Federal Subsidies to Issuers of Build America Bonds and Direct Pay Tax Credit Bonds are being Reduced by Sequestration

On March 1, 2013, President Obama issued an order for certain automatic cuts to federal spending. President Obama issued the order under a “sequestration” law previously enacted by Congress. The automatic cuts to federal spending include a reduction in federal payments to issuers of Build America Bonds and certain direct pay tax credit bonds, including Qualified Zone Academy Bonds (QZABs).

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