In India the government provided tax benefits to bonds issued for financing infrastructure projects. The tax benefit is provided either by allowing the investment to be deducted from taxable income or by providing tax exemption on the interest income. Following the financial crisis the US government has provided benefits directly to the issuers with no tax benefits for the investor through Build America Bonds. This case provides an opportunity to discuss the role of subsidizing interest cost of infrastructure bonds and the relative efficiency of various alternatives.