Series 50: Tax Credit BABs

Taken from our Series 50 Online Guide

Tax Credit BABs

Tax Credit BABs may be issued for any public purpose that a normal tax-exempt bond can fund. In this case, the 35% subsidy comes to investors in the form of a tax credit on their interest income. Issuers can offer a lower interest rate because buyers of this type of BAB receive a 35% tax credit.

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