WASHINGTON — A consulting firm has warned the Treasury Department that interim guidance it released in March might force small school districts to obtain Cusip numbers for their tax-credit bonds even if the issuer has no intention of ever stripping the tax credit from the bonds and selling it separately.

An official with the firm also said yesterday that while issuers now can offer school tax-credit bonds as taxable debt for which the issuer receives a direct federal interest-cost subsidy, the fact that those payments can be offset is keeping some districts from jumping into the market.

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.