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Treasury Guidance Regarding ARRA Bond Provisions

Public Finance Update Elizabeth S. Blutstein, Julianna Ebert, Brian G. Lanser, Ann M. Murphy, Jeff Peelen, Jennifer V. Powers, Michael L. Roshar, Rebecca A. Speckhard, Bridgette DeToro, Allison M. Buchanan

We recently provided you with a Public Finance Update about the public finance provisions included in the American Recovery and Reinvestment Act of 2009 which was enacted on February 17, 2009 ("ARRA"). In it we indicated that additional interpretive guidance from the U.S. Treasury was expected.

On Friday, April 3, 2009, the Internal Revenue Service (IRS) issued guidance regarding certain of the public finance provisions contained in ARRA, including guidance about the Build America Bonds (both the tax credit and direct pay versions), the Qualified School Construction Bonds and Qualified Zone Academy Bonds. Today, the IRS issued allocation information regarding Clean Renewable Energy Bonds (CREBs) and Qualified Energy Conservation Bonds (QECBs).

Included in the releases regarding the Build America Bonds is information about eligible types of projects and financings, initial implementation of the direct federal subsidy payment procedures, required elections to use the program and the mandated information reporting.

IRS News Release IR-2009-33 (Build America Bonds), Notice 2009-33 (CREBs), Notice 2009-29 (QECBs), Notice 2009-26 (Build America Bonds), Notice 2009-30 (QZABs), Notice 2009-35 (Qualified School Construction Bonds), and Form 8038-CP (and instructions) are attached to this update. Links are included below.

http://www.irs.gov/pub/irs-drop/n-09-33.pdf

http://www.irs.gov/pub/irs-drop/n-09-29.pdf

http://www.irs.gov/pub/irs-drop/n-09-26.pdf

http://www.irs.gov/pub/irs-drop/n-09-30.pdf

http://www.irs.gov/pub/irs-drop/n-09-35.pdf

http://www.irs.gov/pub/irs-pdf/f8038cp.pdf

http://www.irs.gov/pub/irs-pdf/i8038cp.pdf

We are in the process of reviewing the IRS releases and plan to provide you with a Public Finance Update discussing the provisions of the releases shortly.

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If you have questions about the Public Finance provisions of the American Recovery and Reinvestment Act of 2009, please contact any of the Quarles & Brady public finance attorneys.