The Dormitory Authority of the State of New York gave final approval to $2.91 billion of bonds, including about $800 million of Build America Bonds on the state's personal income tax credit, at its monthly board meeting yesterday. It also delayed consideration of a qualified school construction bond deal that is expected to price in the fall.

The largest issue approved was for up to $1.43 billion of PIT bonds that will include about $800 million of BABs. The deal will be the first for the state using the taxable BAB program established under the federal stimulus act, which allows an issuer to receive a cash subsidy from the federal government or for the bondholders to receive federal tax credits. The subsidies and tax credits are equal to 35% of the interest paid on the bonds.

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