required_pct": 100, "required_gross_minor": 10000000000, "required_minor": 10000000000, "cumulative_spent_minor": 10000000000, "verdict": "MET" } ], "rejected_inputs": [], "scope_note": "Tests ONLY whether the issue satisfies the elected spending exception milestone schedule under Treas. Reg. section 1.148-7. Does not compute the future-value arbitrage rebate; that is a separate, not-yet-built tool. Meeting a milestone means only what the cited regulation says it means.", "clause_note": "IRC section 148 (Arbitrage); Treas. Reg. section 1.148-7 (Spending exceptions to the rebate requirement), specifically -7(c) 6-month, -7(d) 18-month, and -7(e) 24-month (construction) schedules including their reasonable-retainage variants; IRS Pub 5271 (Tax Exempt Bonds: Arbitrage Rebate compliance overview). Not tax advice -- confirm current text and facts with qualified bond counsel." }, "golden_hash": "9d7359720126888bd1302bb887852c5c6ae558735cd9fff7ef5f258cb1e7dc94" }, { "name": "18-month-retainage-milestone-shortfall-failed", "policy_parameters": { "issue_date": "2026-01-15", "as_of_date": "2027-02-01", "gross_proceeds_minor": 20000000000, "elected_exception": "18_MONTH", "reasonable_retainage": true, "de_minimis_minor": 10000000, "expenditure_schedule": [ { "date": "2026-03-01", "amount_minor": 3200000000, "description": "design and permitting" }, { "date": "2026-09-01", "amount_minor": 6000000000, "description": "site work" } ] }, "output_payload": { "decision": { "gate_policy": "review_required", "execution_state": "ran", "reason": null }, "overall_status": "FAILED", "elected_exception": "18_MONTH", "reasonable_retainage": true, "issue_date": "2026-01-15", "as_of_date": "2027-02-01", "gross_proceeds_minor": 20000000000, "de_minimis_minor": 10000000, "de_minimis_cap_minor": 15000000, "total_expenditures_minor": 9200000000, "milestones": [ { "months_after_issue_date": 6, "milestone_date": "2026-07-15", "required_pct": 15, "required_gross_minor": 3000000000, "required_minor": 2990000000, "cumulative_spent_minor": 3200000000, "verdict": "MET" }, { "months_after_issue_date": 12, "milestone_date": "2027-01-15", "required_pct": 60, "required_gross_minor": 12000000000, "required_minor": 11990000000, "cumulative_spent_minor": 9200000000, "verdict": "FAILED" }, { "months_after_issue_date": 18, "milestone_date": "2027-07-15", "required_pct": 95, "required_gross_minor": 19000000000, "required_minor": 18990000000, "cumulative_spent_minor": 9200000000, "verdict": "PENDING" }, { "months_after_issue_date": 30, "milestone_date": "2028-07-15", "required_pct": 100, "required_gross_minor": 20000000000, "required_minor": 19990000000, "cumulative_spent_minor": 9200000000, "verdict": "PENDING" } ], "rejected_inputs": [], "scope_note": "Tests ONLY whether the issue satisfies the elected spending exception milestone schedule under Treas. Reg. section 1.148-7. Does not compute the future-value arbitrage rebate; that is a separate, not-yet-built tool. Meeting a milestone means only what the cited regulation says it means.", "clause_note": "IRC section 148 (Arbitrage); Treas. Reg. section 1.148-7 (Spending exceptions to the rebate requirement), specifically -7(c) 6-month, -7(d) 18-month, and -7(e) 24-month (construction) schedules including their reasonable-retainage variants; IRS Pub 5271 (Tax Exempt Bonds: Arbitrage Rebate compliance overview). Not tax advice -- confirm current text and facts with qualified bond counsel." }, "golden_hash": "8a5eb15a1bf69bc1adee91c305be3ed3107f43488c976d73a3b3edebd8da820a" }, { "name": "elected-exception-missing-incomplete", "policy_parameters": { "issue_date": "2026-01-15", "as_of_date": "2026-12-01", "gross_proceeds_minor": 10000000000, "reasonable_retainage": false, "expenditure_schedule": [] }, "output_payload": { "decision": { "gate_policy": "review_required", "execution_state": "did_not_run", "reason": "required_inputs_incomplete" }, "overall_status": "PENDING", "elected_exception": null, "reasonable_retainage": false, "issue_date": "2026-01-15", "as_of_date": "2026-12-01", "gross_proceeds_minor": 10000000000, "de_minimis_minor": null, "de_minimis_cap_minor": 15000000, "total_expenditures_minor": 0, "milestones": [], "rejected_inputs": [ { "where": "elected_exception", "reason": "absent or not one of 6_MONTH, 18_MONTH, 24_MONTH", "supplied": null } ], "scope_note": "Tests ONLY whether the issue satisfies the elected spending exception milestone schedule under Treas. Reg. section 1.148-7. Does not compute the future-value arbitrage rebate; that is a separate, not-yet-built tool. Meeting a milestone means only what the cited regulation says it means.", "clause_note": "IRC section 148 (Arbitrage); Treas. Reg. section 1.148-7 (Spending exceptions to the rebate requirement), specifically -7(c) 6-month, -7(d) 18-month, and -7(e) 24-month (construction) schedules including their reasonable-retainage variants; IRS Pub 5271 (Tax Exempt Bonds: Arbitrage Rebate compliance overview). Not tax advice -- confirm current text and facts with qualified bond counsel." }, "golden_hash": "d583ea6c6feeafd9226fa465bff9c4065b2e0deb419395416fae9ab3b978547f" } ] }