Industrial revenue bonds in Washington
Volume cap, active issuers, the local buyer base and the steps to finance a manufacturing, recycling, water or housing project in Washington with tax-exempt bonds.
State facts verified October 2026Key takeaways
- $1.1B of volume cap in 2026 — the federal $135 per resident applied to 8.00 million residents; rank 13 of 51 by size.
- 40 Washington issuer entries appear in SEC-registered fund holdings, $205.2M in total, +$26.0M over the latest quarter (filers report some issuers under more than one name).
- 20 FDIC-insured banks headquartered in the state hold $1.4B 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 Washington 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 |
|---|---|---|---|---|
| Washington Economic Development Finance Authority | $107.6M | 21 | +$16.8M | +$24.9M |
| Series | Held | Change |
|---|---|---|
| Washington Economic Development Finance Authority | $63.8M | +$16.7M |
| WASHINGTON ST ECONOMIC DEV FIN AUTH | $43.8M | +$8.2M |
| Washington (State of) Economic Development Finance Authority (North Pacific Paper) | $14.7M | −$528K |
| Washington (State of) Economic Development Finance Authority (Green Bonds) | $14.0M | −$5.3M |
The local buyer base
Banks
20 FDIC-insured banks are headquartered in Washington, together holding $1.4B 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. No single-state fund focuses on the state.
How Washington allocates volume cap
Allocating agency: Washington State Department of Commerce, Bond Cap Allocation Program (BCAP). The issuer (not the company) applies to Commerce for a certificate of approval; state law splits the annual ceiling by percentage among bond use categories, and for 2026 the initial allocation gives Small Issue (manufacturing IDBs) 25%, or $270,034,425 of the $1,080,137,700 state ceiling. Beginning July 1 each year Commerce may reallocate any portion of the ceiling that has no certificate of approval in effect, and before year end it allocates unused ceiling to issuers as carryforward to be used within three years (RCW 39.86.150). Bonds must be issued by the deadline on the certificate, generally no later than December 15 of the same year.
Volume cap status · as of June 8, 2026
2026 annual allocation $1,080,137,700, including a 25% small issue set-aside of $270,034,425. No remaining figure is published.
Source: commerce.wa.gov. Figures exactly as published; cap moves daily in busy years.
State allocation fees. Allocation fee = requested allocation amount x 0.000277, or $500, whichever is greater; it includes a nonrefundable $500 filing fee and is due from the issuer when the application is filed. An extension fee of up to $250 (nonrefundable) may be assessed if an extension to issue is granted (WAC 365-135-020).
| Milestone | Date |
|---|---|
| Earliest date to apply for a calendar year's ceiling (RCW 39.86.140) | No sooner than 90 days before the start of that calendar year |
| 2026 state ceiling announced: $1,080,137,700 | June 8, 2026 |
| Unused category ceiling may be reallocated (RCW 39.86.150) | Beginning July 1 each year |
| Issuance deadline on certificate of allocation | Generally no later than December 15 of the allocation year |
| Notification of Issuance due to Commerce | Within 3 business days of bond closing |
| Year-end carryforward of unused ceiling | Before the end of each calendar year; carryforward usable within 3 years |
Issuers that do manufacturing bonds
| Issuer | Type |
|---|---|
| Washington Economic Development Finance Authority (WEDFA) | statewide authority |
| Industrial Development Corporation of the Port of Bellingham | port industrial development corporation |
| Industrial Development Corporation of the Port of Centralia | port industrial development corporation |
| Industrial Development Corporation of the Port of Chehalis | port industrial development corporation |
| Tacoma/Pierce County EDB | economic development corporation |
| Yakima County Development Association | economic development corporation |
State approvals
Commerce certificate of approval (allocation) is required before issuance. With the application the issuer files Statement of Intent forms from bond counsel and the underwriter, a copy of the issuer's inducement resolution, documentation of compliance with state and federal environmental requirements for new construction or site work, and, for Small Issue and Exempt Facility projects, a signed Employment Security Agreement committing to advertise new jobs through the Employment Security Department. A Notification of Issuance (or Bond 101 form) is due within 3 business days of closing.
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.
- Sales taxSales and use tax exemption for manufacturing machinery and equipment (RCW 82.08.02565 / 82.12.02565), claimed by giving the vendor an exemption certificate.
- Sales taxSales and use tax deferral for manufacturing and R&D in counties under 650,000 population (RCW 82.94), up to $400,000 per person; apply before construction; applications accepted through June 30, 2032.
- Tax creditRural county / Community Empowerment Zone B&O tax credit for new manufacturing and R&D jobs (RCW 82.62): $2,000 or $4,000 per qualified position.
Who to call
- Bond Cap Allocation Program, Department of Commerce (BondCap@Commerce.wa.gov, program manager 360-725-5033)
- Department of Revenue tax deferral program (DORDeferrals@dor.wa.gov)
Sources: commerce.wa.gov (1) · commerce.wa.gov (2) · app.leg.wa.gov (1) · app.leg.wa.gov (2) · wedfa.org · dor.wa.gov · checked October 2026. Procedures and fees change; confirm with the agency and bond counsel.
How to finance a project in Washington
- 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 Washington, issuers with published industrial bond programs include Washington Economic Development 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, Washington State Department of Commerce, Bond Cap Allocation Program. Washington’s 2026 ceiling is $1.1B; 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 Washington 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 Washington is $1.1B this year. Governmentally owned airports, docks and solid waste facilities, and qualified 501(c)(3) bonds, do not.
Who issues industrial revenue bonds in Washington?
Issuers with published industrial bond programs in Washington include Washington Economic Development 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 (Washington State Department of Commerce, Bond Cap Allocation Program) can confirm who is active.
Who buys Washington industrial revenue bonds?
National high-yield municipal funds, banks — including the 20 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.