Bank-Qualified Bill offered

By Peter Schroeder May 13, 2010, 3:28 p.m. EDT 1 Min Read

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.

Peter Schroeder

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