By Tara Kalwarski

(MONEY Magazine) – With an increasing number of taxpayers getting snared by the Alternative Minimum Tax (AMT), investors should take a close look at their muni bond funds. That's because for AMT filers the interest on some municipal bonds is taxable. Several firms--including Oppenheimer Funds and Scudder Investments--have recently launched or retooled muni funds to avoid bonds subject to the AMT. But plenty of existing muni funds already shun such bonds. One solid choice for AMT-conscious investors: T. Rowe Price Tax-Free Income, a no-load offering with an expense ratio of 0.5% vs. 0.8% for the category. --TARA KALWARSKI