# Municipal Bonds, 2009

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Municipal Bonds, 2009
by Aaron Barnes

T

he municipal bond market experienced significant changes in 2009, when Congress expanded
bond finance options to include: tax-exempt
bonds, tax credit bonds, and direct payment bonds.
Traditionally, State and local governments across
the United States and its territories have been able to
issue tax-exempt bonds to finance essential operations, facilities, infrastructure, and services for their
constituents.1 Tax credit bonds are a finance option
that allows municipalities to borrow funds under
certain qualifying bond programs. Direct payment
bonds were created by the American Recovery and
Reinvestment Act of 2009 (ARRA), in response to
the financial crisis.
ARRA expanded financing options for projects
by allowing State and local governments to issue
direct payment bonds through the Build America
Bonds (BABs) and the Recovery Zone Economic
Development Bond (RZEDs) Programs.2 Direct payment bonds are taxable bonds for which the issuer
receives a direct subsidy at either 35 percent or 45
percent of borrowing costs, depending on the type of
bond. These direct payments are generally deeper
subsidies than the implicit subsidy in traditional taxexempt bonds. Unlike tax credit bonds, the market,
and not the Treasury, sets the interest rate paid on the
bonds. Additionally, ARRA authorized new types of
tax-exempt bonds, tax credit bonds, and an increased
volume cap, or total allowable issuance amounts, for
existing tax credit bonds.
The data presented in this article are based on the
populations of Forms 8038, Information Return for
Tax-Exempt Private Activity Bond Issues, and Forms
8038-G, Information Return for Tax-Exempt Governmental Obligations, filed with the Internal Revenue
Service (IRS) for bonds issued during Calendar Year
2009. The vast majority of these returns were filed
in 2009 and 2010 for tax-exempt bonds.3 However,
for 2009, the issuers of direct payment bonds and tax
credit bonds were also required to use these returns
Aaron Barnes is an economist with the Special Studies
Special Projects Section. This data release was prepared
under the direction of Melissa Ludlum, Chief.
1

Total Tax-Exempt Bonds, Direct Payment
Bonds Allowed Under the American Recovery
and Reinvestment Act and Tax Credit
Bonds, 2009
[Money amounts are in millions of dollars]

Type of bond

Total [1]
Tax-exempt bonds
Direct payment bonds [2]
Tax credit bonds [3]

Number

Amount

Percentage
of total
amount

(1)

(2)

(3)

26,384

515,283

100.0

25,095

446,233

86.6

911

65,326

12.7

378

3,724

0.7

[1] Includes combined data from all governmental and private activity bond returns
(Forms 8038-G and 8038).
[2] Bonds reported on the Form 8038-G, Information Return for Tax-Exempt
Governmental Obligations, with a specific reference to "Build America Bond" or
"Recovery Zone Economic Development Bond" in either their issue name or other
description.
[3] Includes data from governmental and private activity bond returns (Forms 8038G and 8038) that specifically reference "qualified school construction," "clean
renewable energy," "qualified zone academy," or "Midwestern tax credit" bonds.
NOTE: Detail may not add to totals because of rounding.

to report certain information to the IRS. For this reason, the article also includes separate discussions of
direct payment bonds and tax credit bonds.
Figure A provides an overview of the municipal
bond market in 2009. State and local governments
raised $515.3 billion in proceeds from tax-exempt,
direct payment, and tax credit bonds. Tax-exempt
bond proceeds totaled $446.2 billion, or 86.6 percent,
of all municipal bonds proceeds in 2009. Proceeds
from newly introduced direct payment bonds totaled
$65.3 billion and made up 12.7 percent of all municipal bond proceeds in 2009. Tax credit bond proceeds
were a little more than $3.7 billion and accounted for
0.7 percent of all municipal bond proceeds in 2009.

Tax-Exempt Bonds
Tax-exempt bonds issued by State and local governments are classified as either “governmental” or “private activity,” depending on whether the proceeds
are used and secured by public or private entities and
resources. The total amount of tax-exempt bonds
issued by State and local governments decreased
by 4.9 percent between Calendar Years 2008 and

The term “State” includes the District of Columbia and any possessions of the United States.
Issuers had the option of either receiving a direct payment or issuing a tax credit version, such that the bondholder receives a 35-percent credit. BABs were not issued
using the tax credit option.
3 Bond issuers were required to fi le these tax-exempt bond information returns by the 15th day of the second calendar month after the close of the calendar quarter in which
the bond was issued. The study includes returns processed from January 1, 2009, to April 30, 2011, for bonds issued in 2009.
2

158

Figure A

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

2009, from $469.4 billion in 2008 to $446.2 billion
in 2009.4 For 2009, governmental bonds accounted
for $340.7 billion (76.3 percent) of total tax-exempt
bond proceeds. Private activity bonds accounted for
the remaining $105.6 billion (23.7 percent).
When a bond is issued, the issuer is obligated
to repay the borrowed bond proceeds, at a specified
rate of interest, by some future date. For Federal
income tax purposes, investors who purchase governmental bonds and certain types of private activity bonds are able to exclude the bond interest from
their gross incomes.5, 6 This tax exemption lowers
the borrowing cost incurred by tax-exempt bond issuers, since holders of tax-exempt bonds are generally willing to accept an interest rate lower than that
earned on comparable taxable bonds. The interest
exclusion for tax-exempt bonds is not allowed for
arbitrage bonds and bonds not in registered form.7, 8
Both governmental and private activity bonds
are obligations issued by, or on behalf of, State and
local governmental units; use of the proceeds differentiates the two. Governmental bond proceeds
finance essential government operations, facilities,
and services that are for general public use, and the
debt service on these bonds is paid from general
governmental sources. Private activity bonds are issued by, or on behalf of, State or local governments
for the purpose of financing the project of a private
user. Since private activity bond proceeds are used

by one or more private entities, the debt service is
paid or secured by one or more private entities.9 Interest income earned on most private activity bonds
is taxable. However, over the years, Congress has
deemed certain types of private activities necessary for the public good, and, therefore, interest
income earned on “qualified private activity bonds,”
as defined in Internal Revenue Code (IRC) section
141(e), is generally tax exempt.10, 11

Tax-Exempt Bond Volume, by Term of Issue
Bonds are classified as either short-term or longterm, depending on the length of time from issuance
to maturity. Bonds having maturities of less than 13
months are typically classified as short-term, while
those having maturities of 13 months or more are
classified as long-term. Tax-exempt governmental
bond issues totaled $340.7 billion in 2009, a 1.9-percent increase over the $334.4 billion issued in 2008.
Long-term bonds accounted for $262.4 billion, more
than 77 percent of all governmental bond proceeds.
Long-term bonds are generally used to finance construction or other capital improvement projects.
The remaining $78.2 billion of governmental
bonds were issued for short-term projects. Most
short-term governmental bonds are issued in the
form of tax anticipation notes (TANs), revenue anticipation notes (RANs), or bond anticipation notes
(BANs). TANs and RANs generally mature within 1

4

Data that reference Calendar Year 2008 are available in the Statistics of Income Bulletin, Winter 2011, Volume 30, Number 3, “Tax-Exempt Bonds, 2008,” and do not
appear in any of the tables computed for Calendar Year 2009.
5 In addition, for State income tax purposes, most States allow for the exclusion of interest on bonds issued by government agencies within their own States, thus increasing
the benefit to the bondholder.
6 The extent of exclusion of interest income can vary with taxpayer characteristics. For example, banks and insurance companies may be limited as to how much taxexempt interest they can exclude.
7 An arbitrage bond is one in which any portion of the proceeds is used to purchase higher-yielding investments or is used to replace proceeds that have been used to
purchase higher-yielding investments. Certain rules allow for arbitrage earnings with respect to tax-exempt bonds within a specified time period, as long as these earnings
are rebated to the Department of the Treasury.
8 A registered bond is defi ned as “a bond whose owner is designated on records maintained by a registrar, the ownership of which cannot be transferred without the registrar
recording the transfer on its records,” according to the Municipal Securities Rulemaking Board’s Glossary of Municipal Securities Terms, http://www.msrb.org/msrbl/
glossary/. See also Internal Revenue Code (IRC) section 149(a) for additional information.
9 Section 141(a) of IRC provides that the term private activity bond means any bond issued as part of an issue that meets: 1) the private business tests set forth in the IRC
section 141(b); or 2) the private loan fi nancing test set forth in IRC section 141(c). The private business tests of IRC section 141(b) defi ne a bond as a private activity bond
if both of the following criteria are met: 1) more than 10 percent of the bond proceeds are used for a private business purpose; and 2) more than 10 percent of the bond debt
service is derived from private business use and is secured by privately used property. The private loan fi nancing test of IRC section 141(c) defi nes a bond as a private activity bond if the amount of proceeds used to (directly or indirectly) fi nance loans to nongovernmental persons exceeds the lesser of $5 million or 5 percent of the proceeds.
10 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 defi ned in the “Explanation of Terms” section of this article.
Examples of exempt facilities include airports; docks and wharves; sewage facilities; solid waste disposal facilities; qualified residential rental projects; and facilities for the
local furnishing of electricity or gas. Qualified section 501(c)(3) bonds are issued by State and local governments to fi nance the activities of charitable and similar organizations that are tax exempt under IRC section 501(c)(3). The primary beneficiaries of these bonds are hospitals, universities, and organizations that provide low-income
housing or assisted living facilities.
11 The interest income from qualified private activity bonds (other than qualified section 501(c)(3) bonds) is considered a tax preference for the alternative minimum tax
calculations.

159

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

year of issuance, at which time the proceeds are paid
from specific tax receipts or other revenue sources.
The proceeds of a BAN are typically used to pay
for startup costs associated with a future long-term,
bond-financed project. A renewal BAN can be issued
on maturity of an outstanding BAN, until, eventually, the proceeds of the future bond issue are used to
pay off, or retire, the outstanding BAN. Short-term
bonds accounted for almost $2.8 billion, only 2.6
percent, of the total private activity bond proceeds
for 2009.

Long-Term, Tax-Exempt Bond Volume,
by Type of Issue
Total bond issuance is composed of both nonrefunding (“new money”) issues and refunding issues. The
proceeds of new money issues finance new capital
projects, while proceeds of refunding issues retire
outstanding debt of prior bond issues. A bond issue
can include both new and refunding proceeds.

Figures B and C show total long-term issuance,
as well as its distribution between new money and
refunding proceeds, for both governmental and taxexempt private activity bonds issued between 2005
and 2009. In 2009, 57.5 percent of all long-term
governmental bond proceeds were new money issues (Figure B). New money governmental bond
proceeds fell 11.9 percent from its preceding 4-year
average of $171.4 billion to $151.1 billion in 2009,
while refunding proceeds fell approximately 8.3 percent from its preceding 4-year average of $121.5 billion to $111.4 billion in 2009.12
In 2009, 50.8 percent of all long-term private activity bond proceeds were new money issues (Figure
C). New money private activity bond proceeds fell
18.8 percent from its preceding 4-year average of
$64.3 billion to $52.2 billion in 2009, while refunding proceeds fell by 12.2 percent from its preceding 4-year average of $57.6 billion to $50.6 billion
in 2009.

Figure B
Volume of Long-Term, Tax-Exempt Governmental Bonds Issued, by Type and Issue Year,
2005–2009
Billions of dollars
350

$316.3

$311.3

250
200

$271.7

$272.2

300

$262.4

$200.1
$180.2
$159.8

$153.8

$151.1

150
$151.6
100
50
0
2005

$116.1

$117.9

2007

2008

$92.1
$

2006

$111.4

2009

Issue year
All issues

160

12

New money proceeds

Refunding proceeds

Additional tax-exempt bond data, including data for prior years, can be found on SOI’s Tax Stats web site: http://www.irs.gov/taxstats. Click on “Tax-Exempt Bonds.”

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Figure C
Volume of Long-Term, Tax-Exempt Private Activity Bonds Issued, by Type and Issue Year,
2005–2009
Billions of dollars
160
$136.6
140
120

$109.5

$102.8

$108.6
$86.6

100

$80.3

80
60
40

$132.8

$63.3

$52.2

$54.8
$54.7
$45.3

$50.0

$52.5

2007

2008

$50.6

20
0
2005

2006

2009

Issue year
All issues

New money proceeds

Long-Term Bond, Tax-Exempt Volume, by
Selected Purpose
Figures D and E present the composition of longterm tax-exempt bond proceeds, by selected purpose
as well as type of issue, for both governmental and
private activity bond issues. Figures D shows that
during 2009, $142.0 billion of long-term governmental bond proceeds financed education, utilities, and
transportation projects. “Other bond purposes” had
the largest long-term governmental bond proceeds
by purpose totaling $90.3 billion.13 For almost all of
the governmental bond purposes shown in Figure D,
more proceeds were spent financing new capital projects than were used to refund prior bond issues with
the exception of utilities.
Qualified section 501(c)(3) bonds, which include
total qualified hospital bonds and qualified nonhospital bonds issued to benefit entities exempt from
income tax under IRC section 501(c)(3), combined,

Refunding proceeds

accounted for $65.7 billion in long-term private activity bond proceeds for 2009 (see Figure E). Private
activity bonds issued to provide housing assistance
were expended upon in 2009 with the creation of the
Housing Assistance Tax Act of 2008 (the 2008 Housing Act) which provided a temporary increase in the
annual volume cap for qualified housing issues and
allowed certain issuers of qualified mortgage bonds
to refinance subprime mortgage loans under IRC sections 142 and 143.14 Private activity bonds issued to
provide housing assistance in the form of qualified
residential rental projects, qualified mortgages, and
other qualified purposes under the 2008 Housing Act
accounted for another 10 percent of total proceeds. 15
Of the total private activity bond proceeds allocated
towards housing assistance, $1.5 billion were the result of the 2008 Housing Act.
The ARRA added IRC section 1400U-3, which
authorized tax-exempt recovery zone exempt facility
bonds. Recovery zone exempt facilities bonds are

13

Instructions for Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues, requires a filer to enter the issue price of the bond on Line 20c and provide
a description of the bond only if the bond does not apply to any other type of issue. “Other bond purposes” may also contain issues that were not separately allocated by the
issuer.
14 See Internal Revenue Notice 2008-79 for additional information.
15 This figure does not include the relatively small amount of proceeds issued for qualified veterans’ mortgage bonds and Gulf Opportunity Zone mortgage bonds, which are
excluded to avoid disclosure of information about specific bonds.

