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
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:
- Extends through Dec. 31, 2011, the authorizations for the issuance of
certain tax-exempt bonds for the District of Columbia Enterprise Zone, the New York Liberty
Zone, and the Gulf Opportunity Zone.
- Provides 2011 allocation for the issuance of $400 million of Qualified
Zone Academy Bonds (QZABs), but disallows the ability to issue QZABs under
such allocation as "direct pay" bonds pursuant to which the issuer of such
bonds receives a credit in the form of a payment from the U.S. Treasury.
- Extends through Dec. 31, 2012, the increase of the arbitrage rebate
exception from $10 million to $15 million for governmental bonds used to
finance qualified school construction.
- Extends through Dec. 31, 2012, the authorization for the issuance of
tax-exempt private activity bonds for qualified education facilities with
annual state volume caps equal to the greater of $10 multiplied by the state
population or $5 million.
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,
November 2, 2009, and
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