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Tax-exempt bonds, 2007.

Tax-exempt bonds are issued by State and local governments to finance a variety of projects, including construction or improvement of essential facilities and infrastructure, as well as to help provide services for citizens. (1) Bonds issued by State and local governments are classified as either "governmental" or "private activity," depending on whether the proceeds are used and secured by public or private entities and resources.

The total amount of tax-exempt bonds issued by State and local governments increased 20.6 percent between Calendar Years 2006 and 2007, from $428.3 billion in 2006 to $516.7 billion in 2007. For 2007, governmental bonds accounted for $379.3 billion (73.4 percent) of total tax-exempt bond proceeds, while private activity bonds accounted for the remaining $137.4 billion (26.6 percent).

When a bond is issued, the issuer is obligated to repay the borrowed bond proceeds, at a specified rate of interest, by some future date. For Federal income tax purposes, investors who purchase governmental bonds and certain types of private activity bonds are allowed to exclude the bond interest from their gross incomes. (2) This tax exemption effectively lowers the borrowing cost incurred by tax-exempt debt issuers, since holders of tax-exempt bonds are generally willing to accept an interest rate lower than that earned on comparable taxable bonds. The interest exclusion for tax-exempt bonds is not allowed for arbitrage bonds and bonds not in registered form. (3, 4)

Both governmental and private activity bonds are obligations issued by or on behalf of State and local governmental units; it is the use of proceeds that differentiates the two. Governmental bond proceeds finance essential government operations, facilities, and services that are for general public use, and the debt service on these bonds is paid from general governmental sources. Private activity bonds are issued by or on behalf of local or State governments for the purpose of financing the project of a private user. Since the 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. Specifically, section 141(a) of the Internal Revenue Code provides that the term private activity bond means any bond issued as part of an issue which meets: 1) the private business tests set forth in IRC section 141(b); or 2) the private loan financing test set forth in IRC section 141(c). (5) Interest income earned on most private activity bonds is taxable. However, over the years, Congress has deemed certain types of private activities necessary for the public good, and, therefore, interest income earned on "qualified private activity bonds," as defined in IRC section 141(e), is generally tax-exempt. (6, 7)

Over time, the list of qualified activities and facilities eligible for tax-exempt bond financing has been expanded. Appendix A provides an historical overview of major tax-exempt bond legislation, dating back to the Tax Reform Act of 1986. Appendix B covers the most recent bond legislation, the American Recovery and Reinvestment Act of 2009. The Act (ARRA09) included several new types of tax-exempt and tax-credit bonds intended to encourage investment in infrastructure projects and job creation.

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 having maturities of less than 13 months are typically classified as short-term, while those having maturities of 13 months or more are classified as long-term. Governmental bond issues totaled $379.3 billion in 2007, an 18.8-percent increase from the $319.4 billion issued in 2006. Long-term bonds accounted for $316.3 billion, more than 83 percent of all governmental bond proceeds. Long-term bonds are generally used to finance construction or other capital improvement projects.

The remaining $63.1 billion of governmental bonds were issued for short-term projects. Most short-term governmental bonds are issued in the form of tax anticipation notes (TANs), revenue anticipation notes (RANs), or bond anticipation notes (BANs). TANs and RANs generally mature within 1 year of issuance, at which time the proceeds are paid from specific tax receipts or other revenue sources. The proceeds of a BAN are typically used to pay for startup costs associated with a future, long-term bond-financed project. A renewal BAN can be issued on maturity of an outstanding BAN, until, eventually, the proceeds of the future bond issue are used to pay off, or retire, the outstanding BAN. Combined, TANs, RANs, and BANs comprised 92.1 percent of all short-term governmental bond proceeds for 2007.

Tax-exempt private activity bond issues totaled $137.4 billion in 2007, a 26.2 percent increase from the $108.9 billion issued in 2006. Short-term bonds accounted for $0.9 billion, only 0.7 percent, of the total private activity bond proceeds for 2007.

Long-Term Bond Volume, by Type of Issue

Total bond issuance is composed of both ("new money") nonrefunding issues and refunding issues. The proceeds of new money issues finance new capital projects, while proceeds of refunding issues retire outstanding debt of prior bond issues. A bond issue can include both new and refunding proceeds.

Figures A1 and A2 show total issuance, as well as the split between new money and refunding issues, for both tax-exempt governmental and tax-exempt private activity bonds issued between 2002 and 2007. In 2007, new money issues represented approximately two-thirds of the total bond proceeds for both governmental and tax-exempt private activity bonds; refunding issues accounted for one-third of the proceeds.

Between 2006 and 2007, new money issues and refunding issues increased for both long-term governmental and tax-exempt private activity bonds. New money, long-term governmental bond issues increased by 11.0 percent, from 2006 to 2007; refunding issues increased by 26.1 percent. Tax-exempt new money private activity bond issues were 36.9 percent higher in 2007 than in 2006, while refunding issues increased by 10.4 percent.

Long-Term Bond Volume, by Selected Purpose

Figure B presents the composition of long-term tax-exempt bond proceeds, by selected purpose as well as type of issue, for both governmental and private activity bond issues. Approximately 61.0 percent of the total $316.3 billion long-term governmental bond proceeds for 2007 financed education, utilities, and transportation projects. Just over one-fourth (28.3 percent) of the long-term governmental bond proceeds were allocated for "other bond purposes" (i.e., specific purpose(s) did not apply or were not separately allocated by the issuer). For all of the governmental bond purposes shown in Figure B, more proceeds were spent financing new capital projects than were put toward refunding prior bond issues.

Qualified section 501(c)(3) bonds, which include total qualified hospital bonds and qualified non-hospital bonds issued to benefit other nonprofit charitable organizations, combined, accounted for 52.0 percent of the $136.6 billion of long-term private activity bonds issued for 2007. Private activity bonds issued to provide housing assistance in the form of qualified residential rental projects and qualified mortgages accounted for another 24.6 percent of total proceeds.

Overview of Bond Issues, by State

Total new money, long-term governmental bond volume increased by approximately $20 billion (11.0 percent) from 2006 to 2007. States with significant increases in new money, long-term governmental bond issues from 2006 to 2007 include Ohio, whose issuance rose 154.6 percent, from slightly less than $3.4 billion in 2006 to $8.6 billion in 2007; California, whose issuance rose from $23.1 billion in 2006 to $30.9 billion in 2007; Georgia, whose issuance rose from $4.4 billion in 2006 to $7.2 billion in 2007; and Massachusetts, whose issuance rose from $2.9 billion in 2006 to $4.8 billion in 2007.

Tennessee experienced a significant decrease in new money, long-term governmental bond issues, from $6.4 billion in 2006 to $1.6 billion in 2007, as did Wyoming, whose issuance fell 60.4 percent, from $134 million in 2006 to $53 million in 2007. In all, 22 States reduced the amount of new money, long-term governmental bonds issued from 2006 to 2007, by $55.6 billion, up from the 18 States whose combined issuance fell $10.2 billion for the corresponding 2005 to 2006 timeframe.

Figure C presents the amount of bonds issued for the top 15 States, in terms of total dollar volume of new money, long-term tax-exempt bonds issued for 2007, for both governmental and private activity bond issuances. Combined, the top 15 States accounted for 70.4 percent of the total $200.1 billion of new money, long-term governmental bond issues for the year. About $86.7 billion (43.3 percent) of the total were issued by authorities in the following five States: California (15.4 percent), Texas (11.2 percent), Florida (6.3 percent), New York (6.1 percent), and Ohio (4.3 percent). According to 2007 Census estimates, together, these five States accounted for 35.8 percent of the total U.S. population. (8)

An examination of issuance by State reveals some differences in the allocation of proceeds by bond purpose. Overall, for 2007, 35.8 percent of the $200.1 billion of new money, long-term governmental bonds was issued for educational purposes. However, the amounts allocated for this purpose varied by State. For example, the total amount of new money, long-term education bonds issued in Ohio represented approximately 73.9 percent of total State issuance, compared to 42.8 percent in Alabama and 21.2 percent in New York.

Bonds issued for other unspecified purposes accounted for 25.5 percent of States' total new money, long-term proceeds. Like educational bond issues, the total amount of other purpose bond issues ranged significantly across States. In the U.S. Possessions, 60.5 percent of the total new money, long-term governmental bond proceeds were for other purposes. (9) In contrast, in Ohio, only 11.7 percent was allocated for this purpose.

Nebraska allocated 76.8 percent of its total amount of new money, long-term governmental bonds to utility projects, a considerably larger share than in the U.S. total (16.0 percent). Arizona and Alabama also spent large portions of their total new money, long-term issuance on utility projects--36.2 percent and 33.9 percent, respectively.

Total new money, long-term tax-exempt private activity bond volume increased $23.3 billion (approximately 37 percent) from 2006 to 2007. Louisiana substantially increased its issuance of new money, long-term private activity bonds from 2006 to 2007, from $833 million in 2006 to $2.9 billion in 2007. The majority of this increase is attributed to $1.9 billion of Qualified Gulf Opportunity Zone and Gulf Opportunity Zone Mortgage bonds issued. These bond provisions were promulgated under the Gulf Opportunity Zone Act. They support capital investment and rebuilding in local and regional economies in parts of Louisiana, Mississippi, and Alabama that were devastated by hurricanes in 2005. Significant increases also occurred in Arizona, whose issuance more than tripled, from $574 million in 2006 to $1.9 billion in 2007; Utah, whose issuance increased from $209 million in 2006 to $602 million in 2007; South Dakota, whose issuance increased from $138 million in 2006 to $386 million in 2007; and Oregon, whose issuance more than doubled, from $292 million in 2006 to $657 million in 2007.

Between 2006 and 2007, 33 States issued a smaller amount of new money, long-term private activity bonds. Altogether, this accounted for a total reduction of $2.7 billion. Arkansas experienced a significant decrease in new money, long-term private activity bond issuance, from $401 million in 2006 to $150 million in 2007, as did Indiana, whose issuance fell 61.7 percent, from $2.3 billion in 2006 to $0.9 billion in 2007. Similarly, Alaska and North Carolina's new money, long-term private activity bond issuance for 2007 decreased by 59.4 percent and 37.8 percent, respectively.

Combined, the top 15 States accounted for 67.5 percent of the total $86.6 billion of new money, long-term private activity bond issues for the year. Approximately 37.4 percent ($32.4 billion) of the total was issued by authorities in the following five States: California (12.2 percent), New York (9.5 percent), Texas (5.9 percent), Pennsylvania (5.2 percent), and Massachusetts (4.7 percent).

Similar to governmental bond issuance, there were differences in the composition of total new money, long-term private activity bond issuance, by purpose, among the States. Examining the bond allocations by purpose for 2007, overall, 31.6 percent of the amount of new money, long-term private activity bonds was issued for qualified IRC section 501(c)(3) nonhospital organizations. Another 19.9 percent was issued for qualified hospital bonds.