161

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Figure D
Long-Term, Tax-Exempt Governmental Bonds, by Selected Bond Purpose and Type of Issue, 2009
Billions of dollars
100
90
80
70

$43.2

60

$26.4

50
40
30

$19.7
$47.1

20

$11.7

$45.9

10

$5.7

$20.1

$18.2

$4.3

0
Other purposes [1]

Education

Utilities

Transportation

$2.6

$1.2

$10.9
Environment

$2.6
Public safety

Health and hospital

Bond purpose
New money proceeds

Refunding proceeds

[1] "Other purposes" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G, Information Return for Tax-Exempt
Government Obligations.

Figure E
Long-Term, Tax-Exempt Private Activity Bonds, by Selected Bond Purpose and Type of Issue, 2009
Billions of dollars
35
30
25

$14.6
$19.2

20
15
10

$17.8
$14.1

5

$3.4

$3.1

$3.6

$3.3

$2.4

$2.4

Water, sewage, and solid
waste disposal

Airport

Qualified mortgage

Qualified residential rental

$2.6

0
Qualified hospital

Qualified section
501(c)(3) nonhospital

Bond purpose
New money proceeds

162

Refunding proceeds

$1.4

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Figure F
States with Largest Decreases and Increases in
Amount of New Money Long-Term, Tax-Exempt
Governmental Bonds from 2008 to 2009
[Money amounts are in millions of dollars]

2008
amount

2009
amount

Annual net
change
in amount

(1)

(2)

(3)

153,771

151,050

Texas

21,593

14,512

-7,081

Florida

10,594

7,224

-3,370

Illinois

5,770

3,521

-2,249

Ohio

3,597

1,826

-1,771

Nevada

2,465

997

-1,468

California

15,918

27,872

11,954

Oregon

1,356

3,019

1,663

Connecticut

2,354

3,453

1,099

New York

15,310

16,364

1,054

New Mexico

1,486

2,354

868

State

All States

-2,721

States with decreases

States with increases

NOTE: Detail may not add to totals because of rounding.

private activity bonds that may be issued by State
and local governments to finance qualified projects
located in certain areas having significant poverty,
unemployment, home foreclosure rates, general distress, or distress from the closure of a military installation, or those areas designated as an empowerment
zone or renewal community.16 For 2009, there were
17 recovery zone exempt facility bonds issued for a
total of $95 million in proceeds.

Overview of Tax-Exempt Bond Issues, by State
Figure F presents States with the largest absolute decreases and increases in amount of new money longterm, tax-exempt governmental bonds from 2008
to 2009. Total new money long-term governmental
bond proceeds decreased $2.7 billion (1.8 percent)
from 2008 to 2009 (Figure F). Texas and Florida,
whose issuance fell 32.8 percent and 31.8 percent, respectively, experienced the largest absolute decreases
in new money long-term governmental bond proceeds in 2009. Illinois also experienced a decrease

(39 percent) in new money long-term governmental
bond proceeds in 2009. In all, 26 States decreased the
amount of new money long-term governmental bond
proceeds from 2008 to 2009, by nearly $25.9 billion.
California experienced the largest absolute increase (75.1 percent) in new money long-term governmental bond proceeds in 2009. States with significant
increases in new money long-term governmental
bond proceeds from 2008 to 2009 included Oregon,
whose proceeds increased 122.6 percent; Connecticut,
whose proceeds increased by 46.7 percent; and New
York, whose proceeds grew by 6.9 percent. In all, 26
States increased the amount of new money long-term
governmental bond proceeds from 2008 to 2009, by
slightly less than $23.2 billion.17
Figure G presents the amount of bonds proceeds for the top 15 States, in terms of total dollar
volume of new money long-term, tax-exempt bonds
issued for 2009, for governmental bonds. Combined, the top 15 States accounted for 71.8 percent
of the total $151.1 billion of new money long-term
governmental bond proceeds for the year (see Figure G). About $71.6 billion (47.4 percent) of the
total proceeds were issued by authorities in the following five States: California (18.5 percent), New
York (10.8 percent), Texas (9.6 percent), Florida
(4.8 percent), and Pennsylvania (3.8 percent). According to 2009 Census estimates, together, these
five States accounted for almost 30.6 percent of the
total U.S. population.18
An examination of issuance by State reveals
some differences in the allocation of proceeds by
bond purpose. Overall, for 2009, 30.4 percent of the
$151.1 billion of new money long-term governmental bonds was issued for educational purposes. However, of the total amount of new money long-term
bonds issued in Texas, 43.1 percent was issued for
education. In contrast, 14 percent of long-term governmental bonds issued in Connecticut and 9 percent
in Georgia were for this purpose.
Transportation projects accounted for 13.3 percent of States’ total new money long-term proceeds.
In New Jersey, however, 38.1 percent of the total
amount of new money long-term governmental

16

See Internal Revenue Notice 2009-50 for additional information.
The term “State” includes the District of Columbia and any possessions of the United States.
18 The resident population estimates for July 1, 2009, were produced by the U.S. Bureau of the Census and are available at http://www.census.gov/popest/states/
NST-ann-est.html.
17

163

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Figure G
New Money Long-Term, Tax-Exempt Governmental Bonds, by Selected Bond Purpose, for Top 15
States, Ranked by Total Tax-Exempt Governmental Bond Issuance, 2009
[Money amounts are in millions of dollars]

Selected bond purpose
Total
Other purposes [1]

State of issue

Education

Amount

Amount

Percent
of State total

(1)

(2)

(3)

Amount

Percent
of State total

(4)

(5)

Total, All States

151,050

47,072

31.2

45,935

30.4

California

27,872

5,109

18.3

10,357

37.2

New York

16,364

7,826

47.8

2,984

18.2

Texas

14,512

2,955

20.4

6,256

43.1

Florida

7,224

2,850

39.5

1,847

25.6

Pennsylvania

5,674

1,215

21.4

2,158

38.0

Washington

4,582

1,896

41.4

700

15.3

Arizona

4,221

653

15.5

1,054

25.0

Georgia

4,167

1,725

41.4

377

9.0

North Carolina

4,011

952

23.7

1,277

31.8

Virginia

3,740

1,182

31.6

1,608

43.0

Illinois

3,521

1,546

43.9

1,393

39.6

Connecticut

3,453

2,361

68.4

484

14.0

New Jersey

3,274

902

27.6

885

27.0

Oregon
Minnesota

3,019
2,810

951
1,738

31.5
61.9

1,160
406

38.4
14.4

Selected bond purpose—continued
Transportation

State of issue

Utilities

Environment

Amount

Percent
of State total

Amount

Percent
of State total

Amount

Percent
of State total

(6)

(7)

(8)

(9)

(10)

(11)

Total, All States

20,089

13.3

18,169

12.0

10,921

7.2

California

3,435

12.3

3,242

11.6

3,720

13.3

New York

2,861

17.5

878

5.4

619

3.8

Texas

1,520

10.5

3,241

22.3

196

1.4

Florida

531

7.4

1,146

15.9

313

4.3

Pennsylvania

1,421

25.0

220

3.9

426

7.5

Washington

793

17.3

621

13.6

315

6.9

Arizona

911

21.6

1,209

28.6

265

6.3

Georgia

924

22.2

122

2.9

912

21.9

North Carolina

584

14.6

648

16.2

124

3.1

Virginia

68

1.8

225

6.0

502

13.4

Illinois

388

11.0

113

3.2

28

0.8

Connecticut

247

7.2

286

8.3

21

0.6

New Jersey

1,247

38.1

28

0.9

102

3.1

Oregon

428

14.2

143

4.7

205

6.8

Minnesota

170

6.0

170

6.0

117

4.2

[1] For purposes of this figure, "other purposes" refers to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G. It does not
include specific purposes identified on the tax return, such as public safety and housing, that are not shown separately in the figure. See Table 5.
NOTE: Detail may not add to totals because of rounding.

164

bonds was for transportation, while in Minnesota,
only 6 percent was allocated for the same purpose.
Transportation bonds accounted for only 1.8 percent
of Virginia’s total amount of new money long-term
bond issues.

Utility bond proceeds accounted for 12 percent
of all new money long-term governmental bonds in
2009. Arizona and Texas each spent a large portion
of their total allocation on utility projects, 28.6 percent and 22.3 percent, respectively. In contrast, New

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Figure H
States with Largest Decreases and Increases in
Amount of New Money Long-Term, Tax-Exempt
Private Activity Bonds from 2008 to 2009
[Money amounts are in millions of dollars]

2008
amount

2009
amount

Annual net
change
in amount

(1)

(2)

(3)

52,488

52,216

-272

Louisiana

2,453

941

-1,512

Missouri

1,638

871

-767

Maryland

1,269

542

-727

Arizona

1,045

364

-681

New Jersey

2,089

1,523

-566

State

All States
States with decreases [d]

States with increases
New York

5,398

7,582

2,184

California

5,488

7,389

1,901

Illinois

1,902

3,007

1,105

Texas

2,212

2,620

408

875

1,273

398

Wisconsin

[d] Data on U.S. possessions are deleted to avoid disclosure of individual issuer
information. However, the data are included in the appropriate totals.
NOTE: Detail may not add to totals because of rounding.

Jersey allocated 0.9 percent of its total amount of
new money long-term bonds to utility projects.
Figure H presents States with the largest absolute
decreases and increases in amount of new money
long-term, tax-exempt private activity bonds from
2008 to 2009. Total new money long-term, taxexempt private activity bond proceeds decreased by
roughly $0.3 billion (0.5 percent) of $1.5 billion from
2008 to 2009 (Figure H). Louisiana experienced the
largest absolute decrease (61.6 percent) in new money
long-term, tax-exempt private activity bond proceeds
in 2009. States with significant relative decreases in
new money long-term, tax-exempt private activity
bonds from 2008 to 2009 included Missouri, whose
proceeds fell 46.8 percent; Maryland, whose proceeds
fell 57.3 percent; and Arizona, whose proceeds fell
65.2 percent. For the 30 States that reduced their issuance of new money long-term, tax-exempt private activity bonds in 2009, the overall reduction in proceeds
totaled $1.1 billion.
New York experienced the largest relative increase (40.5 percent) in new money long-term, taxexempt private activity bond proceeds. Other States
with significant increases in new money long-term,
tax-exempt private activity bond issues from 2008

to 2009 included California, whose proceeds increased 34.6 percent; and Illinois, whose proceeds
increased 58.1 percent. In all, 22 States increased
their new money long-term, tax-exempt private activity bond proceeds from 2008 to 2009, by just less
than $0.9 billion.
Figure I shows the amount of bond proceeds
for the top 15 States, in terms of total dollar volume
of new money long-term, tax-exempt bonds issued
for 2009, for private activity bonds. Combined, the
top 15 States accounted for 73.3 percent of the total
$52.2 billion of new money long-term, tax-exempt
private activity bond proceeds for the year. Almost
$23.6 billion (45.1 percent) of the total proceeds
was issued by authorities in the following five
States: New York (14.5 percent), California (14.2
percent), Illinois (5.8 percent), Pennsylvania (5.7
percent), and Texas (5.0 percent). According to
2009 Census estimates, together, these five States
accounted for almost 34.8 percent of the total U.S.
population. Interestingly, with the exception of Illinois and Florida, the same States have the highest
amount of proceeds of both governmental bonds
and private activity bonds.
Similar to governmental bond issuance, there
were differences in the composition of total new
money long-term, tax-exempt private activity bond
issuance, by purpose, among the States. Examining
the bond allocations by purpose for 2009, overall,
34.1 percent of the amount of new money long-term
private activity bond proceeds was for qualified IRC
section 501(c)(3) nonhospital organizations. Another
26.9 percent was issued for qualified hospital bonds.
Of the total amount of new money long-term,
tax-exempt private activity bond proceeds raised
in Georgia, 67.8 percent was issued for IRC section
501(c)(3) nonhospital organizations, compared to
11.8 percent in Ohio and 10.5 percent in New Jersey for the same purpose. Qualified hospital bonds
accounted for 57.3 percent of Ohio’s new money
long-term, tax-exempt private activity bond proceeds, compared to 10.6 percent and 6 percent Texas
and Georgia, respectively. Of the top 15 States,
New York had the lowest total issuance for qualified
hospitals, with only 3.7 percent of its State total proceeds allocated for this purpose.
Bonds issued for airports, docks, and wharves
accounted for 7.1 percent of all new money longterm, tax-exempt private activity bond proceeds in
2009, totaling $3.7 billion. California committed

