Municipal Bonds, 2011
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Municipal Bonds, 2011
by Aaron Barnes
S
tate and local governments issue three types of bonds to
finance essential operations, facilities, infrastructure, and
services for their constituents.1 These are tax-exempt, tax
credit, and direct payment bonds. Tax-exempt bonds provide
bondholders (investors) interest payments exempt from Federal
taxation, and often State and local taxation. Tax credit bonds
are not explicitly interest-bearing obligations. In lieu of, or in
addition to, receiving periodic interest payments from the issuer,
a tax credit bondholder is generally allowed an income tax
credit while the bond is outstanding.2 Multiplying the bond’s
credit rate, determined by the Secretary of the Treasury, by the
face amount on the holder’s bond determines the amount of tax
credit. Direct payment bonds reimburse issuers with a Federal
subsidy equal to some percentage of the total interest payment
made to bondholders. The interest received is subject to Federal
taxation; however, the interest rate is generally greater than that
of a comparable tax-exempt bond.
Municipal bond issues decreased from $556.9 billion in 2010
to $390.6 billion in 2011. One likely driver of lower bond issuance was the expiration of the Build America Bond program,
which ended on January 1, 2011.3 Tax-exempt bond proceeds
totaled nearly $384.3 billion, or 98.4 percent of all municipal
bond proceeds in 2011 (Figure A). Proceeds from direct payment bonds totaled less than $6.2 billion and made up 1.6 percent of all municipal bond proceeds for the year. Tax credit bond
proceeds totaled $0.2 billion and accounted for 0.1 percent of all
municipal bond proceeds in 2011.4
This article presents information for tax-exempt and direct
payment bonds issued in 2011. Tax credit bonds will not be discussed due to the low overall issuance in 2011. The first section
looks at several defining characteristics of tax-exempt bonds
and provides an overview of the market by State. The next section discusses direct payment bond programs and presents data
for 2011. Within this discussion, data are presented on the credit
payments received by issuers of direct payment bonds.
The Statistics of Income (SOI) Division based the tax-exempt bond data presented here 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 2011. For
direct payment bonds, SOI based the data on populations of
Figure A
Total Volume of Tax-Exempt, Taxable Direct Payment,
and Tax Credit Bonds, 2011
[Money amounts are in millions of dollars]
Type of bond
Number
Amount
Percentage
of total
amount
(3)
(1)
(2)
Total [1]
24,282
390,629
100.0
Tax-exempt bonds
23,612
384,257
98.4
Taxable direct payment bonds [2]
614
6,156
1.6
Tax credit bonds [3]
56
216
0.1
[1] Includes combined data from all governmental, private activity bond, Build America Bond, and
specified tax credit and tax credit bond returns (Form 8038-G, Information Return for Tax-Exempt
Governmental Obligations ; Form 8038, Information Return for Tax-Exempt Private Activity Bond
Issues ; and Form 8038-TC, Information Return for Tax Credit Bonds and Specified Tax Credit
Bonds ).
[2] Includes specified tax credit bonds reported on Form 8038-TC that indicate the issuer elected
to apply Internal Revenue Code section 6431(f) to receive a refundable credit in lieu of tax credits
under section 54(A). Issuers who elect to apply Internal Revenue Code section 6431(f) are
eligible to receive Federal direct payments and are classified as "taxable direct payment bonds"
for purposes of this figure.
[3] Includes bonds reported on Form 8038-TC with a specific reference to "qualified school
construction" bonds, "qualified zone academy" bonds, "new clean renewable energy" bonds, or
"qualified energy conservation" bonds in either their issue name or other description. Excludes
bonds reported on Form 8038-TC that indicate the issuer elected to apply section 6431(f) to
receive a refundable credit in lieu of tax credits under section 54(A).
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014
Highlights
•• Municipal bond issuance decreased from $556.9 billion in 2010 to
$390.6 billion in 2011.
•• Tax-exempt bond proceeds totaled nearly $384.3 billion, or 98.4
percent of all municipal bonds proceeds in 2011.
•• Tax-exempt governmental bond issues raised $297.3 billion in proceeds for public projects such as schools, transportation infrastructure, and utilities.
•• Long-term governmental bonds totaled $232.5 billion in 2011, of
which $118.4 billion financed new projects, while the remaining
$114.1 billion were used to refund prior governmental bond issues.
•• Nearly 2,500 tax-exempt private activity bonds were issued in
2011, for a total of $86.9 billion in proceeds.
•• Long-term private activity bonds totaled $86 billion in 2011, of
which $40.6 billion financed new projects, while the remaining
$45.5 billion were used to refund prior private activity bond issues.
The term “State” includes the District of Columbia and any possessions of the United States. The term “State” also includes Federally recognized Indian Tribal governments.
Issuers of certain qualified tax credit bonds, specifically new clean renewable energy bonds and qualified energy conservation bonds, pay bondholders an interest payment in addition to the tax credit the bondholder receives. For additional information, see “Frequently Asked Questions on Qualified Tax Credit Bonds and Specified Tax Credit Bonds” at
http://www.irs.gov/pub/irs-tege/tc_and_stcb_q-a._09-07-10_1.5.pdf.
3
For information on the Build America Bond program, see Barnes, Aaron “Municipal Bonds, 2010,” Statistics of Income Bulletin, Spring 2013, Volume 32, Number 4 at
http://www.irs.gov/pub/irs-soi/13ebsprbulbonds.pdf.
4
In 2011, all direct payment bonds were comprised of specified tax credit bonds. Specified tax credit bonds allow issuers of tax credit bonds to irrevocably elect to receive Federal direct payments of allowances of refundable tax credits.
1
2
Statistics of Income Bulletin | Summer 2014
www.irs.gov/taxstats
Municipal Bonds, 2011
Forms 8038-TC, Information Return for Tax Credit Bonds and
Specified Tax Credit Bonds, filed for specified tax credit bonds
issued during the year. For issuers of direct payment bonds requesting credit payments for bonds with interest payments occurring in Calendar Year 2011, SOI based the data on populations of Forms 8038-CP, Return for Credit Payments to Issuers
of Qualified Bonds. Bond issuers filed the majority of these returns in 2011 and 2012.5
Governmental bond proceeds finance government operations,
facilities, and services for general public use. Governmental
sources pay the debt service on these bonds.12 Private activity
bonds are issued by, or on behalf of, State or local governments
to finance 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.13 Interest income on most private activity bonds is taxable.
However, Congress has deemed certain types of private activities necessary for the public good, and therefore, interest earned
on “qualified private activity bonds,” as defined in IRC section
141(e), is generally tax exempt. 14, 15
Tax-Exempt Bonds
Tax-exempt bonds fall into two classifications, “governmental”
or “private activity,” depending on whether public or private
entities and resources used and secured the proceeds. The total
amount of tax-exempt bonds decreased 7.2 percent between
Calendar Years 2010 and 2011, from $420.7 billion to $390.6
billion.6 For 2011, governmental bonds accounted for $297.3
billion (76.1 percent) of total tax-exempt bond proceeds, an
increase of 1.3 percent from the $293.6 billion issued in 2010.
Private activity bonds accounted for the remaining $86.9 billion
(22.2 percent) of all tax-exempt bonds, a decrease of 31.6 percent from the $127.1 billion issued in 2010.
When a bond is issued, the issuer is obligated to repay the
borrowed funds at a specified interest rate, by a specific date.
For Federal income tax purposes, investors who purchase governmental bonds and certain types of qualified private activity bonds are able to exclude the interest they earn from their
gross incomes.7, 8 This tax exemption lowers the borrowing cost
incurred by the issuers, since holders of tax-exempt bonds are
generally willing to accept an interest rate that is lower than that
earned on comparable taxable bonds.9, 10 The spread between
high-grade municipal bonds and high-grade corporate bonds
varied from 0.5 percent to 1.5 percent, depending on the bonds’
maturity dates. Spread is a measure of the difference between
the two investment yields. Investors in higher tax brackets have
a greater tax incentive to invest in tax-exempt bonds than investors in lower brackets because the required yield on a taxable
bond needs to be even greater than a tax-exempt bond for a comparable tax benefit.11
Tax-Exempt Bond Volume, by Term of Issue
Bonds are classified as either short term or long term, depending
on the length of time from issuance to maturity. Bonds typically
classified as short term mature in less than 13 months, while
bonds classified as long term mature in 13 months or more.
Long-term bonds make up the majority of the governmental
bond market because they are generally used to finance construction or other capital improvement projects. Of the $297.3
billion in tax-exempt governmental bonds issued, long-term
bonds accounted for $232.5 billion, more than three-quarters
(78.4 percent) of all governmental bond proceeds.
Governmental bonds issued for short-term projects made up
the remaining $64.8 billion of bond proceeds. 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 year of issuance, at which time the proceeds are paid
from specific tax receipts or other revenue sources. BAN proceeds are typically used to pay for start-up costs associated with
a future long-term, bond-financed project. A renewal BAN can
be issued on maturity of an outstanding BAN, until the proceeds
of the future bond issue are used to pay off, or retire, the outstanding BAN. Combined, BANs, TANs, and RANs accounted
for almost $61.7 billion, nearly 20.8 percent, of the total governmental bond proceeds for 2011.
Bond issuers were required to file these information returns by the 15th day of the second calendar month after the close of the calendar quarter in which the bond was issued.
For Calendar Year 2010 data, see Barnes, Aaron “Municipal Bonds, 2010,” Statistics of Income Bulletin, Spring 2013, Volume 32, Number 4.
7
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.
8
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 tax-exempt interest they can
exclude.
9
The interest exclusion for tax-exempt bonds is not allowed for arbitrage bonds or unregistered bonds. An arbitrage bond is one in which any portion of the proceeds is used to purchase higheryielding 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 period, as long as these earnings are rebated to the Department of the Treasury.
10
A registered bond is defined 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 in its records,” according to the Municipal Securities Rulemaking Board’s Glossary of Municipal Securities Terms, http://www.msrb.org/glossary.aspx. See also IRC section 149(a) for
additional information.
11
For more information on taxable and tax-exempt rate comparisons see: http://www.investinginbonds.com/learnmore.asp?catid=8&subcatid=53&id=206.
12
See Section 7871(c) of the Internal Revenue Code for tax-exempt bond requirements for Indian Tribal governments.
13
Section 141(a) of the Internal Revenue Code (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 financing test set forth in IRC section 141(c). The private business tests of IRC section 141(b) define 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-financing test of IRC section 141(c) defines a bond as a private activity bond if the amount of proceeds used to (directly
or indirectly) finance loans to nongovernmental persons exceeds the lesser of $5 million or 5 percent of the proceeds.
14
Tax-exempt private activity bonds include exempt facility bonds, qualified mortgage bonds, qualified veterans’ mortgage bonds, qualified small issue bonds, qualified student loan bonds,
qualified redevelopment bonds, and qualified section 501(c)(3) bonds, all of which are defined in the “Explanation of Terms” section of this article. 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 finance 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.
15
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.
5
6
Statistics of Income Bulletin
39
Summer 2014
Municipal Bonds, 2011
Private activity bonds have even higher rates of long-term
bond issuance compared to governmental bonds. Of the $86.9
billion in private activity bond proceeds in 2011, almost all
(98.9 percent or slightly less than $86 billion) were long term.
Short-term private activity bond proceeds totaled more than
$0.9 billion, only 1.1 percent of the total private activity bond
proceeds for the year.
issuance to take advantage of expiring stimulus bonds according
to an annual survey of market participants.16
Long-Term, Tax-Exempt Bond Volume, by Selected
Purpose
Figures D and E present long-term, tax-exempt bond proceeds,
by selected purpose, as well as type of issue for both governmental and private activity bond issues. During 2011, more
than half (55.1 percent) of the total $232.5 billion in long-term,
governmental bond proceeds financed education, utilities, and
transportation projects (Figure D). States and local governments used nearly one-third (32.3 percent) of these proceeds for
“other bond purposes,” which may contain issues that were not
separately allocated by the issuer, or issues that do not apply to
any of the specific purposes listed on Form 8038-G. Issuers of
governmental bonds for other purposes, education, and utilities
used more proceeds to refund prior issues than to finance new
capital projects, while issuers of governmental bonds for transportation, environment, public safety, and health and hospitals
used more of their proceeds financing new capital projects than
refunding prior bond issues.
