The Small Business and Infrastructure Jobs Tax Act of 2010 that passed the House on Wednesday contains a provision that would benefit tribes under the Build America Bonds program.

According to The Bond Buyer, the bill allows tribes to issue bonds for sewage and water supply facilities without being subject to the “essential government function” that the Internal Revenue Service has used to limit tribal financing. The bill also allows tribes to issue bonds without being subject to existing volume caps.

H.R.4849 passed the House by a 246 to 178 vote. Section 202 contains the tribal provision.

The Bond Buyer said it was unclear when the Senate would take up the legislation.

The American Recovery and Reinvestment Act of 2009 created the Build America Bond program.

Get the Story:
House OKs Bill With BAB Extension (The Bond Buyer 3/25)

Relevant Documents:
Treasury Releases Guidance on Build America Bonds and School Bonds | IRS Issues Guidance on New Build America Bonds