Obama Signs HIRE Act Modifying ARRA Bond Programs

President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act late last week allowing issuers of qualified school construction bonds, qualified zone academy bonds, new clean renewable energy bonds and qualified energy conservation bonds to elect to receive direct subsidy payments from the federal government instead of offering investors a tax credit. These ARRA-created taxable tax credit bond programs have been under-utilized because of a lack of interest in tax credits by investors. The direct subsidies authorized by the HIRE Act are aimed at increasing demand similar to the success of the Build America Bond program.

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Additional Resources About the HIRE Act

HIRE Act Allows Issuers of Certain Tax Credit Bonds to Receive Direct Payment From the Federal Government

Bond Incentives Part of HIRE Act