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, accounted for nearly 55.5 percent of the
$86 billion of long-term, private activity bond proceeds for 2011
(Figure E). Qualified mortgage and qualified residential rental
bonds are two types of private activity bonds issued to provide
housing assistance to communities. Housing assistance varies
across programs and uses. In general, mortgage and residential
Long-Term, Tax-Exempt Bond Volume, by Type of Issue
Total bond issuance is composed of both nonrefunding (“new
money”) issues and refunding issues. New money proceeds finance new capital projects, while refunding proceeds retire outstanding bond issues. A bond issue can include both new money
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 private activity bonds issued between
2007 and 2011. New money issues accounted for about half
(50.9 percent) of all long-term governmental bond proceeds for
2011 (Figure B). New money governmental bond proceeds increased 25.1 percent, from $94.6 billion in 2010 to $118.4 billion in 2011. Refunding governmental bond proceeds decreased
6.9 percent, from $122.6 billion to $114.1 billion.
For 2011, new money issues also made up 47.2 percent of
all long-term private activity bond proceeds (Figure C). New
money private activity bond proceeds decreased 36 percent,
from $63.3 billion in 2010 to $40.5 billion in 2011. Refunding
private activity bond proceeds decreased 24.5 percent, from
$60.2 billion to $45.5 billion. The decrease in private activity
bond issuance is likely the result of States increasing their 2010
Figure B
Volume of Long-Term Tax-Exempt Governmental Bonds Issued, by Type and Issue Year, 2007–2011
Billions of dollars
350
316.3
300
All issues
271.7
262.4
250
200
150
217.2
New money proceeds
200.1
153.8
151.1
122.6
116.1
100
50
0
2007
232.5
117.9
111.4
Refunding proceeds
2008
2009
Issue year
94.6
2010
118.4
114.1
2011
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
DePaul, Jennifer, “Private-Activity Bond Volume Sees 13% Slippage in 2011,” The Bond Buyer, July 2012, (Last accessed May 22, 2014) http://www.bondbuyer.com/issues/121_141/privateactivity-bond-issuance-annual-survey-1042167-1.html.
16
Statistics of Income Bulletin
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Summer 2014
Municipal Bonds, 2011
Figure C
Volume of Long-Term Tax-Exempt Private Activity Bonds Issued, by Type and Issue Year, 2007–2011
Billions of dollars
160
140
136.6
132.8
All issues
123.6
120
100
102.8
86.6
80.3
80
New money proceeds
63.3
60
40
86.0
52.2
52.5
50.0
45.5
60.2
50.6
40.5
Refunding proceeds
20
0
2007
2008
2009
2010
2011
Issue year
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
Figure D
Volume of Long-Term Tax-Exempt Governmental Bonds, by Selected Bond Purpose and Type of Issue, 2011
Billions of dollars
80
70
60
$35.4
50
Refunding proceeds
$32.1
40
30
20
$39.7
10
0
$22.2
$31.4
$11.5
Other purposes [1]
Education
Utilities
New money proceeds
$12.8
$18.0
Transportation
$6.8
$8.7
Environment
$2.1
$2.8
Public safety
$1.9
$2.4
Health and hospital
Bond purpose
[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. It does not include specific
purposes, such as housing and bond and tax/revenue anticipation notes, that are not shown separately in the figure. See Table 2.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
bonds help qualified individual acquire property, subsidize
mortgage payments, and cover the cost of qualified home improvements all within targeted areas. Qualified mortgage ($10
billion) and qualified residential bonds ($6.5 billion) accounted
for third largest and fourth most widely issued long-term, private activity bonds in 2011.
decreases in this type of bond issuance indicated changes in
their budget environment, while States with large increases in
the number of new capital projects showed increases in issuances. Total new money long-term, governmental bond proceeds increased nearly $23.8 billion (up 25.1 percent) from
2010 to 2011, rising to $118.4 billion. While bond issuance in
Florida (down 63.8 percent) and California (down 9.2 percent)
fell during the year, these States also experienced the largest
absolute decreases in new money long-term governmental bond
proceeds in 2011. Also of interest, Arizona issued 36.9 percent
less of this type of bond for the year. In all, 16 States reported a
Overview of Tax-Exempt Bond Issues, by State
Figure F presents States with the largest absolute decreases and
increases in the amount of new money long-term, tax-exempt
governmental bonds from 2010 to 2011. States with large
Statistics of Income Bulletin
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Summer 2014
Municipal Bonds, 2011
Figure E
Volume of Long-Term Tax-Exempt Private Activity Bonds, by Selected Bond Purpose and Type of Issue, 2011
Billions of dollars
30
25
20
$11.2
$14.2
15
10
5
0
Refunding proceeds
New money proceeds
$2.5
$13.3
Qualified section 501(c)(3)
nonhospital
$9.0
Qualified hospital
$1.4
$7.5
Qualified mortgage
$5.2
$5.0
Qualified residential rental
Airport
$0.7
Bond purpose
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
In contrast, Michigan (12.7 percent) and New Jersey (9.2 percent) reported issuing the smallest portion of their long-term
government bonds for this purpose.
decline in proceeds totaling slightly more than $11 billion from
this type of bond from 2010 to 2011.
New York represented the largest absolute increase (up $8.2
billion) in new money long-term governmental bond proceeds,
issuing nearly $14.8 billion in 2011. Additionally, Michigan (up
365.8 percent), Massachusetts (up 151 percent), and Virginia
(up 143.4 percent) showed significant increases in proceeds for
this same type of bond for the year. In all, 36 States increased
the amount of new money long-term governmental bond proceeds by slightly more than $34.8 billion from 2010 to 2011.
Figure G presents the amount of bond proceeds for the top
15 States, in terms of total dollar volume of new money longterm, tax-exempt bonds issued for 2011, for governmental
bonds. Combined, these 15 States accounted for 68.8 percent of
the total $118.4 billion of new money long-term governmental
bond proceeds. Authorities in five States issued about $48.1 billion (40.6 percent) of the total proceeds for the year: New York
(12.5 percent), California (11.1 percent), Texas (8.6 percent),
Michigan (4.5 percent), and Illinois (3.9 percent). According to
2011 Census estimates, these five States accounted for almost
33.9 percent of the total U.S. population.17
By looking at the allocation of bond proceeds, it is possible to
see how the purpose of these bonds may vary by State. Overall,
for 2011, States issued about a quarter (26.5 percent) of the
$118.4 billion of new money long-term governmental bonds for
educational purposes. California issued the largest portion (43.6
percent) of its new money long-term bond issues for education.
Figure F
States with Largest Decreases and Increases in Amount
of New Money Long-Term Tax-Exempt Governmental
Bonds, 2010 to 2011
[Money amounts are in millions of dollars]
State of issue
All States
States with decreases:
Florida
California
Arizona
U.S. Possessions [1]
Oklahoma
States with increases:
New York
Michigan
Massachusetts
Virginia
Indiana
2010
amount
2011
amount
Change in
amount
Percentage
change in
amount
(1)
(2)
(3)
(4)
94,644
118,431
23,787
25.1
8,436
14,502
3,227
3,145
1,909
3,052
13,164
2,035
2,538
1,312
-5,384
-1,338
-1,192
-607
-597
-63.8
-9.2
-36.9
-19.3
-31.3
6,612
1,156
1,625
1,599
1,311
14,792
5,385
4,078
3,892
3,349
8,180
4,229
2,453
2,293
2,038
123.7
365.8
151.0
143.4
155.5
[1] U.S. Possessions include Guam, Puerto Rico, and the U.S. Virgin Islands.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
The resident population estimates for July 1, 2010, were produced by the U.S. Bureau of the Census and are available at http://www.census.gov/popest/data/state/totals/2011/tables/
NST-EST2011-01.xls.
17
Statistics of Income Bulletin
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Summer 2014
Municipal Bonds, 2011
Figure G
New Money Long-Term Tax-Exempt Governmental Bond Proceeds, by Selected Bond Purpose, for Top 15 States,
Ranked by Total Issuance, 2011
[Money amounts are in millions of dollars]
Selected bond purpose [1]
State of issue
All States
Total
amount
Other purposes [2]
Education
Transportation
Utilities
Environment
Amount
Percent of
State total
Amount
Percent of
State total
Amount
Percent of
State total
Amount
Percent of
State total
Amount
Percent of
State total
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
118,431
39,681
33.5
31,413
26.5
18,027
15.2
11,530
9.7
7.3
8,697
New York
14,792
8,880
60.0
1,908
12.9
2,213
15.0
935
6.3
508
3.4
California
13,164
2,382
18.1
5,743
43.6
946
7.2
1,331
10.1
340
2.6
Texas
10,186
1,770
17.4
3,276
32.2
2,637
25.9
2,234
21.9
75
0.7
Michigan
5,385
3,682
68.4
686
12.7
110
2.0
617
11.5
167
3.1
Illinois
4,606
491
10.7
1,600
34.7
1,623
35.2
80
1.7
482
10.5
Massachusetts
4,078
2,055
50.4
1,592
39.0
90
2.2
40
1.0
161
3.9
Pennsylvania
4,010
1,112
27.7
968
24.1
831
20.7
241
6.0
702
17.5
Washington
3,951
1,003
25.4
719
18.2
984
24.9
573
14.5
454
11.5
Virginia
3,892
1,173
30.1
1,168
30.0
1,074
27.6
113
2.9
138
3.5
Indiana
3,349
195
5.8
395
11.8
52
1.6
1,141
34.1
1,504
44.9
Florida
3,052
1,706
55.9
470
15.4
346
11.3
284
9.3
87
2.9
New Jersey
2,880
438
15.2
264
9.2
1,997
69.3
18
0.6
27
0.9
North Carolina
2,817
1,225
43.5
388
13.8
525
18.6
249
8.8
127
4.5
Maryland
2,737
429
15.7
886
32.4
73
2.7
22
0.8
813
29.7
Minnesota
2,632
898
34.1
680
25.8
513
19.5
171
6.5
168
6.4
[1] Selected bond purposes do not add to total amount.
[2] In 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, such as
public safety and housing, that are not shown separately in the figure. See Table 2.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
Transportation projects accounted for 15.2 percent of States’
total new money long-term proceeds. In New Jersey, however, transportation projects made up 69.3 percent of the total
amount of new money long-term governmental bonds, while
Indiana allocated only 1.6 percent for the same purpose. In contrast, Maryland (2.7 percent) and Massachusetts (2.2 percent)
accounted for the smallest percentages of transportation bond
issues for the year.
Utility bond proceeds accounted for 9.7 percent of all new
money long-term governmental bonds in 2011. Indiana (34.1
percent) and Texas (21.9 percent) each spent a large portion on
utility projects. In contrast, New Jersey spent 0.6 percent of its
total amount of new money long-term bonds on utility projects.
