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

References in periodicals archive ?
The Tax Exempt Bond Division administers VCAP to help governmental issuers resolve violations of the federal tax laws applicable to their tax-exempt bonds, tax credit bonds, or direct pay bonds.
When asked why he robbed banks, Willie Sutton responded, "Because that's where the money is." 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.
THE PENNSYLVANIA HOUSING FINANCE AGENCY (PHFA), Harrisburg, Pennsylvania, is allocating $32.65 million of tax exempt bond authority for rental housing developments in Philadelphia and Allegheny County.
Albee Development plans to use $20 million in tax exempt bond financing to spur construction of its City Point development project.
Thirteen of the round three Cornerstone sites proposed funding from HDC programs: HDC's New Housing Opportunities Program (New HOP), an initiative designed to meet the affordable housing needs of middle income New Yorkers; HDC's Tax Exempt 80/20 Program, which creates affordable housing for low-income tenants in some of the most desirable locations in the City; and HDC's Low-Income Affordable Marketplace Program (LAMP), which combines the use of tax exempt bond financing with Federal Low Income Housing Tax Credits and other subsides to produce housing affordable to those earning less than 60% of area median income.
Farrell Fritz, PC announced that Peter Curry, a partner in its new Melville office, represented Michael Reilly Designs, Incorporated and its affiliate, Plant 7 Calverton, Inc., in a $7.1 million tax exempt bond financing with the Town of Riverhead Industrial Development Agency on Oct.
* Completed a merger with American Tax Exempt Bond Trust (ATEBT).
Charter Municipal Mortgage Acceptance Company and American Tax Exempt Bond Trust 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 Nov.
In addition, most sites are eligible for wage tax credits, investment credits, utility rate reductions, employee training benefits and tax exempt bond financing.
The New Jersey Economic Development Authority, an independent self-supporting state agency, has issued a $17.86 million tax exempt bond to help finance the project.
The execution utilized publicly-issued tax exempt bonds and 4% tax credit equity, provided by PNC Bank, to fund approximately USD 11 million in repairs, renovations and upgrades to the community.