Of the total amount of new money, long-term private activity bonds issued in Massachusetts, 65.8 percent was issued for IRC section 501(c)(3) non-hospital organizations, compared to 32.2 percent in California and 11.9 percent in Louisiana for the same purpose. Qualified hospital bonds accounted for 39.4 percent of new money, long-term private activity bond issues in Texas, compared to 21.2 percent in Pennsylvania and 6.7 percent in Tennessee for the same purpose.

Together, States allocated only 8.5 percent of the $86.6 billion of new money, long-term private activity bonds in 2007 for qualified residential rental projects. However, both New York and California directed a much larger share of their total new money, long-term issuances to this purpose, 19.8 percent and 17.6 percent, respectively.

Tax-exempt private activity bonds are subject to State volume limitations, or volume caps. Most types of private activity bonds are subject to the unified State volume cap, which limits the aggregate dollar amount of bonds that each State can issue annually. For each of the qualified issue types subject to the unified volume cap, there is no specific limit on the dollar amount of issuance; rather, each State must allocate issuance authority in such a way that the combined issuance does not exceed the annual volume cap. The unified State volume cap is adjusted annually for population growth and is also indexed for inflation. (10)

Other types of private activity bonds are subject to separate volume limitations based on the specific bond purpose, or types of projects being financed. Refunding bonds are not subject to volume cap limitations, as long as there is no increase in the principal amount of the outstanding bond. Issuers can elect to carry forward unused volume cap for a specified bond purpose. Bonds issued with respect to the specified bond purpose are not subject to the volume cap for the following 3 calendar years.

Figure D shows the total amount of new money, long-term tax-exempt private activity bond issuance, new issues subject to the unified State volume cap, amounts applied from prior-year carryforward elections, and volume cap allocations, by State, for 2007. The total amount of new bonds issued by a State can exceed that State's total volume cap allocation in instances where bonds are issued for purposes other than those subject to the unified State volume cap and where amounts are being carried forward from previous years' allocations.

Unlike private activity bonds, governmental bonds are generally not subject to the volume cap. However, if more than $15 million of the proceeds of an issue are used in private use or disproportionate use, then the amount in excess of $15 million is subject to the volume cap, and the issuer is required to report the amount of the State volume cap allocated to the governmental issue. (11, 12) For 2007, issuers reported allocating a combined $86 million of State volume cap to the total $379.3 billion of total tax-exempt governmental bond issues. This indicates some private business involvement, but not in an amount sufficient to satisfy the 10 percent use criteria for private activity bonds for each governmental bond issue.

Summary

Over 25,000 tax-exempt Governmental bonds were issued in 2007, raising $379.3 billion of proceeds for public projects such as schools, transportation infrastructure, and utilities. Of the $316.3 billion of long-term Governmental bonds issued, $200.1 billion of proceeds were used to finance new projects, while the remaining $116.1 billion of proceeds refunded prior Governmental bond issues. In addition, over 4,300 tax-exempt private activity bonds were issued in 2007, for a total $137.4 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 Internal Revenue Code section 501(c)(3) organizations (such as hospitals and private universities). Of the $136.6 billion of long-term private activity bonds issued, $86.6 billion of proceeds were used to finance new projects, while the remaining $50.0 billion of proceeds refunded prior tax-exempt private activity bond issues.

Data Sources and Limitations

The data presented in this article are based on the populations of Forms 8038, Information Return for Tax-Exempt Private Activity Bond Issues, and Forms 8038-G, Information Return for Tax-Exempt Governmental Obligations, filed with the Internal Revenue Service for bonds issued during Calendar Year 2007. The data exclude returns filed for commercial paper transactions, as well as issues that are loans from the proceeds of another tax-exempt bond issue (pooled financings). Additionally, except where specifically mentioned, the data exclude returns filed for tax-credit bonds, which are treated separately for the purposes of this article.

Bond issuers were required to file bond information returns by the 15th day of the second calendar month after the close of the calendar quarter in which the bond was issued. However, in an effort to include as many applicable returns for a particular issue year as possible, the study period extended well beyond this timeframe. The study includes returns processed by the IRS from January 1, 2007, to May 31, 2009, for bonds issued in 2007. Where possible, data from amended returns filed and processed before the cutoff date were included. Late-filed returns for tax-exempt bonds issued during 2007, but processed after the cutoff date, were not included in the statistics.

During statistical processing, returns were subject to thorough testing and correction procedures to ensure data accuracy and validity. Additional checks were conducted to identify and exclude duplicate returns. Wherever possible, returns with incomplete information, mathematical errors, or other reporting anomalies were edited to resolve internal inconsistencies. However, in other cases, it was not possible to reconcile reporting discrepancies. Thus, some reporting and processing errors may remain.

Explanation of Selected Terms

Clean Renewable Energy Bonds (CREBs)--A type of tax-credit bond used to finance certain renewable energy and clean coal facilities. Section 54 of the Internal Revenue Code of 1986 (IRC) provides that the term clean renewable energy bond means any bond issued as part of an issue if (1) the bond is issued by a qualified issuer; (2) the bond is issued pursuant to an allocation by the Secretary of the Treasury to such issuer of a portion of the national clean renewable energy bond authority; (3) 95 percent or more of the proceeds of the issue are to be used for capital expenditures incurred by qualified borrowers for one or more qualified projects; (4) the qualified issuer designates such bond for purposes of section 54, and the bond is issued in registered form; and (5) the qualified issuer meets the applicable spending requirements.

Commercial paper--Commercial paper consists of short-term notes that are continually rolled over. Maturities average about 30 days but can extend up to 270 days. Many localities use commercial paper to raise cash needed for current transactions.

Enterprise Zone facility bond--A type of exempt facility bond, the proceeds of which may be used for certain businesses in "empowerment zones" or "enterprise communities." Empowerment zone and enterprise community designations are made by the Secretaries of Agriculture and Housing and Urban Development and last for a 10-year period. 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 (13) and 142(k)). These facilities include airports, docks and wharves, mass commuting facilities, facilities for the furnishing of water, sewage facilities, solid waste disposal facilities, qualified residential rental projects, facilities for the local furnishing of electric energy or gas, local district heating or cooling facilities, qualified hazardous waste facilities, high-speed intercity rail facilities, environmental enhancements of hydroelectric generating facilities, and qualified public educational facilities.

Governmental bond--Any obligation issued by a State or local government unit that is not a private activity bond (see below). The interest on a governmental bond is excluded from gross income under IRC section 103.

Gulf Opportunity Zone bond--The proceeds of such bonds are used to finance the construction and rehabilitation of certain residential and nonresidential property located in certain localities in Alabama, Louisiana, and Mississippi, designated as the "Gulf Opportunity Zone." This area constitutes the portion of the Hurricane Katrina disaster area determined by the President to warrant individual or individual and public assistance from the Federal Government, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

IRC section 1400N(a)(2) defines a qualified Gulf Opportunity Zone bond as any bond issued as part of an issue if it meets the following requirements: (1) 95 percent or more of the net proceeds is to be used for qualified project costs, or such issue meets the 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, 2011; and (5) no portion of the proceeds of such issue is to be used to provide any property described in IRC section 144(c)(6)(B).

Gulf Opportunity Zone bonds that meet the general requirements of a qualified mortgage bond issue, and the proceeds of such bond issues that finance residences located in the Gulf Opportunity Zone, shall be treated as qualified mortgage bonds ("Gulf Opportunity Zone Mortgage bonds"), as described in IRC section 1400N(a)(2)(A)(ii). The act also authorized the issuance of "Gulf Opportunity Zone Advance Refunding bonds," which allow for an additional advance refunding for certain bonds, issued by the States of Alabama, Louisiana, or Mississippi (or any political subdivision thereof), and outstanding on August 28, 2005. This provision was effective for bonds issued between December 21, 2005, and January 1, 2011. (See Internal Revenue Service Notice 2006-41, Internal Revenue Bulletin 2006-18, for additional information.)

New York Liberty Zone bonds--IRC section 1400L(d) authorizes the issuance of an additional type of exempt facility bond, namely, "Liberty bonds." Liberty bonds are subject to the following additional requirements: (1) 95 percent or more of the net proceeds of such issue must be used for qualified project costs; (2) the bond must be issued by the State of New York or any political subdivision thereof; (3) the Governor of the State of New York or the Mayor of the City of New York must designate the bond for purposes of section 1400L(d); and (4) the bond must have been issued after March 9, 2002, and before January 1, 2005. The maximum aggregate face amount of bonds that could be designated as Liberty bonds was $8 billion.

Nongovernmental output property bond--Bonds used to finance the acquisition of property used by a nongovernmental entity in connection with an output facility (such as an electric or gas power project). This bond must meet additional tests under IRC section 141(d).

Pooled financing-- An arrangement whereby a portion of the proceeds of a governmental bond issue is used to make loans to other governmental units.

Private activity bond--Bond issue of which more than 10 percent of the proceeds is used for any private business use, and more than 10 percent of the payment of the principal or interest is either secured by an interest in property to be used for private business use (or payment for such property), or is derived from payments for property (or borrowed money) used for a private business use. A bond is also considered a private activity bond if the amount of the proceeds used to make or finance loans (other than loans described in IRC section 141(c)(2)) to persons other than governmental units exceeds the lesser of 5 percent of the proceeds or $5 million.

Qualified green building and sustainable design project--Bond issue of which 95 percent or more of the net proceeds is used to finance qualified green building and sustainable design projects, as designated by the Secretary of the Treasury, after consultation with the Administrator of the Environmental Protection Agency. The project must be nominated by a State or local government, and the issuer must submit a detailed application to the Treasury Department for consideration, and, on approval, allocation of a specified issuance amount. (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 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 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 specified real property acquisition and redevelopment in blighted areas. (See IRC section 144(c) for additional requirements.)

Qualified section 501(c)(3) bond--A bond 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; 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 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--Section 54E(a) of the Internal Revenue Code provides that a qualified zone academy bond (QZAB) means 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 a qualified purpose with respect to a qualified zone academy established by an eligible local education agency; (2) the bond is issued by a State or local government within whose jurisdiction the academy is located, and (3) the issuer: (a) designates such bond for purposes of this section; (b) certifies that it has written assurances that the private business contribution requirement of subsection 54E(b) will be met; and, (c) certifies that it has written approval of the eligible local education agency for such bond issuance.

Tax Reform Act transition property bond--A bond issued under transitional rules contained in the Tax Reform Act of 1986. Proceeds from bonds issued under these rules include issues used to fund such items as pollution control facilities, parking facilities, industrial parks, sports stadiums, and convention facilities. Proceeds from other bonds issued under the transitional rules are included in this category only if they could not be identified as another issue type.

NOTE: Additional tax-exempt bond data, including data for prior years, can be found on the SOI's Tax Stats: http://www.irs.gov/taxstats. (Click on "Tax-Exempt Bonds.")

Appendix A

Historical Overview of Tax-Exempt Bond Legislation, 1986-2008 171

* The Tax Reform Act of 1986 (TRA86) included significant legislation intended to curb the use of tax-exempt bonds for private purposes.