Figure H presents States with the largest absolute decreases
and increases in the amount of new money long-term, tax-exempt
private activity bonds from 2010 to 2011.18 Total new money
long-term, tax-exempt private activity bond proceeds decreased
by approximately $22.8 billion (down 36.1 percent) from 2010 to
2011. For the 42 States that reduced their issuance of these bonds
in 2011, the overall decrease in proceeds totaled just less than
$23.9 billion. Texas accounted for the largest absolute decrease
(down $3.0 billion) in new money long-term, tax-exempt private
activity bond proceeds in 2011. States that showed significant
18
Figure H
States with Largest Decreases and Increases in
Amount of New Money Long-Term Tax-Exempt Private
Activity Bonds, 2010 to 2011
[Money amounts are in millions of dollars]
2010
amount
2011
amount
Change in
amount
Percentage
change in
amount
(1)
(2)
(3)
(4)
63,330
40,496
-22,834
Texas
4,997
1,972
-3,025
-60.5
Louisiana
3,553
936
-2,617
-73.7
State of issue
All States
-36.1
States with decreases:
Florida
4,141
1,602
-2,539
-61.3
California
6,082
4,612
-1,470
-24.2
Georgia
1,852
688
-1,164
-62.9
6.7
States with increases:
New York
4,990
5,325
335
Massachusetts
2,442
2,655
213
8.7
Alaska
167
324
157
94.0
Indiana
774
922
148
19.1
Iowa
422
560
138
32.7
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
Qualified private activity bond authority is generally allocated to States based on population; States with higher populations are more likely to show up in Figures H and I.
Statistics of Income Bulletin
43
Summer 2014
Municipal Bonds, 2011
relative decreases in these same type of bonds from 2010 to 2011
included Louisiana (down 73.7 percent), Florida (down 61.3 percent), and California (down 24.2 percent).
New York represented the largest absolute increase (up $335
million) in new money long-term, tax-exempt private activity bond proceeds. Other States with significant increases in
these same type of bond issues from 2010 to 2011 included
Massachusetts (up 8.7 percent) and Alaska (up 94 percent). In
all, 10 States increased their new money long-term, tax-exempt
private activity bond proceeds from 2010 to 2011, by just less
than $1.2 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 2011, for private activity bonds.
Combined, these 15 States accounted for 69 percent of the total
$27.9 billion of new money long-term, tax-exempt private activity bond proceeds for the year. Authorities in the following
five States issued almost $16.8 billion (41.5 percent) of the total
proceeds: New York (13.1 percent), California (11.4 percent),
Massachusetts (5.6 percent), Pennsylvania (6.5 percent), and
Texas (7.9 percent). According to 2011 Census estimates, these
five States accounted for almost 32.8 percent of the total U.S.
population.
As was the case with 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 2011,
overall, qualified IRC section 501(c)(3) nonhospital organizations accounted for almost a third (32.9 percent) of the proceeds
for the year. Qualified hospital bonds made up another 22.1 percent of this bond issuance.
Massachusetts issued most of its total proceeds for IRC section 501(c)(3) nonhospital organizations (65.1 percent), compared to Alabama (8.2 percent) and Washington (7.6 percent).
In comparison, Ohio issued most of its total proceeds for qualified hospital bonds (47.7 percent), compared to smaller shares
issued by New Jersey (13.9 percent) and New York (13.3 percent) for this same purpose. Of the top 15 States, Minnesota
had the smallest total reportable issuance for qualified hospitals, with only 2.4 percent of its total proceeds allocated for this
purpose.
Bonds issued for qualified mortgage bonds accounted for
18.5 percent of all proceeds in 2011, totaling nearly $7.5 billion. Florida committed 31.5 percent of its total proceeds toward
qualified mortgage bonds, while Ohio allocated 27.9 percent of
its proceeds for this purpose.
Together, all States allocated 12.8 percent of the $5.2 billion
of bond proceeds in 2011 for qualified residential rental facility
bonds. However, New York (36.2 percent) and California (23.5
percent) directed a much larger share of their proceeds to this
purpose. In contrast, Louisiana directed only 4.2 percent of its
proceeds to qualified residential rental facility bonds.
Figure I
New Money Long-Term Tax-Exempt Private Activity Bond Proceeds, by Selected Bond Purpose, for Top 15
States, Ranked by Total Issuance, 2011
[Money amounts are in millions of dollars]
Selected bond purpose [1]
State of issue
Total amount
(1)
All States
Qualified section 501(c)(3)
nonhospital
Qualified hospital
Qualified residential rental
facility
Qualified mortgage
Amount
Percent of
State total
Amount
Percent of
State total
Amount
Percent of
State total
Amount
Percent of
State total
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
40,496
13,340
32.9
8,953
22.1
7,488
18.5
5,165
New York
5,325
1,416
26.6
710
13.3
d
d
1,925
12.8
36.2
California
4,612
2,099
45.5
1,143
24.8
d
d
1,084
23.5
11.3
Massachusetts
2,655
1,728
65.1
435
16.4
d
d
301
Pennsylvania
2,260
916
40.5
796
35.2
420
18.6
d
d
Texas
1,972
444
22.5
d
d
336
17.0
68
3.4
Illinois
1,690
1,060
62.7
380
22.5
d
d
128
7.6
Florida
1,602
522
32.6
d
d
505
31.5
282
17.6
d
Ohio
1,450
275
19.0
692
47.7
404
27.9
d
New Jersey
1,327
364
27.4
184
13.9
d
d
d
d
Louisiana
936
279
29.8
184
19.7
126
13.5
39
4.2
Indiana
922
232
25.2
230
24.9
216
23.4
0
0.0
Alabama
820
67
8.2
d
d
0
0.0
0
0.0
Washington
812
62
7.6
368
45.3
d
d
151
18.6
Minnesota
785
339
43.2
19
2.4
194
24.7
131
16.7
Virginia
780
183
23.5
142
18.2
d
d
93
11.9
d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.
[1] Selected bond purposes do not add to total amount.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
Statistics of Income Bulletin
44
Summer 2014
Municipal Bonds, 2011
construction bonds made up 83.8 percent of total direct payment bond proceeds, with slightly less than $5.2 billion issued
in 2011. Qualified zone academy bonds ($562 million), qualified energy conservation bonds ($304 million), and new clean
renewable energy bonds ($131 million) accounted the remaining proceeds for the year.
Direct Payment Bonds
The American Recovery and Reinvestment Act (ARRA) authorized direct payment bond issuance through the Build America
Bonds (BAB) and the Recovery Zone Economic Development
Bond (RZED) Programs. These programs were created to provide incentive for State and local governments to undertake new
capital projects during a period of national recession. ARRA
allowed issuers of these bonds to elect (in lieu of issuing taxcredit bonds) to receive a direct refundable credit payment
from the Federal government equal to a percentage of the interest payments made. Issuers of Build America Bonds receive
a credit payment equal to 35 percent of interest payable, and
issuers of recovery zone economic development bonds receive
a credit payment equal to 45 percent of interest payable. The
bond programs authorized by ARRA expired for new issues on
January 1, 2011; however, issuers of bonds created under ARRA
continue to request credit payments for previously issued bonds
by filing Form 8038-CP, Return for Credit Payments to Issuers
of Qualified Bonds.
The Hiring Incentives to Restore Employment Act of 2010
(HIRE), enacted on March 18, 2010, extended the direct payment provision to certain issuers of specified tax credit bonds. In
lieu of issuing bonds with a tax credit to the bondholder, issuers
of specified tax credit bonds may elect to receive a Federal direct
payment on an interest payment date equal to a certain percentage of the interest paid.19 Specifically, issuers of qualified school
construction bonds and qualified zone academy bonds could
receive the lesser of 100 percent of their interest payment or
the amount of interest that would have been paid if the interest rate was determined at the tax credit bond rate. Issuers of
new clean renewable energy bonds and qualified energy conservation bonds receive the lesser of 70 percent of their interest
payment or the amount of interest that would have been paid
if the interest rate was determined at the tax credit bond rate.
Once an issuer elected to treat a bond as a direct payment bond,
the bondholders received taxable interest payments from the
issuer instead of a tax credit. All direct payment bonds issued
in Calendar Year 2011 were specified tax credit bonds. Issuers
of specified tax credit bonds are required to file Form 8038-TC,
Information Return for Tax Credit Bonds and Specified Tax
Credit Bonds. With this form, direct payment bond issuers are
required to attach a debt service schedule containing the following information: type of interest rate (variable or fixed), frequency of interest payments, total principal outstanding on each
interest payment date, credit payment expected from the IRS,
and earliest call date of the bond.
A total of 614 specified tax credit bonds raised nearly $6.2
billion in bond proceeds in 2011 (Figure J). Qualified school
Figure J
Specified Tax Credit Bonds, by Bond Type, 2011
[Money amounts are in millions of dollars]
Specified tax credit bonds [2]
Bond type [1]
Total
Number
Amount
(1)
(2)
Percentage
of total
amount
(3)
614
6,156
100.0
Qualified School Construction Bonds
446
5,159
83.8
Qualified Zone Academy Bonds
88
562
9.1
Qualified Energy Conservation Bonds
65
304
4.9
New Clean Renewable Energy Bonds
15
131
2.1
[1] Includes tax credit bonds reported on Form 8038-TC, Information Return for Tax Credit
Bonds and Specified Tax Credit Bonds, that indicates the issuer elected to apply section 6431(f)
to receive a refundable credit in lieu of tax credits under section 54(A).
[2] Excludes bonds reported on Form 8038-TC that did not indicate the issuer elected to apply
section 6431(f) to receive a refundable credit in lieu of tax credits under section 54(A).
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
Ten States accounted for slightly more than $3.6 billion in
specified tax credit bond issuance, 58.9 percent of the $6.2 billion total for 2011 (Figure K). According to the 2011 Census,
these States combined accounted for nearly 45.2 percent of the
U.S. population. California had slightly more than $1.1 billion
in bond issuance, which made it the single largest issuer of
specified tax credit bonds. In comparison, Pennsylvania issued
$430 million (7.0 percent) and Georgia issued $389 million (6.3
percent) of all specified tax credit bonds for the year. However,
Pennsylvania (4.1 percent) and Georgia (3.2 percent) represented smaller shares of the U.S. population.
Direct payment bond issuers are required to file Form 8038CP, Return for Credit Payments to Issuers of Qualified Bonds to
request credit payments as interest payments are made throughout the term of the bond. Credit payments received by issuers
in 2011 were not subject to sequestration cuts. During 2011, issuers reported nearly $11.3 billion in interest to direct payment
bond holders and requested 9,098 credit payments totaling $4.3
billion (Figure L).20 This 138.8-percent increase from the $1.8
billion requested in 2010 resulted from the many issuers requesting their first credit payments for interest paid to bondholders in
2011. The number of Forms 8038-CP filed for direct payment
Internal Revenue Notice 2010-35 states, “Section 301 of the Hiring Incentives to Restore Employment Act, Pub. L. No. 111-147, 124 Stat. 71 (2010) (the “HIRE Act”) added subsection (f)
to section 6431 of the Code, which authorizes issuers to irrevocably elect to receive Federal direct payments of allowances of refundable tax credits to subsidize a prescribed portion of their
borrowing costs instead of the Federal tax credits that otherwise would be allowed to holders of certain qualified tax credit bonds under section 54A. For more information regarding the HIRE
Act see Internal Revenue Notice 2010–35
20
Form 8038-CP, Return for Credit Payment to Issuers of Qualified Bonds, is used by issuers of Build America Bonds, recovery zone economic development bonds, and specified tax credit
bonds who elect to receive a direct payment from the Federal Government equal to a percentage of the interest payments on these bonds. Specifically, issuers of Build America Bonds receive a
credit payment equal to 35 percent of interest payable, and issuers of recovery zone economic development bonds receive a credit payment equal to 45 percent of interest payable. For specified
tax credit bonds, the amount of refundable credit payments for qualified zone academy bonds and qualified school construction bonds are the lesser of 100 percent of the interest payable or 100
percent of the amount of interest determined at the applicable tax credit rate under 54A(b)(3). The amount of refundable credit payments for new clean renewable energy bonds and qualified
energy conservation bonds are the lesser of 70 percent of the interest payable or 70 percent of the amount of interest determined at the applicable tax credit rate under 54A(b)(3).
