WASHINGTON — Federal lawmakers and their staffs are wrong to think that tax-credit bonds could cost-effectively replace tax-exempt municipal bonds as a source of financing for state and local governments' projects, Citi said in a recent report.

Citi issued the 11-page research report after Senate Finance Committee chairman Max Baucus, D-Mont., last month called for Congress to consider alternatives to tax-exempt bonds to promote uniform subsidies for bondholders and after a Congressional Budget Office official claimed tax-credit bonds would be a better alternative to tax-exempts.

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.