* TRA86 eliminated the use of tax-exempt bonds for privately-owned pollution control, water, sewer, and solid waste facilities; sports convention and trade show facilities, parking, and industrial parks.

* The Act reduced the limit on private use of bond proceeds from 25 percent to 10 percent.

* The Act further tightened state volume limitations for private activity tax-exempt bonds through the unified state volume cap, which limited total state issuance. States were then left to allocate issuance amounts for each permitted bond type.

* TRA86 imposed a limit of one advance refunding for Governmental bonds and qualified 501(c)(3) bonds, and prohibited advance refundings entirely for qualified private activity bonds.

* TRA86 also made interest income on tax-exempt private activity bonds subject to alternative minimum tax requirements.

* The Technical and Miscellaneous Revenue Act of 1988 expanded the definition of exempt facility types to include high-speed intercity rail facilities. Seventy-five percent of the principal amount of the bonds issued for high-speed rail facilities is exempt from the volume cap limit. However, if the property to be financed is owned by a governmental unit, then the bonds are completely exempt from the volume limit.

* The Energy Policy Act of 1992 expanded the definition of exempt facility types to include environmental enhancements of hydro-electric generating facilities. Eligible facilities include those that protect or promote fisheries or other wildlife resources and those for recreational purposes or other improvements required by the terms of a Federal license for the operation of a hydroelectric generating facility. Bonds issued for these purposes are not subject to volume cap limitations.

* The Omnibus Budget Reconciliation Act of 1993 authorized the designation of nine empowerment zones and 95 enterprise communities to provide tax incentives for businesses to locate within certain geographic areas designated by the Secretaries of Housing and Urban Development and Agriculture.

* The Act expanded the definition of exempt facility types to include qualified enterprise zone facility bonds, which can be used by entities in the designated "Empowerment Zones" and "Enterprise Communities."

* The Taxpayer Relief Act of 1997

* The Act provided certain economically depressed census tracts within the District of Columbia designation as the "D.C. Enterprise Zone."

* The Act also authorized the issuance of Qualified Zone Academy Bonds (QZABs), the first type of tax-credit bond. A QZAB is a taxable bond issued by a state or local government, the proceeds of which are used to improve certain eligible public schools. Initially, $400 million of QZABs was authorized to be issued annually in calendar years 1998 and 1999.

* The Economic Growth and Tax Reconciliation Act of 2001 expanded the definition of exempt facility types to include qualified public educational facility bonds, pursuant to IRC sections 142(a)(13) and 142(k). Issuance authority for this type of private activity bond applies to bonds issued after December 31, 2001 and before January 1, 2011 and is based on state population (but not subject to the unified volume cap).

* The Job Creation and Worker Assistance Act of 2002

* The Act created IRC section 1400L to provide various tax benefits for the area of New York City damaged or affected by the terrorist attack on September 11, 2001. The Act authorized the issuance of up to $8 billion of Liberty Zone bonds, and up to $9 billion of Liberty Zone Advance Refunding bonds to be issued after March 9, 2002, and before January 1, 2005.

* The Act also authorized issuance of up to $400 million of QZABs annually in calendar years 2002 and 2003.

* The American Jobs Creation Act of 2004 expanded the definition of exempt facility types to include qualified green building and sustainable design projects. With certain exceptions, up to $2 billion were authorized for applicable bonds issued after December 31, 2004, and before October 1, 2009.

* The Energy Tax Policy Act of 2005, enacted on August 6, 2005, introduced the second type of tax-credit bond--Clean Renewable Energy Bonds (CREBs)--pursuant to IRC section 54. Initially, $800 million of CREBs was authorized to be issued before December 21, 2007. The allocation is under the jurisdiction of the Secretary of the Treasury.

* The Safe, Accountable, Flexible, Efficient, Transportation Equity Act of 2005, enacted on August 10, 2005, expanded the definition of exempt facility types to include qualified highway or surface freight transfer facilities, pursuant to IRC sections 142(a)(15) and 142(m). The allocation of the $15 billion national limitation is under the jurisdiction of the Department of Transportation.

* The Katrina Emergency Tax Relief Act of 2005, enacted on September 23, 2005, waived certain requirements applicable to qualified mortgage bonds under IRC section 143 by treating certain qualified residences as targeted area residences and increasing the permitted amount of a qualified home improvement loan with respect to such residences.

* The Gulf Opportunity Zone Act of 2005 was enacted on December 21, 2005.

* The Act was created to provide various tax benefits for certain areas of Alabama, Louisiana, and Mississippi--designated as the "Gulf Opportunity Zone" pursuant to IRC section 1400M--that were devastated by Hurricane Katrina.

* Pursuant to IRC section 1400N, the Act created three new types of tax-exempt bonds: Gulf Opportunity Zone facilities bonds, Gulf Opportunity Zone mortgage bonds, and Gulf Opportunity Zone Advance Refunding bonds. Issuance authority applied to bonds issued after December 21, 2005, and before January 1, 2011.

* The Act also created a third type of tax-credit bond--Gulf tax-credit bonds. The maximum amount of Gulf tax-credit bonds authorized was $200 million in Louisiana, $100 million in Mississippi, and $50 million in Alabama. Issuance authority applied to bonds issued after December 21, 2005, and before January 1, 2007.

* The Tax Relief and Healthcare Act of 2006

* The Act provided for $400 million of QZAB issuance authority for each of the calendar years 2006 and 2007. The Act also modified the current provisions by imposing the arbitrage restrictions of IRC section 148 to QZABs, and by requiring issuers to submit to the IRS information filings in a manner similar to tax-exempt bond issuers.

* The Act increased the national bond volume cap for CREBs from $800 million to $1.2 billion, and extended issuance authority an additional year, through December 31, 2008. Further, the Act increased the maximum amount of CREBs that may be allocated to projects for governmental bodies to $750 million (from $500 million).

* It also made permanent the modifications (from The Tax Increase Prevention and Reconciliation Act of 2005) to state volume limits for qualified veterans' mortgage bonds issued in certain states; and expanded the permitted use of qualified mortgage bonds to finance mortgages for veterans who served in the active military without regard to the first-time homebuyer requirement.

* The Energy Improvement and Extension Act of 2008 was enacted on October 3, 2008.

* The Act provided for $800 million of New CREB issuance authority, applicable to qualified bonds issued after the date of enactment.

* The Act also created Qualified Energy Conservation Bonds (QECBs), a new category of tax-credit bonds pursuant to IRC section 54D. The national bond volume cap for QECBs is $800 million. Each State receives a population-based QECB allocation, which then must be allocated to large, local governments in a similar fashion.

* The Tax Extenders and Alternative Minimum Tax Relief Act of 2008, enacted on October 3, 2008, provided for $400 million of QZAB issuance authority for each of calendar years 2008 and 2009.

* The Housing Assistance Tax Act of 2008 enacted on July 30, 2008, amended IRC sections 143 and 146 related to qualified mortgage bonds. Specifically, the Act provided a temporary $11 billion increase in the annual private activity bond volume cap under section 146 for qualified housing issues and eased restrictions to permit the use of qualified mortgage bonds to refinance certain subprime mortgage loans.

Appendix B

American Recovery and Reinvestment Act of 2009 Tax-Credit Bond Provisions 174

* American Recovery and Reinvestment Act of 2009 (ARRA09) was enacted on February 17, 2009, to help stimulate the U.S. economy by providing tax incentives for infrastructure projects and promoting job growth. ARRA09 included several new types of tax-exempt and tax-credit bonds.

* Build America Bonds (BABs) are a new category of taxable tax-credit bonds that bond issuers can elect to issue in lieu of tax-exempt bonds. Specifically, as defined by IRC section 54AA(d), a Build America Bond is any taxable State or local governmental bond (excluding a private activity bond under section 141) that meets the following requirements: (1) the interest on said bond would (except for section 54AA) be excludable from gross income under section 103; (2) the bond is issued before January 1, 2011; and (3) the issuer makes an irrevocable election to have section 54AA apply.

* There are two general types of Build America Bonds:

* "Build America Bonds (Tax-Credit)" provide a Federal subsidy through Federal tax credits to bond investors in an amount equal to 35 percent of the total coupon interest payable by the issuer on taxable governmental bonds (net of the tax credit). This represents a Federal subsidy to the State or local governmental issuer equal to approximately 25 percent of the total return to the investor (including the coupon interest paid by the issuer and the tax credit). This type of Build America Bond generally may be used to finance any governmental purpose for which conventional tax-exempt governmental bonds could be issued under section 103 (excluding private activity bonds under section 141).

* "Build America Bonds (Direct Payment)" provide a Federal subsidy through a refundable tax credit paid to State or local governmental issuers by the Treasury Department and the Internal Revenue Service in an amount equal to 35 percent of the total coupon interest payable to investors in these taxable bonds. This type of Build America Bond generally may be used to finance only capital expenditures and certain issuance costs and reasonably required reserve funds.

* Recovery Zone Bonds provide tax incentives for State and local governmental borrowing at lower borrowing costs to promote job creation and general economic recovery that is targeted to areas particularly affected by employment declines.

* Specifically, a "Recovery Zone" is defined in section 1400U-1 as: (1) any area designated by the issuer as having significant poverty, unemployment, rate of home foreclosures, or general distress; (2) any area designated by the issuer as economically distressed by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990; and, (3) any area for which a designation as an empowerment zone or renewal community is in effect as of the effective date of ARRA09.

* Recovery Zone Economic Development Bonds (Direct Payment), defined by IRC section 1400U-2, represent a third type of Build America Bond. Recovery Zone Economic Development Bonds are comparable to Build America Bonds (Direct Payment), except that they provide for a deeper Federal subsidy through a refundable tax credit paid to State or local governmental issuers in an amount equal to 45 percent (rather than 35 percent) of the total coupon interest payable to investors in these taxable bonds and they have different program requirements regarding eligible uses of proceeds for "qualified economic development purposes" within recovery zones.

* Recovery Zone Facility Bonds--ARRA09 created this new type of exempt facility bond, defined by IRC section 1400U-3. Proceeds of such bond issues may be used to finance certain "recovery zone property."

* Recovery Zone Bonds may be issued by each State and counties and large municipalities within each State before January 1, 2011. Section 1400U-1 imposes a national bond volume cap of $10 billion for Recovery Zone Economic Development Bonds and $15 billion for Recovery Zone Facility Bonds. The volume cap for Recovery Zone Bonds is allocated among the States and counties, and large municipalities within the States, based on relative declines in employment in 2008.

* Qualified Energy Conservation Bonds (QECBs)--ARRA09 increased the national bond volume cap for QECBs from $800 million to $3.2 billion.

* Qualified School Construction Bonds (QSCBs)--ARRA09 created this new type of tax-credit bond. Pursuant to IRC section 54F, a QSCB is defined as any bond issued as a part of an issue if (1) 100 percent of the available project proceeds of such issue are to be used for the construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds of such issue; (2) the bond is issued by a State or local government within the jurisdiction of which such school is located, and (3) the issuer designates such bond purposes of this section.