165

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Figure I
New Money Long-Term, Tax-Exempt Private Activity Bonds, by Selected Bond Purpose, for Top 15
States, Ranked by Total Tax-Exempt Private Activity Bond Issuance, 2009
[Money amounts are in millions of dollars]

Selected bond purpose
Total

Qualified section 501(c)(3)
nonhospital

State of issue

Qualified hospital

Amount

Amount

Percent
of State total

Amount

Percent
of State total

(1)

(2)

(3)

(4)

(5)

Total, All States

52,216

17,830

34.1

14,070

New York

7,582

2,557

33.7

282

3.7

California

7,389

3,626

49.1

1,793

24.3

Illinois

3,007

1,674

55.7

1,112

37.0

Pennsylvania

2,967

795

26.8

1,146

38.6

Texas

2,620

887

33.9

278

10.6

Massachusetts

2,389

1,369

57.3

491

20.6

Florida

2,102

307

14.6

528

25.1

Ohio

1,759

208

11.8

1,008

57.3

New Jersey

1,523

160

10.5

625

41.0

Virginia

1,440

399

27.7

484

33.6

Wisconsin

1,273

421

33.1

510

40.1

Indiana

1,162

253

21.8

662

57.0

Colorado

1,099

277

25.2

d

d

Georgia
Louisiana

1,014
941

687
181

67.8
19.2

61
d

6.0
d

26.9

Selected bond purpose—continued
State of issue

Total, All States

All other bonds,
combined [1]

Airports, docks,
and wharves [1]

Water, sewage, and solid
waste disposal facilities

Amount

Percent
of State total

Amount

Percent
of State total

Amount

Percent
of State total

(6)

(7)

(8)

(9)

(10)

(11)

3,910

7.5

3,727

7.1

3,616

New York

d

d

442

5.8

d

d

California

0

0

1,342

18.2

163

2.2

Illinois

d

d

0

0

d

d

Pennsylvania

0

0

0

0

614

20.7
13.7

Texas

505

19.3

374

14.3

359

Massachusetts

0

0

0

0

0

0

Florida

d

d

544

25.9

490

23.3

Ohio

0

0

0

0

377

21.4

New Jersey

d

d

d

d

d

d

Virginia

d

d

0

0

d

d

Wisconsin

0

0

d

d

0

0

Indiana

0

0

d

d

d

d

Colorado

0

0

d

d

0

0

Georgia

0

0

0

0

197

19.4

Louisiana

d

d

d

d

0

0

d—Data deleted to avoid disclosure of individual issuer information. However, the data are included in the appropriate totals.
[1] For purposes of this figure, certain bond purposes were combined. For this reason, data in this figure will differ slightly from the data in Tables 7 and 9.
NOTE: Detail may not add to totals because of rounding.

166

6.9

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

18.2 percent of its total new money long-term private
activity bond proceeds toward airports, docks, and
wharves. Florida allocated 25.9 percent of its total
new money long-term private activity bond proceeds
toward airports, docks, and wharves.
Together, States allocated only 6.9 percent of the
$52.2 billion of new money long-term tax-exempt
private activity bonds in 2009 for water, sewage, and
solid waste disposal facilities. However, both Florida
and Ohio directed a much larger share of their total
new money long-term proceeds to this purpose, 23.3
percent and 21.4 percent, respectively. In contrast,
California directed only 2.2 percent of its new money
long-term bond proceeds to water, sewage, and solid
waste disposal facilities.

Tax Credit Bonds
Tax credit bonds differ from tax-exempt bonds in that
they are not explicitly interest-bearing obligations.
In lieu of receiving periodic interest payments from
the issuer, a bondholder is generally allowed an annual income tax credit while the bond is outstanding.
The amount of the credit is determined by multiplying the bond’s credit rate by the face amount on the
holder’s bond. The credit rate on the bonds is determined by the Secretary of the Treasury and is an estimate of the rate that permits issuance of such bonds
without discount and interest cost to the qualified
issuer. The credit is includable in the bondholder’s
gross income (as if it were an interest payment on the
bond), and it can be claimed against regular income
tax liability and alternative minimum tax liability.
The Taxpayer Relief Act of 1997 created the first
type of tax credit bond—the qualified zone academy
bond. In 2005, two additional types—clean renewable energy bonds and Gulf tax credit bonds—were
created. Since then, various legislation has authorized
additional types of tax credit bonds, such as qualified

forestry conservation bonds, new clean renewable
energy bonds, qualified energy conservation bonds,
Midwestern tax credit bonds, and qualified school
construction bonds.19, 20 Issuers of tax credit bonds are
required to submit to the IRS information filings similar to those required of tax-exempt bond issuers.21
ARRA included several provisions that affected
tax credit bonds. Most notably, the Act created
qualified school construction bonds. Qualified
school construction bonds (QSCBs) allow schools
to borrow at lower interest rates. Issuers of QSCBs
must use 100 percent of available project proceeds
to construct, rehabilitate, or repair a public school
facility or to purchase land where a public school
facility will be constructed. A State or local government must issue QSCBs within the schools jurisdiction, and the issuer of the bond must designate the
bond as a QSCB. QSCBs were subject to a national
volume cap of $11 billion for 2009, and an issuer
could not exceed its volume cap allocation.22
ARRA also amended various IRC sections to increase the allowable volume cap for several types of
existing tax credit bonds. Specifically, IRC section
54E(c)(1) increased the national volume cap for qualified zone academy bonds from $400 million to $1.4
billion. ARRA legislation also increased the national
volume cap for new clean renewable energy bonds,
from $800 million to $2.4 billion, and amended IRC
section 54D(d) to increase the national volume cap
for qualified energy conservation bonds from $800
million to $3.2 billion.
ARRA created “Build America Bonds (tax
credit),” which provided a subsidy through Federal
tax credits to bondholders (investors).23 This tax
credit equaled 35 percent of the total coupon interest
payable by the issuer. The bondholder was required
to report the interest income associated with the
Build America Bond (tax credit) as part of their

19 The Food, Conservation, and Energy Act of 2008 created qualified forestry conservation bonds. The Energy Improvement and Extension Act of 2008 produced new
clean renewable energy bonds and qualified energy conservation bonds. The Tax Extenders and Alternative Minimum Tax Relief Act of 2008 created Midwestern tax credit
bonds.
20 Different categories of tax credit bonds vary in terms of the allowable tax credit rate, maturity, and other features. For example, clean renewable energy bonds and qualified zone academy bonds have a 100-percent tax credit subsidy; however, new clean renewable energy bonds and qualified energy conservation bonds have a 70-percent
subsidy. Borrowers are likely to issue at a discount or pay taxable interest in addition to the lender receiving a tax credit.
21 In 2009, issuers of tax credit bonds were instructed to fi le Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues. The 2009 data also include a
small number of tax credit bonds that were reported on Form 8038-G, Information Returns for Tax-Exempt Governmental Obligations, that specifically reference “qualified
school construction” bonds, “clean renewable energy” bonds, “Midwestern tax credit” bonds, or “qualified zone academy” bonds. For tax credit bonds issued after March
2010, issuers were required to file the new Form 8038-TC, Information Return for Tax Credit Bonds and Specified Tax Credit Bonds.
22 Section 54F(d) provides details about a national volume cap for QSCBs. See Internal Revenue Notice 2009-35 for further information on QSCB volume cap allocations.
23 ARRA created two varieties of BABs, which differed based on the federal subsidy and use of proceeds. The one variety of BAB was structured as a tax credit bond and
the other was a direct payment bond.

167

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

gross income, causing a net tax subsidy of less than
35 percent. Build America Bonds (tax credit) could
be issued for any purpose for which traditional taxexempt governmental bonds were issued and were
subject to the same restrictions that apply to taxexempt governmental bonds under IRC section 103.
Build America Bonds (tax credit) are interest-bearing obligations, which differentiates them from traditional tax credit bonds that provide bondholders
a tax credit in lieu of any interest payment. Build
America Bond (tax credit) proceeds must have been
used for capital expenditures and working capital
expenditures. Working capital expenditures included any costs that were not capital expenditures and
allowed for bonds to refund prior obligations and issue short-term financing. No Build America Bonds
(tax credit) were issued in 2009.
In 2009, State and local governments issued $3.7
billion in tax credit bonds. This amount included
nearly $3.4 billion in qualified school construction
bonds, a combined $192 million in clean renewable
energy bonds and Midwestern tax credit bonds, and
$179 million in qualified zone academy bonds.24
Figure J shows tax credit bonds classified by
purpose and size of entire issue. For 2009, tax credit
bond issuance had the following distribution by
entire issue size: 21.7 percent of all tax credit bond
issues were under $1 million, almost 376.6 percent

were in the $1 million to $5 million range, and 40.7
percent were in excess of $5 million. More than
three-quarters (76.2 percent) of the total 378 tax
credit bonds issued were QSCBs. Qualified zone
academy bonds accounted for 17.4 percent of all tax
credit bonds issued in 2009. The combined issuance
of clean renewable energy bonds and Midwestern tax
credit bonds were 6.4 percent of all tax credit bonds
issued in 2009.
The top five States with the highest dollar issuance of tax credit bonds were California, Illinois,
Texas, Florida, and Louisiana (Figure K). Combined, these States issued slightly more than $1.4 billion (38.5 percent) of all tax credit bonds. California
issued the largest amount of tax credit bonds, accounting for $486 million (13.1 percent) of the total.
Illinois and Texas had similar amounts of tax credit
bond issuance, with $280 million (7.5 percent) and
$267 million (7.2 percent), respectively.

Direct Payment Bonds
In response to the domestic economic crisis, on
February 17, 2009, the 111th Congress enacted
ARRA in order to implement new programs and
policies aimed at bolstering the economy. Several
ARRA provisions had direct implications for the
municipal bond market, through creation of the direct payment BAB program. This program, autho-

Figure J
Tax Credit Bonds, by Bond Purpose and Size of Entire Issue, 2009
[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]

Size of entire issue
All issues

Bond purpose

Tax credit bonds, total [1]

$1,000,000
under
$5,000,000

Under
$1,000,000

$5,000,000
or more

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

378

3,724

82

45

142

334

154

3,345

Qualified school construction bonds

288

3,352

53

29

100

234

135

3,090

Clean renewable energy bonds and
Midwestern tax credit bonds [2]
Qualified zone academy bonds

24

192

5

3

10

25

9

165

66

179

24

13

32

76

10

90

[1] Includes data from governmental and private activity bond returns (Forms 8038-G and 8038) that specifically reference "qualified school construction," "clean renewable energy,"
"Midwestern tax credit," or "qualified zone academy" bonds.
[2] Clean renewable energy and Midwestern tax credit bonds were combined to avoid disclosure of individual issuer information.
NOTE: Detail may not add to totals because of rounding.

168

24

The 2009 data combine clean renewable energy bonds and Midwestern tax credit bonds to avoid taxpayer disclosure.

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Figure K
Tax Credit Bonds, for All States and Top Five
States, 2009
[Money amounts are in millions of dollars]

Total tax credit bonds [1]
State

All States

Number

Amount

(1)

(2)

Percentage
of total
amount
(3)

Rank
(4)

378

3,724

100.0

N/A

74

1,433

38.5

N/A

13

486

13.1

1

Illinois

9

280

7.5

2

Texas

21

267

7.2

3

Florida

6

221

5.9

4

Louisiana

25

179

4.8

5

Top Five States, total
California

N/A—Not applicable. Rank applies only to individual States.
[1] Includes data from governmental and private activity bond returns (Forms 8038-G
and 8038) that specifically reference "qualified school construction," "clean renewable
energy," "Midwestern tax credit," or "qualified zone academy" bonds.
NOTE: Detail may not add to totals because of rounding.

rized by IRC section 54AA, enabled State and local
governments to issue Federally subsidized taxable
bonds for qualified purposes to provide economic
stimulus and promote employment.
The BAB program applied to certain bonds issued between February 17, 2009, and January 1,
2011. BABs provided a direct subsidy payment to
the bond issuer. This direct payment to the issuer
equaled 35 percent of the total coupon interest payable to bondholders. BABs must have been qualified to receive credit payments under IRC section
54AA(g)(2), which imposed a set of requirements on
the issuer. Specifically, the bond must have been a
BAB issued before January 1, 2011, the bond’s excess proceeds over the required reserve fund are only
to be used for capital expenditures, and the bond issuer must have made an irrevocable election to have
these requirements apply.25
BABs may have been issued for any governmental purpose for which tax-exempt governmental

bonds were issued, but excess proceeds must have
been used on capital expenditures. Capital expenditures included the costs of acquiring, constructing, or
improving land, buildings, and equipment. In general, BAB proceeds could not have been used to refund
prior issue or fund short-term obligations.26
ARRA under IRC section 1400U-2 authorized
State and local governments to issue RZEDs (recovery zone economic development bonds). Issuers
of RZEDs received a direct subsidy payment in an
amount equal to 45 percent of the total coupon interest payable to the bondholders. Like BABs, RZEDs
must have been qualified to receive direct subsidy
payments. Specifically, the bond must have been a
BAB issued before January 1, 2011, the bond’s excess proceeds (as defined by IRC section 54A) over
the required reserve fund are only to be used for capital expenditures, the bond proceeds are to be used
for a qualified economic development purpose, and
the bond’s issuer designated its purpose.27 Unlike
BABs, RZEDs were subject to a national volume cap
of $10 billion and must finance projects in distressed
areas as designated by the issuer.28
For Calendar Year 2009, issuers of direct payment bonds were required to file Form 8038-G,
Information Return for Tax-Exempt Governmental
Obligations. Direct payment bond issuers were
required to attach a schedule that declared the type
and purpose of the bond. Additionally, direct payment bond issuers were required to attach a debt
service schedule with the following information:
the type of interest rate—variable or fixed, the frequency of interest payments, the total principal outstanding on each interest payment date, the credit
payment expected from the IRS, and the earliest
call date of the bond.
Figure L shows direct payment bond issuance
allowed under ARRA for 2009. A total of 911 direct payment bonds raised $65.3 billion in proceeds.

