WASHINGTON — Two members of the House Ways and Means Committee introduced bipartisan legislation Thursday that would permanently increase the bank-qualified debt limit to $30 million from $10 million and index it for inflation.

Reps. Tom Reed, R-N.Y. and Richard Neal, D-Mass. unveiled the “Municipal Bond Market Support Act of 2012,” which would allow banks to deduct 80% of the cost of buying and carrying the tax-exempt bonds of issuers whose annual issuance does not exceed $30 million.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.