* The Act added section 54F(c) to provide a national bond limitation authorization for QSCBs of $11 billion for each of the calendar years 2009 and 2010.

* Tribal Economic Development Bonds were created under IRC section 7871(f) of ARRA09. In general, the purpose of new section 7871(f) was to give Indian tribal governments greater flexibility to use tax-exempt bonds to finance economic development projects. Prior to ARRA09, generally, the use of tax-exempt bonds by Indian tribal governments was limited to certain manufacturing facilities and activities that constitute essential governmental functions customarily performed by State and local governments with general taxing powers. With the changes enacted in ARRA09, the current law rules that restricted the purpose of tribal bonds to "essential governmental functions" no longer apply to these bonds, and the bonds could be issued as tax-exempt private activity bonds. However, there are still restrictions on the use of tax-exempt bond proceeds to finance certain gaming facilities and facilities outside an Indian reservation. The national bond volume cap for Tribal Economic Development Bonds is $2 billion.

* New Clean Renewable Energy Bonds (New CREBs)--IRC section 54C(c) provides for an increase in the national bond volume cap for New CREBs, from $800 million to $2.4 billion. Section 54C(c)(2) provides that the Secretary shall allocate no more than one third of the volume cap to qualified projects owned by public power providers, governmental bodies, and cooperative electric companies, respectively.

* Qualified Zone Academy Bonds (QZABs)--The Act further amended IRC section 54E(c)(1) to provide an increased national zone academy bond limitation authorization for QZABs of $1.4 billion for each of the calendar years 2009 and 2010.

* IRC section 54E(d) defines a "qualified zone academy" as any public school (or academic program within a public school) which is established by and operated under the supervision of an eligible local education agency to provide education or training below the postsecondary level provided: (1) the public school or program is designed in cooperation with business to enhance the academic curriculum, increase graduation and employment rates and prepare students for college or the workforce; (2) students will be subject to the same academic standards and assessments as other students educated by the eligible local education agency; (3) the comprehensive education plan is approved by the eligible local education agency; and (4)(i) such public school is located in an empowerment zone or enterprise community including such designated after October 3, 2008; or (ii) there is a reasonable expectation (as of the date of bond issuance) that at least 35 percent of the students will be eligible for free or reduced cost lunches under the school lunch program established under the National School Lunch Act.

Tax-Credit Bonds

Tax-credit bonds are different from tax-exempt bonds in that they are not interest-bearing obligations. In lieu of receiving periodic interest payments from the issuer, a bondholder is generally allowed an annual income tax credit while the bond is outstanding. The amount of the credit is determined by multiplying the bond's credit rate by the face amount on the holder's bond. The credit rate on the bonds is determined by the U.S. Secretary of the Treasury and is an estimate of the rate that permits issuance of such bonds without discount and interest cost to the qualified issuer. The credit is includable in the bondholder's gross income (as if it were an interest payment on the bond), and it can be claimed against regular income tax liability and alternative minimum tax liability.

Among other provisions included as part of the Taxpayer Relief Act of 1997 was the creation of the first type of tax-credit bond--the Qualified Zone Academy bond. In 2005, two additional types--clean renewable energy bonds and Gulf tax-credit bonds--were created. In prior years, the lack of information reporting requirements and generally low issuance volumes prevented SOI from publishing separate data for tax-credit bonds. More recently, issuers of tax-credit bonds were required to submit to the IRS information filings similar to those required of tax-exempt bond issuers. Calendar Year 2007 marks the first issue year for which significant numbers of returns were filed for tax-credit bonds.

In 2007, State and local governments issued $144 million in new money long-term tax-credit bonds. These bonds were primarily issued as: Qualified Zone Academy bonds or clean renewable energy bonds.

The five States with the highest issuance of tax-credit bonds were Louisiana, Oregon, Kansas, Arkansas, and Massachusetts. Combined, they issued 23.6 percent of the new money long-term tax credit bonds.
Total Tax-Exempt and Tax Credit Bonds, 2007

[Money amounts are in millions of dollars]

Type of Bond Number Amount

 (1) (2)

Total [1] 29,714 516,901

 Tax-Exempt Bonds 29,633 516,757
 Tax Credit Bonds 81 144

New Money, Long-Term Tax-Credit Bonds, by
State of Issue and Bond Purpose, 2007 [2]

[Money amounts are in millions of dollars]

 Total tax Qualified Clean renewable
 credit zone academy energy bonds
State bonds [1] bonds [2] [2]

 Number Amount Number Amount Number Amount

 (1) (2) (3) (4) (5) (6)

All States 81 144 64 119 17 24

 Arkansas 7 5 7 5 0 0
 Kansas 7 6 7 6 0 0
 Louisana 3 12 3 12 0 0
 Massachusetts 12 3 0 0 12 0
 Missouri 3 2 3 2 0 0
 Oklahoma 5 1 5 1 0 0
 Oregon 8 8 8 8 0 0
 Wisconsin 3 1 3 1 0 0
 All other
 States,
 combined 33 105 28 85 5 21

[1] Includes combined data from all governmental and private
activity bond returns (Forms 8038-G and 8038) combined.

[2] Includes data from governmental and private activity bond
returns (Forms 8038-G and 8038) that specifically referenced
"qualified zone academy" bonds or "clean

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


(1) The term "State" includes the District of Columbia and any Possession of the United States.

(2) 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 bondholders.

(3) An arbitrage bond is one in which any portion of the proceeds is used to purchase higher-yielding investments, or is used to replace proceeds which have been used to purchase higher-yielding investments. Certain rules allow for arbitrage earnings with respect to tax-exempt bonds within a specified time period, so long as these earnings are rebated to the Department of the Treasury.

(4) 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 on its records." (From the Municipal Securities Rulemaking Board's Glossary of Municipal Securities Terms http://www.msrb.org/msrbl/glossary/. See also IRC section 149(a) for additional information.)

(5) 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.

(6) 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.

(7) The interest income from qualified private activity bonds (other than qualified section 501(c)(3) bonds) is subject to the alternative minimum tax requirements.

(8) The resident population estimates were released by the U.S. Census Bureau on December 22, 2006, in Press Release CB06-187.

(9) U.S. Possessions include Puerto Rico, the U.S. Virgin Islands, Guam, and the Northern Mariana Islands.

(10) For 2007, the volume cap was the greater of $85 per capita or $256,235,000. Volume caps for U.S. Possessions, with populations less than the population of the least populous State, are determined under IRC section 146(d)(4).

(11) Disproportionate use occurs when the proceeds to be used for the private business use exceed the amount of proceeds used for the related governmental use.

(12) IRC section 141(b)(5) states that a governmental bond will be treated as a private activity bond if: (1) the "nonqualified amount" exceeds $15 million, but is less than the amount needed to meet any of the private activity bond tests; and (b) the issuer does not allocate a portion of its volume cap to the issue in an amount equal to the excess of such nonqualified amount over $15 million.

Emily Shammas is an economist with the Special Studies Special Projects Section. This data release was prepared under the direction of Melissa R. Ludlum, Chief.
Table 1. Tax-Exempt Governmental Bonds, by
Type and Term of Issue, 2007

[Money amounts are in millions of dollars]

Type and term of issue Number Amount

All issues, total [1] 25,253 379,326

 Short-term 6,798 63,076
 Long-term 18,455 316,250

New money issues, total 21,000 252,566

 Short-term 5,125 52,419
 Long-term 15,875 200,148

Refunding issues, total 6,425 126,759

 Short-term 2,303 10,657
 Long-term 4,122 116,102

[1] A given bond issue can include both new money and refunding
proceeds. Thus, the number of new money issues plus the number of
refunding issues will sometimes exceed the total number of issues.
However, the money amounts add to the totals.

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

Table 2. Long-Term Tax-Exempt Governmental Bonds, by Bond Purpose
and Type of Issue, 2007

[Money amounts are in millions of dollars]

 New money
 All issues issues

Bond purpose Number Amount Number Amount

 (1) (2) (3) (4)

Total [1] 18,455 316,250 15,875 200,148
 Education 6,137 105,660 5,187 71,595
 Health and hospital 374 5,772 333 3,210
 Transportation 1,215 36,583 1,063 23,698
 Public safety 2,391 6,815 2,285 4,941
 Environment 1,325 16,008 1,102 9,659
 Housing 126 1,830 98 628
 Utilities 2,180 50,479 1,724 32,019
 Bond and tax/revenue 310 3,739 281 3,284
 anticipation notes
 Other purposes [2] 5,662 89,363 4,852 51,113

 Refunding
 issues

Bond purpose Number Amount

 (5) (6)

Total [1] 4,122 116,102
 Education 1,411 34,065
 Health and hospital 80 2,562
 Transportation 277 12,885
 Public safety 219 1,874
 Environment 430 6,349
 Housing 46 1,202
 Utilities 820 18,460
 Bond and tax/revenue 48 455
 anticipation notes
 Other purposes [2] 1,415 38,250

[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.

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

Table 3. Computation of Lendable Proceeds for Long-Term Tax-Exempt
Governmental Bonds, by Bond Purpose, 2007

[Money amounts are in millions of dollars.]

Bond purpose Entire issue Bond issuance
 price costs

 Number Amount Number Amount
 (1) (2) (3) (4)

Total [1] 18,455 316,250 11,081 2,658
 Education 6,137 105,660 3,758 855
 Health and hospital 374 5,772 191 58
 Transportation 1,215 36,583 828 251
 Public safety 2,391 6,815 785 74
 Environment 1,325 16,008 881 142
 Housing 126 1,830 91 12
 Utilities 2,180 50,479 1,818 465
 Bond and tax/revenue 310 3,739 217 10
 anticipation notes
 Other purposes [2] 5,662 89,363 3,681 790

Bond purpose Credit Allocation to
 enhancement reserve fund

 Number Amount Number Amount
 (5) (6) (7) (8)

Total [1] 4,556 896 1,403 2,893
 Education 1,882 196 216 785
 Health and hospital 55 26 35 85
 Transportation 320 149 104 280
 Public safety 275 17 64 60
 Environment 332 35 131 111
 Housing 26 3 27 10
 Utilities 807 150 326 751
 Bond and tax/revenue 3 1 0 0
 anticipation notes
 Other purposes [2] 1,428 319 553 810

Bond purpose Total lendable Proceeds used to
 proceeds refund prior issues

 Number Amount Number Amount
 (9) (10) (11) (12)

Total [1] 18,453 309,802 4,122 114,320
 Education 6,136 103,824 1,411 33,706
 Health and hospital 374 5,603 80 2,500
 Transportation 1,215 35,903 277 12,645
 Public safety 2,390 6,665 219 1,842
 Environment 1,325 15,719 430 6,272
 Housing 126 1,804 46 1,194
 Utilities 2,180 49,112 820 18,160
 Bond and tax/revenue 310 3,728 48 454
 anticipation notes
 Other purposes [2] 5,662 87,445 1,415 37,546

Bond purpose Nonrefunding proceeds

 Number Amount
 (13) (14)

Total [1] 15,873 195,483
 Education 5,186 70,118
 Health and hospital 333 3,103
 Transportation 1,063 23,258
 Public safety 2,284 4,823
 Environment 1,102 9,447
 Housing 98 609
 Utilities 1,724 30,952
 Bond and tax/revenue 281 3,274
 anticipation notes
 Other purposes [2] 4,852 49,899

[1] A given bond issue can include more thanone 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 obligation which a specific
purpose either did not apply or was not clearly indicated
on the Form 8038-G.

