ITG FAQ #12 Answer - What are the economic benefits to tribal governments of issuing tax-exempt bonds?

The interest income paid to the holders of tax-exempt bonds is not includable in their gross income for federal income tax purposes. Thus, by issuing tax-exempt bonds for qualified purposes, tribal governments are able to achieve a significant interest cost savings by taking advantage of the difference between the relative interest rates paid on taxable and tax-exempt debt.

Return to List of FAQs