WASHINGTON — Congress is expected to soon pass tax compromise legislation that would allow the Build America Bond program and other key muni tax incentives to expire at the end of the year and there is little hope that they will be revived next year, congressional aides and market participants said Friday.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act, introduced Thursday night by Senate Majority Leader Harry Reid, D-Nev., would not extend BABs. It also would not extend the increased small-issuer limit for bank-qualified bonds, the alternative-minimum tax exemption for private-activity bonds, recovery zone bonds, or authority for the federal home loan banks to issue letters of credit for tax-exempt debt.

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