small-issue bond

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Small-Issue Bond

Part of a small municipal bond that is used for private purposes. As a municipal bond, the interest is tax-deductible; however, there is a limit on the amount of debt and number of issues a municipality is allowed to use for private purposes and still qualify for the deduction.

small-issue bond

A bond that is part of a small-sized municipal bond issue for private purposes such that interest on the bond qualifies for federal tax exemption. Municipalities are limited as to the size of such an issue and the total number of issues if the bonds are to pay tax-exempt interest.
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I'm sure many more small to medium-size manufacturers will now qualify for small issue bond financing.
14) Tax-exempt private activity bonds include exempt facility bonds, qualified mortgage bonds, qualified veterans' mortgage bonds, qualified small issue bonds, qualified student loan bonds, qualified redevelopment bonds, and qualified section 501(c)(3) bonds, all of which are defined in the "Explanation of Terms" section of this article.
For taxpayers who have obtained financing through qualified small issue bonds, the taxpayer must be able to prove compliance with the capital expenditure limitations that extend three years after issuance of the bonds.

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