19
Statistics of Income Bulletin
45
Summer 2014
Municipal Bonds, 2011
Figure K
Figure L
Specified Tax Credit Bonds, for All States and Top 10
States, 2011
Interest and Credit Payment Outlays to Issuers of
Direct Payment Bonds, by Bond Type, 2011
[Money amounts are in millions of dollars]
[Money amounts are in millions of dollars]
Specified tax credit bonds [1]
State of issue
All States
Number
Amount
Percentage
of total
amount
(1)
(2)
(3)
Rank
(4)
Direct payment bond type
614
6,156
100.0
N/A
264
3,628
58.9
N/A
88
1,149
18.7
1
Pennsylvania
7
430
7.0
2
Georgia
13
389
6.3
3
New York
15
388
6.3
4
Texas
48
290
4.7
5
Massachusetts
12
228
3.7
6
Kentucky
21
198
3.2
7
Virginia
3
196
3.2
8
Arizona
31
187
3.0
9
Michigan
26
174
2.8
10
Top 10 States Combined
California
Direct payment bonds, total [1][2]
Total, direct payment bonds allowable
under the American Recovery and
Reinvestment Act (ARRA)
N/A--Not applicable. Rank applies only to individual states.
[1] Combines tax credit bonds reported on Form 8038-TC, Information Return for Tax Credit
Bonds and Specified Tax Credit Bonds, that indicates the issuer elected to apply Internal Revenue
Code section 6431(f) to receive a refundable credit in lieu of tax credits under section 54(A). Table
excludes data for U.S. Possessions.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
Number
of Forms
8038-CP
filed
Interest
payable to
bondholders
Credit
payment
outlays
(1)
(2)
(3)
9,098
11,266
4,271
6,563
10,747
3,798
Build America Bond
5,439
10,371
3,629
Recovery Zone Economic
Development Bond
1,124
375
169
Specified tax credit bonds allowable
under the Hiring Incentives to Restore
Employment Act (HIRE), total
2,535
519
472
Qualified School Construction Bond
1,868
457
426
Qualified Zone Academy Bond
290
21
20
Qualified Energy Conservation Bond
222
21
14
New Clean Renewable Energy Bond
155
20
13
[1] Form 8038-CP, Return for Credit Payment to Issuers of Qualified Bonds , is used by issuers of
Build America Bonds, recovery zone economic development bonds, and specified tax credit
bonds who elect to receive a direct payment from the Federal Government equal to a percentage
of the interest payments on these bonds. Specifically, issuers of Build America Bonds receive a
credit payment equal to 35 percent of interest payable, and issuers of recovery zone economic
development bonds receive a credit payment equal to 45 percent of interest payable. For
specified tax credit bonds the amount of refundable credit payments for qualified zone academy
bonds and qualified school construction bonds is the lesser of 100 percent of the interest payable
or 100 percent of the amount of interest determined at the applicable tax credit rate under Internal
Revenue Code section 54A(b)(3). The amount of refundable credit payments for new clean
renewable energy bonds and qualified energy conservation bonds is the lesser of 70 percent of
the interest payable or 70 percent of the amount of interest determined at the applicable tax credit
rate under section 54A(b)(3).
[2] Credit payment outlays were not subject to sequestration cuts in 2011.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
bonds allowable under ARRA (6,563) accounted for almost 89
percent of the total credit payments requested. Build America
Bond issuers accounted for nearly 85 percent of all credit payments requested in 2011. Issuers of recovery zone economic development bonds requested an additional $169 million in credit
payments. Issuers of direct payment bonds allowable under
HIRE filed 2,535 Forms 8038-CP, requesting $472 million in
credit payments, just less than 11.1 percent of all credit payments requested in 2011. Issuers of qualified school construction
bonds filed 1,868 Forms 8038-CP and received $426 million in
credit payments. The remaining 667 credit payment requests for
issues allowable under HIRE were for qualified zone academy,
qualified energy conservation, and new clean renewable energy
bonds, totaling $47 million in credit payments.
Figure M presents the total amount of credit payment outlays
requested by issuers of direct payment bonds allowable under
ARRA and HIRE by bond type, and shows selected State data
regarding credit payment requests. Issuers of the Build America
Bonds requested just over $3.6 billion, nearly 85 percent of the
total. One likely reason for this is that the program was not subject to volume cap restrictions, unlike all other direct payment
bond programs.21 Interestingly, States with the highest overall
direct payment bond credit payment requests nearly mirrored
the States with the highest requests for credit payments under the
Build America Bond program, with the exception of Colorado.
Issuers of qualified school construction bonds received $426
million in credit payments in 2011 (Figure M). California,
Michigan, and Florida requested the greatest amount of credit
payments under the qualified school construction bond program. Both South Carolina and Missouri were among the top
States requesting credit payments for qualified school construction bonds despite having lower populations than other leading States requesting these credit payments. All other direct
payment bond program issuers (qualified energy conservation,
qualified zone academy, new clean renewable energy, and recovery zone economic development bonds) requested $215 million in credit payments. These programs are grouped together to
avoid disclosure of any specific tax paying entity.
Figure N shows the percentage of credit payment outlays received by issuers of direct payment bonds classified by State
population and bond type. SOI created these classifications by
placing States in rank order by population size, and separating
them into three equal groups. State classifications include all 50
States, the District of Columbia, and Puerto Rico. All direct payment bond programs, with the exception of the Build America
Bond program, are subject to volume cap limitations. While
volume cap is allocated in different ways, a reasonable metric
For information on the Build America Bond program and volume cap restrictions, see Barnes, Aaron,“ Municipal Bonds 2010,” Statistics of Income Bulletin, Spring 2013, Volume 32, Number
4 at http://www.irs.gov/pub/irs-soi/13ebsprbulbonds.pdf.
21
Statistics of Income Bulletin
46
Summer 2014
Municipal Bonds, 2011
Figure M
Credit Payment Outlays to Issuers of Direct Payment Bonds, by Bond Type, 2011
[Money amounts are in millions of dollars]
All issues[1]
$3,629
$0
$1,000
$426
$2,000
Build America Bond (BAB)
$3,000
Qualified School Construction Bond (QSCB)
Michigan
Colorado
Pennsylvania
Washington
Washington
New Jersey
Florida
Florida
New Jersey
Ohio
Ohio
Illinois
Illinois
Texas
Texas
New York
New York
California
California
$400
$5,000
Other[2]
Build America Bond
Pennsylvania
$200
$4,000
By Selected States
All issues[1]
$0
$215
$600
$800
$0
$1,000
Qualified School Construction Bond
$200
$400
$600
$800
$1,000
Other[2]
South…
South Carolina
Massachusetts
North Carolina
North…
New York
Georgia
Georgia
Missouri
Missouri
Texas
Washington
Ohio
Florida
New York
North Carolina
Florida
Ohio
Michigan
Michigan
California
California
$0
$10
$20
$30
$40
$50
$0
$60
$10
$20
$30
$40
[1] Credit payment outlays were not subject to sequestration cuts in 2011.
[2] Other includes recovery zone economic development, qualified zone academy, qualified energy conservation, and new clean renewable energy bonds as reported on
Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds.
NOTE: All dollar amounts are reported in millions of dollars.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
Statistics of Income Bulletin
47
Summer 2014
Municipal Bonds, 2011
is to compare credit payments by population size for direct payment bond programs.22 States with large populations have a
combined population of 218 million people, representing 69.2
percent of the United States population. States with large populations received 78.0 percent of all credit payments requested by
issuers of direct payment bonds, which suggests that the most
populous states requested credit payments for direct payment
bonds at a higher rate than States with lower populations. These
States also received the highest shares of all credit payments
requested by issuers of Build America Bonds (79.7 percent),
qualified school construction bonds (69.7 percent), and other
bond types (66.1 percent).
States with medium-size populations had a combined population of 76 million people, representing 24.1 percent of the United
States population (Figure N). These States requested less credit
payments (16.3 percent) than their share of the population and
of all credit payments made to issuers of Build America Bonds
(15.2 percent). This is due to the low percentage of credit payments requested by issuers of Build American Bonds. However,
States in this population-size category requested credit payments for direct payment bond programs subject to the specific
volume caps at a rate comparable to their share of the population.
States in this size category received about equal shares of the
overall credit payments for qualified school construction bonds
(22.3 percent) and credit payments requested by issuers of all
other bonds combined (22.2 percent).
States with small-size populations had a combined population of 21 million people, representing 6.7 percent of the United
States population. Collectively, States in this population-size
category received 5.7 percent of all credit payments to issuers
of direct payment bonds, while receiving only 5.1 percent of all
credit payments received by issuers of Build America Bonds.
Interestingly, these States received 8.0 percent of qualified
school construction bond credit payments and 11.4 percent of
credit payments for all other bonds combined. This shows that
States with the lowest populations utilized these programs at a
higher rate than States with larger populations.
2011, for a total of $86.9 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
nearly $86 billion of long-term private activity bonds issued,
just over $40.6 billion of proceeds were used to finance new
projects, while the remaining $45.5 billion of proceeds refunded
prior tax-exempt private activity bond issues. Proceeds from
direct payment bonds totaled less than $6.2 billion and made
up 1.6 percent of all municipal bond proceeds in 2011. These
direct payment bonds are specified tax credit bonds authorized
by The Hiring Incentives to Restore Employment Act of 2010.
Credit payments received by issuers of direct payment bonds
totaled slightly less than $4.3 billion in 2011, up from $1.8 billion received in 2010. This is the result of many issuers of direct
payment bonds requesting their first credit payments for interest
paid to bondholders.
Data Sources and Limitations
SOI based the data presented in this article on the populations
of Forms 8038, 8038-G, and 8038-TC filed with the Internal
Revenue Service for bonds issued during Calendar Year 2011.
Form 8038-CP data are population data for credit payments requested during Calendar Year 2011.23 Tax-exempt bond data
exclude returns filed for commercial paper transactions, as
well as issues that are loans from the proceeds of another taxexempt bond issue, an arrangement known as pooled financing. Data for tax credit bonds and specified tax credit bonds
were compiled from Forms 8038-TC. Data for credit payments
were compiled from Forms 8038-CP filed for interest paid to
bondholders in 2011.
Bond issuers were required to file Forms 8038, 8038-G, and
8038-TC 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 as possible, each of the respective study periods extended well beyond established filing
deadlines. The Forms 8038, 8038-G, and 8038-TC data include
returns processed from January 1, 2011, to April 30, 2013, for
bonds issued in 2010. The Form 8038-CP data include returns
processed from January 1, 2011, to July 1, 2013, for interest paid
during 2011. Where possible, SOI included data from amended
returns filed and processed before the cutoff, and excluded latefiled returns processed after the respective cutoff dates.
During statistical processing, returns were subject to thorough testing and correction procedures to ensure data accuracy and validity. SOI conducted additional checks to identify
and exclude duplicate returns, and wherever possible, edited
returns with incomplete information, mathematical errors, or
Summary
Overall bond issuance fell from $556.9 billion in 2010 to
$390.6 billion in 2011. This is most likely the result of the expiration of the Build America Bond program, which ended on
January 1, 2011. The majority of municipal bond issuance came
from the slightly more than 21,000 tax-exempt governmental
bonds issued in 2011, raising $297.3 billion of proceeds for
public projects such as schools, transportation infrastructure,
and utilities. Of the $232.5 billion of long-term governmental bonds issued, just over $118.4 billion of proceeds financed
new projects, while the remaining $114.1 billion of proceeds
were used to refund prior governmental bond issues. In addition,
nearly 2,500 tax-exempt private activity bonds were issued in
Volume Cap allocations vary by bond program. For example, qualified zone academy bond volume cap allocation was based on poverty rates among populations, while qualified school
construction bond volume cap allocation was based on poverty populations among individuals age of 5 and 17 years old. For more information on volume cap for each direct payment bond
program, see the Explanation of Selected Terms section of this article.
