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Tax-Exempt Bond
(redirected from Tax Exempt Bond)

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Tax-exempt bond
A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax.

Tax-Exempt Bond
A bond issued by a local or state government. Municipal bonds are usually used to raise capital for improvements in infrastructure or other aspects of the municipality. For example, a city or school district may issue a tax-exempt bond to build a new school or a new playground. They are called tax-exempt bonds because they are exempt from federal income taxes and sometimes from state and local taxes as well. Tax-exempt bonds usually pay lower coupons than corporate bonds, but because the yield is tax-free, the after-tax basis may be higher for the tax-exempt bond. Risk varies according to the municipality and the particular type of bond.

tax-exempt bond


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A big advantage of an 80/20 deal which is financed by tax exempt bonds is the "as of right" allocation of tax credits.
A similar spirit has informed the early efforts of the Internal Revenue Service's Tax Exempt Bond (TEB) Group in its choice of which bonds to audit.
21 /PRNewswire/ -- Charter Municipal Mortgage Acceptance Company ("CharterMac") (Amex: CHC), and American Tax Exempt Bond Trust ("ATEBT") today jointly announced that the merger of ATEBT with and into a wholly-owned subsidiary of CharterMac, CM Holding Trust, was finalized and certificates were mailed to shareholders on November 17, 2000.
 
 
 
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