Several organizations wish to implement projects within their community to support its citizens; however, locating the proper funding can often be a challenge. In that case, Qualified Private Activity Bonds (PABs) can be a useful resource.
Examples of qualified projects these bonds have been used for include, but are not limited to:
- Mass commuting facilities
- Water furnishing
- Sewage facilities
- Solid waste disposal facilities
- Qualified residential rental projects
- Facilities for the local furnishing of electric energy or gas
- Local district heating or cooling facilities
- Hazardous waste facilities
These are projects we all benefit from, but investment is often a unique challenge. If your organization is pursuing a project for the benefit of your community, these bonds may be for you.
Who Qualifies
- Bond issuers, such as local governmental units or community organizations
- Certain businesses (for qualified industrial or other authorized purposes)
- Certain individuals or households (see qualified projects)
Eligibility Requirements
The types of bonds qualified for tax-exempt status are:
- Exempt facility bonds
- Qualified mortgage bonds
- Qualified veterans’ mortgage bonds
- Qualified small issue bonds
- Qualified student loan bonds
- Qualified redevelopment bonds
- Qualified 501(c)(3) bonds
