WashingtonWatch.com - S. 238, The Build America Bonds Act of 2009

Comment by Pete (July 11, 2009, 01:00:00)

Sat, 11 Jul 2009 00:00:00 EDT

where can you buy these BAB's ?...

Revision by CarolB (July 7, 2009, 01:00:00)

Tue, 07 Jul 2009 00:00:00 EDT

S. 238 would provide $50,000,000,000 in new transportation infrastructure funding through bonding to empower States and local governments to complete significant infrastructure projects across all modes of transportation, including roads, bridges, rail and transit systems, ports, and inland waterways.

Detailed Summary

Build America Bonds Act of 2009 - Amends the Internal Revenue Code to allow an income tax credit for any Build America bond issued by the Transportation Finance Corporation as part of an issue, if 100% of the available project proceeds from such issue are to be used for expenditures incurred for one or more qualified projects. Requires proceeds from the sale of bonds issued under this Act to be held in a Build America Bonds Trust Account.

Defines "qualified project" as the capital improvements to any transportation infrastructure project (including roads, bridges, rail and transit systems, ports, and inland waterways) proposed by one or more states and approved by the Transportation Finance Corporation.

Grants Congress' consent and recognition to the establishment by two or more state infrastructure banks of the Transportation Finance Corporation. Authorizes the Transportation Finance Corporation to: (1) issue Build America bonds for the financing of qualified projects; (2) establish and operate the Build America Bonds Trust Account; (3) leverage resources and stimulate public and private investment in transportation infrastructure; and (4) perform any other function the sole purpose of which is to carry out the financing of qualified projects through Build America bonds.

Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to extend certain customs fees for the processing of merchandise entered into the United States through specified dates in 2046.

Status of the Legislation

Latest Major Action: 1/14/2009: Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

Points in Favor

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Points Against

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Comment by Lori in NYC (July 6, 2009, 01:00:00)

Mon, 06 Jul 2009 00:00:00 EDT

If I understand this correctly, this is a terrific idea. Many munis end up getting refunded for savings after the 10 year call. If this BABs bonds are sold in the traditional corporate structure, without the call options, investment banks will stop making money off of muni issuers by "recycling" their debt structure every 10 years. Also, it means that everyday people, not in the 35% tax bracket, could actually purchase these high quality credit muni bonds....

Comment by Chuck in Houston (July 6, 2009, 01:00:00)

Mon, 06 Jul 2009 00:00:00 EDT

Can anyone point me to info addressing the following worst-case scenario: assume the municipality defaults on one of its BAB coupon payments -- what happens to the 35% subsidy from the U.S. Treasury? I have heard people representing the Treasury say that, as far as the subsidy payments not needing subsequent appropriation by Congress, that such payments would be considered as "tax refunds". Does this mean that bondholders, in my worst-case scenario, would not receive any of such payments?...

Comment by James in VA (June 19, 2009, 01:00:00)

Fri, 19 Jun 2009 00:00:00 EDT

I'll keep this short as I feel my head will explode if I hear much more of the bs DC is doing. WE GIVE 100's of BILLIONS to bankers which we PAY interest on to the SAME BANKERS!!!! What is going on????? So far according to Bloomberg the bankers have STOLE around 16-17 TRILLION DOLLARS from US the taxpayers. How many roads could be built for that??? I would say ALL OF THEM. END THE FED!!! Then fix everything with dept free money issued by our government, not private bankers who leech off us. Support HR 1207 and S 604 Audit the fed....

Comment by Outside US (May 21, 2009, 01:00:00)

Thu, 21 May 2009 00:00:00 EDT

These available to non-US residents?...

Comment by Minimum initial investment (April 30, 2009, 01:00:00)

Thu, 30 Apr 2009 00:00:00 EDT

You can buy into the bonds with at least $5,000, not $20k....

Comment by CRT (April 28, 2009, 01:00:00)

Tue, 28 Apr 2009 00:00:00 EDT

We certainly need to do something to repair our infrastructure but I'm not sure more debt is the answer....

Revision by webmaster (February 25, 2009, 01:00:00)

Wed, 25 Feb 2009 00:00:00 EST

Detailed Summary

Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to extend certain customs fees for the processing of merchandise entered into the United States through specified dates in 2046.

Status of the Legislation

Latest Major Action: 1/14/2009: Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

Points in Favor

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Points Against

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Comment by Rural America (February 20, 2009, 01:00:00)

Fri, 20 Feb 2009 00:00:00 EST

This is a great idea if an individual can get these. But I figure that the only people that will be able to afford these "small amount" bonds will need to pony up 20-200K. I think it would be better if they issued some of the bonds in the $100 to $5000 range so that people would feel that they are investing in their future. Remember "War Bonds"?...

Revision by webmaster (January 15, 2009, 01:00:00)

Thu, 15 Jan 2009 00:00:00 EST

Detailed Summary

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Status of the Legislation

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Points in Favor

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Points Against

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Revision by webmaster (January 15, 2009, 01:00:00)

Thu, 15 Jan 2009 00:00:00 EST

Detailed Summary

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Status of the Legislation

Latest Major Action: 1/14/2009: Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

Points in Favor

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Points Against

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Status as of January 14, 2009

Wed, 14 Jan 2009 00:00:00 EST

1/14/2009: Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.