The Congressional Budget Office and Joint Committee on Taxation yesterday released a joint report, Subsidizing Infrastructure Investment with Tax-Preferred Bonds:

Subsidizing Infrastructure Investment with Tax-Preferred Bonds is a joint CBO/staff of the JCT study, which examines the types of tax preferences for state and local bonds, reports the amount of such debt that has been issued for infrastructure projects undertaken by the public and private sectors, and estimates the importance of that debt financing to infrastructure investment. The study also considers how the current system of tax preferences—which historically has relied primarily on tax exemptions for interest income on debt issued by states and localities—might change as a result of greater use of tax-credit bonds.