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

Table 4. New Money Long-Term Tax-Exempt Governmental Bonds, by Bond
Purpose and Size of Entire Issue, 2007

[Money amounts are in millions of dollars, except for size of entire
issue, which is in whole dollars]

 Size of entire issue

Bond purpose All issues Under $500,000 [1]

 Number Amount Number Amount

 (1) (2) (3) (4)

Total [2] 15,875 200,148 5,688 1,340
 Education 5,187 71,595 1,702 403
 Health and hospital 333 3,210 99 25
 Transportation 1,063 23,698 343 75
 Public safety 2,285 4,941 1,350 310
 Environment 1,102 9,659 253 60
 Housing 98 628 10 3
 Utilities 1,724 32,019 290 71
 Bond and tax/revenue 281 3,284 29 9
 anticipation notes
 Other purposes [3] 4,852 51,113 1,657 384

 Size of entire issue

Bond purpose $500,000 $1,000,000
 under under
 $1,000,000 $5,000,000

 Number Amount Number Amount

 (5) (6) (7) (8)

Total [2] 1,943 1,335 3,792 8,831
 Education 590 412 1,113 2,551
 Health and hospital 36 25 90 204
 Transportation 121 77 258 464
 Public safety 307 200 348 673
 Environment 148 93 339 593
 Housing 17 12 34 73
 Utilities 192 122 598 1,259
 Bond and tax/revenue 43 30 151 353
 anticipation notes
 Other purposes [3] 542 364 1,205 2,660

 Size of entire issue

 $5,000,000 $10,000,000
 under under
 $10,000,000 $25,000,000

 Number Amount Number Amount

 (9) (10) (11) (12)

Total [2] 1,619 10,619 1,296 18,216
 Education 595 4,039 516 7,096
 Health and hospital 43 252 19 237
 Transportation 91 456 85 888
 Public safety 109 529 89 843
 Environment 131 679 101 1,067
 Housing 6 35 14 147
 Utilities 260 1,426 160 1,907
 Bond and tax/revenue 31 181 15 176
 anticipation notes
 Other purposes [3] 507 3,023 476 5,855

 Size of entire issue

 $25,000,000 $75,000,000
 under or
 $75,000,000 more

 Number Amount Number Amount

 (13) (14) (15) (16)

Total [2] 962 35,943 575 123,864
 Education 450 16,524 221 40,572
 Health and hospital 24 732 22 1,736
 Transportation 85 2,435 80 19,302
 Public safety 53 1,095 29 1,290
 Environment 77 2,148 53 5,020
 Housing 10 223 7 136
 Utilities 129 3,750 95 23,483
 Bond and tax/revenue 6 203 6 2,332
 anticipation notes
 Other purposes [3] 278 8,835 187 29,993

[1] Form 8038-G returns 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, 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.

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

Table 5. New Money Long-Term Tax-Exempt Governmental Bonds, by State
of Issue and Bond Purpose, 2007

[Money amounts are in millions of dollars]

 Bond purpose

State of issue Total [1] Education

 Number Amount Number Amount

 (1) (2) (3) (4)

All States 15,875 200,148 5,187 71,595
Alabama 332 4,351 73 1,863
Alaska 33 502 16 99
Arizona 356 5,898 166 1,541
Arkansas 299 1,199 118 586
California 1,168 30,919 470 12,475
Colorado 298 3,031 72 966
Connecticut 138 1,935 69 388
Delaware 38 415 5 259
District of Columbia 10 1,357 0 0
Florida 514 12,552 99 4,887
Georgia 414 7,232 109 2,983
Hawaii 19 795 0 0
Idaho 80 472 23 308
Illinois 824 6,848 411 2,681
Indiana 422 3,146 137 1,119
Iowa 336 1,104 99 529
Kansas 298 1,557 83 621
Kentucky 296 3,392 127 817
Louisiania 224 1,752 35 309
Maine 132 312 55 65
Maryland 172 3,159 40 888
Massachusetts 254 4,801 79 1,695
Michigan 497 3,628 160 1,426
Minnesota 623 3,662 99 569
Mississippi 243 873 35 192
Missouri 477 3,676 185 1,251
Montana 71 181 17 82
Nebraska 506 2,300 56 223
Nevada 55 1,658 11 802
New Hampshire 89 280 27 37
New Jersey 382 4,236 197 1,501
New Mexico 145 1,364 54 325
New York 718 12,305 383 2,604
North Carolina 450 5,405 82 2,034
North Dakota 127 225 23 38
Ohio 380 8,594 120 6,349
Oklahoma 357 1,552 231 677
Oregon 183 2,769 70 1,268
Pennsylvania 632 5,854 239 2,191
Rhode Island 64 791 14 242
South Carolina 251 2,095 50 728
South Dakota 72 346 24 116
Tennesse 214 1,600 52 730
Texas 1,377 22,347 410 9,009
Utah 159 1,511 36 674
Vermont 59 217 14 42
Virginia 252 4,330 80 1,460
Washington 219 5,116 67 1,361
West Virginia 109 288 17 85
Wisconsi 447 1,850 120 477
Wyoming 49 53 28 23
U.S. Possessions [3] 11 4,314 0 0

 Bond purpose

State of issue Health and Transportation
 hospital

 Number Amount Number Amount

 (5) (6) (7) (8)

All States 333 3,210 1,063 23,698
Alabama d d 11 50
Alaska 0 0 d d
Arizona d d 20 782
Arkansas d d 14 72
California d d 100 2,424
Colorado 5 95 12 128
Connecticut d d 17 371
Delaware 0 0 16 8
District of Columbia 0 0 0 0
Florida 4 116 33 1,464
Georgia d d 17 362
Hawaii 10 40 0 0
Idaho d d 7 2
Illinois 4 35 40 863
Indiana d d 24 64
Iowa d d 28 27
Kansas 15 40 37 100
Kentucky 5 58 14 470
Louisiania 14 24 20 52
Maine 0 0 18 69
Maryland 8 47 13 883
Massachusetts 0 0 41 251
Michigan 9 12 38 685
Minnesota 10 95 41 173
Mississippi 10 58 8 107
Missouri d d 49 770
Montana 0 0 5 8
Nebraska 9 9 23 9
Nevada d d 4 246
New Hampshire 0 0 8 19
New Jersey 14 6 7 1,213
New Mexico 0 0 3 4
New York 4 188 32 3,435
North Carolina 11 845 10 464
North Dakota 0 0 9 6
Ohio 5 14 26 520
Oklahoma 21 186 13 173
Oregon 5 4 18 784
Pennsylvania d d 25 466
Rhode Island 0 0 d d
South Carolina d d 12 522
South Dakota 0 0 9 13
Tennesse d d 14 31
Texas 25 303 58 3,211
Utah 4 24 7 249
Vermont 0 0 3 [2]
Virginia 4 7 22 223
Washington 16 137 18 1,448
West Virginia d d 5 42
Wisconsi d d 107 332
Wyoming d d 0 0
U.S. Possessions [3] d d 0 0

 Bond purpose

State of issue Public safety Environment

 Number Amount Number Amount

 (9) (10) (11) (12)

All States 2,285 4,941 1,102 9,659
Alabama 39 66 5 28
Alaska d d 0 0
Arizona 59 83 d d
Arkansas 29 34 16 207
California 110 266 61 1,952
Colorado 49 42 d d
Connecticut 36 54 25 53
Delaware 7 15 3 38
District of Columbia 0 0 d d
Florida 77 242 12 432
Georgia 84 335 75 514
Hawaii 0 0 6 166
Idaho 10 33 8 41
Illinois 80 131 22 57
Indiana 81 111 46 451
Iowa 30 18 19 84
Kansas 30 45 29 64
Kentucky 33 27 10 131
Louisiania 65 161 15 115
Maine 19 10 7 15
Maryland 35 100 56 400
Massachusetts 63 52 46 307
Michigan 56 36 76 467
Minnesota 39 149 55 509
Mississippi 56 53 6 17
Missouri 74 147 26 220
Montana 7 5 10 9
Nebraska 27 24 8 12
Nevada 5 16 6 120
New Hampshire 20 53 15 22
New Jersey 60 120 23 196
New Mexico 28 76 15 44
New York 97 417 25 150
North Carolina 140 618 d d
North Dakota d d 3 21
Ohio 57 69 20 167
Oklahoma 23 44 5 5
Oregon 38 124 3 4
Pennsylvania 107 111 103 838
Rhode Island 16 27 8 98
South Carolina 65 58 18 32
South Dakota 6 24 5 6
Tennesse 43 162 10 28
Texas 161 426 d d
Utah 23 39 d d
Vermont 10 2 6 1
Virginia 56 235 27 502
Washington 27 21 6 64
West Virginia 32 12 26 106
Wisconsi 65 44 69 233
Wyoming 8 6 d d
U.S. Possessions [3] 0 0 d d

 Bond purpose

State of issue Housing Utilities

 Number Amount Number Amount

 (13) (14) (15) (16)

All States 98 628 1,724 32,019
Alabama d d 47 1,476
Alaska 0 0 3 117
Arizona 0 0 24 2,137
Arkansas d d 73 176
California d d 78 6,653
Colorado 7 25 27 765
Connecticut d d 6 36
Delaware 0 0 d d
District of Columbia d d 0 0
Florida d d 76 2,081
Georgia d d 32 1,840
Hawaii 0 0 0 0
Idaho d d 4 2
Illinois 3 3 48 1,224
Indiana d d 25 883
Iowa d d 36 73
Kansas 0 0 40 307
Kentucky 0 0 40 853
Louisiania d d 18 87
Maine 0 0 8 15
Maryland d d 9 184
Massachusetts 0 0 d d
Michigan 3 6 49 163
Minnesota 6 32 73 361
Mississippi 0 0 13 37
Missouri d d 45 729
Montana 0 0 9 7
Nebraska 0 0 42 1,767
Nevada d d d d
New Hampshire d d d d
New Jersey 3 32 14 21
New Mexico 0 0 12 136
New York 5 83 18 133
North Carolina d d 43 385
North Dakota d d 71 142
Ohio 3 41 21 426
Oklahoma 0 0 23 265
Oregon 0 0 14 56
Pennsylvania d d 29 295
Rhode Island d d d d
South Carolina 0 0 28 375
South Dakota 3 3 9 78
Tennesse d d 60 379
Texas 0 0 304 5,113
Utah d d 45 301
Vermont 0 0 9 7
Virginia 0 0 27 388
Washington 8 31 35 587
West Virginia d d d d
Wisconsi d d 81 139
Wyoming 0 0 3 16
U.S. Possessions [3] 0 0 d d

