While federal lawmakers are nearing a compromise on tax legislation that would extend many expired and expiring tax provisions as well as the Bush-era tax cuts, it is not certain the measure will continue the popular Build America Bond program, sources said.

That's because the Senate's lead Republican negotiator, Jon Kyl, R-Ariz., has been a harsh critic of the program, which is set to expire on Dec. 31. In May, Kyl complained to colleagues that BABs reward states and localities with lower credit ratings because they sell BABs at higher interest rates and receive higher subsidy payments from the U.S. Treasury.

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