23
Filing requirements for Form 8038-CP, Return for Credit Payment to Issuers of Qualified Bonds, vary depending on whether the bond has a fixed or variable rate of interest. Fixed rate bonds
must file no later than 45 days after the interest payment date and no earlier than 90 before the interest payment date. For variable rate bonds, if the issuer does not know the payment amount 45
days prior to the interest payment date, the issuer must aggregate all credit payments on a quarterly basis and file Form 8038-CP no later than 45 days after the last interest payment date.
.22
Statistics of Income Bulletin
48
Summer 2014
Municipal Bonds, 2011
Figure N
Percentage of Credit Payment Outlays Received by Issuers of Direct Payment Bonds, by State Population
Classification and by Bond Type, 2011
States with large-size populations [1]
90%
80%
70%
78.0%
79.7%
69.2%
69.7%
66.1%
Qualified School
Construction Bond
Other [3]
60%
50%
40%
30%
20%
10%
0%
Population [2]
All issues
Build America Bond
States with medium-size populations [1]
30%
25%
24.1%
20%
15%
16.3%
15.2%
All issues
Build America Bond
22.3%
22.2%
Qualified School
Construction Bond
Other [3]
10%
5%
0%
Population [2]
States with small-size populations [1]
11.4%
12%
10%
8%
8.0%
6.7%
6%
5.7%
5.1%
All issues
Build America Bond
4%
2%
0%
Population [2]
Qualified School
Construction Bond
Other [3]
[1] Classifications are based on population rank and include the District of Columbia and Puerto Rico. States with large-size populations include: California, Texas, New
York, Florida, Illinois, Pennsylvania, Ohio, Michigan, Georgia, North Carolina, New Jersey, Virginia, Washington, Massachusetts, Indiana, Arizona, and Tennessee. States
with medium-size populations include: Missouri, Maryland, Wisconsin, Minnesota, Colorado, Alabama, South Carolina, Louisiana, Kentucky, Oregon, Oklahoma, Puerto
Rico, Connecticut, Iowa, Mississippi, Arkansas, Kansas, and Utah. States with small-size populations include: Nevada, New Mexico, West Virginia, Nebraska, Idaho,
Hawaii, Maine, New Hampshire, Rhode Island, Montana, Delaware, South Dakota, Alaska, North Dakota, Vermont, District of Columbia, and Wyoming.
[2] Population shows the percentage of the U.S. resident population who live within each classification. Resident population estimates for July 1, 2011, are produced by
the U.S. Bureau of the Census and are available at http://www.census.gov/popest/data/state/totals/2011/tables/NST-EST2011-01.xls.
[3] Other includes recovery zone economic development, qualified zone academy, qualified energy conservation, and new clean renewable energy bonds as reported on
Form 8038-CP, Return for Credit Payments to Issuers of Qualified Bonds.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
Statistics of Income Bulletin
49
Summer 2014
Municipal Bonds, 2011
other reporting anomalies to resolve internal inconsistencies.
However, in other cases, it was not possible to reconcile reporting discrepancies. Thus, some reporting and processing error
may remain.
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 10-year
period though empowerment zone designation was extended
to December 31, 2013. 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, and qualified
residential rental projects. They also include facilities for the
local furnishing of electric energy or gas, local district heating
or cooling facilities, qualified hazardous waste facilities, highspeed 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 that 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 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).
Explanation of Selected Terms
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. These IRC sections authorize 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 proceeds or a portion
of its proceeds for 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 2010, issuers of Build America
Bonds were required to file IRS Form 8038-B, Information
Return for Build America Bonds and Recovery Zone Economic
Development Bonds.
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 shortterm notes that are continually rolled-over. Maturities average
Statistics of Income Bulletin
50
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Municipal Bonds, 2011
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.)
The Hiring Incentives to Restore Employment Act of 2010
(HIRE)—Enacted on March 18, 2010, HIRE provides an option
for issuers of certain qualified tax credit bonds (“specified tax
credit bonds”) to irrevocably elect to issue the bonds with a
direct pay subsidy, in the same manner as the build America
bonds direct pay subsidy. The issuer of these bonds will receive an interest payment subsidy from the Federal government.
Bondholders will receive a taxable interest payment from the
issuer instead of a tax credit. For additional information, please
see Internal Revenue Notice 2010-35.
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 2010. See Internal Revenue Notice 2008109 for additional information.
New clean renewable energy bond (NEWCREB)—Any bond
issued as part of an issue if: (1) 100 percent of the available
project proceeds of such issue are to be used for capital expenditures incurred by governmental bodies, public power providers, or cooperative electric companies for one or more qualified
renewable energy facilities; (2) the bond is issued by a qualified
issuer; and (3) the issuer designates such bond for purposes of
IRC section 54C.
Issuers of new clean renewable energy bonds receive 70
percent of the interest paid to the borrower if the interest were
determined at the tax credit bond rate determined under section
54A(b)(3) for qualified tax credit bonds. If a new clean renewable energy bond was issued as a specified tax credit bond, issuers can receive the lesser of 70 percent of their interest payment
or the amount of interest that would have been paid if the interest rate was determined at the tax credit bond rate. For more
information on new clean renewable energy bonds, see IRC section 54C and Internal Revenue Notice 2010-35.
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,
Statistics of Income Bulletin
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 State of New York or any political subdivision
thereof must issue the bond; (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, 2014.
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 energy conservation bond—Any bond issued as
part of an issue if: (1) 100 percent of the available project proceeds of such issue are to be used for one or more qualified
conservation purposes; (2) the bond is issued by a State or local
government; and (3) the issuer designates such bond for purposes of IRC section 54D.
Issuers of qualified energy conservation bonds receive 70
percent of the interest paid to the borrower if the interest were
determined at the tax credit bond rate determined under section
54A(b)(3) for qualified tax credit bonds. If a qualified energy
conservation bond was issued as a specified tax credit bond issuers can receive the lesser of 70 percent of their interest payment or the amount of interest that would have been paid if the
interest rate was determined at the tax credit bond rate. For more
information on new, clean renewable energy bonds, see IRC
section 54D and Internal Revenue Notice 2010-35.
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. A State or local government must nominate
the project, 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 tax-exempt
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Municipal Bonds, 2011
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 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 owner-occupied 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
Statistics of Income Bulletin
specified real property acquisition and redevelopment in blighted
areas (see IRC section 144(c) for additional requirements).
Qualified school construction bond (QSCB)—A type of tax
credit bond, of which 100 percent of the bond proceeds are to be
used for construction, rehabilitation, repair, or land acquisition
in connection with a public school facility, which is issued by a
State or local government within the jurisdiction of where the
school is located. QSCBs are subject to a national volume cap
to be allocated by the Treasury among the States. The American
Recovery and Reinvestment Act of 2009 (ARRA) created IRC
section 54F authorizing QSCBs.
The Hiring Incentives to Restore Employment Act of 2010
allowed issuers of QSCBs to receive 100 percent of the interest
paid to the borrower if the interest were determined at the tax
credit bond rate determined under section 54A(b)(3) for qualified tax credit bonds. If a QSCB was issued as a specified tax
credit bond issuers can receive the lesser of 100 percent of their
interest payment or the amount of interest that would have been
paid if the interest rate was determined at the tax credit bond
rate. For more information on QSCBs, see IRC section 54E and
Internal Revenue Notice 2010-35.
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 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;
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Summer 2014
Municipal Bonds, 2011
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.
Issuers of QZABs receive 100 percent of the interest paid
to the borrower if the interest were determined at the tax credit
bond rate determined under section 54A(b) (3) for qualified tax
credit bonds. If a QZAB was issued as a specified tax credit
bond issuers can receive the lesser of 100 percent of their interest payment or the amount of interest that would have been paid
if the interest rate was determined at the tax credit bond rate. For
more information on QZABs, see IRC section 54E and Internal
Revenue Notice 2010-35.
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 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 2010, issuers of
recovery zone exempt facility bonds were required to file IRS
Form 8038-B, Information Return for Build America Bonds and
Recovery Zone Economic Development Bonds.
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
Statistics of Income Bulletin
billion national bond volume cap. For Calendar Year 2011, issuers of recovery zone exempt facility bonds were required to
file IRS Form 8038, Information Return for Tax-Exempt Private
Activity Bonds.
Specified tax credit bonds—New clean renewable energy
bonds, qualified energy conservation bonds, qualified zone academy bonds and qualified school construction bonds are specified
tax credit bonds for purposes of IRC section 6431(f). As a result
of legislation in the HIRE Act, issuers of these bonds can elect
to receive the tax credit in the form of a direct payment subsidy
instead of the bondholder (investor) receiving the tax credits.
Issuers are required to file IRS Form 8038-TC, Information
Return for Tax Credit Bonds and Specified Tax Credit Bonds,
to report such issues. See IRC section 54 and Internal Revenue
Notice 2010-35.
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. Unique to all other
tax credit bonds, issuers of certain qualified tax credit bonds,
specifically new clean renewable energy bonds and qualified
energy conservation bonds, pay bondholders taxable interest
payments in addition to the tax credit the bondholder receives.
For additional information, see Internal Revenue Notice 200915 and “Frequently Asked Questions on Qualified Tax Credit
Bonds and Specified Tax Credit Bonds” at http://www.irs.gov/
pub/irs-tege/tc_and_stcb_q-a._09-07-10_1.5.pdf.
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.
Additional Tabular Data on Tax Stats
SOI conducts annual studies on tax-exempt governmental bonds,
tax-exempt private activity bonds, and tax credit bonds using
data collected from Forms 8038, 8038-G, and 8038-TC filed
by bond issuers. Additional tax-exempt bond data, including
data for prior years, is available on SOI’s Tax Stats Webpage:
http//www.irs.gov/taxstats. Click on “Tax-Exempt Bonds.” The
direct link for SOI’s tax-exempt bond statistics is: http://www.
irs.gov/uac/SOI-Tax-Stats-Tax-Exempt-Bond-Statistics.
Aaron Barnes is an economist with the Special Studies Special Projects
Section. This data release was prepared under the direction of Brian
Raub, Acting Chief.
53
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Municipal Bonds, 2011
Table 1. Tax-Exempt Governmental Bonds, by Type
and Term of Issue, 2011
[Money amounts are in millions of dollars]
Type and term of issue
Number
Amount
21,138
All issues, total [1]
297,350
Short term
5,420
64,805
Long term
15,718
232,544
14,921
171,305
New money issues, total
Short term
4,012
52,874
Long term
10,909
118,431
8,232
126,045
Refunding issues, total
Short term
2,049
11,931
Long term
6,183
114,114
[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.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2013.
Table 2. Long-Term Tax-Exempt Governmental Bonds, by Bond Purpose and Type of Issue, 2011
[Money amounts are in millions of dollars]
Bond purpose
Total [1]
Education
Health and hospital
Transportation
All issues
New money issues
Refunding issues
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
15,718
232,544
10,909
118,431
6,183
114,114
5,376
63,550
3,603
31,413
2,146
32,138
312
4,268
249
2,379
98
1,889
1,084
30,852
825
18,027
410
12,826
Public safety
1,845
4,862
1,600
2,752
398
2,110
Environment
1,323
15,469
949
8,697
608
6,772
Housing
95
560
58
345
46
215
Utilities
2,138
33,725
1,307
11,530
1,131
22,196
Bond and tax/revenue anticipation notes
Other purposes [2]
220
4,161
192
3,607
44
554
4,695
75,096
3,132
39,681
2,193
35,415
[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" 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.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2013.
