Treasury hails Build America Bonds a success

The Treasury Department on Thursday showed that nearly $97 billion in Build America Bonds have been issued through Apr. 30, a figure that constitutes 21 percent of municipal bond market. 

"The success of Build America Bonds so far makes a powerful argument for the permanent extension of this program," said Alan Krueger, a Treasury chief economist, in prepared remarks.

The findings come as Democratic lawmakers look to extend the life of these bonds in tax legislation that could be voted on before the Memorial Day recess. 

Under the bonds, states are subsidized by the Treasury on interest costs. 

Congressional tax-writers hope to extend the bonds for at least 3 years and increase the current subsidy received by states. Achieving both of these goals will largely depend on lawmakers locating sufficient offsets.