 Bond purpose

State of issue Bond and tax/ Other purposes
 revenue [4]
 anticipation
 notes

 Number Amount Number Amount

 (17) (18) (19) (20)

All States 281 3,284 4,852 51,113
Alabama d d 159 832
Alaska 0 0 10 189
Arizona d d 91 1,298
Arkansas 0 0 50 72
California 5 485 316 6,195
Colorado d d 119 990
Connecticut 0 0 59 1,018
Delaware d d 7 92
District of Columbia 0 0 d d
Florida d d 213 3,273
Georgia 0 0 106 968
Hawaii 0 0 3 589
Idaho 10 21 15 60
Illinois 4 24 231 1,830
Indiana 14 34 89 464
Iowa 17 76 121 257
Kansas 14 16 96 365
Kentucky 13 66 57 969
Louisiania d d 52 966
Maine 8 18 29 120
Maryland d d 72 646
Massachusetts d d 157 2,431
Michigan 3 1 112 832
Minnesota 33 69 290 1,704
Mississippi 0 0 117 410
Missouri d d 91 456
Montana 3 5 20 65
Nebraska 25 86 325 171
Nevada 0 0 18 453
New Hampshire 8 12 21 109
New Jersey 3 6 98 1,140
New Mexico 0 0 33 780
New York 7 765 174 4,529
North Carolina 0 0 185 882
North Dakota 0 0 16 16
Ohio 4 6 130 1,002
Oklahoma 0 0 49 202
Oregon 4 21 35 508
Pennsylvania 22 339 113 1,594
Rhode Island 0 0 24 415
South Carolina d d 81 367
South Dakota 4 14 14 92
Tennesse 18 51 57 193
Texas d d 403 4,031
Utah 3 21 38 187
Vermont 0 0 19 164
Virginia 11 66 71 1,447
Washington 6 36 47 1,432
West Virginia d d 25 29
Wisconsi 16 60 173 547
Wyoming 0 0 d d
U.S. Possessions [3] d d 5 2,609

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] Indicates an amount less than $500,000.

[3] U.S. Possessions include Puerto Rico, the U.S. Virgin Islands,
Guam, and the Northern Mariana Islands.

[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.

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

Table 6. Tax-Exempt Private Activity Bonds, by Type
and Term of Issue, 2007

[Money amounts are in millions of dollars]

Type and term of issue Number Amount

All issues, total [1] 4,380 137,432
 Short-term 70 878
 Long-term 4,310 136,553
New money issues, total 3,637 87,172
 Short-term 51 596
 Long-term 3,586 86,576
Refunding issues, total 1,499 50,260
 Short-term 25 283
 Long-term 1,474 49,977

[1] A given bond issue can include both new money and refunding
proceeds. Thus, the number of new money issues plus the number
of refunding issues will sometimes exceed the total number of
issues. However, the money amounts add to the totals.

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

Table 7. Long-Term Tax-Exempt Private Activity Bonds, by Bond Purpose
and Type of Issue, 2007

[Money amounts are in millions of dollars]

Bond purpose All issues New money issues

 Number Amount Number Amount

 (1) (2) (3) (4)

Total [1] 4,310 136,553 3,586 86,576
 Airport 69 6,819 47 3,578
 Docks and wharves 21 1,360 12 405
 Water 18 388 13 256
 Sewage 26 458 16 346
 Solid waste disposal 142 4,183 124 3,316
 Qualified residential rental 619 9,106 508 7,359
 Local electricity or gas 6 359 4 163
 furnishing facilities
 Local district heating or d d d d
 cooling facilities
 Qualified hazardous waste 43 3,903 5 512
 facilities
 Tax Reform Act of 1986 d d d d
 transition property
 Qualified new empowerment 3 60 3 60
 zone
 Qualified public educational d d d d
 facilities
 Qualified green building and d d d d
 sustainable design
 Qualified Gulf Opportunity 79 3,973 78 3,912
 Zone and Gulf Opportunity
 Zone mortgage
 Qualified New York Liberty 3 395 d d
 Zone
 Qualified mortgage 312 24,472 259 13,508
 Qualified veterans' mortgage 8 374 4 119
 Qualified small issue 775 2,531 729 2,383
 Qualified student loan 34 5,330 33 4,489
 Qualified redevelopment d d d d
 Qualified hospital 436 28,923 344 17,270
 Qualified section 501(c)(3) 1,754 42,061 1,428 27,352
 nonhospital
 Gulf Opportunity Zone advance d d 0 0
 refunding
 Other purposes [2] 18 1,467 16 879

Bond purpose Refunding issues

 Number Amount

 (5) (6)

Total [1] 1,474 49,977
 Airport 35 3,241
 Docks and wharves 12 955
 Water 6 132
 Sewage 12 112
 Solid waste disposal 20 868
 Qualified residential rental 127 1,747
 Local electricity or gas 4 196
 furnishing facilities
 Local district heating or 0 0
 cooling facilities
 Qualified hazardous waste 40 3,391
 facilities
 Tax Reform Act of 1986 0 0
 transition property
 Qualified new empowerment 0 0
 zone
 Qualified public educational 0 0
 facilities
 Qualified green building and 0 0
 sustainable design
 Qualified Gulf Opportunity 5 61
 Zone and Gulf Opportunity
 Zone mortgage
 Qualified New York Liberty d d
 Zone
 Qualified mortgage 213 10,964
 Qualified veterans' mortgage 6 254
 Qualified small issue 71 148
 Qualified student loan 12 841
 Qualified redevelopment 0 0
 Qualified hospital 203 11,653
 Qualified section 501(c)(3) 736 14,709
 nonhospital
 Gulf Opportunity Zone advance d d
 refunding
 Other purposes [2] 6 588

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.

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

Table 8. Computation of Lendable Proceeds for Long-Term Tax-Exempt
Private Activity Bonds, by Selected Bond Purpose, 2007

[Money amounts are in millions of dollars]

 Entire issue Bond issuance
 price costs
Selected bond purpose
 Number Amount Number Amount
 (1) (2) (3) (4)

Total [1] 4,310 136,553 2,735 1,048
 Airport 69 6,819 61 59
 Docks and wharves 21 1,360 d d
 Water 18 388 13 5
 Sewage 26 458 16 4
 Solid waste disposal 142 4,183 102 40
 Qualified residential rental 619 9,106 145 27
 Qualified Gulf 79 3,973 64 31
 Opportunity Zone and
 Gulf Opprtunity
 Zone mortgage
 Qualified mortgage 312 24,472 120 51
 Qualified veterans' mortgage 8 374 d d
 Qualified small issue 775 2,531 377 32
 Qualified student loan 34 5,330 24 20
 Qualified hospital 436 28,923 357 250
 Qualified section 50 (c) 1,754 42,061 1,453 495
 (3) nonhospital
 All other bonds, combined [2] 78 6,576 25 28

 Credit Allocation to
 enhancement reserve fund
Selected bond purpose
 Number Amount Number Amount
 (5) (6) (7) (8)

Total [1] 1,082 532 730 1,752
 Airport 43 33 18 148
 Docks and wharves 7 4 d d
 Water d d d d
 Sewage d d d d
 Solid waste disposal 41 7 19 43
 Qualified residential rental 38 12 50 39
 Qualified Gulf 25 6 9 8
 Opportunity Zone and
 Gulf Opprtunity
 Zone mortgage
 Qualified mortgage 16 12 70 178
 Qualified veterans' mortgage 0 0 d d
 Qualified small issue 151 9 17 6
 Qualified student loan 8 1 17 41
 Qualified hospital 149 222 93 439
 Qualified section 50 (c) 600 211 435 821
 (3) nonhospital
 All other bonds, combined [2] 10 13 10 22

 Proceeds used
 Total lendable to refund
 proceeds prior issues
Selected bond purpose
 Number Amount Number Amount
 (9) (10) (11) (12)

Total [1] 14,310 133,221 1,474 48,976
 Airport 69 6,579 35 3,187
 Docks and wharves 21 1,349 12 948
 Water 18 379 6 132
 Sewage 26 451 12 111
 Solid waste disposal 142 4,094 20 866
 Qualified residential rental 619 9,028 127 1,736
 Qualified Gulf 79 3,927 5 61
 Opportunity Zone and
 Gulf Opprtunity
 Zone mortgage
 Qualified mortgage 312 24,231 213 10,900
 Qualified veterans' mortgage 8 372 6 253
 Qualified small issue 775 2,484 71 146
 Qualified student loan 34 5,267 12 836
 Qualified hospital 436 28,013 203 11,332
 Qualified section 50 (c) 1,754 40,534 736 14,191
 (3) nonhospital
 All other bonds, combined [2] 78 6,513 50 4,277

 Nonrefunding proceeds

Selected bond purpose
 Number Amount
 (13) (14)

Total [1] 3,686 84,245
 Airport 49 3,392
 Docks and wharves 12 402
 Water 13 247
 Sewage 16 340
 Solid waste disposal 125 3,227
 Qualified residential rental 509 7,292
 Qualified Gulf 78 3,866
 Opportunity Zone and
 Gulf Opprtunity
 Zone mortgage
 Qualified mortgage 266 13,331
 Qualified veterans' mortgage 4 119
 Qualified small issue 731 2,338
 Qualified student loan 33 4,431
 Qualified hospital 355 16,680
 Qualified section 50 (c) 1,506 26,344
 (3) nonhospital
 All other bonds, combined [2] 34 2,236

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, as well as bonds issued for: local
electricity or gas furnishing facilities, local district heating or
cooling facilities, qualified hazardous waste facilities, facilities
issued under a transitional rule of the Tax Reform Act of 1986,
new empowerment zone facility bonds, qualified public educational
facilities, qualified green building and sustainable design projects,
New York Liberty Zone bonds, qualified redevelopment bonds, and
Gulf Opportunity Zone advance refunding bonds.
NOTE: Detail may not add to totals because of rounding.

