Industrial Development Bond Cap Program

Go to top
Next Section Continue


ESD administers the local issuer portion of New York State’s annual allocation of federal volume cap to facilitate the issuance of tax-exempt private activity bonds to finance private projects with a public purpose of economic development, as prescribed by the federal Internal Revenue Code.

Next Section Continue


Program funding is available for 2023 statewide private activity bond allocation (“volume cap”) authority under Federal guidelines and will be dedicated to facilitate lower cost tax-exempt bond financing for qualified projects by authorized State and/or local government issuers.

Next Section Continue


Applicants must be authorized issuers under federal and New York State law (e.g., Industrial Development Agencies), as volume cap allocations may only be awarded to authorized issuers.  Private borrowers and their projects should first apply to an authorized issuer, who will determine project eligibility under one of the federally recognized private activity bond categories described in the Internal Revenue Code (IRC) sections 142-144, and 1394.


Eligible private activity bond categories include:

  • Industrial Development Bonds for small ($10 million or less) manufacturing projects; and
  • Exempt Facility Bonds, which cover a wide range of facilities including:
    • Airports;
    • Mass commuting facilities;
    • Qualified residential rental projects;
    • Solid waste disposal facilities;
    • Facilities for the furnishing of local electric energy or gas;
    • Local district heating or cooling facilities;
    • Sewage facilities;
    • Qualified broadband projects; and
    • Qualified carbon dioxide capture facilities.