The federal government is expected to forego more than $26 billion in annual revenue each year from fiscal 2008 through fiscal 2012 because of what tax-exempt bond financing of infrastructure projects costs federal coffers, the Congressional Budget Office and Joint Committee on Taxation said in a report this week.

The groups concluded that, “in principle,” replacing tax-exempt bonds with tax-credit bonds could make tax-preferred financing more efficient partly by returning more of the foregone revenue to the borrowers.

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