• Federal Stimulus Recovery Bonds For Public And Private Projects
  • September 9, 2009 | Authors: Albert E. Dotson; Alexandra L. Deas
  • Law Firm: Bilzin Sumberg Baena Price & Axelrod LLP - Miami Office
  • On June 12, 2009, the Internal Revenue Service issued Notice 2009-50 to provide guidance regarding the maximum face amount of two types of bonds created by the American Recovery and Reinvestment Act of 2009 ("Act"). The Act established recovery zone economic development bonds and recovery zone facility bonds as new tax incentives for states and local governments. The Act places a national bond volume limitation of $10 billion for recovery zone economic development bonds and $15 billion for recovery zone facility bonds. Both types of bonds may be issued by states, counties and municipalities before January 1, 2011 under the Internal Revenue Code.