25

Internal Revenue Notice 2009-26 states, “100 percent of the excess of (i) the available project proceeds (as defi ned in section 54A to mean sale proceeds of such issue less
not more than two percent of such proceeds used to pay issuance costs plus investment proceeds thereon), over (ii) the amounts in a reasonably required reserve fund (within
the meaning of § 150(a)(3)) with respect to such issue, are to be used for capital expenditures.”
26 Internal Revenue Notice 2009-26 states, “Build America Bonds (direct payment) may be used to reimburse otherwise-eligible capital expenditures under Treas. Reg.
section 1.150-2 that were paid or incurred after the effective date of ARRA and that were fi nanced originally with temporary short-term fi nancing issued after the effective
date of ARRA, and such reimbursement will not be treated as a refunding issue under Treas. Reg. §§ 1.150-1(d) or 1.150-2(g).”
27 IRC Section 1400U-2(c) defi nes a qualified economic development purpose as expenditures for purposes of promoting development or other economic activity in a recovery zone, including (1) capital expenditures paid or incurred with respect to property located in the recovery zone, (2) expenditures for public infrastructure and construction of public facilities, and (3) expenditures for job training and educational programs.
28 See IRC section (b) for details.

169

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Figure L

total direct payment proceeds with $19.6 billion,
followed by transportation, which accounted for 28
percent of total proceeds, or $18.3 billion. Other significant purposes included utilities (10.7 percent) and
environment (6.3 percent), with $7.0 billion and $4.1
billion in proceeds, respectively.
In 2009, the overwhelming majority of direct
payment bonds were large issues, as shown in Figure
N. Nearly $52.5 billion (80.3 percent) of all bond
proceeds were attributable to bond issues with an
entire issue price in excess of $75 million. Another
$8.5 billion (13 percent) of bond proceeds were attributable to bonds with an entire issue price ranging from $25 million to under $75 million. Direct
payment bonds with an entire issue size of less than
$25 million accounted for just over $4.4 billion (6.7
percent) of total issuance.
As shown in Figure O, 15 states accounted for
$50.9 billion (78 percent) of total direct payment
bond issuance. The 2009 Census estimate for these
15 states, combined, was 61.2 percent of the U.S.
population. California had $15.9 billion in bond issuance, which made it the single largest issuer of
direct payment ARRA bonds. Nearly one quarter
(24.4 percent) of all direct payment bonds were is-

Direct Payment Bonds Allowed Under the
American Recovery and Reinvestment Act by
Bond Type, 2009
[Money amounts are in millions of dollars]

Bond type

Number

Amount

Percentage
of total
amount

(1)

(2)

(3)

911

65,326

100.0

Build America Bonds

862

64,855

99.3

Recovery Zone Economic
Development Bonds

49

471

0.7

Total [1]

[1] Includes bonds reported on the Form 8038-G, Information Return for Tax-Exempt
Governmental Obligations, with a specific reference to "Build America Bond" or
"Recovery Zone Economic Development Bond" in either their issue name or other
description.

BABs made up 99.3 percent of the total dollar
amount of direct payment bonds issued under ARRA
for 2009. There were 49 RZEDs, which made up
less than 1 percent (nearly $0.5 billion) of the total
dollar amount of direct payment bonds issued.
The $65.3 billion in direct payment bonds allowed under ARRA, by purpose, for 2009 are shown
in Figure M. Education constituted 30 percent of

Figure M
Direct Payment Bond Amounts Allowed Under the American Recovery and Reinvestment Act by Purpose, 2009
Billions of dollars
20

$19.6
$18.3

18
16
14
$11.6

12
10
8

$7.0

6
$4.1

4

$2.5
2

$1.9
$0.3

$0.1

H
Housing
i

anticipation
Bond
B d Anticipation
A
ti i ti
notes and Tax
tax
Notes
anticipation
Anticipation
Notes
notes

0
Ed
Education
ti

Transportation
T
t ti

Other
Oth
purposes [1]

Utilities
Utiliti

E
Environment
i
t

H
Health
lth
and hospital

P
Public
bli
safety

Bond purpose

170

[1] "Other purposes" refer to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G, Information Return for Tax-Exempt Governmental
Obligations.

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Figure N
Direct Payment Bonds Allowed Under the
American Recovery and Reinvestment Act
by Size of Entire Issue, 2009
Less than
$25 million

requested. Figure P shows 152 total credit payments
to issuers of direct payment bonds totaled 128.3 million in 2009. Credit payments to issuers of fixed rate
direct payment bonds were $123.3 million (96.1)
percent of the Forms 8038-CP filed in 2009.

Summary
$25 million under
$75 million

6.7%
13.0%

$65.3
Billion

80.3%

The American Recovery and Reinvestment Act of
2009 changed the landscape of the municipal bonds
market by introducing direct payment bonds through
the Build America Bond and the Recovery Zone
Economic Development Bond Programs. More than
900 direct payment bonds raised $65.3 billion in proceeds in 2009. ARRA also created qualified school
construction bonds, which raised nearly $3.4 billion
in proceeds for 288 qualifying public educational
facilities. However, the market was still dominated
by more than 22,000 tax-exempt governmental bonds
issued in 2009, raising $340.7 billion of proceeds

Figure O
$75 million or more

sued in California, while its population represents
a little more than 12 percent of the U.S. population.
In contrast, Florida and Pennsylvania issued $2.2
billion (3.4 percent) and more than $1.3 billion (2
percent) of all direct payment bonds, but their populations represent 6 percent and 4.1 percent of the
U.S. population, respectively. Texas had $7.1 billion
(10.8 percent) in bond issuance in 2009, making it
the second largest issuer of direct payment bonds.
New York and Illinois ranked 3rd and 4th in largest
amount of direct payment bond issuance, with $5.8
billion (8.9 percent) and $3.7 billion (5.7 percent),
respectively. As Figure O shows, Massachusetts had
six direct payment bonds issued for a total of almost
$2 billion in proceeds, averaging $327.7 million per
bond issued, which was significantly higher than the
national average of $71.7 million per bond issued.
Direct payment bond issuers are required to file
Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds in order to receive payments.
Filing requirements for Form 8038-CP vary depending on whether the bond has a fixed or variable rate
of interest. Issuers of direct payment bonds must
file Form 8038-CP each time a credit payment is

Direct Payment Bonds Allowed Under the
American Recovery and Reinvestment Act for
All States and Top 15 States, 2009
[Money amounts are in millions of dollars]

All issues [1]
State of issue
Number

Amount

(1)

(2)

Percentage
of total
amount
(3)

Rank
(4)

All States

911

65,326

100.0

N/A

Top 15 States, total

453

50,934

78.0

N/A

California

68

15,918

24.4

1

Texas

39

7,072

10.8

2

New York

22

5,787

8.9

3

Illinois

86

3,700

5.7

4

Florida

22

2,209

3.4

5

New Jersey

13

2,174

3.3

6

Massachusetts

6

1,964

3.0

7

Ohio

36

1,873

2.9

8

Washington

28

1,851

2.8

9

Colorado

22

1,611

2.5

10

Missouri

32

1,380

2.1

11

Kentucky

28

1,366

2.1

12

Virginia

17

1,352

2.1

13

Maryland

15

1,344

2.1

14

Pennsylvania

19

1,333

2.0

15

N/A—Not applicable. Rank applies only to individual States.
[1] Bonds reported on the Form 8038-G, Information Return for Tax-Exempt
Governmental Obligations, with a specific reference to "Build America Bond" or
"Recovery Zone Economic Development Bond" in either their issue name or other
description.

171

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Figure P
Total Credit Payments to Issuers of Direct
Payment Bonds Allowed Under the American
Recovery and Reinvestment Act by Interest
Rate Type, 2009
[Money amounts are in millions of dollars]

Interest rate type
Credit payments for direct
payment bonds, total

Number

Amount

Percentage
of amount

(1)

(2)

(3)

152

128.3

100.0

Credit payments for fixed rate
direct payment bonds

129

123.3

96.1

Credit payments for variable
rate direct payment bonds

22

5.0

3.9

NOTE: Detail may not add to totals because of rounding.

for public projects such as schools, transportation
infrastructure, and utilities. Of the $262.4 billion of
long-term governmental bonds issued, $151.1 billion
of proceeds were used to finance new projects, while
the remaining $111.4 billion of proceeds refunded
prior governmental bond issues. In addition, more
than 2,700 tax-exempt private activity bonds were
issued in 2009, for a total $105.6 billion in proceeds.
These tax-exempt private activity bond proceeds financed qualified private facilities (such as residential
rental facilities, single family housing, and airports),
as well the facilities of IRC section 501(c)(3) organizations (such as hospitals and private universities).
Of the $102.8 billion of long-term private activity
bonds issued, $52.2 billion of proceeds were used to
finance new projects, while the remaining $50.6 billion of proceeds refunded prior tax-exempt private
activity bond issues.

development bonds” in either the issue name or other
description. Data for tax credit bonds are based on
Forms 8038 and 8038-G with a specific reference to
“qualified school construction,” “clean renewable energy,” “qualified zone academy,” or “Midwestern tax
credit” bonds. Data for credit payments are based on
Forms 8038-CP filed for interest paid to bondholders
in 2009. Bond issuers were required to file Forms
8038 and 8038-G by the 15th day of the second calendar month after the close of the calendar quarter in
which the bond was issued. The filing deadline for
Form 8038-CP varied based on the structure of the
interest payments. In an effort to include as many
applicable returns for a particular year, each of the
respective study periods extended well beyond established filing deadlines. The Forms 8038-G and 8038
data include returns processed from January 1, 2009,
to April 30, 2011, for bonds issued in 2009. The
Form 8038-CP data include returns processed from
May 2009 to May 2, 2011, for interest paid in 2009.
Where possible, data from amended returns filed
and processed before the cutoff dates were included.
Late-filed returns processed after the respective cutoff dates were not included in the statistics.
During statistical processing, returns were subject to thorough testing and correction procedures to
ensure data accuracy and validity. Additional checks
were conducted to identify and exclude duplicate
returns. Wherever possible, returns with incomplete
information, mathematical errors, or other reporting
anomalies were edited to resolve internal inconsistencies. However, in other cases, it was not possible
to reconcile reporting discrepancies. Thus, some reporting and processing error may remain.

Explanation of Selected Terms
Data Sources and Limitations
The data presented in this article are based on the
populations of Forms 8038 and 8038-G filed with
the Internal Revenue Service for bonds issued during
Calendar Year 2009. Tax-exempt bond data exclude
returns filed for commercial paper transactions, as
well as issues that are loans from the proceeds of
another tax-exempt bond issue, pooled financings.
Data for taxable bonds issued under the American Recovery and Reinvestment Act of 2009 are
based on Forms 8038-G with a specific reference to
“Build America Bonds” or “recovery zone economic
172

American Recovery and Reinvestment Act of
2009 (“ARRA”)—An act of the 111th Congress
passed on February 17, 2009, in response to the
economic crisis. The passage of ARRA added to
the Internal Revenue Code (IRC) sections 54AA
and 1400U-1 through 1400U-3, authorizing State
and local governments to issue two general types
of Build America Bonds, recovery zone economic
development bonds, and recovery zone exempt facility bonds.
Arbitrage bond—A bond where at the time of
issuance, the issuer of the bond intentionally uses all

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

proceeds or a portion of its proceeds for the purpose
of acquiring a higher yield or to replace funds which
are used to acquire higher yielding investments.
Bond anticipation note (“BAN”)—A type of
short-term Governmental bond issue, the proceeds of
which are generally used to pay the startup costs associated with a future, long-term bond-financed project. A renewal BAN can be issued on maturity of an
outstanding BAN, until, eventually, the proceeds of
the future bond issue are used to pay off, or retire, the
outstanding BAN.
Build America Bond (“BAB”)—The American
Recovery and Reinvestment Act (ARRA) added
IRC section 54AA to enable State and local governments to issue bonds for authorized purposes to promote economic recovery and job creation. These
new types of bonds would be issued as taxable
governmental bonds with federal subsidies to help
offset a portion of issuers’ borrowing costs. The
two distinct types of Build America Bonds—Build
America Bond tax credit and Build America Bond
direct payment subsidy—vary by the structure of
federal subsidy. For calendar year 2009, issuers
of Build America Bonds were required to file IRS
Form 8038-G, Information Return for Tax-Exempt
Governmental Obligations.
Build America Bond tax credit bond—This
type of BAB provides a tax credit to investors in
an amount equal to 35 percent of the total coupon
interest payable by the issuer of the taxable government bonds.
Build America Bond direct payment bond—
This type of BAB provides a refundable credit
payment to state or local governmental issuers in
an amount equal to 35 percent of the total coupon
interest payable to investors.
Clean renewable energy bond (“CREB”)—A
type of tax credit bond used to finance eligible clean
renewable energy projects which are subject to a national volume cap. Issuers of clean renewable energy
bonds under IRC Section 54 must be eligible to apply
for volume cap allocations. Clean renewable energy
bonds were first authorized under the Energy Tax Incentive Act of 2005. For additional information, see
Internal Revenue Notice 2007-26.
Commercial paper—Commercial paper consists
of short-term notes that are continually rolled-over.
Maturities average about 30 days but can extend up
to 270 days. Many localities use commercial paper
to raise cash needed for current transactions.

