Industrial revenue bonds in Texas
Volume cap, active issuers, the local buyer base and the steps to finance a manufacturing, recycling, water or housing project in Texas with tax-exempt bonds.
State facts verified October 2026Key takeaways
- $4.3B of volume cap in 2026 — the federal $135 per resident applied to 31.71 million residents; rank 2 of 51 by size.
- 79 Texas issuer entries appear in SEC-registered fund holdings, $2.2B in total, −$188.6M over the latest quarter (filers report some issuers under more than one name).
- 278 FDIC-insured banks headquartered in the state hold $25.5B 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 Texas 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 profiles: Texas Private Activity Bond Surface Transportation Corp. Each lists the fees, size limits and board dates the issuer publishes.
| Issuer | Held by funds | Funds | 1 quarter | 4 quarters |
|---|---|---|---|---|
| Texas Private Activity Bond Surface Transportation Corp | $1.5B | 76 | +$72.3M | −$84.1M |
| Mission Economic Development Corp | $332.6M | 39 | −$17.9M | +$6.8M |
| Gulf Coast Industrial Development Authority | $178.1M | 13 | −$347K | −$41.2M |
| Port of Beaumont Industrial Development Authority | $174.5M | 17 | +$1.7M | +$17.8M |
| Texas Public Finance Authority | $64.1M | 29 | +$648K | −$8.6M |
| Mission Econimc Development Corp. Solid Waste Disposal | $48.3M | 9 | −$13.0M | −$7.2M |
| Series | Held | Change |
|---|---|---|
| Texas Private Activity Bond Surface Transportation Corp | $709.9M | −$146.5M |
| Texas Private Activity Bond Surface Transportation Corp. | $220.8M | +$44.6M |
| TEXAS PRIVATE ACTIVITY BD SURFACE TRANSPORTATION CORP | $175.9M | +$175.9M |
| Texas Private Activity Bond Surface Transporation Corporation, Senior Lien Revenue Bonds, NTE Mobility Partners Segments 3 LLC Segments 3C Project, Se | $172.9M | +$8.5M |
The local buyer base
Banks
278 FDIC-insured banks are headquartered in Texas, together holding $25.5B 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 Texas allocates volume cap
Allocating agency: Texas Bond Review Board (Private Activity Bond Allocation Program). Applications filed in a mid-October window enter a lottery held in early to mid-November for the next program year; later applications are reserved in order of receipt. Until mid-August, Government Code 1372.022 reserves 2.0 percent of the state ceiling for qualified small issue (IDB) and enterprise zone facility bonds and 29.5 percent for all other issuers; the BRB's 2026 summary shows a $4,280,825,835 state ceiling with $85,616,516 in the small-issue IDB subceiling. All subceilings then collapse and cap is reserved by lottery number, then post-lottery applications in order of receipt; small-issue and other issuers must close within 150 days of the reservation date, and unused cap at year end may be designated as carryforward.
Volume cap status · as of October 20, 2026
2026 state ceiling $4,280,825,835; current available 2026 allocation $26,287,708.27 (reservations include carryforward from earlier years).
Source: brb.texas.gov. Figures exactly as published; cap moves daily in busy years.
State allocation fees. Government Code 1372.006: nonrefundable $500 application fee ($500 per facility for multi-facility projects; $5,000 for residential rental projects); closing fee of the greater of $1,000 or 0.025% of the principal amount of bonds certified, one-third due within 35 days after the reservation date and the rest at closing; carryforward designation fee of the greater of $1,000 or 0.025% of the designated amount. Attorney General examination fee is separate.
Next published date: November 13, 2026 — 2026 last day to issue a reservation (14 days from this page’s build). All states’ dates
| Milestone | Date |
|---|---|
| 2026 last day to issue a reservation | November 13, 2026 |
| 2026 recycled cap designated for traditional carryforward | November 15 - December 31, 2026 |
| 2026 last day to submit closing documents, carryforward election letters and carryforward designation applications | December 23, 2026 |
| 2026 Board may designate unencumbered state ceiling as carryforward | December 31, 2026 |
| 2027 lottery application window | October 5 - 20, 2026 (5:00 PM CST on October 20) |
| 2027 lottery | Early to mid-November 2026 |
| 2027 first day of program year | January 4, 2027 |
| 2027 deadline to file IRS Form 8328 for 2026 carryforward | The earlier of close on 2026 carryforward or February 15, 2027 |
| 2027 all sub-ceilings collapse | August 16, 2027 |
| 2027 last day to issue a reservation | November 15, 2027 |
| 2027 last day to submit closing documents and carryforward elections | December 22, 2027 |
Issuers that do manufacturing bonds
| Issuer | Type |
|---|---|
| Mission Economic Development Corporation (2026: Graphic Packaging International, LLC project, Waco, closed) | economic development corporation |
| Mount Pleasant Economic Development Corporation (2026: Aluminz Mount Pleasant, reserved) | economic development corporation |
| Dallam County Industrial Development Corporation (2026: Deer Creek Feeding, LLC, Dalhart, closed) | county industrial development corporation |
| The Dublin Economic Development Corporation (2026: Frontier Feedlot Dublin project, closed) | economic development corporation |
State approvals
The Attorney General's Public Finance Division must examine and approve public securities of governmental entities and of certain nonprofit corporations acting on their behalf; once approved, registered by the Comptroller and delivered against payment, the bonds are incontestable absent a constitutional defect. The review covers legality only, not financial advisability. BRB filings also require a 35-day filing and a closing documents and delivery certification.
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 taxTax Code Chapter 312 tax abatement: cities and counties may abate the increase in property value for up to 10 years inside a designated reinvestment zone, with clawbacks for missed job or payroll pledges.
- Property taxJobs, Energy, Technology and Innovation Act (JETI, Government Code Chapter 403): taxable value limitation on eligible property; all manufacturing projects are eligible, applied for through the Comptroller.
- Sales taxSales and use tax manufacturing exemption (Tax Code 151.318): equipment and materials used directly in manufacturing goods for sale, claimed with Form 01-339.
Who to call
- Texas Bond Review Board, PAB program (brbpab@brb.texas.gov, 512-463-1741)
- Office of the Attorney General, Public Finance Division
- Texas Comptroller, Economic Development and Community Investment Division (JETI)
Sources: brb.texas.gov (1) · brb.texas.gov (2) · brb.texas.gov (3) · brb.texas.gov (4) · brb.texas.gov (5) · brb.texas.gov (6) · capitol.texas.gov · texas.public.law (1) · texas.public.law (2) · texas.public.law (3) · www2.texasattorneygeneral.gov · comptroller.texas.gov (1) · comptroller.texas.gov (2) · comptroller.texas.gov (3) · checked October 2026. Procedures and fees change; confirm with the agency and bond counsel.
How to finance a project in Texas
- 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 Texas, issuers with published industrial bond programs include Mission Economic Development Corporation, Mount Pleasant Economic Development Corporation, Dallam County Industrial Development Corporation and The Dublin Economic Development Corporation (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, Texas Bond Review Board. Texas’s 2026 ceiling is $4.3B; 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 Texas 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 Texas is $4.3B this year. Governmentally owned airports, docks and solid waste facilities, and qualified 501(c)(3) bonds, do not.
Who issues industrial revenue bonds in Texas?
Issuers with published industrial bond programs in Texas include Mission Economic Development Corporation, Mount Pleasant Economic Development Corporation, Dallam County Industrial Development Corporation and The Dublin Economic Development Corporation. 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 (Texas Bond Review Board) can confirm who is active.
Who buys Texas industrial revenue bonds?
National high-yield municipal funds, banks — including the 278 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.