WASHINGTON -- The Treasury plans to fix a glitch in the proposed reimbursement rules that would prohibit issuers from using tax-exempt bond proceeds to reimburse themselves for any issuance costs they paid before the bonds were issued, a Treasury official said yesterday.

The proposed rules as written do not allow issuance costs to be reimbursement because only expenditures that are capitalized to the project, or that are included in the cost of the project for tax purposes, are reimbursable.

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