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Cowburn, Laura; Phillips, Kenneth A.; Unkovic, David – School Business Affairs, 2010
The federal government has traditionally given local school districts an indirect subsidy by allowing them to issue tax-exempt bonds. Because the bondholders pay no tax on the interest income, they are willing to take a bond bearing interest at, say, 4.5% rather than 6%. Such lower interest is great for the school district because it saves the…
Descriptors: Taxes, Tax Credits, School Construction, Educational Finance