WASHINGTON — A new jobs bill expected to be introduced today by House Ways and Means Committee chairman Rep. Sander Levin, D-Mich., will include an 18-month extension of the Build America Bonds program, a committee spokesperson said.
But further specifics, such as whether its scope would be expanded or what subsidy rate will be proposed were not available yesterday, according to sources.
The program is currently slated to expire on Dec. 31.
“Build America Bonds have proven a vital and effective tool for job creation during the recovery,” Levin told The Bond Buyer in a written statement. “Members of the Ways and Means Committee want very much to build off of this success and expand the program to help spur job growth and improve our communities. We expect this provision will have broad support moving forward.”
In addition, the bill may extend an American Recovery and Reinvestment Act provision that exempts private-activity bonds from the alternative minimum tax, according to a source who saw a rough outline of the bill. That extension could run one year, another source said.
Other bond provisions that could be in the bill include extensions or expansions to the recovery zone bond programs, which are special bonds targeted to finance development in economically distressed areas, and exemptions of water and sewer facility PABs from state volume caps, according to sources. State and U.S. territory issuance of PABs are capped annually based on their population figures. Currently the cap is $90 per capita or $273.775 million, whichever is higher.
A committee spokesperson would not comment on what the bill will include, other than the BAB extension.
It is not clear how lawmakers will pay for these provisions to adhere to pay-as-you-go budgeting rules.