Industrial revenue bonds in Delaware
Volume cap, active issuers, the local buyer base and the steps to finance a manufacturing, recycling, water or housing project in Delaware with tax-exempt bonds.
State facts verified October 2026Key takeaways
- $397.6M of volume cap in 2026 — the $397.6 million small-state minimum, or $375 per resident against the federal $135; rank 36 of 51 by size.
- 62 Delaware issuer entries appear in SEC-registered fund holdings, $490.1M in total, −$34.6M over the latest quarter (filers report some issuers under more than one name).
- 5 FDIC-insured banks headquartered in the state hold $2.6B of municipal securities — the natural direct purchasers for small issues.
- 1 single-state municipal funds buy Delaware bonds specifically, which supports in-state demand and pricing.
Issuers whose bonds funds already hold
Registered funds’ holdings show which Delaware issuers buyers already know. The tables cover all conduit and private activity issuers in fund holdings — including transportation, housing, nonprofit and pollution-control issuers — so they are context for demand, not a list of issuers that do manufacturing bonds.
| Issuer | Held by funds | Funds | 1 quarter | 4 quarters |
|---|---|---|---|---|
| Delaware State Economic Development Authority | $232.5M | 54 | +$41.0M | +$78.5M |
| Series | Held | Change |
|---|---|---|
| Delaware State Economic Development Authority | $184.7M | +$30.7M |
| DELAWARE ECONOMIC DEVELOPMENT AUTHORITY (DE) | $47.8M | +$47.8M |
| DELAWARE ST ECONOMIC DEV AUTH | $28.6M | +$28.6M |
| DELAWARE ST ECON DEV AUTH REVE | $28.0M | +$5.6M |
The local buyer base
Banks
5 FDIC-insured banks are headquartered in Delaware, together holding $2.6B of municipal securities in the latest call reports. Banks often buy small industrial issues outright (direct purchase) or provide letters of credit that let money market funds buy variable-rate bonds.
Funds
National high-yield municipal funds are the core buyers of unrated industrial bonds. 1 single-state funds focus on Delaware:
- Voyageur Mutual Funds
How Delaware allocates volume cap
Allocating agency: Governor of Delaware (allocates the State's share by executive order under 29 Del. C. 8791A), with the Secretary of Finance monitoring issuance and the Industrial Revenue Bond Committee advising. By statute the state ceiling is split 50% State, 17.5% New Castle County, 12.5% City of Wilmington and 10% each to Kent and Sussex Counties; the Governor allocates the State's share among the Delaware State Housing Authority and other issuers (in 2025, equally between the Delaware Economic Development Authority and DSHA) and may modify the split by executive order, considering the Industrial Revenue Bond Committee's recommendations. Unused local volume cap reverts to the State at year end (29 Del. C. 8791A(f)); an allocation takes effect when the issuer delivers notice of issuance to the Secretary of Finance.
Issuer fees. DEDA: $250 non-refundable application fee; approval fee 0.50% of face up to $150,000,000 and 0.25% above, payable at issuance; annual administration fee at least $400. These are the issuing authority’s own fees, not a state allocation fee.
| Milestone | Date |
|---|---|
| Unused city/county volume cap reverts to the State at year end | End of each calendar year (since 2020) |
| 2026 volume cap $397,625,000; State share $198,812,500 split DSHA $99,406,250 / DEDA $99,406,250 (Executive Order Number Seventeen) | 2026 (order created 2026-02-11) |
Issuers that do manufacturing bonds
| Issuer | Type |
|---|---|
| Delaware Economic Development Authority | state issuer receiving part of the State share |
State approvals
Applications reviewed by the Council on Development Finance before DEDA approval; Governor allocates the State's 50% share of the ceiling between DSHA and DEDA, advised by the Industrial Revenue Bond Committee (29 Del. C. §§ 8791A–8793A; 1 DE Admin. Code 401 §4.1 (Council on Development Finance review)).
Sources: delcode.delaware.gov · governor.delaware.gov · archive.regulations.delaware.gov · checked October 2026. Procedures and fees change; confirm with the agency and bond counsel.
