Number: RS20932
Title: Tax-Exempt Bond Provisions in the "Economic Growth and Tax Relief Reconciliation Act of 2001"
Authors: Steven Maguire, Government and Finance Division 
Abstract: This report describes and analyzes two provisions included in P.L. 107-16. The two provisions will likely induce more tax-exempt bond financing for public school capital investment through loosening arbitrage bond rules for some issuers and expanding the list of otherwise private facilities that are still eligible for tax-exempt financing. Specifically, Sec. 421 of P.L. 107-16 modifies rules on arbitrage rebate bonds and Sec. 422 expands the definition of private activity bonds. The effect on the tax-exempt bond market, when combined with other provisions in P.L. 107-16, may be generally higher tax-exempt bond interest rates.
Pages: 6
Date: Updated July 19, 2001