[20070423]RS20606_税收抵免债券：简要说明.pdf

1 For ease of exposition, the phrase “state and local tax-exempt bonds” is replaced by “municipal(continued.)Order Code RS20606Updated April 23, 2007Tax Credit Bonds: A Brief ExplanationSteven MaguireAnalyst in Public FinanceGovernment and Finance DivisionSummaryThis report explains the tax credit mechanism and describes the market forqualified zone academy bonds (QZABs), clean renewable energy bonds (CREBs), andgulf tax credit bonds (GTCBs). QZABs, which were the first tax credit bonds, wereintroduced as part of the Taxpayer Relief Act of 1997 (P.L. 105-34) and available for1998. CREBs were created by the Energy Policy Act of 2005 (P.L. 109-58) and GTCBsby the Gulf Opportunity Zone Act of 2005 (P.L. 109-135). Tax Credit Bonds (TCBs)are a type of bond that offers the holder a federal tax credit instead of interest. Each typeof TCB has a specific use. Issuers of QZABs are required to use the proceeds to financepublic school partnership programs in economically distressed areas. CREBs aredesignated for clean renewable energy projects. GTCB proceeds are for the refinancingof outstanding government debt in Gulf Coast regions affected by Hurricane Katrina.GTCBs could only be issued in 2