This summary information is available as a Microsoft Word doc format of    Municipal-Finance-Bond-Tax-Opportunities-ARRTA-ARR  or PDF document pdf format of    Municipal-Finance-Bond-Tax-Opportunities.pdf  .

Common Questions and Answers



Who can issue these bonds?

State or local government or conduit issuer

What can they be used for?

Qualified conservation purpose, including projects to reduce energy consumption in publicly-owed buildings, implementing green community programs, commuting facilities to reduce energy consumption and pollution, demonstration projects and educational campaigns. 70% of allocation cannot be private activity. 100% of the portion that is private activity must be capital expenditures

How are they subsidized by the feds?

QECBs are taxable, with tax credit payable by US Treasury to investor. Maximum maturity and credit rate are determined by US Treasury on date of sale

What are the benefits?

0% interest cost

Are there special reporting requirements?

Same information requirements as tax-exempt state or local government bonds

How long will these bonds be available?

Presumption is that it will continue indefinitely

Is there a cap?

Yes. National allocation increased to $3.2 billion in both FY09 and FY10

Where can I find more information?

Section 1112 of ARRTA; Guidance issued 4/3/2009. US Treasury website http://www.irs.gov

What else should I know?

Check back with mass.gov/recovery for updates

Information provided by the Executive Office for Administration and Finance