Tax
Compulsory charges levied by a governmental unit for the purpose of raising revenue.
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Taxable Bond
A Bond, the Interest on which is not excludable from gross income for federal income tax purposes.
See Also
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.
In Contrast To
Tax-Exempt Bonds
A bond, the interest on which is excludable from gross income for federal income tax purposes.
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Rebate
A requirement imposed under the Code to pay to the Internal Revenue Service an amount equal to the arbitrage earned on tax-exempt bonds.