Industrial revenue bonds in Indiana
Volume cap, active issuers, the local buyer base and the steps to finance a manufacturing, recycling, water or housing project in Indiana with tax-exempt bonds.
State facts verified October 2026Key takeaways
- $941.4M of volume cap in 2026 — the federal $135 per resident applied to 6.97 million residents; rank 17 of 51 by size.
- 46 Indiana issuer entries appear in SEC-registered fund holdings, $211.7M in total, −$31.4M over the latest quarter (filers report some issuers under more than one name).
- 80 FDIC-insured banks headquartered in the state hold $9.2B of municipal securities — the natural direct purchasers for small issues.
- No single-state municipal fund focuses on this state (single-state funds exist mainly where residents pay state income tax), so placements rely on national high-yield funds, banks and separately managed accounts.
Issuers whose bonds funds already hold
Registered funds’ holdings show which Indiana 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.
| Series | Held | Change |
|---|---|---|
| Indiana Finance Authority, Environmental Improvement Revenue Bonds, Southern Indiana Gas & Electric Company, Refunding Series 2013A | $34.4M | +$534K |
| INDIANA ST FIN AUTH ECONOMIC DEV REV | $28.4M | +$14.8M |
| Indiana Finance Authority, Environmental Improvement Revenue Bonds, United States Steel Corporation Project, Series 2012 | $25.0M | +$154K |
| Indiana County Industrial Development Authority | $21.1M | −$648K |
The local buyer base
Banks
80 FDIC-insured banks are headquartered in Indiana, together holding $9.2B 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. No single-state fund focuses on the state.
How Indiana allocates volume cap
Allocating agency: Indiana Finance Authority (IFA). Indiana Code 5-1.2-16 splits the cap: IFA 9%, ISMEL 1%, IHCDA 28%, locally issued manufacturing 42%, locally issued multifamily 20%; IFA may reallocate. About $441 million a year is available for manufacturing and related exempt facility projects, awarded competitively each month against a cut-off score (jobs, wages, capital investment, volume cap per job, county need), with a goal of approving 10% of manufacturing volume per month and a $10 million per-project limit (exceptions for exempt facilities related to manufacturing). Awarded cap must close within 90 days of the board meeting; carryforward applications are due by the second Monday of January.
State allocation fees. Volume cap allocation fee: $500 for awards of $3 million and under, $1,000 for awards over $3 million; due within 10 days after notice of award, nonrefundable; not due at application. Failure to pay voids the award.
| Milestone | Date |
|---|---|
| Volume cap application deadline (Jan 2026 board) | 12/29/2025; board meeting 1/15/2026 |
| Volume cap application deadline | 1/26/2026; board meeting 2/19/2026 |
| Volume cap application deadline | 2/23/2026; board meeting 3/19/2026 |
| Volume cap application deadline | 3/30/2026; board meeting 4/16/2026 |
| Volume cap application deadline | 4/27/2026; board meeting 5/21/2026 |
| Volume cap application deadline | 5/26/2026; board meeting 6/18/2026 |
| July 2026 | No board meeting |
| Volume cap application deadline | 7/27/2026; board meeting 8/20/2026 |
| Volume cap application deadline | 8/31/2026; board meeting 9/17/2026 |
| Volume cap application deadline | 9/28/2026; board meeting 10/15/2026 |
| Volume cap application deadline | 10/26/2026; board meeting 11/19/2026 |
| Volume cap application deadline | 11/30/2026; board meeting 12/17/2026 |
| Volume cap application deadline (first 2027 board) | 12/28/2026; board meeting 1/28/2027 |
| Notice of issuance due | Earlier of 90 days after award or the day before IFA's December board meeting |
| Carryforward applications | Second Monday of January; decisions by the last Monday in January |
Issuers that do manufacturing bonds
| Issuer | Type |
|---|---|
| Indiana Finance Authority | statewide authority |
State approvals
A non-501(c)(3) borrower must hold an IFA volume cap award before bonds are issued. A notice of issuance must be filed within 90 days of award (or before the December board meeting); a notice for less than 85% of the award voids it. Applicants that let an award lapse without notice are barred from reapplying until the following month. Solid waste agricultural projects also need a county public hearing, a plan commission report (IC 5-1.2-9-13, where IFA issues), approval of the county economic development commission or county commissioners, and consultation with state legislators.
Incentives that commonly stack with the bonds
3 state programmes verified on official pages. Eligibility and amounts are set by each programme; the bonds do not confer them.
- Property taxProperty tax abatement under IC 6-1.1-12.1: a local designating body grants deductions for new structures and qualifying equipment in an Economic Revitalization Area after a Form SB-1 Statement of Benefits; schedules up to 10 years, up to 20 years for certain business personal property (IC 6-1.1-12.1-18).
- Tax creditHoosier Business Investment (HBI) Tax Credit (IEDC): nonrefundable corporate income tax credit sized as a percentage of eligible capital investment.
- Tax creditEDGE Payroll Tax Credit (IEDC): refundable credit based on a percentage of withholding from new jobs.
Who to call
- IFA Volume Cap Program contact information
- IFA volume cap applications mailbox (IFAVolumeCapApps@ifa.in.gov)
- Indiana Economic Development Corporation incentives
Sources: in.gov (1) · in.gov (2) · in.gov (3) · in.gov (4) · in.gov (5) · iedc.in.gov (1) · iedc.in.gov (2) · iedc.in.gov (3) · iedc.in.gov (4) · in.gov (6) · checked October 2026. Procedures and fees change; confirm with the agency and bond counsel.
Not found on an official page yet: a published figure for cap remaining. We leave these out rather than estimate; ask the allocating agency.
How to finance a project in Indiana
- 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 Indiana, issuers with published industrial bond programs include Indiana Finance 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, Indiana Finance Authority. Indiana’s 2026 ceiling is $941.4M; 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 Indiana 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 Indiana is $941.4M this year. Governmentally owned airports, docks and solid waste facilities, and qualified 501(c)(3) bonds, do not.
Who issues industrial revenue bonds in Indiana?
Issuers with published industrial bond programs in Indiana include Indiana Finance 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 (Indiana Finance Authority) can confirm who is active.
Who buys Indiana industrial revenue bonds?
National high-yield municipal funds, banks — including the 80 headquartered in the state — insurers and separately managed accounts.
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.