Statistics of Income Bulletin
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Municipal Bonds, 2011
Table 3. Computation of Lendable Proceeds for Long-Term Tax-Exempt Governmental Bonds, by Bond
Purpose, 2011
[Money amounts are in millions of dollars]
Bond purpose
Total [2]
Education
Bond issuance
costs
Entire issue price
Allocation
to reserve
fund
Credit
enhancement
Number
Amount
Number
Amount
Number
Amount
Number
(1)
(2)
(3)
(4)
(5)
(6)
(7)
15,718
5,376
232,544
63,550
10,144
3,571
312
4,268
158
44
3
2
24
1,084
30,852
742
194
29
4
57
Health and hospital
Transportation
1,954
604
1,083
428
113
37
921
160
Public safety
1,845
4,862
709
46
50
2
26
Environment
1,323
15,469
972
124
88
8
114
Housing
95
560
62
7
4
[3]
7
Utilities
2,138
33,725
1,790
325
262
26
278
Bond and tax/revenue anticipation notes
Other purposes [4]
Bond purpose
Total [2]
220
4,161
160
11
0
0
5
4,695
75,096
3,251
599
286
35
288
Allocation
to reserve
fund
—continued
Proceeds used
to refund
prior issues
Total lendable
proceeds [1]
Nonrefunding
proceeds
Amount
Number
Amount
Number
Amount
Number
Amount
(8)
(9)
(10)
(11)
(12)
(13)
(14)
1,615
15,718
228,862
6,183
112,619
10,909
116,244
Education
211
5,376
62,698
2,146
31,795
3,603
30,903
Health and hospital
53
312
4,169
98
1,847
249
2,322
Transportation
257
1,084
30,398
410
12,724
825
17,674
Public safety
15
1,845
4,799
398
2,083
1,600
2,715
Environment
209
1,323
15,127
608
6,679
949
8,449
Housing
5
95
548
46
210
58
338
Utilities
394
2,138
32,981
1,131
21,840
1,307
11,141
Bond and tax/revenue anticipation notes
Other purposes [4]
1
220
4,150
44
552
192
3,598
469
4,695
73,993
2,193
34,888
3,132
39,105
[1] The amount of lendable proceeds equals the issue price of the bond reduced by the sum of bond issuance costs, credit enhancements, and allocations to reserve funds.
[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] Indicates an amount less than $500,000.
[4] "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.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2013.
Statistics of Income Bulletin
55
Summer 2014
Municipal Bonds, 2011
Table 4. New Money Long-Term Tax-Exempt Governmental Bonds, by Bond Purpose and Size of Entire Issue, 2011
[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]
Size of entire issue
$500,000
All issues
Bond purpose
Under $500,000 [1]
$1,000,000
under
under
$1,000,000
$5,000,000
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Total [2]
10,909
118,431
4,188
992
1,298
891
2,747
5,973
3,603
31,413
1,386
328
430
303
753
1,666
Health and hospital
249
2,379
74
14
20
14
69
129
Transportation
825
18,027
302
63
69
42
191
298
Public safety
1,600
2,752
935
224
197
130
262
425
Environment
949
8,697
209
51
110
72
306
530
Education
Housing
58
345
9
2
4
2
21
51
Utilities
1,307
11,530
237
61
150
95
519
1,060
Bond and tax/revenue
anticipation notes
Other purposes [3]
192
3,607
34
10
20
13
90
213
3,132
39,681
1,036
239
338
220
826
1,600
Size of entire issue—continued
$5,000,000
$10,000,000
$25,000,000
under
under
under
or
$10,000,000
$25,000,000
$75,000,000
more
Bond purpose
Total [2]
$75,000,000
Number
Amount
Number
Amount
Number
Amount
Number
(9)
(10)
(11)
(12)
(13)
(14)
(15)
Amount
(16)
1,081
6,726
760
9,809
511
17,961
324
76,079
Education
377
2,367
316
3,930
248
8,462
93
14,357
Health and hospital
25
167
21
229
18
582
22
1,243
Transportation
91
309
58
359
44
790
70
16,166
Public safety
90
330
55
417
39
620
22
606
Environment
137
620
84
648
61
1,356
42
5,419
Housing
4
30
11
130
3
89
6
40
Utilities
188
916
96
1,089
67
1,891
50
6,418
Bond and tax/revenue
anticipation notes
19
119
15
226
5
150
9
2877
Other purposes [3]
380
1,867
271
2,783
160
4,021
121
28,952
[1] Form 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" 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.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2013.
Statistics of Income Bulletin
56
Summer 2014
Municipal Bonds, 2011
Table 5. New Money Long-Term Tax-Exempt Governmental Bonds, by State of Issue and Bond Purpose, 2011
[Money amounts are in millions of dollars]
Bond purpose
Total [1]
State of issue
Education
Health and hospital
Transportation
Public safety
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
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 [3]
10,909
118,431
3,603
31,413
249
2,379
825
18,027
1,600
2,752
198
19
126
138
630
126
140
35
8
220
247
9
33
604
344
331
228
238
154
122
116
186
333
429
168
251
25
286
26
72
321
109
553
303
116
331
294
114
551
36
187
49
159
948
95
87
151
164
68
374
45
12
1,374
385
2,035
676
13,164
1,189
2,001
389
773
3,052
2,499
1,408
348
4,606
3,349
1,440
853
941
1,327
391
2,737
4,078
5,385
2,632
814
1,092
45
822
252
300
2,880
800
14,792
2,817
352
1,758
1,312
1,665
4,010
390
1,223
191
933
10,186
1,522
87
3,892
3,951
458
2,213
104
2,538
32
4
63
65
262
30
70
6
d
45
43
0
d
348
139
104
44
119
27
46
22
84
108
103
30
79
5
35
9
24
156
50
263
33
28
119
217
34
174
14
41
20
26
200
23
24
42
35
16
110
28
0
502
107
680
401
5,743
475
809
170
d
470
382
0
d
1,600
395
473
163
434
173
53
886
1,592
686
680
165
349
16
178
129
118
264
383
1,908
388
115
696
630
430
968
53
500
175
105
3,276
380
17
1,168
719
407
752
41
0
d
0
0
d
24
5
3
0
0
d
3
3
d
4
9
12
16
d
11
0
6
d
10
6
5
10
0
6
0
d
d
0
11
5
0
6
d
d
0
0
d
0
4
d
4
0
d
12
d
9
3
0
d
0
0
d
120
311
54
0
0
d
19
14
d
135
8
158
47
d
154
0
257
d
43
9
79
15
0
18
0
d
d
0
178
169
0
15
d
d
0
0
d
0
7
d
113
0
d
22
d
49
51
0
11
d
10
5
13
3
31
7
d
21
d
d
5
25
21
26
40
19
9
20
11
41
15
38
d
18
0
27
0
8
3
3
50
15
d
29
11
5
37
4
5
d
15
56
4
d
17
7
0
111
d
0
30
d
732
51
946
2
313
2
d
346
d
d
76
1,623
52
26
42
67
12
95
73
90
110
513
d
52
0
28
0
24
1,997
3
2,213
525
d
110
188
253
831
3
188
d
14
2,637
750
d
1,074
984
0
463
d
0
32
d
26
12
81
18
47
15
d
d
44
d
3
34
36
17
17
28
34
27
25
51
36
21
31
27
d
d
d
20
54
30
73
101
d
62
15
19
83
5
54
d
20
119
22
19
43
22
30
66
d
0
34
d
53
70
176
28
60
56
d
d
179
d
1
194
43
7
77
11
46
13
225
85
78
104
17
40
d
d
d
23
43
8
65
93
d
75
26
90
86
2
71
d
12
147
25
4
95
47
15
79
d
0
Footnotes at end of table.
Statistics of Income Bulletin
57
Summer 2014
Municipal Bonds, 2011
Table 5. New Money Long-Term Tax-Exempt Governmental Bonds, by State of Issue and Bond Purpose,
2011—Continued
[Money amounts are in millions of dollars]
Bond purpose—continued
State of issue
Environment
Housing
Bond and tax/revenue
anticipation notes
Utilities
Other purposes [2]
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
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 [3]
949
8,697
58
345
1,307
11,530
192
3,607
3,132
39,681
5
0
5
d
27
d
30
4
0
13
75
d
4
23
33
19
d
7
15
18
30
48
61
47
11
25
3
12
5
9
12
7
23
18
5
21
d
10
117
7
6
0
11
18
3
14
15
16
d
65
d
d
3
0
247
d
340
d
71
16
0
87
679
d
4
482
1,504
276
d
6
234
20
813
161
167
168
25
137
14
80
46
24
27
81
508
127
93
47
d
105
702
84
52
0
47
75
9
12
138
454
d
174
d
d
d
0
0
0
5
3
4
d
0
0
d
0
0
0
5
0
d
d
0
0
d
d
0
4
0
d
0
d
0
d
4
0
0
d
d
d
0
d
3
0
d
0
0
d
0
0
0
5
0
d
0
0
d
0
0
0
32
15
7
d
0
0
d
0
0
0
2
0
d
d
0
0
d
d
0
25
0
d
0
d
0
d
76
0
0
d
d
d
0
d
9
0
d
0
0
d
0
0
0
27
0
d
0
0
43
0
7
22
45
12
14
d
0
24
19
0
3
40
21
36
46
19
21
7
8
40
30
74
12
30
d
33
d
3
9
6
20
28
53
20
22
12
25
4
19
6
45
285
17
9
16
27
0
62
0
0
392
0
119
59
1,331
102
320
d
0
284
144
0
4
80
1,141
61
200
66
43
6
22
40
617
171
13
195
d
294
d
5
18
12
935
249
126
95
334
200
241
9
173
4
235
2,234
108
14
113
573
0
109
0
0
0
d
0
0
12
d
0
0
0
4
0
0
7
0
8
13
14
4
5
4
d
4
3
22
d
d
0
11
0
d
d
0
6
d
d
d
0
d
18
0
d
0
4
0
0
d
d
18
3
d
0
d
0
d
0
0
2,094
d
0
0
0
106
0
0
24
0
9
89
40
33
17
7
d
38
1
64
d
d
0
9
0
d
d
0
105
d
d
d
0
d
61
0
d
0
8
0
0
d
d
122
4
d
0
d
77
12
22
29
170
52
60
6
7
75
55
3
7
150
72
134
59
40
34
35
64
105
73
135
72
62
8
140
7
22
81
14
131
105
24
89
42
28
107
9
70
19
54
266
28
18
60
32
12
139
9
8
408
267
203
35
2,382
218
367
115
291
1,706
1,082
947
232
491
195
349
255
241
649
196
429
2,055
3,682
898
510
302
7
203
58
99
438
312
8,880
1,225
15
685
129
563
1,112
240
161
11
505
1,770
137
26
1,173
1,003
24
577
4
1,823
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] "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.
[3] U.S. Possessions include Guam, Puerto Rico, and the U.S. Virgin Islands.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municpal Bonds, August 2013.
Statistics of Income Bulletin
58
Summer 2014
Municipal Bonds, 2011
Table 6. Tax-Exempt Private Activity Bonds, by Type
and Term of Issue, 2011
[Money amounts are in millions of dollars]
Type and term of issue
Number
All issues, total [1]
Amount
2,474
86,907
Short term
39
949
Long term
2,435
85,958
1,571
40,648
New money issues, total
Short term
23
151
Long term
1,548
40,496
1,219
46,259
Refunding issues, total
Short term
17
798
Long term
1,202
45,462
[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.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2013.
