The Treasury Department released interim guidance instructing municipal issuers how to issue four tax-credit bonds as direct-subsidy bonds. The guidance clarifies that issuers of the new direct-pay tax-credit bonds and Build American Bonds can rely on the tax-exempt bond rules to determine issue price. There had been concerns about whether those rules should apply to BABs. The guidance also details how to calculate premium on the direct-pay bonds. "It is helpful to see it in writing," noted Frederic L. Ballard, Jr., a partner at Ballard Spahr and a national voice in bond law.