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.
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.