Tax Credit Bonds: Overview and Analysis

Maguire, Steven

Library of Congress. Congressional Research Service.

关键词: Taxation;    Tax credits;    Finance;    Bonds;    Taxation -- Law and legislation;   

RP-ID  :  R40523
RP-ID  :  R40523_2010Jul29

美国|英语

来源: UNT Digital Library

【 摘 要 】

Almost all state and local governments sell bonds to finance public projects and certain qualified private activities. Most of the bonds issued are tax-exempt bonds because the interest payments are not included in the bondholder's (purchaser's) federal taxable income. In contrast, Tax Credit Bonds (TCBs) are a type of bond that offers the holder a federal tax credit instead of interest. This report explains the tax credit mechanism and describes the market for the bonds.