Enterprise zone facility bond—Established by
the passage of the Revenue Reconciliation Act of
1993, this type of exempt facility bond may be issued
for certain businesses in designated “empowerment
zones” or “enterprise communities.” These designations are made by the Secretaries of Agriculture and
Housing and Urban Development and last for a 10year period. The Taxpayer Relief Act of 1997 provided certain economically depressed census tracts
within the District of Columbia designation as the
“District of Columbia Enterprise Zone.” Qualified
enterprise zone facility bonds are generally subject to
the same rules as exempt facility bonds.
Exempt facility bond—Bond issue of which 95
percent or more of the net proceeds is used to finance
a tax-exempt facility (as listed in IRC sections 142(a)
(1) through (15) and 142(k)). These facilities include
airports, docks and wharves, mass commuting facilities, facilities for the furnishing of water, 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, qualified hazardous waste facilities,
high-speed intercity rail facilities, environmental enhancements of hydroelectric generating facilities, and
qualified public educational facilities.
Governmental bond—Any obligation that is not
a private activity bond (see below) and is issued by
a State or local government unit. The interest on a
governmental bond is excluded from gross income
under IRC section 103.
Gulf Opportunity Zone bond—The Gulf Opportunity Zone Act of 2005, signed into law as Public
Law 109-135 on December 21, 2005, authorized a
new category of tax-exempt bonds. The proceeds of
such bonds are used to finance the construction and
rehabilitation of certain residential and nonresidential property located in certain localities of Alabama,
Louisiana, and Mississippi, designated as the “Gulf
Opportunity Zone.” This area constitutes the portion
of the Hurricane Katrina disaster area, determined by
the President to warrant individual or individual and
public assistance from the Federal government, under
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act.
IRC section 1400N(a)(2) defines a qualified Gulf
Opportunity Zone Bond as any bond issued as part of
an issue if it meets the following requirements: (1)
95 percent or more of the net proceeds is to be used
for qualified project costs, or such issue meets the

173

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

174

requirements of a qualified mortgage issue, except
as otherwise provided in IRC section 1400N(a); (2)
such bond is issued by the State of Alabama, Louisiana, or Mississippi or any political subdivision
thereof; (3) such bond is designated for purposes
of IRC section 1400N(a) either by the Governor, or
approved bond commission, of such State; (4) the
bond is issued after December 21, 2005, and before
January 1, 2012; and (5) no portion of the proceeds
of such issue is to be used to provide any property
described in IRC section 144(c)(6)(B).
Gulf Opportunity Zone bonds that meet the general requirements of a qualified mortgage bond issue,
and the proceeds of such bond issues that finance
residences located in the Gulf Opportunity Zone,
shall be treated as qualified mortgage bonds (“Gulf
Opportunity Zone Mortgage Bonds”), as described
in IRC section 1400N(a)(2)(A)(ii). The Act also
authorized the issuance of “Gulf Opportunity Zone
Advance Refunding Bonds,” which allow for an additional advance refunding for certain bonds, issued
by the States of Alabama, Louisiana, or Mississippi
(or any political subdivision thereof), and outstanding on August 28, 2005. This provision was effective
for bonds issued between December 21, 2005, and
January 1, 2012. (See Internal Revenue Service Notice 2006-41, Internal Revenue Bulletin 2006-18, for
additional information.)
Midwestern tax credit bond—A type of tax credit
bond whose issuers are located in specific counties
in Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska, and Wisconsin that were adversely affected
by severe storms, tornadoes, or flooding (collectively
referred to as “the Midwestern disaster area”). Midwestern tax credit bonds were only authorized for
issuance during Calendar Year 2009. See Internal
Revenue Notice 2008-109 for additional information.
New York Liberty Zone bonds—The Job Creation
and Worker Assistance Act of 2002 created Section
1400L of the Internal Revenue Code of 1986 to provide various tax benefits for the area of New York
City damaged or affected by the terrorist attack on
September 11, 2001. IRC section 1400L(d) authorizes the issuance of an additional type of exempt facility bond, namely, “Liberty Bonds.” Liberty Bonds
are subject to the following additional requirements:
(1) 95 percent or more of the net proceeds of such
issue must be used for qualified project costs; (2) the
bond must be issued by the State of New York or any
political subdivision thereof; (3) the Governor of the

State of New York or the Mayor of the City of New
York must designate the bond for purposes of section 1400L(d); and (4) the bond must be issued after
March 9, 2002, and before January 1, 2012. The
maximum aggregate face amount of bonds that may
be designated as Liberty Bonds is $8 billion.
Nongovernmental output property bond—Bonds
used to finance the acquisition of property used by a
nongovernmental entity in connection with an output facility (such as an electric or gas power project). This bond must meet additional tests under
IRC section 141(d).
Pooled financing— An arrangement whereby a
portion of the proceeds of a governmental bond issue
is used to make loans to other governmental units.
Private activity bond—Bond issue of which
more than 10 percent of the proceeds is used for any
private business use and more than 10 percent of the
payment of the principal or interest is either secured
by an interest in property to be used for private business use (or payment for such property) or is derived
from payments for property (or borrowed money)
used for a private business use. A bond is also considered a private activity bond if the amount of the
proceeds used to make or finance loans (other than
loans described in IRC section 141(c)(2)) to persons
other than governmental units exceeds the lesser of 5
percent of the proceeds or $5 million.
Qualified green building and sustainable design
project—Bond issue of which 95 percent or more of
the net proceeds is used to finance qualified green
building and sustainable design projects, as designated by the Secretary of the Treasury, after consultation
with the Administrator of the Environmental Protection Agency. The project must be nominated by a
State or local government, and the issuer must submit
a detailed application to the Treasury Department for
consideration, and, on approval, allocation of a specified issuance amount. Section 701 of the American
Jobs Creation Act of 2004 added IRC sections 142(a)
(14) and 142(l), authorizing up to $2 billion of taxexempt private activity bonds, not subject to the
unified volume cap, for qualified green building and
sustainable design projects, to be issued between December 31, 2004, and October 1, 2012. (See Internal
Revenue Service Notice 2006-41, Internal Revenue
Bulletin 2006-18, for additional information.)
Qualified highway or surface transfer freight
facility bond—Bond issue of which 95 percent or
more of the net proceeds is used to provide qualified

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

highway or surface freight transfer facilities. Section
11143 of the Safe, Accountable, Flexible, Efficient,
Transportation Equity Act: A Legacy for Users (SAFETEA-LU) Public Law 109-59, signed into law on
August 10, 2005, added IRC sections 142(a)(15) and
142(m). Section 142(m)(1) defines the term “qualified highway or surface freight transfer facilities” as:
(a) any surface transportation project that receives
Federal assistance under title 23, United States Code
(as in effect on August 10, 2005); (b) any project
for an international bridge or tunnel for which an
international entity authorized under Federal or
State law is responsible and that receives Federal
assistance under title 23, United States Code (as
so in effect); or, (c) any facility for the transfer of
freight from truck to rail or rail to truck (including
any temporary storage facilities directly related to
such transfers) that receives Federal assistance under either title 23 or title 49, United States Code (as
so in effect). This legislation authorized issuance of
up to $15 billion of such bonds, not subject to the
unified volume cap, applicable to bonds issued after
August 10, 2005. Allocation of the $15-billion national limitation is under the jurisdiction of the Department of Transportation. (See Internal Revenue
Service Notice 2006-45, Internal Revenue Bulletin
2006-20, for additional information.)
Qualified hospital bond—Type of qualified
section 501(c)(3) bond issue of which 95 percent
or more of the net proceeds are to be used to finance a hospital.
Qualified mortgage bond—Bond issue of which
the proceeds (except issuance costs and reasonably
required reserves) are used to provide financing assistance for single-family residential property, and
which meets the additional requirements in IRC section 143. Bond proceeds can be applied toward the
purchase, improvement, or rehabilitation of owneroccupied residences, as well as to finance qualified
home-improvement loans.
Qualified public educational facility bond—
Bond issue of which 95 percent or more of the net
proceeds is used to provide qualified public educational facilities, defined by IRC section 142(k)(1) as
any school facility that is: (a) part of a public elementary or secondary school; and (b) is owned by a
private, for-profit corporation under a public-private
partnership agreement with a State or local educational agency. Under a “public-private partnership

agreement,” the corporation agrees to construct, rehabilitate, refurbish, or equip a school facility and,
at the end of the term of the agreement, to transfer
the school facility to the State or local educational
agency for no additional consideration. Such bonds
are not subject to the unified volume cap; rather, the
annual State limit is equal to the lesser of $10 per
resident or $5 million.
Qualified redevelopment bond—Bond issue of
which 95 percent or more of the net proceeds is used
to finance certain specified real property acquisition
and redevelopment in blighted areas (see IRC section
144(c) for additional requirements).
Qualified section 501(c)(3) bond—Bonds issued
by State and local governments to finance the activities of charitable organizations that are tax-exempt
under IRC section 501(c)(3). A bond must meet
the following conditions to be classified as a section 501(c)(3) bond: 1) all property financed by the
net proceeds of the bond issue is to be owned by a
section 501(c)(3) organization or a governmental
unit; and 2) the bond would not be a private activity
bond if section 501(c)(3) organizations were treated
as governmental units with respect to their activities that are not related trades or businesses, and the
private activity bond definition was applied using a
5-percent threshold rather than a 10-percent threshold. The primary beneficiaries of these bonds are
private, nonprofit hospitals, colleges, and universities. A qualified hospital bond issue is one in which
95 percent or more of the net proceeds is to be used
for a hospital.
Qualified 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. In certain instances, an election to take certain capital expenditures into account
can increase the limit on bond size, from $1 million
to $10 million. These bonds may only be used to
finance manufacturing facilities and to benefit certain
first-time farmers.
Qualified student loan bond—Bond issue of
which 90 percent or more of the net proceeds is used
to make or finance student loans under a program
of general application subject to the Higher Education Act of 1965 (see IRC section 144(b)(1)(A) for
additional requirements) or of which 95 percent or
more of the net proceeds is used to make or finance
175

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

student loans under a program of general application
approved by the State (see Code section 144(b)(1)(B)
for additional requirements).
Qualified veterans’ mortgage bond— In general, a bond issue of which 95 percent or more of
the net proceeds is used to finance the purchase,
improvement, or rehabilitation of owner-occupied
residences for veterans who: 1) served prior to January 1, 1977; and 2) applied for such a mortgage prior
to the date 30 years after leaving active service or
January 31, 1985, whichever is later. The payment
of interest and principal must be secured by a general obligation of the State, and the bond must meet
certain of the requirements of IRC section 143. The
issuance of qualified veterans’ mortgage bonds was
limited to the following five states: Alaska, California, Oregon, Texas, and Wisconsin, each of which
had a veterans’ mortgage bond program in effect
prior to June 22, 1984.
Qualified zone academy bond (“QZAB”)—A
type of tax credit bond issued by a State or local government to finance certain eligible public school purposes authorized under IRC section 54E. QZABs are
subject to a national volume cap to be allocated by
the Treasury among the States. See Internal Revenue
Notice 2009-30 for additional information.
Recovery zone bond—The American Recovery
and Reinvestment Act (ARRA) added IRC Sections
1400U-1 through 1400U-3 authorizing State and
local governments to issue recovery zone bonds.
These bonds provide tax incentives through lower
borrowing costs and are intended to promote job creation and economic recovery in targeted areas particularly affected by employment declines. See Internal
Revenue Notice 2009-50 for additional information.
Recovery zone economic development bond—
Authorized under IRC section 1400U-2, this type of
bond provides for a deeper Federal subsidy through
a refundable credit payment to state or local governmental issuers in an amount equal to 45 percent
of the total coupon interest payable to investors. A
recovery zone economic development bond must be

176

a Build America Bond, the proceeds of which must
be used for one or more qualified economic development purposes. Recovery zone economic development bonds are allocated under a $10 billion national
bond volume cap. For Calendar Year 2009, issuers
of recovery zone exempt facility bonds were required
to file IRS Form 8038-G, Information Return for
Tax-Exempt Governmental Obligations.
Recovery zone exempt facility bond—Authorized under IRC section 1400U-3, which expanded
the definition of the term “exempt facility bond” to
include any recovery zone facility bond. A recovery
zone exempt facility bond must be a qualified private
activity bond under IRC Section 142, the proceeds of
which may be used to finance certain “recovery zone
property.” Recovery zone exempt facility bonds are
allocated under a $15 billion national bond volume
cap. For Calendar Year 2009, issuers of recovery
zone exempt facility bonds were required to file IRS
Form 8038, Information Return for Tax-Exempt Private Activity Bonds.
Tax credit bond—Tax credit bonds are not interest-bearing obligations. The holder of a tax credit
bond is generally allowed an annual Federal income
tax credit while the bond is outstanding. The amount
of the credit is equal to the face amount of the bond
multiplied by the credit rate of the bond. For additional information, see Internal Revenue Notice 2009-15.
Tax Reform Act transition property bond—A
bond issued under transitional rules contained in the
Tax Reform Act of 1986. Proceeds from bonds issued under these rules include issues used to fund
such items as pollution control facilities, parking
facilities, industrial parks, sports stadiums, and convention facilities. Proceeds from other bonds issued
under the transitional rules are included in this category only if they could not be identified as another
issue type.
NOTE: Additional tax-exempt bond data, including data for prior years, can be found on the
SOI’s Tax Stats web site: http://www.irs.gov/taxstats.
Click on “Tax-Exempt Bonds.”

