President Obama signed the HIRE Act (H.R. 2847) into law on March 18, 2010 creating tax incentives for businesses hiring new workers and extending higher expensing limits for small businesses that make certain capital investments. The bill also expands the Build America Bonds program to allow such bonds to be used to finance construction of certain renewable energy and energy conservation projects as described below.
Build America Bonds are a relatively recent development in public finance. Historically, states and local governments financed improvements using tax-exempt bonds. Because the interest is exempt from federal income taxation, state and local bonds are a source of lower cost capital.