The House Ways and Means Committee is proposing to repeal the alternative minimum tax only for private-activity bonds issued in 2009 and 2010 as part of the economic stimulus package, knowledgeable sources confirmed late Friday.

The committee is also proposing to increase the bank deductibility limit to $30 million from $10 million until the end of 2010, which would allow banks to deduct 80% of the costs of purchasing and carrying tax-exempt bonds by issuers whose annual bond issuance does not exceed that amount.

In addition, the bill would authorize $20 billion of school construction bonds and $1.4 billion of qualified zone academy bonds over two years. Authorizations for clean renewable energy bonds and qualified energy conservation bonds would increase by $1.6 billion and $2.4 billion, respectively.

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