Newark - As the Senate prepares to consider and vote on a targeted new job creation bill, U.S. Senator Robert Menendez stood today at Teaneck High School in support of the Build America Bonds expansion, that would assist schools in financing construction projects and create jobs. Senator Menendez was joined by Teaneck High School Principal Angela Davis and members of the Teaneck School Board.

"This is an investment in both our short and long-term economic security," said Senator Menendez. "By helping spur school construction, we help create jobs that put New Jerseyans to work immediately on badly needed improvements, refurbishments and additions. We also help advance our state's human capital by creating learning environments in which our children can focus on their education and thrive. "It is fiscally sound for our state's economy, as our municipalities do not rely on taxpayers' money and instead use bonds to finance this type of project."

The Build America Bonds program for state and municipal governments would allow qualifying issuers of certain tax credit bonds designed to finance renewable energy and school construction projects, the option of issuing tax credit bonds as they currently do or utilizing the direct subsidy Build America Bond structure for bonds issued after the date of enactment.

Teaneck High School, which recently added a College and Career Center, is one of the many schools in the Garden State that continues to expand and is planning additional future renovation projects.

The Build America Bonds Expansion includes:
• Tax credit bonds that provide the bond holder a federal tax credit in lieu of interest. The tax credit is determined based on Treasury's estimate of the yields on outstanding bonds from market sectors.
• Build America Bonds provide qualifying issuers a direct payment from the Treasury for a portion (35%) of the interest paid on the bond for government works projects.
• The provision would allow eligible entities to choose which subsidy mechanism they would rather use for certain bond issuances. They could continue using the credit determined by Treasury or use the BAB model with a 45% credit rate (65% in rare circumstances).

The following are eligible bonds:
• new clean renewable energy bond
• qualified energy conservation bond
• qualified zone academy bond
• qualified school construction bond

For more information about the Build America Bonds and School Bonds please visit:

http://www.ustreas.gov/press/releases/docs/BuildAmericaandSchoolConstructionBondsFactsheetFinal.pdf

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