Build America Bonds
Build America Bonds were taxable municipal bonds issued in 2009 and 2010 with federal tax-credit or direct-payment subsidy features.
Public-purpose bond terms covering taxable municipal programs, Build America Bonds, Liberty Bonds, and historical government borrowing campaigns.
Taxable and historical public-purpose bonds are government or municipal debt terms whose tax status, subsidy design, or historical role differs from ordinary tax-exempt municipal debt. The key issue is whether the label changes after-tax yield, issuer borrowing cost, legal authority, call risk, or historical interpretation.
Use this branch when a public-purpose bond does not fit the standard tax-exempt municipal frame. Build America Bonds were taxable municipal bonds created under U.S. stimulus legislation. Liberty Bonds were U.S. government war-finance bonds, not municipal bonds.
| Question | Why it matters |
|---|---|
| Is the bond taxable or tax-exempt? | Tax status changes investor base, yield comparison, and after-tax return. |
| Is there a federal subsidy or tax credit? | Subsidy rules can change issuer cost, disclosure, and call analysis. |
| Is the term historical rather than current? | A historical label may explain the security but not identify a current product. |
| Who is the issuer? | Municipal, state authority, and federal debt have different credit and disclosure frameworks. |
| What document controls the terms? | Official statements, bond indentures, Treasury records, and statutes are stronger evidence than marketing labels. |
Do not group these bonds only because they have public-purpose language. A taxable municipal bond, a historical federal war bond, and a current tax-exempt revenue bond can have very different pricing, tax, liquidity, and credit implications.
For ordinary municipal tax status, start with Tax-Exempt Bond and Municipal Bond. For project-backed repayment sources, return to Revenue and Special-Purpose Municipal Bonds.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Build America Bonds were taxable municipal bonds issued in 2009 and 2010 with federal tax-credit or direct-payment subsidy features.
Liberty Bonds were U.S. government war-finance bonds sold during World War I, important for public debt history and war-bond comparisons.