• HIRE Act Permits Refundable Credit for Certain Tax Credit Bonds
  • April 14, 2010
  • Law Firm: Hunton & Williams LLP - Richmond Office
  • On March 17, 2010, Congress passed the Hiring Incentives to Restore Employment Act of 2010 (the “HIRE Act”), which President Obama signed into law on March 18, 2010. Title III of that act amends Section 6431 of the Internal Revenue Code of 1986, as amended (the “Code”), to permit issuers of certain types of tax credit bonds to elect treatment similar to direct pay Build America Bonds (“BABs”), therefore entitling the issuer to receive a direct payment from the U.S. Treasury of some or all of the interest paid with respect to the bonds. The provisions of the HIRE Act apply to the following types of tax credit bonds: qualified school construction bonds described in Section 54F of the Code (“QSCBs”), qualified zone academy bonds described in Section 54E (“QZABs”), new clean renewable energy bonds described in section 54C (“new CREBs”) and qualified energy conservation bonds described in section 54D (“QECBs”).