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 1. Tax-Exempt Governmental Bonds, by Type and Term of
Issue, 2009
[Money amounts are in millions of dollars]

Type and term of issue

Number

Amount
22,363

All issues, total [1]

340,658

Short-term

6,462

78,217

Long-term

15,901

262,441

16,892

215,319

New money issues, total
Short-term

4,771

64,269

Long-term

12,121

151,050

7,703

125,339

Refunding issues, total
Short-term

2,406

13,948

Long-term

5,297

111,391

[1] A given bond issue can include both new money and refunding proceeds. Thus, the number of new money issues
plus the number of refunding issues will sometimes exceed the total number of issues. However, the money
amounts add to the totals.
NOTE: Detail may not add to totals because of rounding.

Table 2. Long-Term, Tax-Exempt Governmental Bonds, by Bond Purpose and Type of Issue, 2009
[Money amounts are in millions of dollars]

All issues

New money issues

Refunding issues

Bond purpose

Total [1]
Education
Health and hospital
Transportation

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

15,901

262,441

12,121

151,050

5,297

111,391

5,455

72,365

4,005

45,935

1,884

26,430

333

5,272

264

2,637

96

2,635

1,014

31,784

791

20,089

384

11,696

Public safety

1,864

5,505

1,712

4,291

277

1,214

Environment

1,238

16,637

944

10,921

510

5,715

Housing

100

757

71

326

40

432

Utilities

2,149

37,919

1,546

18,169

953

19,749

Bond and tax/revenue anticipation notes
Other purposes [2]

275

1,903

246

1,612

54

291

4,613

90,300

3,383

47,072

1,844

43,228

[1] A given bond issue can include more than one purpose and can include both new money and refunding proceeds. Thus, the summation of number of issues by purpose or by type
of issue will sometimes exceed the total number of issues. However, the money amounts add to the totals.
[2] "Other purposes" refers to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G, Information Return for Tax-Exempt
Governmental Obligations.
NOTE: Detail may not add to totals because of rounding.

177

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 3. Computation of Lendable Proceeds for Long-Term, Tax-Exempt Governmental Bonds, by
Bond Purpose, 2009
[Money amounts are in millions of dollars]

Bond issuance
costs

Entire issue price
Bond purpose

Total [1]

Allocation
to reserve
fund

Credit
enhancement

Number

Amount

Number

Amount

Number

Amount

Number

(1)

(2)

(3)

(4)

(5)

(6)

(7)

15,901

262,441

10,485

2,458

1,786

403

1,132

5,455

72,365

3,718

731

875

124

213

333

5,272

192

48

22

6

27

Transportation

1,014

31,784

753

244

90

72

96

Public safety

1,864

5,505

692

68

73

9

58

Environment

1,238

16,637

892

140

112

10

118

Education
Health and hospital

Housing

100

757

69

10

3

[2]

14

Utilities

2,149

37,919

1,804

428

312

73

330

Bond and tax/revenue anticipation notes
Other purposes [3]

275
4,613

1,903
90,300

205
3,228

14
775

0
440

0
110

3
302

Bond purpose

Total [1]

Allocation
to reserve
fund—
continued

Total lendable
proceeds

Proceeds used to refund
prior issues

Nonrefunding
proceeds

Amount

Number

Amount

Number

Amount

Number

Amount

(8)

(9)

(10)

(11)

(12)

(13)

(14)

2,898

15,901

256,682

5,297

109,143

12,121

147,540

Education

254

5,455

71,257

1,884

26,061

4,005

45,195

Health and hospital

82

333

5,136

96

2,594

264

2,542

Transportation

698

1,014

30,770

384

11,231

791

19,539

Public safety

78

1,864

5,350

277

1,181

1,712

4,169

Environment

328

1,238

16,158

510

5,548

944

10,610

Housing

7

100

740

40

424

71

316

Utilities

769

2,149

36,648

953

19,138

1,546

17,511

Bond and tax/revenue anticipation notes
Other purposes [3]

7

275

1,882

54

283

246

1,600

674

4,613

88,740

1,844

42,683

3,383

46,058

[1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the
money amounts add to the totals.
[2] Indicates an amount less than $500,000.
[3] "Other purposes" refers to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G, Information Return for Tax-Exempt
Governmental Obligations .
NOTE: Detail may not add to totals because of rounding.

178

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 4. New Money Long-Term, Tax-Exempt Governmental Bonds, by Bond Purpose and Size of
Entire Issue, 2009
[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]

Size of entire issue
All issues

$500,000
under

Under
$500,000 [1]

Bond purpose

$1,000,000
under

$1,000,000

$5,000,000

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

12,121

151,050

4,423

1,042

1,390

953

2,982

6,612

4,005

45,935

1,379

332

405

281

912

2,065

Health and hospital

264

2,637

67

18

37

27

61

110

Transportation

791

20,089

238

50

68

44

188

303

Public safety

1,712

4,291

1,029

237

217

143

235

449

Environment

944

10,921

234

54

109

74

308

564

Housing

71

326

d

d

6

4

26

55

Utilities

1,546

18,169

288

69

192

124

533

1,149

Total [2]
Education

Bond and tax/revenue
anticipation notes
Other purposes [3]

246

1,612

d

d

36

25

124

272

3,383

47,072

1,173

268

346

231

821

1,644

Size of entire issue—continued
$5,000,000

$10,000,000

under

under

under

$10,000,000

$25,000,000

$75,000,000

Bond purpose

Total [2]

$25,000,000
$750,000,000
or more

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

1,192

7,461

1,007

13,331

658

23,282

469

98,370

Education

431

2,733

398

5,197

319

10,886

161

24,442

Health and hospital

37

224

27

386

16

473

19

1,399

Transportation

98

380

60

534

51

1,466

88

17,312

Public safety

95

408

70

672

42

843

24

1,539

Environment

114

512

92

863

43

1,005

44

7,849

Housing

5

35

6

79

4

96

d

d

Utilities

217

1,158

149

1,659

86

2,416

81

11,593

Bond and tax/revenue
anticipation notes

27

158

14

214

7

229

d

d

Other purposes [3]

353

1,854

332

3,726

198

5,869

160

33,480

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.
[1] Forms 8038-G, Information Return for Tax-Exempt Governmental Obligations, with an entire issue price less than $100,000 are excluded from the study. Issuers of these bonds are
instructed to file Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales. Statistics of Income (SOI) does not process data
from the Forms 8038-GC filed with the Internal Revenue Service.
[2] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the
money amounts add to the totals.
[3] "Other purposes" refers to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G, Information Return for Tax-Exempt
Governmental Obligation Bonds.
NOTE: Detail may not add to totals because of rounding.

179

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 5. New Money Long-Term, Tax-Exempt Governmental Bonds, by State of Issue and Bond
Purpose, 2009
[Money amounts are in millions of dollars]
Bond purpose
Total [1]

State of issue

All States
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
U.S. Possessions [2]
Footnotes at end of table.

180

Education

Health and hospital

Transportation

Number

Amount

Number

Amount

Number

Amount

Number

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Amount
(8)

12,121

151,050

4,005

45,935

264

2,637

791

20,089

210
19
192
188
691
196
126
16
5
255
286
10
46
677
333
329
282
200
163
128
116
186
344
446
207
312
85
336
47
55
334
163
645
336
143
297
320
137
578
48
203
72
165
1,097
127
74
176
204
80
378
48
10

1,200
591
4,221
799
27,872
1,893
3,453
507
1,278
7,224
4,167
914
381
3,521
1,832
1,806
1,214
1,532
1,239
494
2,687
2,573
982
2,810
805
1,739
130
1,654
997
177
3,274
2,354
16,364
4,011
271
1,826
1,605
3,019
5,674
507
1,573
201
1,242
14,512
1,846
194
3,740
4,582
282
1,185
129
1,966

47
4
86
85
296
58
63
4
0
47
49
d
10
353
127
113
78
86
35
48
30
76
101
90
41
112
d
69
10
18
175
57
322
53
24
96
217
41
196
13
51
20
20
272
27
16
56
59
8
112
28
d

460
23
1,054
496
10,357
1,035
484
184
0
1,847
377
d
142
1,393
860
775
462
383
244
81
813
722
418
406
375
608
d
410
137
29
885
499
2,984
1,277
42
761
912
1,160
2,158
164
482
37
265
6,256
547
65
1,608
700
126
289
31
d

4
0
0
3
28
4
d
0
0
4
6
d
d
d
5
11
16
8
15
0
8
3
6
4
7
6
0
9
d
d
d
d
d
7
0
5
7
d
d
0
5
0
4
19
4
0
d
13
3
4
3
0

21
0
0
13
1,120
2
d
0
0
262
12
d
d
d
134
83
34
43
36
0
88
2
3
20
69
29
0
36
d
d
d
d
d
93
0
46
52
d
d
0
76
0
2
128
21
0
d
46
4
4
51
0

9
d
15
3
29
9
25
3
d
19
5
0
5
23
27
36
32
6
11
18
14
32
20
34
9
37
d
25
3
7
13
6
36
16
8
23
13
10
23
5
3
4
10
41
14
d
10
15
d
75
d
d

14
d
911
21
3,435
56
247
118
d
531
924
0
180
388
86
39
66
95
349
207
341
143
34
170
47
332
d
20
143
11
1,247
86
2,861
584
7
37
107
428
1,421
194
7
2
20
1,520
926
d
68
793
d
201
d
d

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 5. New Money Long-Term, Tax-Exempt Governmental Bonds, by State of Issue and Bond
Purpose, 2009—Continued
[Money amounts are in millions of dollars]
Bond purpose—continued
State of issue

All States
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
U.S. Possessions [2]

Public safety

Environment

Housing

Utilities

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

1,712

4,291

944

10,921

71

326

1,546

18,169

29
d
39
11
64
29
31
6
0
42
55
0
8
53
63
17
25
18
48
27
28
46
48
29
44
50
10
24
4
9
56
44
89
117
3
62
18
25
61
8
47
8
27
117
16
12
31
28
28
52
d
d

43
d
128
37
645
35
32
5
0
247
87
0
3
36
90
22
18
60
43
11
96
29
22
102
74
95
16
93
25
5
101
45
383
292
3
37
151
92
180
8
44
46
54
214
15
2
95
115
8
48
d
d

4
0
8
27
33
7
19
3
d
13
71
d
6
20
27
22
31
7
11
6
37
36
70
38
d
15
18
5
10
8
10
9
30
16
7
20
d
11
112
7
10
d
3
26
11
16
21
9
6
52
4
d

6
0
265
94
3,720
92
21
62
d
313
912
d
22
28
208
185
34
2
214
2
475
338
194
117
d
15
24
2
352
13
102
32
619
124
4
50
d
205
426
60
83
d
8
196
35
8
502
315
29
101
6
d

d
0
0
0
8
3
d
d
0
4
d
0
0
d
d
0
0
0
0
0
5
d
d
6
0
0
0
0
0
0
d
d
d
d
3
d
0
d
d
d
0
5
3
d
0
0
d
3
0
3
0
d

d
0
0
0
91
4
d
d
0
8
d
0
0
d
d
0
0
0
0
0
39
d
d
45
0
0
0
0
0
0
d
d
d
d
7
d
0
d
d
d
0
4
16
d
0
0
d
3
0
1
0
d

44
d
15
42
63
20
9
d
0
50
20
d
d
46
18
34
47
34
19
5
10
36
28
62
6
33
30
33
d
d
6
13
23
29
68
16
23
13
27
4
24
14
49
329
15
18
17
29
10
96
5
d

339
d
1,209
98
3,242
262
286
d
0
1,146
122
d
d
113
249
28
222
229
50
2
86
57
119
170
16
372
23
974
d
d
28
973
878
648
183
105
261
143
220
15
614
79
180
3,241
68
32
225
621
4
124
34
d

Footnotes at end of table.

