December 20, 2010
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853) (the Act) became law Dec. 17, 2010. The Act did not extend several municipal bond programs and enhancements established under the Recovery Act (see our alert for July 13, 2010) such as Build America Bonds or the $30 million bank-qualified eligibility set-aside for 501(c)(3) entities.
The Act contains the following municipal bond provisions:
The Act did not address Qualified School Construction Bonds, Qualified Energy Conservation Bonds and New Clean Renewable Energy Bonds (see our alerts for September 20, 2010, May 20, 2010, March 17, 2010, November 2, 2009, and March 30, 2009).
Several municipal bond programs were not renewed by the Act, including Build America Bonds, Recovery Zone Facility Bonds and Recovery Zone Economic Development Bonds. In addition, the Act did not renew (i) the liberalized rules governing bank-qualified tax-exempt bonds; (ii) the exemption from the Alternative Minimum Tax of the interest earned on private activity bonds; (iii) the exemption from adjusted current earnings of interest earned on certain tax-exempt bonds; or (iv) the guaranty by a federal home loan bank for tax-exempt bonds.