Table 9. New Money Long-Term Tax-Exempt Private Activity Bonds, by
Selected Bond Purpose and Size of Entire Issue, 2007
[Money amounts are in millions of dollars, except for size of
entire issue, which is in whole dollars]

 All issues Under $1,000,000
Selected bond purpose
 Number Amount Number Amount

 (1) (2) (3) (4)

Total [1] 3,586 86,576 376 109
 Airport 47 3,578 d d
 Docks and wharves 12 405 d d
 Water 13 256 0 0
 Sewage 16 346 0 0
 Solid waste disposal 124 3,316 4 1
 Qualified residential rental 508 7,359 8 6
 Qualified Gulf 78 3,912 5 4
 Opportunity Zone and
 Gulf Opprtunity
 Zone mortgage
 Qualified mortgage 259 13,508 0 0
 Qualified veterans' mortgage 4 119 0 0
 Qualified small issue 729 2,383 270 48
 Qualified student loan 33 4,489 0 0
 Qualified hospital 344 17,270 9 4
 Qualified section 50 (c) 1,428 27,352 67 41
 (3) nonhospital
 All other bonds, combined [2] 34 2,284 7 3

 Size of entire issues

 $1,000,0under $5,000,0under
Selected bond purpose $5,000,000 $10,000,000

 Number Amount Number Amount

 (5) (6) (7) (8)

Total [1] 885 2,408 699 4,636
 Airport 7 17 10 72
 Docks and wharves 3 12 3 22
 Water d d 3 23
 Sewage d d 3 13
 Solid waste disposal 17 43 17 114
 Qualified residential rental 129 395 137 992
 Qualified Gulf 16 45 8 59
 Opportunity Zone and
 Gulf Opprtunity
 Zone mortgage
 Qualified mortgage d d 0 0
 Qualified veterans' mortgage 0 0 0 0
 Qualified small issue 243 701 156 1,049
 Qualified student loan 0 0 0 0
 Qualified hospital 60 165 50 323
 Qualified section 50 (c) 403 1,005 305 1,918
 (3) nonhospital
 All other bonds, combined [2] 5 15 8 53

 Size of entire issues

 $10,000,under $25,000,under
Selected bond purpose $25,000,000 $50,000,000

 Number Amount Number Amount

 (9) (10) (11) (12)

Total [1] 713 9,646 365 10,321
 Airport 5 75 d d
 Docks and wharves 0 0 d d
 Water 5 77 3 125
 Sewage d d 0 0
 Solid waste disposal 35 554 28 971
 Qualified residential rental 168 2,445 44 1,463
 Qualified Gulf 16 240 10 326
 Opportunity Zone and
 Gulf Opprtunity
 Zone mortgage
 Qualified mortgage d d 72 1,922
 Qualified veterans' mortgage 0 0 d d
 Qualified small issue 60 585 0 0
 Qualified student loan 0 0 5 178
 Qualified hospital 55 702 32 906
 Qualified section 50 (c) 322 4,193 169 4,294
 (3) nonhospital
 All other bonds, combined [2] 5 57 d d

 Size of entire issues

 $50,000,under $100,000or more
Selected bond purpose $100,000,000

 Number Amount Number Amount

 (13) (14) (15) (16)

Total [1] 261 13,122 287 46,334
 Airport 3 172 15 3,202
 Docks and wharves d d d d
 Water d d 0 0
 Sewage 3 89 d d
 Solid waste disposal 16 972 7 660
 Qualified residential rental 14 790 8 1,267
 Qualified Gulf 14 658 9 2,581
 Opportunity Zone and
 Gulf Opprtunity
 Zone mortgage
 Qualified mortgage 71 3,065 69 7,828
 Qualified veterans' mortgage d d 0 0
 Qualified small issue 0 0 0 0
 Qualified student loan 6 423 22 3,888
 Qualified hospital 50 2,374 88 12,796
 Qualified section 50 (c) 88 4,285 74 11,615
 (3) nonhospital
 All other bonds, combined [2] d d 6 2,014

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, as well as bonds issued for: local
electricity or gas furnishing facilities, local district heating
or cooling facilities, qualified hazardous waste facilities,
facilities issued under a transitional rule of the Tax Reform
Act of 1986, new empowerment zone facility bonds, qualified public
educational facilities, qualified green building and sustainable
design projects, New York Liberty Zone bonds, qualified redevelopment
bonds, and Gulf Opportunity Zone advance refunding bonds.

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

Table 10. New Money Long-Term Tax-Exempt Private Activity Bonds, by
State of Issue and Selected

Bond Purpose, 2007
[Money amounts are in millions of dollars]

 Selected bond purpose

State of issue Total [1] Airports docks,
 and wharves [2]

 Number Amount Number Amount
 (1) (2) (3) (4)
All States 3,586 86,576 59 3,983
 Alabama 59 1,280 d d
 Alaska 8 297 0 0
 Arizona 51 1,915 d d
 Arkansas 23 150 d d
 California 275 10,527 d d
 Colorado 106 1,371 3 349
 Connecticut 34 1,547 0 0
 Delaware 11 549 0 0
 District of 25 1,106 d d
 Columbia
 Florida 141 3,803 11 389
 Georgia 99 2,510 0 0
 Hawaii d d 0 0
 Idaho 23 526 0 0
 Illinois 231 3,785 0 0
 Indiana 78 889 d d
 Iowa 184 649 d d
 Kansas 61 624 0 0
 Kentucky 50 486 0 0
 Louisiana 73 2,910 d d
 Maine 16 384 0 0
 Maryland 55 1,508 0 0
 Massachusetts 125 4,050 d d
 Michigan 89 2,331 3 185
 Minnesot 126 1,467 0 0
 Mississippi 42 1,963 0 0
 Missouri 84 1,395 d d
 Montana 18 538 d d
 Nebraska 46 657 d d
 Nevada 17 816 d d
 New Hampshire 32 554 0 0
 New Jersey 62 1,667 d d
 New Mexico 10 323 0 0
 New York 238 8,193 d d
 North California 50 1,435 d d
 North Dakota 20 441 d d
 Ohio 107 2,638 4 290
 Oklahoma 18 461 0 0
 Oregon 48 657 d d
 Pennsylvania 221 4,533 d d
 Rhode Island 15 357 0 0
 South Carolina 34 862 0 0
 South Dakota 26 386 0 0
 Tennessee 56 1,787 d d
 Texas 160 5,079 10 226
 Utah 33 602 0 0
 Vermont 19 350 0 0
 Virginia 73 1,614 d d
 Washington 87 2,380 d d
 West Virginia 17 400 0 0
 Wisconsin 96 1,191 d d
 Wyoming 9 316 0 0
 U.S. Possessions d 0 0 d
 [4]

 Selected bond purpose

State of issue Water, sewage, Qualified resi-
 and solid waste dential rental
 disposal [2]
 Number Amount Number Amount
 (5) (6) (7) (8)
All States 153 3,918 508 7,359
 Alabama 3 86 4 22
 Alaska 0 0 d d
 Arizona 6 190 8 98
 Arkansas 0 0 d d
 California 15 392 112 1,852
 Colorado d d 9 104
 Connecticut d d d d
 Delaware 0 0 0 0
 District of 0 0 d d
 Columbia
 Florida d d 33 258
 Georgia 8 229 9 214
 Hawaii 0 0 d d
 Idaho 3 20 d d
 Illinois 5 117 30 292
 Indiana d d d d
 Iowa 3 15 6 60
 Kansas 0 0 d d
 Kentucky d d 6 49
 Louisiana 7 118 d d
 Maine 0 0 0 0
 Maryland d d 7 71
 Massachusetts d d 7 237
 Michigan d d 4 219
 Minnesot 4 36 16 127
 Mississippi d d 4 30
 Missouri d d 17 112
 Montana 0 0 d d
 Nebraska 5 36 d d
 Nevada 0 0 6 63
 New Hampshire d d d d
 New Jersey d d d d
 New Mexico d d d d
 New York 0 0 50 1,622
 North California 3 153 d d
 North Dakota d d 0 0
 Ohio 8 470 14 82
 Oklahoma d d d d
 Oregon d d 19 115
 Pennsylvania 7 372 d d
 Rhode Island 0 0 d d
 South Carolina d d 3 42
 South Dakota 7 34 0 0
 Tennessee 0 0 16 122
 Texas 20 578 30 367
 Utah 0 0 d d
 Vermont 0 0 6 11
 Virginia d d 7 97
 Washington 3 93 31 387
 West Virginia d d 0 0
 Wisconsin d d 6 51
 Wyoming d d d d
 U.S. Possessions d 0 0 0
 [4]
 Footnotes at end of table.

 Selected bond purpose

 Qualified Gulf
 Opportunity Zone
State of issue and Gulf Oppor-
 tunity Zone
 Mortgage Qualified Mortgage
 Number Amount Number Amount
 (9) (10) (11) (12)
All States 78 3,912 259 13,508
 Alabama 16 628 d d
 Alaska 0 0 d d
 Arizona 0 0 10 96
 Arkansas 0 0 d d
 California 0 0 12 1,171
 Colorado 0 0 8 310
 Connecticut 0 0 3 175
 Delaware 0 0 5 439
 District of 0 0 d d
 Columbia
 Florida 0 0 17 740
 Georgia 0 0 5 208
 Hawaii 0 0 0 0
 Idaho 0 0 12 477
 Illinois 0 0 17 948
 Indiana 0 0 d d
 Iowa 0 0 4 104
 Kansas 0 0 8 313
 Kentucky 0 0 5 158
 Louisiana 34 1,929 9 211
 Maine 0 0 3 71
 Maryland 0 0 5 408
 Massachusetts 0 0 d d
 Michigan 0 0 d d
 Minnesota 0 0 7 282
 Mississippi 28 1,355 5 24
 Missouri 0 0 54 14
 Montana 0 0 54 17
 Nebraska 0 0 75 500
 Nevada 0 0 4 139
 New Hampshire 0 0 7 136
 New Jersey 0 0 d d
 New Mexico 0 0 d d
 New York 0 0 4 264
 North California 0 0 3 123
 North Dakota 0 0 d d
 Ohio 0 0 3 312
 Oklahoma 0 0 7 139
 Oregon 0 0 3 45
 Pennsylvania 0 0 5 311
 Rhode Island 0 0 4 175
 South Carolina 0 0 d d
 South Dakota 0 0 d d
 Tennessee 0 0 4 257
 Texas 0 0 17 568
 Utah 0 0 9 147
 Vermont 0 0 3 113
 Virginia 0 0 4 561
 Washington 0 0 4 217
 West Virginia 0 0 3 108
 Wisconsin 0 0 3 268
 Wyoming 0 0 d d
 U.S. Possessions 0 0 0 0
 [4]
 Footnotes at end of table.

