Proposed Tax Credit for Municipal Bond Interest

摘要

A bipartisan bill introduced in Congress contains an interesting provision related to the non-refundable personal credit for interest on state and local bonds.rnThe introduction of tax bills in the House and Senate is a common event in Congress. The likelihood that the bill will make it to the President's desk-with or without changes to the initial bill-isn't so common. Hence, this column generally doesn't discuss an introduced bill or the possible changes to tax provisions. Recently, however, Senators Ron Wyden (D.-Ore.) and Judd Gregg (R.-N.H.) introduced the Bipartisan Tax Fairness and Simplification Act of 2010 (S.3018) into the 111th Congress. The bill was read twice on February 23, 2010, and then referred to the Committee on Finance, where it currently sits. Although this bill may or may not survive Congress, there's a particular tax provision that merits presentation.