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Build America Bonds ARRA Provisions Summary (Including Guidance under Notices 2009-26 and 2009-50) |
July 1, 2009
Previously published on June 2009
Build America Bonds (BABs) are a new type of tax credit bond to be issued before January 1, 2011 that, unlike other tax credit bonds, bear actual taxable interest and either (i) the bondholder receives a credit of 35 percent of the amount of interest payable by the issuer (the "Bondholder Credit BAB") or (ii) for certain bonds, the issuer may elect to receive an ongoing subsidy from the federal Treasury of 35 percent of the interest payable on the bond (the "Direct Pay BAB") (or in the case of a Recovery Zone Economic Development Bond, 45 percent of the interest payable (the "Recovery Zone BAB")).
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The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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