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Interest subsidy

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Interest subsidy
The value of a firm's deduction of the interest payments on its debt from its earnings before calculation of its tax bill under current tax law.

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Interestingly, the level of "total" subsidy provided through the interest subsidy is much less than with other approaches, and yet the banks are mobilizing.
Under HUD's program, Marathon Development Group has agreed to extend the term of the rental restrictions in exchange for receiving a partial interest subsidy on the mortgage.
B) Reporting entities should also disclose, at the program level, the subsidy rates for the total subsidy cost and its components for the interest subsidy costs, default costs (net of recoveries), fees and other collections, and other costs, estimated for direct loans and loan guarantees in the current year's budget for the current year's cohorts.
 
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