Table 7. Long-Term Tax-Exempt Private Activity Bonds, by Bond Purpose and Type of Issue, 2011
[Money amounts are in millions of dollars]
Bond purpose
All issues
New money issues
Refunding issues
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
Total [1]
2,435
85,958
1,548
40,496
1,202
Airports
56
5,750
15
728
47
5,022
Docks and wharves
44
2,323
6
90
38
2,232
45,462
Water, sewage, and solid waste disposal facilities
49
2,200
22
453
29
1,746
Qualified residential rental facilities
329
6,546
261
5,165
80
1,381
Local electricity or gas furnishing facilities
d
d
d
d
0
0
Tax Reform Act of 1986 transition property bonds
30
1,549
0
0
30
1,549
d
Qualified enterprise zone facility bonds
d
d
0
0
d
Qualified New York Liberty Zone bonds
5
4,640
d
d
d
d
2008 Housing Act bonds issued under IRC section 142
d
d
d
d
0
0
Local heating/cooling facility bonds
d
d
d
d
d
d
Qualified Gulf Opportunity Zone exempt facility bonds,
Gulf Opportunity Zone mortgage bonds, and Gulf
Opportunity Zone advance refunding bonds
32
2,034
17
1,484
15
551
Environmental enhancements of hydroelectric generating
facilities
d
d
0
0
d
d
Qualified Midwestern disaster area exempt facility bonds,
and qualified Midwestern disaster area mortgage bonds
36
630
36
630
0
0
Qualified Hurricane Ike disaster area exempt facility bonds
5
231
5
231
0
0
135
9,953
119
7,488
59
2,465
4
322
d
d
d
d
Qualified small issue bonds
318
480
249
308
72
172
Qualified student loan bonds
10
1,268
6
640
6
628
Qualified redevelopment bonds
d
d
d
d
0
0
351
23,158
195
8,953
156
14,205
11,232
Qualified mortgage bonds
Qualified veterans' mortgage bonds
Qualified hospital facilities
1,064
24,573
632
13,340
432
Nongovernmental output property bonds
d
d
0
0
d
d
Other purposes [2]
6
77
3
13
3
64
Qualified section 501(c)(3) nonhospital bonds
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" refer to obligations 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.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2013.
Statistics of Income Bulletin
59
Summer 2014
Municipal Bonds, 2011
Table 8. Computation of Lendable Proceeds for Long-Term Tax-Exempt Private Activity Bonds, by Selected Bond
Purpose, 2011
[Money amounts are in millions of dollars]
Selected bond purpose
Entire issue price
Bond issuance costs
Credit enhancement
Allocation to reserve fund
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Total [2]
2,435
85,958
1,257
502
104
44
282
Airports
56
5,750
47
36
6
1
10
694
43
Docks and wharves
44
2,323
34
12
d
d
4
44
Water, sewage, and solid waste disposal
facility bonds
49
2,200
22
13
5
[3]
4
12
Qualified residential rental facility bonds
329
6,546
63
17
12
17
27
17
Tax Reform Act of 1986 transition property bonds
30
1,549
d
d
0
0
d
d
Qualified Gulf Opportunity Zone exempt
facility bonds, Gulf Opportunity Zone
mortgage bonds, and Gulf Opportunity
Zone advance refunding bonds
32
2,034
d
d
d
d
0
0
Qualified Midwestern disaster area exempt
facility bonds
36
630
30
9
d
d
d
d
Qualified mortgage bonds
135
9,953
31
19
0
0
24
42
Qualified small issue bonds
318
480
d
d
9
1
d
d
Qualified student loan bonds
10
1,268
3
2
0
0
6
38
351
23,158
237
170
13
6
31
178
1,064
29
24,573
5,495
726
16
200
10
52
d
16
d
174
d
313
d
Qualified hospital facilities
Qualified section 501(c)(3) nonhospital bonds
All other bonds, combined [4]
Selected bond purpose
Total lendable
proceeds [1]
Proceeds used to
refund prior issues
Nonrefunding proceeds
Number
Amount
Number
Amount
Number
Amount
(9)
(10)
(11)
(12)
(13)
(14)
Total [2]
2,435
84,718
1,202
44,936
1,609
39,783
Airports
56
5,670
47
4,954
16
716
Docks and wharves
44
2,266
38
2,177
d
d
Water, sewage, and solid waste disposal
facility bonds
49
2,174
29
1,730
23
444
Qualified residential rental facility bonds
329
6,495
80
1,377
262
5,117
Tax Reform Act of 1986 transition property bonds
30
1,549
30
1,549
d
d
Qualified Gulf Opportunity Zone exempt
facility bonds, Gulf Opportunity Zone
mortgage bonds, and Gulf Opportunity
Zone advance refunding bonds
32
2,021
17
550
17
1,471
Qualified Midwestern disaster area exempt
facility bonds
36
617
0
0
36
617
Qualified mortgage bonds
135
9,892
59
2,450
120
7,442
Qualified small issue bonds
318
476
72
172
250
304
Qualified student loan bonds
10
1,229
6
616
7
613
Qualified hospital facilities
Qualified section 501(c)(3) nonhospital bonds
All other bonds, combined [4]
351
22,803
228
14,035
202
8,767
1,064
24,044
622
11,048
678
12,996
29
5,482
14
4,278
15
1,204
d—Data deleted to avoid disclosure of information for specific bonds. However, the data are included in the appropriate totals.
[1] The amount of lendable proceeds equals the issue price of the bond reduced by the sum of bond issuance costs, credit enhancements, and allocations to reserve funds.
[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] Indicates an amount less than $500,000.
[4] 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 facility bonds, qualified enterprise zone facility bonds, qualified New York Liberty Zone bonds, 2008 Housing Act bonds
issued under IRC section 142, local heating/cooling facility bonds, environmental enhancements of hydroelectric generating facility bonds, qualified Hurricane Ike disaster area exempt facility bonds,
qualified veterans' mortgage bonds, qualified redevelopment bonds, and nongovernmental output property bonds.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2013.
Statistics of Income Bulletin
60
Summer 2014
Municipal Bonds, 2011
Table 9. New Money Long-Term Tax-Exempt Private Activity Bonds, by Selected Bond Purpose and Size of Entire
Issue, 2011
[Money amounts are in millions of dollars, except for size of entire issue, which is in whole dollars]
Size of entire issue
All issues
Selected bond purpose
$1,000,000 under
$5,000,000
Under $1,000,000
$5,000,000 under
$10,000,000
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Total [1]
1,548
40,496
214
57
277
741
288
1,886
Airports
15
728
0
0
d
d
5
28
Docks and wharves
6
90
0
0
d
d
d
d
Water, sewage, and solid waste disposal
facility bonds
22
453
d
d
3
8
d
d
Qualified residential rental facility bonds
261
5,165
d
d
d
d
76
558
Qualified Gulf Opportunity Zone exempt
facility bonds, and Gulf Opportunity
Zone mortgage bonds
17
1,484
0
0
0
0
d
d
64
Qualified Midwestern disaster area
exempt facility bonds
36
630
0
0
d
d
8
Qualified mortgage bonds
119
7,488
0
0
0
0
d
d
Qualified small issue bonds
249
308
183
40
43
117
20
121
Qualified student loan bonds
6
640
0
0
0
0
0
0
Qualified hospital facilities
195
8,953
6
4
15
47
23
157
632
15
13,340
1,217
19
d
10
d
156
d
396
d
147
3
892
18
Qualified section 501(c)(3) nonhospital
bonds
All other bonds, combined [2]
Size of entire issue—continued
Selected bond purpose
$25,000,000 under
$50,000,000
$10,000,000 under
$25,000,000
$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)
Total [1]
317
4,281
163
4,733
141
7,613
148
21,185
Airports
d
d
3
113
d
d
d
d
Docks and wharves
d
d
d
d
0
0
0
0
Water, sewage, and solid waste
disposal facility bonds
7
129
4
155
d
d
0
0
Qualified residential rental facility bonds
92
1,361
26
777
16
1,052
7
1,284
Qualified Gulf Opportunity Zone exempt
facility bonds, and Gulf Opportunity
Zone mortgage bonds
3
98
7
453
5
905
d
d
Qualified Midwestern disaster area
exempt facility bonds
9
130
d
d
5
371
0
0
Qualified mortgage bonds
d
d
27
831
39
2,146
36
4,290
Qualified small issue bonds
3
30
0
0
0
0
0
0
Qualified student loan bonds
d
d
d
d
d
d
3
540
Qualified hospital facilities
38
517
27
703
33
1,520
53
6,005
Qualified section 501(c)(3) nonhospital
bonds
152
1,817
73
1,903
36
1,498
49
6,822
d
d
d
d
5
334
d
d
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 facility bonds, Qualified New York Liberty Zone bonds, 2008 Housing Act bonds issued under IRC section 142, local
heating/cooling facility bonds, Qualified Hurricane Ike disaster area exempt facility bonds, qualified veterans' mortgage bonds, qualified redevelopment bonds.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2013.
Statistics of Income Bulletin
61
Summer 2014
Municipal Bonds, 2011
Table 10. New Money Long-Term Tax-Exempt Private Activity Bonds, by State of Issue and Selected Bond
Purpose, 2011
[Money amounts are in millions of dollars]
Selected bond purpose
State of issue
Qualified
residential
rental facility
bonds
Total [1]
Qualified
section 501(c)(3)
nonhospital
bonds
Qualified
hospital facility
bonds
Qualified
small issue
bonds
Qualified
mortgage
bonds
All other
bonds,
combined [2]
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
All States
1,548
40,496
261
5,165
119
7,488
249
308
195
8,953
632
13,340
117
5,242
Alabama
22
820
0
0
0
0
d
d
d
d
8
67
9
734
Alaska
3
324
0
0
d
d
0
0
d
d
d
d
0
0
Arizona
13
312
d
d
0
0
0
0
7
210
d
d
0
0
Arkansas
11
157
0
0
d
d
d
d
d
d
5
32
0
0
California
143
4,612
82
1,084
d
d
d
d
12
1,143
40
2,099
5
67
Colorado
26
534
d
d
d
d
7
10
3
275
13
112
0
0
Connecticut
18
668
3
104
3
128
d
d
3
176
8
191
d
d
Delaware
8
128
d
d
3
87
0
0
0
0
d
d
0
0
District of Columbia
20
760
9
130
d
d
0
0
0
0
9
419
d
d
Florida
68
1,602
24
282
8
505
d
d
d
d
25
522
4
83
Georgia
33
688
d
d
4
227
6
21
d
d
20
356
0
0
Hawaii
4
147
d
d
d
d
0
0
0
0
0
0
0
0
Idaho
d
d
d
d
0
0
0
0
0
0
0
0
0
0
Illinois
77
1,690
6
128
d
d
41
8
8
380
21
1,060
d
d
Indiana
38
922
0
0
3
216
3
19
5
230
16
232
11
225
Iowa
114
560
0
0
d
d
72
20
d
d
19
129
18
263
Kansas
22
235
0
0
0
0
d
d
3
42
8
188
d
d
Kentucky
22
656
0
0
d
d
0
0
7
434
d
d
0
0
Louisiana
30
936
4
39
4
126
0
0
4
184
10
279
9
309
Maine
9
395
3
21
d
d
0
0
d
d
5
13
0
0
Maryland
25
725
3
72
5
370
0
0
d
d
13
217
d
d
Massachusetts
71
2,655
12
301
d
d
5
16
11
435
42
1,728
d
d
Michigan
28
638
d
d
d
d
d
d
14
456
12
81
0
0
Minnesota
69
785
6
131
8
194
6
6
3
19
42
339
4
96
Mississippi
4
520
0
0
d
d
0
0
0
0
d
d
3
469
Missouri
56
759
5
70
d
d
d
d
5
65
17
405
0
0
Montana
10
191
0
0
d
d
0
0
4
121
3
7
d
d
Nebraska
19
252
0
0
d
d
10
5
d
d
4
20
d
d
Nevada
7
186
d
d
4
135
0
0
0
0
0
0
d
d
New Hampshire
12
264
d
d
3
143
d
d
3
69
4
38
0
0
d
New Jersey
31
1,327
d
d
d
d
4
20
4
184
17
364
d
New Mexico
d
d
0
0
d
d
0
0
0
0
0
0
0
0
New York
99
5,325
25
1,925
d
d
d
d
20
710
50
1,416
3
975
North Carolina
16
547
d
d
d
d
d
d
5
172
5
130
d
d
North Dakota
12
187
0
0
d
d
0
0
d
d
7
35
d
d
Ohio
43
1,450
d
d
3
404
d
d
9
692
16
275
0
0
Oklahoma
4
149
0
0
d
d
0
0
0
0
d
d
0
0
Oregon
15
241
4
31
d
d
d
d
d
d
7
67
0
0
Pennsylvania
104
2,260
d
d
3
420
d
d
19
796
63
916
3
87
Rhode Island
10
136
d
d
d
d
0
0
d
d
6
59
0
0
South Carolina
6
113
0
0
d
d
d
d
0
0
4
39
0
0
South Dakota
5
212
0
0
d
d
d
d
d
d
d
d
0
0
Tennessee
20
586
3
15
4
309
d
d
d
d
9
86
d
d
Texas
58
1,972
3
68
10
336
d
d
d
d
27
444
14
844
Footnotes at end of table.
