Legal Alert: Sequestration to Cause CREB Payments to Be Reduced by 8.7%

The Office of Management and Budget has issued its Report to the Congress on the budget sequestration for federal fiscal year 2013 required by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011. Interest subsidy payments for New Clean Renewable Energy Bonds (New CREBs) are among the federal programs impacted by sequestration.

As required by law, the President has cancelled $85 billion in budgetary spending across the federal government for federal fiscal year 2013, including 5.1% cuts for non - exempt, non - defense mandatory spending programs such as direct - pay interest reimbursements on certain qualified tax credit bonds, including New CREBs. Because New CREB interest reimbursements were fully paid during the first five months of the current federal fiscal year, the cuts to the New CREB program must be spread over seven months, rather than the 12 months of the full fiscal year. As a result, New CREB interest reimbursements coming due from March 1, 2013, through September 30, 2013, will actually be reduced by 8.7%, according to guidance rel eased late Monday by the tax - exempt bond office of the Internal Revenue Service.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

OMB
Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×