The Build America Bonds (BABs) were taxable municipal bonds that provided federal tax breaks or subsidies for state and local government bondholders or issuers.
The Build America Bonds program expired in 2010.
The federal government introduced Build America (BAB) bonds to ensure that local municipalities and counties can raise much-needed capital during a recession.
In general, there were two different types of VABs: tax credits and VABs with direct payments.