Statistics of Income Bulletin
62
Summer 2014
Municipal Bonds, 2011
Table 10. New Money Long-Term Tax-Exempt Private Activity Bonds, by State of Issue and Selected Bond
Purpose, 2011—Continued
[Money amounts are in millions of dollars]
Selected bond purpose
State of issue
Qualified
residential
rental facility
bonds
Total [1]
Qualified
section 501(c)(3)
nonhospital
bonds
Qualified
hospital facility
bonds
Qualified
small issue
bonds
Qualified
mortgage
bonds
All other
bonds,
combined [2]
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
Utah
8
110
d
d
d
d
d
d
0
0
4
32
d
d
Vermont
22
109
9
32
d
d
4
1
d
d
3
21
4
16
Virginia
26
780
6
93
d
d
d
d
3
142
14
183
0
0
Washington
32
812
15
151
d
d
d
d
3
368
9
62
d
d
West Virginia
7
214
d
d
0
0
d
d
3
136
d
d
d
d
Wisconsin
38
592
d
d
0
0
d
d
8
135
18
254
11
141
Wyoming
5
153
0
0
d
d
0
0
d
d
d
d
0
0
U.S. Possessions [3]
d
d
0
0
0
0
0
0
d
d
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, 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: airports, docks and wharves, water furnishing facility bonds, sewage facility bonds, solid waste disposal facility bonds, local electricity or gas furnishing
facility bonds, local heating/cooling facility bonds, 2008 Housing Act bonds issued under IRC section 142, qualified New York Liberty Zone bonds, qualified Gulf Opportunity Zone exempt facility bonds,
Gulf Opportunity Zone mortgage bonds, and Gulf Opportunity Zone advance refunding bonds, qualified Hurricane Ike disaster area exempt facility bonds, and qualified veterans' mortgage bonds.
[3] U.S. Possessions includes Puerto Rico (only Puerto Rico issued private activity bonds).
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2013.
Statistics of Income Bulletin
63
Summer 2014
Municipal Bonds, 2011
Table 11. Tax Credit Bonds and Specified Tax Credit Bonds, by Issue Type, 2011
[Money amounts are in millions of dollars]
Type of bond
Total [3]
All issues
Specified tax credit bonds [1]
Tax credit bonds [2]
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
670
6,372
614
6,156
56
216
Qualified School Construction Bonds
475
5,313
446
5,159
29
154
Qualified Zone Academy Bonds
111
620
88
562
23
58
All other tax credit bonds, combined [4]
84
439
80
435
4
4
[1] Includes bonds reported on Form 8038-TC that indicate the issuer elected to apply section 6431(f) to receive a refundable credit in lieu of tax credits under section 54(A). Issuers who elect to apply
section 6431(f) are eligible to receive Federal direct payments and are classified as "specified tax credit bonds" for purposes of this table.
[2] Includes bonds reported on Form 8038-TC that did not indicate the issuer elected to apply section 6431(f) to receive a refundable credit in lieu of tax credits under section 54(A).
[3] Combines specified tax credit bonds and tax credit bonds reported on Form 8038-TC, Information Return for Tax Credit Bonds and Specified Tax Credit Bonds.
[4] For purposes of this table, this category combines issues for new clean renewable energy bonds and qualified energy conservation bonds, in order to avoid disclosure of information about specific
bonds.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2013.
Statistics of Income Bulletin
64
Summer 2014
Municipal Bonds, 2011
Table 12: Credit Payment Outlays to Issuers of Direct Payment Bonds, by State of Issue and Bond Type, 2011
[Money amounts are in millions of dollars]
Direct payment bonds
All issues [1]
State
Qualified School
Construction Bond
Build America Bond
Other [2]
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
All States
9,098
4,271
5,439
3,629
1,868
426
1,791
Alabama
106
26
40
11
d
d
d
d
Alaska
45
11
22
7
d
d
d
d
1
215
Arizona
173
48
109
40
26
8
38
Arkansas
111
8
d
d
101
7
d
d
California
681
963
364
878
158
54
159
30
Colorado
212
94
147
85
d
d
d
d
Connecticut
51
48
35
35
d
d
d
d
Delaware
21
11
14
8
d
d
d
d
District of Columbia
20
44
16
40
d
d
d
d
Florida
233
161
160
118
40
33
33
10
Georgia
116
96
47
79
37
12
32
6
Hawaii
20
24
12
22
0
0
8
2
Idaho
30
6
20
4
d
d
d
d
Illinois
631
254
465
224
d
d
d
d
Indiana
248
51
63
41
134
8
51
2
Iowa
118
13
103
11
d
d
d
d
Kansas
169
34
106
31
10
1
53
2
3
Kentucky
310
68
258
55
23
9
29
Louisiana
76
18
61
17
d
d
d
d
Maine
41
3
14
1
13
1
14
[3]
Maryland
105
66
91
58
6
6
8
2
Massachusetts
68
99
37
83
17
11
14
4
18
Michigan
602
107
181
56
266
34
155
Minnesota
311
30
224
21
27
5
60
4
Mississippi
54
19
12
15
36
3
6
[3]
Missouri
492
74
242
55
126
12
124
7
Montana
27
3
d
d
12
2
d
d
Nebraska
176
23
119
19
43
2
14
2
Nevada
92
66
56
57
17
7
19
3
New Hampshire
32
11
15
6
d
d
d
d
New Jersey
97
140
68
135
d
d
d
d
New Mexico
33
8
19
5
d
d
d
d
New York
172
445
133
412
7
27
32
6
North Carolina
293
54
157
32
52
11
84
11
North Dakota
76
5
21
1
39
2
16
1
Ohio
580
192
265
154
179
24
136
14
Oklahoma
75
15
58
14
d
d
d
d
Oregon
98
27
24
19
d
d
d
d
Pennsylvania
220
117
157
94
7
18
56
4
Rhode Island
31
7
d
d
d
d
d
d
South Carolina
146
33
80
20
40
11
26
3
2
South Dakota
236
12
185
8
27
2
24
Tennessee
110
50
95
37
d
d
d
d
Texas
333
347
204
328
123
18
6
1
Footnotes at end of table.
Statistics of Income Bulletin
65
Summer 2014
Municipal Bonds, 2011
Table 12: Credit Payment Outlays to Issuers of Direct Payment Bonds, by State of Issue and Bond Type,
2011—Continued
[Money amounts are in millions of dollars]
Direct payment bonds
All issues [1]
State
Utah
Vermont
Qualified School
Construction Bond
Build America Bond
Other [2]
Number
Amount
Number
Amount
Number
Amount
Number
Amount
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
152
53
119
48
d
d
d
d
37
4
24
2
d
d
d
d
Virginia
132
74
109
66
5
6
18
2
Washington
271
133
201
117
32
8
38
8
West Virginia
13
3
d
d
0
0
d
d
Wisconsin
577
47
432
37
91
8
54
3
Wyoming
20
4
d
d
0
0
d
d
U.S. Possessions [4]
25
23
d
d
0
0
d
d
d—Data deleted to avoid disclosure of information about specific bonds. However, the data are included in the appropriate totals.
[1] Credit payment outlays were not subject to sequestration cuts in 2011.
[2] Other includes recovery zone economic development, qualified zone academy, qualified energy conservation, and new clean renewable energy bonds as reported on Form 8038-CP, Return for Credit
Payments to Issuers of Qualified Bonds.
[3] Indicates an amount less than $500,000.
[4] U.S. Possessions includes Puerto Rico (only Puerto Rico issued tax credit bonds).
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
Statistics of Income Bulletin
66
Summer 2014
Municipal Bonds, 2011
Table 13: Credit Payment Outlays to Issuers of Direct Payment Bonds, by State Population Classification and by
Bond Type, 2011
[Money amounts are in millions of dollars]
All States
States with
medium-size
populations [2]
States with large-size populations [1]
Bond type
Number
Amount
Number
Percentage
of number
Amount
Percentage
amount
Number
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Population [4]
312
N/A
218
70.0
N/A
N/A
76
All Issues [5]
9,098
4,271
4,960
54.5
3,332
78.0
3,188
Build America Bond
5,439
3,629
2,815
51.8
2,892
79.7
2,061
Qualified School Construction Bond
1,868
426
1,096
58.7
297
69.7
556
Recovery Zone Economic Development Bond
1,124
169
654
58.2
109
64.3
329
Quailified Zone Academy Bond
290
20
157
54.1
12
62.8
114
Qualified Energy Conservation Bond
New Clean Renewable Energy Bond
222
155
14
13
87
151
39.2
97.4
9
12
68.5
94.3
128
0
Bond type
States with medium-size populations
[2]—continued
States with small-size populations [3]
Percentage
of number
Amount
Percentage
amount
Number
Percentage
of number
Amount
Percentage
amount
(8)
(9)
(10)
(11)
(12)
(13)
(14)
Population [4]
24.4
N/A
N/A
21
6.8
N/A
All Issues [5]
35.0
696
16.3
950
10.4
243
5.7
Build America Bond
37.9
553
15.2
563
10.4
184
5.1
N/A
Qualified School Construction Bond
29.8
95
22.3
216
11.6
34
8.0
Recovery Zone Economic Development Bond
Quailified Zone Academy Bond
29.3
39.3
38
6
22.6
30.0
141
19
12.5
6.6
22
1
13.1
7.1
Qualified Energy Conservation Bond
57.7
4
29.0
7
3.2
[6]
2.5
New Clean Renewable Energy Bond
0.0
0
0.0
4
2.6
1
5.7
N/A—Not applicable. Money amounts do not apply to population data.
[1] States with large-size populations include: California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Michigan, Georgia, North Carolina, New Jersey, Virginia, Washington, Massachusetts,
Indiana, Arizona, and Tennessee.
[2] States with medium-size populations include: Missouri, Maryland, Wisconsin, Minnesota, Colorado, Alabama, South Carolina, Louisiana, Kentucky, Oregon, Oklahoma, Puerto Rico, Connecticut, Iowa,
Mississippi, Arkansas, Kansas, and Utah.
[3] States with small-size populations include: Nevada, New Mexico, West Virginia, Nebraska, Idaho, Hawaii, Maine, New Hampshire, Rhode Island, Montana, Delaware, South Dakota, Alaska, North
Dakota, Vermont, District of Columbia, and Wyoming.
[4] Population refers to United States resident population rounded to the nearest million. The resident population estimates for July 1, 2011, are produced by the U.S. Bureau of the Census and are
available at http://www.census.gov/popest/data/state/totals/2011/tables/NST-EST2011-01.xls .
[5] Credit payment outlays were not subject to sequestration cuts in 2011.
[6] Indicates an amount less than $500,000.
NOTE: Detail may not add to totals because of rounding.
SOURCE: IRS, Statistics of Income Division, Municipal Bonds, August 2014.
Statistics of Income Bulletin
67
Summer 2014
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.