Industrial revenue bonds by state
Every state sets its own private-activity volume cap process and has its own conduit issuers. Pick a state for its cap, the conduits funds already own, and its local buyers. The federal rules below apply everywhere.
Conduit issuers most held by funds
Local buyers
Check a project in this stateFederal rules that apply in every state
- Small-issue manufacturing bonds are limited to $10 million, or $20 million under the capital-expenditure election (total capital spending at the site within three years either side of the issue). A borrower and related persons may not have more than $40 million of small-issue bonds outstanding nationwide.
- Exempt facilities (solid waste, water and sewage, docks and wharves, airports, qualified residential rental, local utilities and others) have no $10 million cap but must meet their own tests.
- Volume cap. Most private-activity bonds need an allocation of the state's annual cap (per-resident amount set by the IRS, with a minimum for small states). Unused cap can be carried forward for up to three years for a stated purpose.
- Public approval (TEFRA). A public hearing after reasonable notice (at least 7 days) and approval by an elected official, before the bonds are issued; bonds should be issued within a year of approval.
- Use of proceeds. At least 95% of net proceeds for the qualifying facility; costs of issuance no more than 2%; land no more than 25%; average maturity no more than 120% of the assets' economic life.
- After closing: IRS Form 8038, arbitrage rebate computations, and annual reporting to the issuer and bondholders.
A general summary for screening, not tax or legal advice. Bond counsel decides whether a project qualifies.
Volume cap and fund holdings come from public IRS figures and SEC N-PORT filings; bank figures from FDIC call reports.