bond-basics

Tax-Advantaged Bonds

Includes Tax-Exempt Bonds, Tax Credit Bonds, and Direct Pay Bonds.


See Also

Tax-Exempt Bonds

A bond, the interest on which is excludable from gross income for federal income tax purposes.

Tax Credit Bond

A taxable bond that provides a tax credit to the holder in lieu of tax-exempt interest.

Direct Pay Bond

A taxable bond that offers a federal Interest subsidy to the Issuer in lieu of the interest being excludable from federal income tax.

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Lender

The entity or entities, typically commercial banks, which purchases the bonds pursuant to a private placement for its own portfolio.