Client Alert
The Internal Revenue Service Office of Tax Exempt Bonds has announced a new sequester reduction in amounts paid to issuers of direct pay bonds for which issuers elected to receive a direct payment from the U.S. Treasury pursuant to Section 6431 of the Internal Revenue Code. The reduction applies to certain direct pay bonds, including: Build America Bonds (which includes Recovery Zone Economic Development Bonds); Qualified Zone Academy Bonds; Qualified School Construction Bonds; Qualified Energy Conservation Bonds; and New Clean Renewable Energy Bonds. The reduction does not apply to tax credit bonds for which the holder of the bonds receives a tax credit
