Industrial revenue bonds in Ohio
Volume cap, active issuers, the local buyer base and the steps to finance a manufacturing, recycling, water or housing project in Ohio with tax-exempt bonds.
State facts verified October 2026Key takeaways
- $1.6B of volume cap in 2026 — the federal $135 per resident applied to 11.90 million residents; rank 7 of 51 by size.
- 55 Ohio issuer entries appear in SEC-registered fund holdings, $1.3B in total, −$142.1M over the latest quarter (filers report some issuers under more than one name).
- 128 FDIC-insured banks headquartered in the state hold $44.4B of municipal securities — the natural direct purchasers for small issues.
- 7 single-state municipal funds buy Ohio bonds specifically, which supports in-state demand and pricing.
Issuers whose bonds funds already hold
Registered funds’ holdings show which Ohio 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 |
|---|---|---|---|---|
| Ohio Water Development Authority | $144.7M | 5 | −$2.9M | −$21.1M |
| Jefferson County Port Authority | $109.6M | 11 | −$439K | +$10.6M |
| Ohio Air Quality Development Authority | $106.0M | 8 | −$2.6M | −$32.5M |
| Tuscarawas County Economic Development and Finance Alliance | $37.7M | 9 | −$1.2M | −$1.4M |
| Series | Held | Change |
|---|---|---|
| Ohio Water Development Authority Water Pollution Control Loan Fund | $675.6M | −$25.7M |
| Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy Nuclear Generating Corporation Project, Series 2009A | $93.2M | −$17.2M |
| Ohio Air Quality Development Authority, Ohio, Exempt Facilities Revenue Bonds, AMG Vanadium Project, Series 2019 | $57.9M | −$16.8M |
| Ohio Water Development Authority, Pollution Control Revenue Refunding Bonds, FirstEnergy Nuclear Generating Corporation Project, Series 2010B | $51.5M | −$3.9M |
The local buyer base
Banks
128 FDIC-insured banks are headquartered in Ohio, together holding $44.4B 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. 7 single-state funds focus on Ohio:
- Putnam ETF Trust
- Franklin Tax Free Trust
- Fidelity Municipal Trust
- Nuveen Multistate Trust IV
- Eaton Vance Municipals Trust
How Ohio allocates volume cap
Allocating agency: Ohio Department of Development (Director of Development) - Volume Cap program, Business Services Division. The Director of Development allocates the state ceiling under R.C. 122.97 and Ohio Adm. Code chapter 122-4 (rules effective October 16, 2026). The rules set aside the lesser of $300 million or 40% of the ceiling for the housing finance agency, the lesser of $120 million or 15% for multifamily, the lesser of $100 million or 10% each for qualified small issue (manufacturing IDBs) and exempt facility bonds, the lesser of $120 million or 10% for student loans, and the remainder to the Director's discretionary pool; bond counsel files a notice of intent (set-aside form under $20 million, Director's Discretionary form above $20 million), and when requests exceed the set-aside the director ranks eligible projects. Set-aside amounts not confirmed by the last business day of July move to the Director's pool, confirmations lapse unless bonds close within 120 days (one 60-day extension) and by December 31, and unused year-end cap can be confirmed as carryforward for an issuer.
State allocation fees. Notice of intent: $1,000 non-refundable filing fee plus a refundable deposit equal to the lesser of 0.75% of the requested allocation or $150,000, payable to the Treasurer of State; 60-day extension: $1,000 non-refundable plus a refundable fee of the lesser of 0.75% of the original confirmation or $150,000 (OAC 122-4-06; amounts as stated in the department's overview). Carryforward notice of intent: $1,000 non-refundable plus a refundable fee of the lesser of 0.75% of the request or $500,000 (OAC 122-4-05). Deposits are refunded within 30 days after the notice of issuance.
| Milestone | Date |
|---|---|
| Unconfirmed small issue, multifamily and exempt facility set-aside amounts move to the Director's pool (OAC 122-4-02) | last business day of July |
| Carryforward notices of intent due (OAC 122-4-05) | before 5 p.m. on the second Thursday of December |
| Set-aside confirmations lapse if bonds not issued (OAC 122-4-03) | 11:59 p.m., December 31 of the issuance year |
| Notice of issuance for bonds closed at year end (OAC 122-4-03) | 5 p.m., January 15 of the following year |
| Ohio Housing Finance Agency carryforward notice (OAC 122-4-05) | 5 p.m., January 20 of the following year |
Issuers that do manufacturing bonds
| Issuer | Type |
|---|---|
| Toledo-Lucas County Port Authority (Northwest Ohio Bond Fund; conduit industrial revenue bonds) | port authority |
| Ohio Treasurer - Ohio Enterprise Bond Fund (marketed through JobsOhio) | statewide bond fund |
State approvals
A notice of intent confirmation from the Director of Development is required before issuance, and a notice of issuance must be filed after closing (within 120 days of confirmation, or 180 days with the extension). Commercial and industrial Community Reinvestment Area exemptions require a written agreement with the local legislative authority before construction starts, with school board approval where required.
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.
- IncentiveCommunity Reinvestment Area (R.C. 3735.67): local exemption of up to 100% of the added assessed value of new or remodeled commercial or industrial structures for up to 15 years (30 for megaprojects), under an agreement signed before construction.
- Sales taxSales and use tax exemption for things used in manufacturing (R.C. 5739.02(B)(42)(g) and 5739.011), covering production machinery, in-process handling equipment, testing equipment and production consumables.
- Tax creditJob Creation Tax Credit (R.C. 122.17): refundable credit granted by the Ohio Tax Credit Authority, equal to a set percentage of the project's new payroll.
Who to call
- Ohio Department of Development, Finance Division - Underwriting and Loan Servicing (volume cap), 614-466-4302
- JobsOhio (Ohio Enterprise Bond Fund), (614) 224-6446
Sources: codes.ohio.gov (1) · codes.ohio.gov (2) · codes.ohio.gov (3) · codes.ohio.gov (4) · codes.ohio.gov (5) · codes.ohio.gov (6) · dam.assets.ohio.gov · toledoport.org · jobsohio.com · codes.ohio.gov (7) · codes.ohio.gov (8) · codes.ohio.gov (9) · 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 Ohio
- 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 Ohio, issuers with published industrial bond programs include Toledo-Lucas County Port Authority and Ohio Treasurer - Ohio Enterprise Bond Fund (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, Ohio Department of Development. Ohio’s 2026 ceiling is $1.6B; 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 Ohio 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 Ohio is $1.6B this year. Governmentally owned airports, docks and solid waste facilities, and qualified 501(c)(3) bonds, do not.
Who issues industrial revenue bonds in Ohio?
Issuers with published industrial bond programs in Ohio include Toledo-Lucas County Port Authority and Ohio Treasurer - Ohio Enterprise Bond Fund. 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 (Ohio Department of Development) can confirm who is active.
Who buys Ohio industrial revenue bonds?
National high-yield municipal funds, banks — including the 128 headquartered in the state — insurers and separately managed accounts, plus 7 funds dedicated to Ohio 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.