WASHINGTON – Leaders of the House and Senate taxwriting committees are expected today to introduce jobs and extenders legislation that would extend the Build America bonds program for two years, until the end of 2012, and gradually lower the subsidy to 30%.
The American Jobs and Closing Tax Loopholes Act unveiled also would extend a number of expiring tax provisions and includes several muni bond provisions previously approved by the House in separate legislation that stalled in the Senate. While the House had previously signed off on a BAB extension that would last until April 1, 2013, this new bill would shorten the program by three months, most likely to lower the cost of the bill.
Provisions in the soon-to-be introduced legislation would help companies and state and local governments spur job growth while also providing critical tax relief and economic assistance to American families who were hit hard by the recession,” said House Ways and Means Committee Chairman Sander Levin, D-Mich.
The small issuer exemption for bank-qualified debt would remain at $30 million for another year, through 2011, under the bill. That limit was increased from $10 million to $30 million as part of the American Recovery and Reinvestment Act. The bill also would continue allowing that limit to be applied to borrowers in conduit deals.
The measure also would allocate an additional $25 billion of Recovery Zone bonds, modify the allocation formula to ensure each municipality receives a minimum allocation equal to at least its share of national unemployment at the end of 2009, and extend the program by one year through 2011.
The exemption of private activity bonds from the alternative minimum tax also would be extended for another year, through 2011, and Federal Home Loan Banks could guarantee tax-exempt debt until 2012 as well.
Water and sewer exempt-facility bonds would be exempt from state volume caps under the bill.