Not found on an official page yet: state allocation fees; incentives that stack with the bonds; an official programme contact; a published figure for cap remaining. We leave these out rather than estimate; ask the allocating agency.
How to finance a project in Delaware
- Confirm eligibility. Manufacturing projects up to $10 million under the small-issue capital expenditure election, or an exempt facility such as solid waste, water or qualified housing. See the guide.
- Choose an issuer. In Delaware, issuers with published industrial bond programs include Delaware Economic Development Authority (see the issuer table above). A county or city industrial development authority, a port authority or a statewide finance authority can serve; the fund-holdings tables are context, not a directory. How to choose an issuer.
- Obtain a declaration of official intent (inducement resolution). Costs paid up to 60 days before it, and any time after, can be reimbursed from bond proceeds (Treas. Reg. §1.150-2).
- Apply for volume cap to the state’s allocating agency, Governor of Delaware. Delaware’s 2026 ceiling is $397.6M; allocation is at the state’s discretion, by round, lottery or first-come, and the ceiling is not the amount still available.
- Hold the TEFRA hearing after at least seven days’ public notice (the issuer’s website may be used) and obtain the elected official’s approval. If the issuer sits outside the project’s jurisdiction, an elected official of the host jurisdiction must also approve; approval lapses if bonds are not issued within a year.
- State approvals, documents and closing. Some states add their own steps — attorney general review, court validation or a state commission’s approval. Bond counsel drafts the documents; a bank buys the bonds directly or a placement agent places them with investors.
The order of these steps varies by state: some require the public hearing and local approval before they allocate volume cap.
Questions borrowers ask
Do industrial revenue bonds in Delaware need volume cap?
Most do. Federal law (IRC §146) requires small-issue manufacturing bonds and most exempt-facility bonds to receive an allocation of the state’s annual cap, which for Delaware is $397.6M this year. Governmentally owned airports, docks and solid waste facilities, and qualified 501(c)(3) bonds, do not.
Who issues industrial revenue bonds in Delaware?
Issuers with published industrial bond programs in Delaware include Delaware Economic Development Authority. County and city development authorities, port authorities and statewide finance authorities issue depending on the state, and national conduits can issue with the host jurisdiction’s approval. The allocating agency (Governor of Delaware) can confirm who is active.
Who buys Delaware industrial revenue bonds?
National high-yield municipal funds, banks — including the 5 headquartered in the state — insurers and separately managed accounts, plus 1 funds dedicated to Delaware bonds.
How long does it take?
Typically three to six months from engagement to closing; volume cap rounds and issuer board calendars can add time.
Check whether your project qualifies Read the complete guide
Methodology
Volume cap is the 2026 federal formula — $135 per resident with a $397,625,000 small-state minimum (Rev. Proc. 2025-32) — applied to Census Vintage 2025 population estimates; where a state publishes its own figure, the state’s figure governs. It is the annual ceiling, not the amount still available. Issuer and bond figures are holdings reported by SEC-registered funds on Form N-PORT, classified by Securitief; bank figures are municipal securities in FDIC call reports for banks headquartered in the state.
Important information. Securitief Research is published by Securitief, operated by Applied America. Securitief is not a placement agent or underwriter and does not seek or receive compensation from any financing, including financings of issuers and borrowers discussed here. It is not acting as a municipal advisor and owes no fiduciary duty to any issuer or obligated person unless separately engaged in writing.
This material is general information. It is not tax, legal, investment or municipal advice, a recommendation, or an offer to sell or a solicitation of an offer to buy any security. Offers are made only by offering documents and only where permitted by state securities laws. State allocation procedures change; confirm current rules with the allocating agency and bond counsel.
Sources: SEC Form N-PORT and FDIC call reports (holdings), IRS and Census (volume cap and population), state agency publications. Issuer classification and aggregation are Securitief’s own and may contain matching errors; figures may be revised. No licensed index levels (MMD, BVAL, ICE) or EMMA trade data are used. Past holdings do not indicate future demand, pricing or the availability of financing. Interest on private activity bonds may be subject to the alternative minimum tax; tax treatment depends on the facts and the opinion of bond counsel.