Tax
Compulsory charges levied by a governmental unit for the purpose of raising revenue.
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Alternative Minimum Tax (“AMT”)
An additional income Tax under the Code that applies in certain instances for individuals and in a different way to certain large corporations. Interest on Governmental Bonds issued as Tax-Exempt Bonds is generally excluded from the Alternative Minimum Tax, although corporations must include the Interest in certain calculations. However, Interest on qualified Private Activity Bonds (PAB) (other than Qualified 501(c)(3) Bonds and certain other PABs) is included as income by taxpayers in calculating the AMT.
See Also
Tax-Exempt Bonds
A bond, the interest on which is excludable from gross income for federal income tax purposes.
Private Activity Bond (PAB)
The term used in the Code to describe any bond issued as part of a bond issue that meets both of the private business tests or meets the private loan financing test.
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Agreement Among Underwriters
Agreement used in the purchase of a bond issue by a syndicate to set out the rights, obligations and purchase commitments of each underwriter; to authorize one or more underwriters to act as manager(s); and to give the manager(s) authority to act on behalf of the others in connection with the bond issue.