Municipal Taxable Bond Alternative Act - Amends the Internal Revenue Code to allow a State, a possession of the United States, any political subdivision of any of the foregoing, or the District of Columbia, to elect to issue taxable obligations, the interest of which will be included in the gross income of the recipient.
Excludes from such election: industrial development bonds; obligations other than of governmental entities; obligations the interest on which is includible in gross income; and obligations with respect to which the United States guarantees, is required to pay interest on, or has a commitment to acquire in connection with a Federal assistance program.
Directs the Secretary of the Treasury to pay without condition or requirement 35 percent of the interest yield on each obligation for which the election of taxability has been made.
Makes technical and conforming amendments.
States that this Act shall not be construed to authorize the Secretary to review or approve the purposes of the issuance of any obligation to which an election, as provided under this Act, applies.
Introduced in House
Introduced in House
Referred to House Committee on Ways and Means.
Reported to House from the Committee on Ways and Means with amendment, H. Rept. 94-1016.
Reported to House from the Committee on Ways and Means with amendment, H. Rept. 94-1016.
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