The Internal Revenue Service has told Rep. Dennis Kucinich that Treasury Department officials cannot talk with him about the Build America Bonds used to finance the coal-fired Prairie State Energy Campus power plant in Illinois, which has experienced cost overruns and operational problems.

The Democrat from Ohio, who lost the Democratic primary and is leaving Congress, had sent Treasury officials a letter in October asking them to investigate whether it was proper for BABS to have been used to finance the power plant. BABs are taxable and the Treasury makes subsidy payments to issuers, which equal 35% of their interest costs.

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.