Build America Bonds, Advance Refunding Revived by Panel
- Ways and Means Committee on Tuesday will discuss bill markup
- New BABs would lead to jump in issuance in the muni market
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Build America Bonds are back.
So is the ability to refinance debt that comes due years later on a tax-exempt basis. There’s also an increase, to $30 million from $10 million, in the amount of bonds that can be sold by small issuers and for which banks can deduct their cost of carry. And Native American tribes will find it easier to borrow in the municipal market, while companies will get a new tax credit for wages paid in U.S. possessions.