Qualified Small Issue Bond.--Bond issue generally not exceeding $1 million, and of which 95 percent or more of the net proceeds are used to finance the acquisition of land and depreciable property or to refund such issues.
Bonds with an issue price of less than $10 million, including 399 qualified small issue bonds (or industrial development bonds), accounted for 57.4 percent of the total number of bond issues, but only 10.9 percent of total bond proceeds.
The types of bonds include the following: mass commuting facilities, water furnishing facilities, sewage facilities, solid waste disposal facilities, qualified residential rental projects, local furnishing of electric energy or gas, local district heating and cooling facilities, qualified hazardous waste facilities, high-speed intercity rail facilities, qualified mortgage bonds, qualified small issue bonds, qualified student loan bonds, qualified redevelopment bonds, and "other bonds" (i.e., obligations for which
Small Issue Bond.--Bond issue generally not exceeding $1 million, and of which 95 percent or more of the net proceeds is used to finance the acquisition of land and depreciable property or to refund such issues.
Bonds with an issue price of less than $10 million, including 686 qualified small issue bonds (or industrial development bonds), accounted for 61.1 percent of the total number of bond issues, but only 12.3 percent of total bond proceeds.
"I'm sure many more small to medium-size manufacturers will now qualify for
small issue bond financing."
Industrial Development Bonds: Qualified
Small Issue Bonds, Exempt Facility Bonds State or local governmental entities can issue bonds to finance qualified manufacturing facilities and equipment, pollution control facilities and other projects permitted under federal law, Interest on the bonds is generally exempt from federal income taxes for investors, which typically results in lower long-term interest rates to the borrower.
(6) 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).
[1] These calculations are based on the data reported on Part II of Form 8038 for type of issue, and include the following: mass commuting facilities, water furnishing facilities, sewage facilities, solid waste disposal facilities, qualified residential rental projects, local electric energy or gas furnishing facilities, local district heating and cooling facilities, qualified hazardous waste facilities, high-speed intercity rail facilities, qualified mortgage bonds, qualified small issue bonds, qualified student loan bonds, and qualified redevelopment bonds.
(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.