Bond Education | Glossary
Recovery Zone Economic Development Bonds? Direct Payment
Provides a deeper Federal subsidy through a refundable tax credit paid to state or local government issuers by the Treasury Department and the Internal Revenue Service in an amount equal to 45 percent of the total coupon interest payable to investors on these taxable bonds. The funds raised by the sale of these bonds must be used for one or more qualified economic development purposes in additional to other restrictions imposed by regulation.