Industrial revenue bonds in Missouri
Volume cap, active issuers, the local buyer base and the steps to finance a manufacturing, recycling, water or housing project in Missouri with tax-exempt bonds.
State facts verified October 2026Key takeaways
- $846.5M of volume cap in 2026 — the federal $135 per resident applied to 6.27 million residents; rank 18 of 51 by size.
- 62 Missouri issuer entries appear in SEC-registered fund holdings, $485.2M in total, +$408K over the latest quarter (filers report some issuers under more than one name).
- 171 FDIC-insured banks headquartered in the state hold $11.7B of municipal securities — the natural direct purchasers for small issues.
- 5 single-state municipal funds buy Missouri bonds specifically, which supports in-state demand and pricing.
Issuers whose bonds funds already hold
Registered funds’ holdings show which Missouri 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 |
|---|---|---|---|---|
| Missouri State Environmental Improvement & Energy Resources Authority | $40.6M | 16 | +$847K | +$15.1M |
| Series | Held | Change |
|---|---|---|
| Kansas City Industrial Development Authority, Missouri, Airport Special Obligation Bonds, Kansas City International Airport Terminal Modernization Pro | $124.5M | −$29.1M |
| Missouri State Environmental Improvement & Energy Resources Authority | $40.6M | +$15.1M |
| Saint Louis County Industrial Development Authority, Missouri, Revenue Bonds, Friendship Village Saint Louis Obligated Group, Series 2018A | $35.9M | +$27.4M |
| Missouri Environmental Improvement and Energy Resources Authority, Revenue Bonds, Union Electric Company Project, Series 1998B | $23.4M | +$1.1M |
The local buyer base
Banks
171 FDIC-insured banks are headquartered in Missouri, together holding $11.7B 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. 5 single-state funds focus on Missouri:
- Franklin Tax Free Trust
- Nuveen Multistate Trust IV
- Eaton Vance Municipals Trust
- COMMERCE FUNDS
- Nuveen Missouri Quality Municipal Income Fund
How Missouri allocates volume cap
Allocating agency: Missouri Department of Economic Development (DED), Redevelopment Finance Team - Private Activity Bond Allocation (PABA) Program. Under Sections 108.500 to 108.532 RSMo, DED allocates the state's cap ($846,523,035 for 2026) to state agencies, cities, counties and industrial development authorities. After the issuer passes an inducement resolution it applies to DED (via Submittable); applications are accepted year round, every applicant except agriculture projects gets a hold letter, and DED decides case by case (agriculture projects are approved automatically; multifamily goes through MHDC first). An allocation letter is good for 60 days, with one 30-day extension available.
State allocation fees. Application fee (payable to the Missouri Economic Development Advancement Fund, due with the application): $250 for requests up to $5 million, $500 for $5-10 million, $1,000 over $10 million. Issuance fee due at closing, remitted within 30 days: 5 basis points on issues up to $2 million, 10 basis points on issues over $2 million.
Next published date: November 20, 2026 — Last day to apply for 2026 cap (21 days from this page’s build). All states’ dates
| Milestone | Date |
|---|---|
| 2026 allocation cycle opens | January 1, 2026 |
| Last day to apply for 2026 cap | Friday, November 20, 2026 (later applications are returned for resubmission in 2027) |
| Allocation term | 60 days from the allocation letter; 30-day extension available |
| Closing notice | Phone DED no later than the next business day; report of issuance within five calendar days |
| Annual activity report | January 31 of the year after issuance |
Issuers that do manufacturing bonds
| Issuer | Type |
|---|---|
| Missouri Development Finance Board (MDFB) | statewide authority (single-issue tax-exempt IRB loans $400,000 to $10 million for manufacturing) |
| Cities, counties, towns and villages under Chapter 100 RSMo | municipal issuer (Chapter 100 industrial development bonds) |
| Local industrial development authorities | county/city IDA |
| Environmental Improvement and Energy Resources Authority (EIERA) | statewide authority (energy and environmental projects) |
State approvals
Issuer inducement resolution before applying to DED; for IRB projects, the local IDA application or job, wage and investment data must accompany the PABA application. DED must be phoned by the next business day after closing and receive a report of issuance within five days; DED then signs the certificate. For Chapter 100 bonds, the governing body must approve a project plan by majority vote (100.050 RSMo) that, for revenue bond or fee-conveyance projects, includes a cost-benefit analysis for each affected taxing entity and expected payments in lieu of taxes, with notice to affected taxing jurisdictions not less than 20 days before plan approval (100.059 RSMo). DED reviews and conditionally approves Chapter 100 sales tax exemptions and requires a tax clearance letter.
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 taxChapter 100 property tax exemption (100.010-100.200 RSMo): the city or county owns the facility and leases it to the company, so it can be exempt from local property tax for a set period, typically with payments in lieu of taxes to affected taxing entities.
- Sales taxChapter 100 sales tax exemption on construction materials (Section 144.062 RSMo) using a project exemption certificate (Form 5060) and the municipality's exemption letter.
- Sales taxDED-certified sales tax exemption on leased equipment for Chapter 100 projects (Section 144.054.3 RSMo); certification must come before the property is placed in service.
Who to call
- DED Redevelopment Finance Team (573-526-1032, redevelopment@ded.mo.gov)
- DED Chapter 100 program (573-751-4962, ecodev@ded.mo.gov)
- Missouri Development Finance Board (573-751-8479, mdfb@ded.mo.gov)
Sources: ded.mo.gov (1) · ded.mo.gov (2) · ded.mo.gov (3) · mdfb.org · revisor.mo.gov (1) · revisor.mo.gov (2) · 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 Missouri
- 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 Missouri, issuers with published industrial bond programs include Missouri Development Finance Board, Cities, counties, towns and villages under Chapter 100 RSMo, Local industrial development authorities and Environmental Improvement and Energy Resources 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, Missouri Department of Economic Development. Missouri’s 2026 ceiling is $846.5M; 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 Missouri 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 Missouri is $846.5M this year. Governmentally owned airports, docks and solid waste facilities, and qualified 501(c)(3) bonds, do not.
Who issues industrial revenue bonds in Missouri?
Issuers with published industrial bond programs in Missouri include Missouri Development Finance Board, Cities, counties, towns and villages under Chapter 100 RSMo, Local industrial development authorities and Environmental Improvement and Energy Resources 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 (Missouri Department of Economic Development) can confirm who is active.
Who buys Missouri industrial revenue bonds?
National high-yield municipal funds, banks — including the 171 headquartered in the state — insurers and separately managed accounts, plus 5 funds dedicated to Missouri 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.