It is our hope that the legislation will be approved to eliminate the cloud that looms over our project. The legislation now pending on the federal level will expedite the implementation of this schedule to begin the increase in 2001, achieving full implementation in 2005. Swift has traveled to Washington, D.C. on several occasions to lobby legislative leaders on Capitol Hill to raise the cap, including Senate Majority Leader Trent Lott. She has also met with Massachusetts Senator Edward Kennedy and Congressman Richard Neal, who are spearheading the effort in Washington to get the measure approved and signed into law by the President. Private activity tax-exempt bond financing is similar to conventional financing except that it offers lower interest rates and more flexible terms.
Interest earned by the bondholder is exempt from federal and state income taxes.
The bonds are not general obligation bonds of the Commonwealth and must be paid back by the investors. Two other state finance authorities use these tax-exempt bonds to fund projects. The Massachusetts Educational Financing Authority provides low-interest student loans and the Massachusetts Housing Finance Agency helps create decent, safe and affordable housing for residents of the Commonwealth.