Treasury Department Announces Build America Bonds and School Bonds

WASHINGTON (April 3, 2009) -- 1n an effort to counteract challenges facing state and local governments in the current economic climate, the U.S. Department of the Treasury today announced two new bond programs to help states pursue capital and infrastructure projects and fuel job creation.

Under the American Recovery and Reinvestment Act of 2009, the Build America Bond program will to provide funding for state and local governments at lower borrowing costs for such projects as work on public buildings, courthouses, schools, roads, transportation infrastructure, government hospitals, public safety facilities and equipment, water and sewer projects, environmental projects, energy projects, governmental housing projects and public utilities.

Supplementing the existing tax-exempt bond market market, the Build America Bond program is designed to provide a federal subsidy for a larger portion of the borrowing costs of state and local governments than traditional tax-exempt bonds in order to stimulate the economy and encourage investments in capital projects in 2009 and 2010.

Also announced were two tax credit bond programs for schools, known as Qualified School Construction Bonds and Qualified Zone Academy Bonds. Created under new or expanded authorizations in The American Recovery and Reinvestment Act of 2009, these programs allow state and local governments to finance public school construction projects and other eligible costs for public schools with interest-free borrowings.

For details of the two new bond programs, see the full news release from the Department of the Treasury. Sphere: Related Content