181

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 5. New Money Long-Term, Tax-Exempt Governmental Bonds, by State of Issue and Bond
Purpose, 2009—Continued
[Money amounts are in millions of dollars]
Bond purpose—continued
State of issue

Bond and tax/revenue anticipation notes
Number
(17)

All States
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
U.S. Possessions [2]

182

Other purposes [3]

Amount
(18)

Number
(19)

Amount
(20)

246

1,612

3,383

47,072

d
0
0
0
8
0
0
0
0
3
d
0
8
0
d
12
13
7
3
12
4
d
d
18
d
0
5
17
0
3
3
0
10
d
0
d
d
4
18
d
0
d
23
d
0
d
6
14
d
13
0
0

d
0
0
0
153
0
0
0
0
20
d
0
15
0
d
55
22
33
3
42
13
d
d
42
d
0
7
16
0
12
3
0
735
d
0
d
d
21
49
d
0
d
67
d
0
d
47
91
d
85
0
0

74
11
40
23
179
66
63
5
d
79
85
4
d
193
62
101
93
34
21
25
57
101
66
177
95
60
17
161
13
12
80
31
133
112
30
91
55
28
146
17
65
18
47
297
47
10
47
46
19
124
7
7

314
135
653
40
5,109
407
2,361
134
d
2,850
1,725
775
d
1,546
185
620
356
686
301
150
736
1,272
188
1,738
221
290
58
103
331
98
902
705
7,826
952
23
764
118
951
1,215
64
268
23
630
2,955
233
82
1,182
1,896
26
334
4
1,870

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.
[1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the
money amounts add to the totals.
[2] U.S. Possessions include Guam, Puerto Rico, and the U.S. Virgin Islands.
[3] "Other purposes" refers to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G, Information Return for Tax-Exempt
Governmental Obligations.
NOTE: Detail may not add to totals because of rounding.

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 6. Tax-Exempt Private Activity Bonds, by Type and Term of
Issue, 2009
[Money amounts are in millions of dollars]

Type and term of issue
All issues, total [1]

Number

Amount
2,732

105,575

Short-term

66

2,790

Long-term

2,666

102,785

1,662

52,425

New money issues, total
Short-term

36

209

Long-term

1,626

52,216

1,421

53,150

Refunding issues, total
Short-term

36

2,581

Long-term

1,385

50,569

[1] A given bond issue can include both new money and refunding proceeds. Thus, the number of new money
issues plus the number of refunding issues will sometimes exceed the total number of issues. However, the money
amounts add to the totals.
NOTE: Detail may not add to totals because of rounding.

183

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 7. Long-Term, Tax-Exempt Private Activity Bonds, by Bond Purpose and Type of Issue, 2009
[Money amounts are in millions of dollars]

All issues

Bond purpose

New money issues

Refunding issues

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

Total [1]

2,666

102,785

1,626

52,216

1,385

50,569

Airports

65

6,474

38

3,341

38

3,133

Docks and wharves

16

931

9

385

8

546

Water, sewage, and solid waste disposal
facilities
Qualified residential rental facilities

128

6,983

61

3,616

70

3,367

193

3,832

121

2,407

80

1,425

Local electricity or gas furnishing facilities

6

247

3

230

3

17

Tax Reform Act of 1986 transition property
bonds
Qualified enterprise zone facility bonds

57

3,668

3

61

56

3,606

5

44

d

d

d

d

d

d

d

d

0

0

d

d

d

d

0

0

d

d

d

d

0

0

42

1,493

39

1,274

11

219

39

1,600

25

1,130

15

469

7

30

d

d

d

d

d

d

d

d

d

d

d

d

d

d

d

d

District of Columbia Enterprise Zone facility
bonds
Qualified highway or surface freight transfer
facilities
Qualified New York Liberty bonds
2008 Housing Act bonds issued under IRC
section 142 or 143
Qualified Gulf Opportunity Zone and
Gulf Opportunity Zone mortgage bonds
Local district heating or cooling facilities
Environmental enhancements of
hydroelectric generating facilities
Midwest disaster area exempt facility bonds
Hurricane Ike disaster area exempt facility
bonds
Recovery zone exempt facility bonds

d

d

d

d

d

d

17

95

17

95

0

0

Qualified mortgage bonds

84

5,003

61

2,404

50

2,600

Qualified veterans' mortgage bonds

d

d

d

d

0

0

422

720

315

446

111

274

Qualified small issue bonds
Qualified student loan bonds

12

1,890

12

1,309

4

581

Qualified hospital facilities

402

33,292

247

14,070

240

19,222

1,203

32,470

689

17,830

729

14,640

d

d

d

d

d

d

11

668

7

260

4

408

Qualified section 501(c)(3) nonhospital
bonds
Nongovernmental output property bonds
Other purposes [2]

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.
[1] A given bond issue can include more than one purpose and can include both new money and refunding proceeds. Thus, the summation of number of issues by purpose or by type
of issue will sometimes exceed the total number of issues. However, the money amounts add to the totals.
[2] For this table, "other purposes" refers to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038, Information Return for TaxExempt Private Activity Bond Issues.
NOTE: Detail may not add to totals because of rounding.

184

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 8. Computation of Lendable Proceeds for Long-Term, Tax-Exempt Private Activity Bonds, by
Selected Bond Purpose, 2009
[Money amounts are in millions of dollars]

Selected bond purpose

Entire issue price

Number
(1)

Bond issuance costs

Amount
(2)

Number
(3)

Allocation
to reserve
fund

Credit enhancement

Amount
(4)

Number
(5)

Amount
(6)

Number
(7)

Total [1]

2,666

102,785

1,326

754

246

113

314

Airports

65

6,474

52

52

9

4

26

Docks and wharves

16

931

d

d

d

d

6

Water, sewage, and solid waste disposal
facilities

128

6,983

48

31

8

12

9

Qualified residential rental facilities

193

3,832

47

8

13

4

9

2008 Housing Act bonds issued under IRC
section 142 or 143

42

1,493

d

d

d

d

9

Qualified Gulf Opportunity Zone and
Gulf Opportunity Zone mortgage bonds

39

1,600

16

11

d

d

d

Recovery Zone exempt facility bonds

17

95

d

d

d

d

0

Qualified mortgage bonds

84

5,003

27

17

3

1

19

Qualified small issue bonds

422

720

86

6

d

d

d

Qualified student loan bonds

12

1,890

d

d

d

d

9

Qualified hospital facilities

402

33,292

278

318

75

56

69

1,203
96

32,470
8,003

733
28

273
18

123
3

32
[2]

158
10

Qualified section 501(c)(3) nonhospital
bonds
All other bonds, combined [3]

Selected bond purpose

Allocation
to reserve
fund—
continued

Total lendable proceeds

Amount

Number

Amount

Number

Amount

Number

Amount

(8)

(9)

(10)

(11)

(12)

(13)

(14)

Proceeds used to refund prior
issues

Nonrefunding proceeds

Total [1]

1,549

2,666

100,369

1,385

49,773

1,681

50,596

Airports

249

65

6,168

38

3,026

39

3,143

Docks and wharves

25

16

899

8

536

9

364

52
4

128
193

6,888
3,815

70
80

3,362
1,423

62
121

3,527
2,393

10

42

1,479

11

216

39

1,263

d
0
26
d
63
625

39
17
84
422
12
402

1,580
93
4,960
713
1,817
32,292

15
0
50
111
4
240

469
0
2,587
274
570
18,802

25
17
61
317
12
263

1,110
93
2,373
439
1,247
13,490

480
5

1,203
96

31,685
7,980

729
71

14,425
4,085

725
28

17,260
3,895

Water, sewage, and solid waste disposal
facilities
Qualified residential rental facilities
2008 Housing Act bonds issued under IRC
section 142 or 143
Qualified Gulf Opportunity Zone and
Gulf Opportunity Zone mortgage bonds
Recovery Zone exempt facility bonds
Qualified mortgage bonds
Qualified small issue bonds
Qualified student loan bonds
Qualified hospital facilities
Qualified section 501(c)(3) nonhospital
bonds
All other bonds, combined [3]

d—Data deleted to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals.
[1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the
money amounts add to the totals.
[2] Indicates an amount less than $500,000.
[3] For purposes of this table, this category includes all issues for which a specific purpose either did not apply or was not clearly indicated on the Form 8038, Information Return for
Tax-Exempt Private Activity Bond Issues, as well as bonds issued for: local electricity or gas furnishing facilities, facilities issued under a transitional rule of the Tax Reform Act of
1986, qualified enterprise zone facilities, new empowerment zone facilities, District of Colombia Enterprise Zone facilities, qualified public educational facilities, qualified green building
and sustainable design projects, qualified highway or surface freight transfer facilities, New York Liberty Zone bonds, mass commuting facilities, local district heating and cooling
facilities, hazardous waste facilities, high-speed intercity rail facilities, environmental enhancements of hydroelectric generating facilities, Midwestern disaster exempt facilities,
Hurricane Ike disaster exempt facilities, Midwestern disaster mortgage bonds, Hurricane Ike disaster mortgage bonds, qualified veterans' mortgage bonds, qualified redevelopment
bonds, nongovernmental output property bonds, Gulf Opportunity Zone advanced refunding bonds, and New York Liberty Zone advanced refunding bonds.
NOTE: Detail may not add to totals because of rounding.

185

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 9. New Money Long-Term, Tax-Exempt Private Activity Bonds, by Selected Bond Purpose and
Size of Entire Issue, 2009
[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]

Size of entire issue
Selected bond purpose

Total [1]
Airports
Docks and wharves
Water, sewage, and solid waste
Qualified residential rental facilities

All issues
Under $1,000,000

$1,000,000 under
$5,000,000

$5,000,000 under
$10,000,000

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

1,626
38
9
61
121

52,216
3,341
385
3,616
2,407

268
0
0
5
d

70
0
0
2
d

319
3
d
8
23

892
8
d
26
89

254
6
0
9
28

1,608
44
0
61
199

39

1,274

0

0

d

d

5

38

25
17
61
315
12
247

1,130
95
2,404
446
1,309
14,070

0
d
d
222
0
4

0
d
d
46
0
3

3
d
d
59
0
32

9
d
d
154
0
107

d
5
0
26
0
27

d
36
0
167
0
158

689
28

17,830
3,910

25
4

14
3

169
6

420
22

145
d

863
d

2008 Housing Act bonds issued under
IRC section 142 or 143
Qualified Gulf Opportunity Zone and
Gulf Opportunity Zone mortgage bonds
Recovery Zone exempt facility bonds
Qualified mortgage bonds
Qualified small issue bonds
Qualified student loan bonds
Qualified hospital facilities
Qualified section 501(c)(3) nonhospital
bonds
All other bonds, combined [2]

Size of entire issue—continued
Selected bond purpose

Total [1]

$10,000,000 under
$25,000,000

$25,000,000 under
$50,000,000

$50,000,000 under
$100,000,000

$100,000,000
or more

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

282
7
d

3,580
97
d

154
6
d

4,517
248
d

160
3
3

9,117
188
212

189
13
d

32,430
2,756
d

Qualified residential rental facilities

4
43

66
641

8
14

235
435

13
d

900
d

14
6

2,325
763

2008 Housing Act bonds issued under
IRC section 142 or 143

7

119

9

299

7

359

d

d

Recovery Zone exempt facility bonds
Qualified mortgage bonds
Qualified small issue bonds
Qualified student loan bonds

7
3
4
8
0

118
30
86
80
0

d
0
17
0
d

d
0
336
0
d

6
0
22
0
d

416
0
904
0
d

3
0
12
0
6

550
0
1,074
0
1,004

Qualified hospital facilities

38

477

27

727

41

2,170

78

10,428

157
d

1,780
d

71
d

2,025
d

62
4

3,301
231

60
8

9,426
3,565

Airports
Docks and wharves
Water, sewage, and solid waste
disposal facilities

Qualified Gulf Opportunity Zone and
Gulf Opportunity Zone mortgage bonds

Qualified section 501(c)(3) nonhospital
bonds
All other bonds, combined [2]

d—Data deleted to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals.
[1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the
money amounts add to the totals.
[2] For purposes of this table, this category includes all issues for which a specific purpose either did not apply or was not clearly indicated on the Form 8038, Information Return for
Tax-Exempt Private Activity Bond Issues, as well as bonds issued for: local electricity or gas furnishing facilities, facilities issued under a transitional rule of the Tax Reform Act of
1986, qualified enterprise zone facilities, new empowerment zone facilities, District of Colombia Enterprise Zone facilities, qualified public educational facilities, qualified green building
and sustainable design projects, qualified highway or surface freight transfer facilities, New York Liberty Zone bonds, mass commuting facilities, local district heating and cooling
facilities, hazardous waste facilities, high-speed intercity rail facilities, environmental enhancements of hydroelectric generating facilities, Midwestern disaster exempt facilities,
Hurricane Ike disaster exempt facilities, Midwestern disaster mortgage bonds, Hurricane Ike disaster mortgage bonds, qualified veterans' mortgage bonds, qualified redevelopment
bonds, nongovernmental output property bonds, Gulf Opportunity Zone advanced refunding bonds, and New York Liberty Zone advanced refunding bonds.
NOTE: Detail may not add to totals because of rounding.

