Build America Bonds

Hawkins Advisory

The America Recovery and Reinvestment Act of 2009 (“ARRA”) enacted February 17, 2009, among other things, authorized the issuance of Build America Bonds (“BABs”). Two categories of BABS were authorized: Tax Credit BABs (“TCBABs”) and Direct Payment BABs (“DP-BABs”). The holder of a TC-BAB is entitled to a credit against the holder’s federal income tax liability. The issuer of a DP-BAB is entitled to a tax credit refund from the federal government. In the year since the enactment of ARRA, most if not all of the BABs which have been issued have been DP-BABs.

Also of Interest

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    The Internal Revenue Service released a revised version of Form 8038-CP (Return for Credit Payments to Issuers of Qualified Bonds) dated January 2020.
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    The Hawkins Advisory discusses recently published Proposed Treasury Regulations that provide guidance as to the ability of parties to variable rate debt and other contracts that currently rely on LIBOR as an interest rate benchmark to alter the documents for these transactions for the purpose of incorporating interest rates reflective of other reference rates. The Advisory also reviews the status of other regulatory efforts to prepare the capital markets to transition from broad reliance upon LIBOR.
  • Michela Daliana Honored as a 2019 Northeast Women in Public Finance Trailblazer
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  • New Current Refunding Guidelines for Bonds Issued Pursuant to Special Authorizations
    On May 22, 2019, the Internal Revenue Service released Notice 2019-39. The Notice provides guidance on the issuance of tax-exempt state and local bonds and tax-exempt Indian tribal government bonds in current refunding issues...