Two senators last night unveiled a bill that would make the $30 million small-issuer limit for bank-qualified bonds permanent and index it to inflation. The Municipal Bond Market Support Act of 2010, introduced by Sens. Jeff Bingaman, D-N.M., and Mike Crapo, R-Idaho, has been referred to the committee. The bill would extend a provision in the American Recovery and Reinvestment Act that allows banks to deduct 80% of the costs of buying and carrying tax-exempt debt sold by borrowers whose annual issuance is no greater than $30 million. That is an increase above the previous limit of $10 million. The provision is currently scheduled to expire at the end of the year.
Independent and authoritative analysis and perspective for the bond buying industry.
No credit card required. Complete access to articles, breaking news and industry data.
Have an account? Sign In