186

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 10. New Money Long-Term, Tax-Exempt Private Activity Bonds, by State of Issue and Selected
Bond Purpose, 2009
[Money amounts are in millions of dollars]
Selected bond purpose
Total [1]

State of issue

All States
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
U.S. Possessions [4]
Footnotes at end of table.

Airports, docks, and
wharves [2]

Water, sewage, and solid
waste disposal facilities

Qualified residential
rental facilities

Number

Amount

Number

Amount

Number

Amount

Number

(1)

(2)

(3)

(4)

(5)

(6)

(7)

1,626
30
d
14
9
117
35
10
d
9
54
44
4
7
97
24
135
44
22
29
10
31
73
22
58
18
40
6
26
d
11
41
11
90
21
12
50
10
18
109
5
16
12
32
53
10
13
26
41
16
48
3
d

52,216
613
d
364
181
7,389
1,099
338
d
437
2,102
1,014
407
210
3,007
1,162
470
394
493
941
260
542
2,389
797
511
517
871
47
118
d
417
1,523
462
7,582
931
136
1,759
216
337
2,967
245
350
133
537
2,620
375
70
1,440
906
407
1,273
161
d

47
d
0
d
0
9
d
d
0
d
9
0
0
0
0
d
0
0
0
d
0
0
0
d
0
0
d
d
0
d
0
d
0
4
0
d
0
d
3
0
0
0
0
0
4
0
0
0
d
0
d
0
0

3,727
d
0
d
0
1,342
d
d
0
d
544
0
0
0
0
d
0
0
0
d
0
0
0
d
0
0
d
d
0
d
0
d
0
442
0
d
0
d
37
0
0
0
0
0
374
0
0
0
d
0
d
0
0

61
4
0
d
d
5
0
d
0
0
5
4
d
0
d
d
0
0
d
0
d
0
0
0
0
0
d
0
0
0
0
d
0
d
d
0
3
0
d
6
0
0
d
0
4
d
0
d
d
d
0
d
d

3,616
49
0
d
d
163
0
d
0
0
490
197
d
0
d
d
0
0
d
0
d
0
0
0
0
0
d
0
0
0
0
d
0
d
d
0
377
0
d
614
0
0
d
0
359
d
0
d
d
d
0
d
d

Amount
(8)
121
d
0
0
0
33
0
d
0
d
6
d
d
0
5
0
0
0
0
d
0
3
6
d
0
d
3
d
0
0
0
d
d
25
d
0
4
0
5
0
0
d
0
3
3
d
d
0
4
0
d
0
0

2,407
d
0
0
0
401
0
d
0
d
56
d
d
0
44
0
0
0
0
d
0
35
131
d
0
d
47
d
0
0
0
d
d
1,194
d
0
43
0
61
0
0
d
0
18
44
d
d
0
25
0
d
0
0

187

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 10. New Money Long-Term, Tax-Exempt Private Activity Bonds, by State of Issue and Selected
Bond Purpose, 2009—Continued
[Money amounts are in millions of dollars]
Selected bond purpose—continued

State of issue

All States
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
U.S. Possessions [4]
Footnotes at end of table.

188

2008 Housing Act
bonds issued under
IRC section 142 or 143

Qualified Gulf Opportunity Zone
bonds and Gulf Opportunity
Zone mortgage bonds

Recovery Zone exempt facility
bonds

Qualified mortgage bonds

Qualified small
issue bonds

Number

Amount

Number

Amount

Number

Amount

Number

Amount

Number

(9)

(10)

(11)

(12)

(13)

(14)

(15)

(16)

(17)

39
0
0
0
0
3
0
d
0
0
0
0
0
0
0
0
d
0
0
0
d
d
d
0
0
d
5
0
0
d
0
d
0
3
0
0
0
0
0
d
0
0
d
d
d
0
3
3
5
0
d
0
0

1,274
0
0
0
0
42
0
d
0
0
0
0
0
0
0
0
d
0
0
0
d
d
d
0
0
d
122
0
0
d
0
d
0
187
0
0
0
0
0
d
0
0
d
d
d
0
9
131
82
0
d
0
0

25
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
11
0
0
0
0
0
10
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

1,130
172
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
511
0
0
0
0
0
447
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

17
d
0
0
0
d
0
0
0
0
0
d
0
0
0
d
0
0
0
d
0
0
0
d
d
0
d
0
0
0
0
0
0
0
d
0
d
0
0
d
0
0
0
0
0
0
0
0
d
0
0
0
0

95
d
0
0
0
d
0
0
0
0
0
d
0
0
0
d
0
0
0
d
0
0
0
d
d
0
d
0
0
0
0
0
0
0
d
0
d
0
0
d
0
0
0
0
0
0
0
0
d
0
0
0
0

61
0
d
0
0
d
d
d
d
0
d
d
0
d
d
0
0
d
0
d
4
d
d
d
0
d
3
0
5
d
d
0
5
d
0
d
3
3
0
d
d
0
d
3
d
d
0
0
d
d
0
0
0

2,404
0
d
0
0
d
d
d
d
0
d
d
0
d
d
0
0
d
0
d
79
d
d
d
0
d
9
0
1
d
d
0
184
d
0
d
84
84
0
d
d
0
d
130
d
d
0
0
d
d
0
0
0

315
d
0
d
d
d
10
0
0
0
d
d
0
0
42
d
103
d
0
d
0
d
6
0
4
d
8
0
13
0
0
11
0
3
d
d
d
d
d
23
0
0
7
4
3
0
d
d
d
0
8
0
0

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 10. New Money Long-Term, Tax-Exempt Private Activity Bonds, by State of Issue and Selected
Bond Purpose, 2009—Continued
[Money amounts are in millions of dollars]
Selected bond purpose—continued

State of issue

Qualified
small issue
bonds—
continued

Qualified student
loan bonds

Qualified hospital
facilities

Qualified section 501(c)(3)
nonhospital bonds

All other bonds,
combined [3]

Amount

Number

Amount

Number

Amount

Number

Amount

Number

Amount

(18)

(19)

(20)

(21)

(22)

(23)

(24)

(25)

(26)

All States
446
12
1,309
247
14,070
689
17,830
28
3,910
Alabama
d
0
0
7
273
8
34
0
0
Alaska
0
0
0
d
d
0
0
d
d
Arizona
d
0
0
3
100
6
229
0
0
Arkansas
d
0
0
d
d
4
45
0
0
California
d
0
0
18
1,793
44
3,626
0
0
Colorado
22
0
0
d
d
21
277
0
0
Connecticut
0
d
d
d
d
d
d
0
0
Delaware
0
0
0
d
d
0
0
d
d
District of Columbia
0
0
0
d
d
d
d
d
d
Florida
d
0
0
6
528
23
307
d
d
Georgia
d
0
0
5
61
29
687
0
0
Hawaii
0
0
0
0
0
d
d
d
d
Idaho
0
0
0
d
d
d
d
0
0
Illinois
36
d
d
16
1,112
33
1,674
d
d
Indiana
d
0
0
7
662
11
253
0
0
Iowa
19
d
d
6
117
d
d
6
183
Kansas
d
0
0
3
131
11
137
0
0
Kentucky
0
0
0
3
263
d
d
0
0
Louisiana
d
0
0
d
d
8
181
d
d
Maine
0
d
d
0
0
3
105
0
0
Maryland
d
0
0
d
d
22
388
0
0
Massachusetts
19
d
d
15
491
43
1,369
0
0
Michigan
0
0
0
11
575
8
63
0
0
Minnesota
6
0
0
3
70
50
426
d
d
Mississippi
d
0
0
0
0
6
35
0
0
Missouri
6
0
0
5
231
16
307
d
d
Montana
0
0
0
d
d
d
d
0
0
Nebraska
8
0
0
3
16
5
93
0
0
Nevada
0
0
0
0
0
0
0
d
d
New Hampshire
0
0
0
6
211
d
d
0
0
New Jersey
40
d
d
5
625
18
160
d
d
New Mexico
0
d
d
d
d
d
d
0
0
New York
8
d
d
16
282
35
2,557
d
d
North Carolina
d
0
0
8
579
8
319
0
0
North Dakota
d
0
0
0
0
d
d
0
0
Ohio
d
0
0
15
1,008
19
208
0
0
Oklahoma
d
0
0
0
0
4
79
0
0
Oregon
d
0
0
d
d
5
52
d
d
Pennsylvania
44
0
0
18
1,146
58
795
0
0
Rhode Island
0
d
d
d
d
d
d
0
0
South Carolina
0
d
d
3
105
10
122
0
0
South Dakota
5
0
0
d
d
0
0
0
0
Tennessee
17
0
0
d
d
20
189
d
d
Texas
16
d
d
8
278
26
887
3
505
Utah
0
0
0
d
d
5
275
0
0
Vermont
d
0
0
d
d
5
33
0
0
Virginia
d
0
0
5
484
14
399
d
d
Washington
d
0
0
6
497
13
162
d
d
West Virginia
0
0
0
9
151
3
48
d
d
Wisconsin
36
0
0
13
510
27
421
0
0
Wyoming
0
0
0
0
0
d
d
0
0
U.S. Possessions [4]
0
0
0
0
0
0
0
0
0
d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.
[1] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the
money amounts add to the totals.
[2] For purposes of this table, certain bond purposes were combined. For this reason, data in this table will differ slightly from the data in Tables 7 and 9.
[3] For purposes of this table, this category includes all issues for which a specific purpose either did not apply or was not clearly indicated on the Form 8038, Information Return for
Tax-Exempt Private Activity Bond Issues, as well as bonds issued for: local electricity or gas furnishing facilities, facilities issued under a transitional rule of the Tax Reform Act of 1986,
qualified enterprise zone facilities, new empowerment zone facilities, District of Colombia Enterprise Zone facilities, qualified public educational facilities, qualified green building and
sustainable design projects, qualified highway or surface freight transfer facilities, New York Liberty Zone bonds, mass commuting facilities, local district heating and cooling facilities,
hazardous waste facilities, high-speed intercity rail facilities, environmental enhancements of hydroelectric generating facilities, Midwestern disaster exempt facilities, Hurricane Ike
disaster exempt facilities, Midwestern disaster mortgage bonds, Hurricane Ike disaster mortgage bonds, qualified veterans' mortgage bonds, qualified redevelopment bonds,
nongovernmental output property bonds, Gulf Opportunity Zone advanced refunding bonds, and New York Liberty Zone advanced refunding bonds.
[4] U.S. Possessions include Guam.
NOTE: Detail may not add to totals because of rounding.

189

Municipal Bonds, 2009
Statistics of Income Bulletin | Fall 2011

Table 11. Direct Payment Bonds Allowed Under the American Recovery and Reinvestment Act by Bond
Purpose and Size of Entire Issue, 2009
[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]

Size of entire issue
All issues

$1,000,000

Under
$1,000,000

Bond purpose

$5,000,000

under

under

$5,000,000

$10,000,000

Number

Amount

Number

Amount

Number

Amount

Number

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Total [1, 2]

911

65,326

40

28

194

510

138

Education

315

19,575

8

5

43

107

44

Health and hospital

31

2,499

d

d

6

13

d

Transportation

137

18,270

10

5

28

52

18

Public safety

78

1,863

9

4

23

38

15

Environment

95

4,132

5

1

16

31

15

Housing

15

286

0

0

d

d

d

Utilities

107

7,011

d

d

d

d

11

4
300

88
11,602

0
18

0
11

d
84

d
207

0
56

Bond and tax/revenue
anticipation notes
Other purposes [3]

Size of entire issue—continued

Bond purpose

5,000,000
under
$10,000,000—
continued

$25,000,000
under
$75,000,000

$10,000,000
under
$25,000,000

$75,000,000
or more

Amount

Number

Amount

Number

Amount

Number

Amount

(8)

(9)

(10)

(11)

(12)

(13)

(14)

Total [1, 2]

1,003

176

2,823

197

8,495

166

52,468

Education

325

75

1,223

93

3,495

52

14,419

Health and hospital

d

3

48

6

145

11

2,263

Transportation

91

12

150

23

761

46

17,210

Public safety

82

11

100

10

86

10

1,552

Environment

63

17

247

28

890

14

2,899

Housing

d

d

d

d

d

4

237

Utilities

56

16

228

22

944

30

5,736

Bond and tax/revenue
anticipation notes
Other purposes [3]

0

d

d

d

d

0

0

347

54

785

56

2,102

32

8,151

d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.
[1] Bonds reported on the Form 8038-G, Information Return for Tax-Exempt Governmental Obligations, with a specific reference to "Build America Bond" or "Recovery Zone Economic
Development Bond" in either their issue name or other description.
[2] A given bond issue can include more than one purpose. Thus, the summation of number of issues by purpose will sometimes exceed the total number of issues. However, the
money amounts add to the totals.
[3] "Other purposes" refers to obligations for which a specific purpose either did not apply or was not clearly indicated on the Form 8038-G, Information Return for Tax-Exempt
Governmental Obligations.
NOTE: Detail may not add to totals because of rounding.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A982cdce29dcad9f7. Public record. Not legal advice.