Arbitrage Rebate & Bond Compliance Resources
Whether you’re new to arbitrage rebate or navigating ongoing compliance questions, this guide organizes ACS’s bond compliance resources around the topics issuers search most. You’ll find clear pointers to key requirements, including arbitrage rebate, yield restriction, deadlines, and spending exceptions, so you can explore practical guidance and deeper explanations at your own pace.
Arbitrage Rebate Basics
Arbitrage rebate is a core part of compliance for tax-exempt bond issues. It governs how investment earnings on bond proceeds and related funds are measured and compared to the bond yield under federal tax rules. The resources in this section provide a practical introduction to the rules, the calculation process, and the role arbitrage rebate plays in ongoing bond compliance.
Related ACS resources (links):
Essential Guide to Arbitrage Rebate Calculations & ComplianceHow to Calculate Arbitrage (Municipal Bond Compliance)Yield Restriction & Interim Calculations
Yield restriction is related to arbitrage rebate, but it operates under a different set of federal tax rules and applies in specific situations. When yield restriction applies, issuers may need ongoing monitoring and periodic calculations to support compliance. This section points to resources that explain when these rules come into play and how they are typically addressed.
Related ACS resources (links):
Understanding Yield RestrictionInterim Yield Restriction Calculations for Bond ComplianceYield Restriction in Your JurisdictionProject Fund Yield Restriction – Expectation vs RealityBond Compliance Deadlines & Reporting Milestones
Bond compliance isn’t a one-time event. Most issuers face key checkpoints during the life of the bond issue, especially the five-year calculation/reporting milestone. Use this section to understand what matters, when it matters, and how to avoid missed deadlines.
Related ACS resources (links):
Five-Year Arbitrage Rebate Reporting: A Complete GuideSpending Exceptions & Recent Trends
Certain IRS rules and exceptions can reduce or eliminate arbitrage rebate liability, depending on how and when bond proceeds are spent. This section highlights common spending exceptions and related compliance considerations, including how the interest rate environment can affect rebate and yield outcomes.
Related ACS resources (links):
Simplifying Arbitrage Rebate Compliance with Spending ExceptionsTrends in Arbitrage Rebate and Yield Restriction: What Issuers Should Know in 2025Mastering Bond Compliance During High Interest RatesContact us
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