What are Specified Private Activity Bond Interest Dividends?
Specified private activity bond interest dividends, often referred to as SPADs, are a significant aspect of the tax-exempt bond market in the United States. These dividends represent the interest payments made on specified private activity bonds, which are issued by state and local governments to finance certain types of projects that benefit the public. Understanding SPADs is crucial for investors, issuers, and tax professionals alike, as they play a vital role in the financial landscape of public projects.
In this article, we will delve into the concept of SPADs, their tax implications, and how they are used to fund public projects. We will also discuss the various types of specified private activity bonds and the criteria that determine their eligibility for SPADs. By the end of this article, readers will have a comprehensive understanding of what SPADs are and how they contribute to the broader tax-exempt bond market.