 Selected bond purpose

State of Issue Qualified small Qualified
 issue hospital
 Number Amount Number Amount
 (13) (14) (15) (16)

All States 729 2,383 344 17,270
 Alabama 8 42 3 68
 Alaska 0 0 0 0
 Arizona d d 6 542
 Arkansas 6 21 5 29
 California d d 23 2,892
 Colorado 25 50 3 92
 Connecticut 0 0 6 64
 Delaware 0 0 d d
 District of 0 0 0 0
 Columbia 14 63 9 906
 Florida d d 9 777
 Georgia 0 0 0 0
 Hawaii d d d d
 Idaho 95 198 18 897
 Illinois 19 82 4 283
 Indiana 122 59 d d
 Iowa 31 42 d d
 Kansas 6 35 4 27
 Kentucky d d 3 220
 Louisiana 4 11 d d
 Maine 9 46 d d
 Maryland 16 57 18 858
 Massachussetts 31 161 18 679
 Michigan 18 43 6 348
 Minnesota d d 3 154
 Mississippi 21 77 6 159
 Missouri d d 7 158
 Montana 21 12 d d
 Nebraska 21 0 d d
 Nevada 0 05 50 15
 New Hampshire 23 84 4 358
 New Jersey d d 4 37
 New Mexico 0 0 42 952
 New York d d 8 208
 North California 13 54 0 d
 North Dakota d d 19 928
 Ohio 20 78 3 117
 Oklahoma d d 4 195
 Oregon 6 31 21 959
 Pennsylvania 50 178 d d
 Rhode Island 0 0 3 300
 South Carolina 11 71 3 83
 South Dakota 10 22 3 119
 Tennessee d d 17 2,001
 Texas 5 19 d d
 Utah d d d d
 Vermont 3 12 9 227
 Virginia 13 77 8 865
 Washington 9 54 d d
 West Virginia 28 144 20 352
 Wisconsin d d 0 0
 Wyoming 0 0 0 0
 U.S. Possessions
 [4]

 Selected bond purpose

 Qualified section All other bonds,
State of Issue 501(c)(3)non combined [3]
 hospital
 Number Amount Number Amount
 (17) (18) (19) (20)

All States 1,428 27,352 71 6,893
 Alabama 21 218 d d
 Alaska 3 59 d d
 Arizona 14 867 d d
 Arkansas 7 39 0 0
 California 95 3,393 3 212
 Colorado 56 370 d d
 Connecticut 20 1,172 d d
 Delaware d d d d
 District of 17 340 d d
 Columbia 53 1,382 d d
 Florida 36 842 d d
 Georgia d d d d
 Hawaii d d 0 0
 Idaho 66 1,333 0 0
 Illinois 44 387 0 0
 Indiana 37 305 7 62
 Iowa 15 177 0 0
 Kansas 25 126 d d
 Kentucky 15 347 0 0
 Louisiana 7 114 d d
 Maine 32 904 0 0
 Maryland 78 2,664 d d
 Massachussetts 31 434 0 0
 Michigan 75 632 0 0
 Minnesota 3 32 d d
 Mississippi 33 586 d d
 Missouri d d d d
 Montana 11 40 0 0
 Nebraska d d d d
 Nevada 239 d d 0
 New Hampshire 28 572 d d
 New Jersey d d d d
 New Mexico 112 2,920 8 1,869
 New York 19 242 d d
 North California 13 54 0 0
 North Dakota 40 488 0 0
 Ohio 4 46 d d
 Oklahoma 11 209 3 30
 Oregon 134 2,117 d d
 Pennsylvania 7 93 0 0
 Rhode Island 13 179 d d
 South Carolina d d 0 0
 South Dakota 25 399 3 857
 Tennessee 56 886 8 433
 Texas 14 305 d d
 Utah 5 12 d d
 Vermont 34 566 0 0
 Virginia 31 562 d d
 Washington 10 114 0 0
 West Virginia 39 299 d d
 Wisconsin 0 d d d
 Wyoming 0 0 0 0
 U.S. Possessions
 [4]

d-a deleted to avoid disclosure of information about specific bonds.
However, the data are included in the appropriate totals.

[1] A given bond issue can include more than one purpose. Thus,
the summation of number of issues by purpose will sometimes exceed the
total number of issues. However, the money amounts add to the totals.

[2] For purposes of this table, certain bond purposes were combined.
For this reason, data in this table will differ slightly from the data
in Table 9.

[3] This category includes all issues for which a specific purpose
either did not apply or was not clearly indicated on the Form 8038, as
well as bonds issued for: local electricity or gas furnishing
facilities, local district heating or cooling facilities, qualified
hazardous waste facilities, facilities issued under a transitional rule
of the Tax Reform Act of 1986, new empowerment zone facility bonds,
qualified public educational facilities, qualified green building and
sustainable design projects, New York Liberty Zone bonds, qualified
veterans' mortgage bonds, qualified student loan bonds, qualified
redevelopment bonds, and Gulf Opportunity Zone advance refunding bonds.

[4] U.S. Posessions include Puerto Rico, the U.S. Virgin Islands,
Guam, and the Northern Mariana Islands.
NOTE: Detail may not add to totals because of rounding.

Figure A1
Volume of Long-Term Tax-Exempt Governmental Bonds
Issued, by Type and Issue Year, 2002-2007

 All issues New money issues Refunding issues

2002 $275.7 $148.1 $127.6
2003 $282.6 $154.8 $127.9
2004 $269.5 $157.7 $111.8
2005 $311.3 $159.8 $151.6
2006 $272.2 $180.2 $92.1
2007 $316.3 $200.1 $116.1

Note: Table made from line graph.

Figure A2

Volume of Long-Term Tax-Exempt Private Activity Bonds
Issued, by Type and Issue Year, 2002-2007

 All issues New money issues Refunding issues

2002 $91.1 $50.2 $40.8
2003 $92.6 $47.0 $45.6
2004 $93.1 $47.9 $45.2
2005 $109.5 $54.7 $54.8
2006 $108.6 $63.3 $45.3
2007 $136.6 $86.6 $50.0

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

Note: Table made from line graph.

Figure B

Long-Term Tax-Exempt Governmental Bonds, by Selected Bond
Purpose and Type of Issue, 2007

 New money issues Refunding issues

Education $71.6 $34.1
Other purposes [1] $51.1 $38.3
Utilities $32.0 $18.5
Transportation $23.7 $12.9
Environment $9.7 $6.3
Public safety $4.9 $1.9
Health and hospital $3.2 $2.6

Long-Term Tax-Exempt Private Activity Bonds, by Selected Bond
Purpose and Type of Issue, 2007

 New money issues Refunding issues

Qualified section $27.4 $14.7
 501(c)(3)
 nonhospital
Qualified hospital $17.3 $11.7
Qualified mortgage $13.5 $11.0
Qualified residential $7.4 $1.7
 rental
Airport $3.6 $3.2
Qualified student $4.5 $0.8
 loan
Solid waste $3.3 $0.9
 disposal

Note: Table made from bar graph.

Figure C1

New Money Long-Term Tax-Exempt Governmental Bonds, by Selected
Bond Purpose, for Top 15 States, Ranked by Total Governmental
Bond Issuance, 2007

[Money amounts are in millions of dollars]

 Selected bond
 purpose

 Education

 Total Percentage
 of State
State of issue Amount Amount total

 (1) (2) (3)

Total, All States 200,148 71,595 35.8
 California 30,919 12,475 40.3
 Texas 22,347 9,009 40.3
 Florida 12,552 4,887 38.9
 New York 12,305 2,604 21.2
 Ohio 8,594 6,349 73.9
 Georgia 7,232 2,983 41.2
 Illinois 6,848 2,681 39.2
 Arizona 5,898 1,541 26.1
 Pennsylvania 5,854 2,191 37.4
 North Carolina 5,405 2,034 37.6
 Washington 5,116 1,361 26.6
 Massachusetts 4,801 1,695 35.3
 Alabama 4,351 1,863 42.8
 Virginia 4,330 1,460 33.7
 U.S. Possessions [2] 4,314 0 0.0

 Selected bond purpose

 Other purposes [1] Utilities

 Percentage Percentage
 of State of State
State of issue Amount total Amount total

 (4) (5) (6) (7)

Total, All States 51,113 25.5 32,019 16.0
 California 6,195 20.0 6,653 21.5
 Texas 4,031 18.0 5,113 22.9
 Florida 3,273 26.1 2,081 16.6
 New York 4,529 36.8 133 1.1
 Ohio 1,002 11.7 426 5.0
 Georgia 968 13.4 1,840 25.4
 Illinois 1,830 26.7 1,224 17.9
 Arizona 1,298 22.0 2,137 36.2
 Pennsylvania 1,594 27.2 295 5.0
 North Carolina 882 16.3 385 7.1
 Washington 1,432 28.0 587 11.5
 Massachusetts 2,431 50.6 d d
 Alabama 832 19.1 1,476 33.9
 Virginia 1,447 33.4 388 9.0
 U.S. Possessions [2] 2,609 60.5 d d

 Selected bond purpose

 Tranportation Environment

 Percentage Percentage
 of State of State
State of issue Amount total Amount total

 (8) (9) (10) (11)

Total, All States 23,698 11.8 9,659 4.8
 California 2,424 7.8 1,952 6.3
 Texas 3,211 14.4 d d
 Florida 1,464 11.7 432 3.4
 New York 3,435 27.9 150 1.2
 Ohio 520 6.1 167 1.9
 Georgia 362 5.0 514 7.1
 Illinois 863 12.6 57 0.8
 Arizona 782 13.3 d d
 Pennsylvania 466 8.0 838 14.3
 North Carolina 464 8.6 d d
 Washington 1,448 28.3 64 1.3
 Massachusetts 251 5.2 307 6.4
 Alabama 50 1.1 28 0.6
 Virginia 223 5.2 502 11.6
 U.S. Possessions [2] 0 0.0 d d

Footnotes at end of figure.

Figure C2

New Money Long-Term Tax-Exempt Private Activity Bonds, by Selected
Bond Purpose, for Top 15 States, Ranked by Total Tax-Exempt
Private Activity Bond Issuance, 2007

[Money amounts are in millions of dollars]

 Selected bond purpose

 Qualified section
 Total 501(c)(3)
 nonhospital

 Percentage
State of issue Amount Amount of State
 total

 (1) (2) (3)

Total, All States 86,576 27,352 31.6
 California 10,527 3,393 32.2
 New York 8,193 2,920 35.6
 Texas 5,079 886 17.4
 Pennsylvania 4,533 2,117 46.7
 Massachusetts 4,050 2,664 65.8
 Florida 3,803 1,382 36.3
 Illinois 3,785 1,333 35.2
 Louisiana 2,910 347 11.9
 Ohio 2,638 488 18.5
 Georgia 2,510 842 33.5
 Washington 2,380 562 23.6
 Michigan 2,331 434 18.6
 Mississippi 1,963 32 d
 Arizona 1,915 867 45.3
 Tennessee 1,787 399 22.3

 Selected bond purpose

 Qualified Qualified mortgage
 hospital

 Percentage Percentage
State of issue Amount of State Amount of State
 total total

 4) (5) (6) (7)

Total, All States 17,270 19.9 13,508 15.6
 California 2,892 27.5 1,171 11.1
 New York 952 11.6 264 3.2
 Texas 2,001 39.4 568 11.2
 Pennsylvania 959 21.2 311 6.9
 Massachusetts 858 21.2 d d
 Florida 906 23.8 740 19.5
 Illinois 897 23.7 948 25.0
 Louisiana 220 7.6 211 7.3
 Ohio 918 34.8 312 11.8
 Georgia 777 31.0 208 8.3
 Washington 865 36.3 217 9.1
 Michigan 679 29.1 d d
 Mississippi 154 7.8 245 12.5
 Arizona 542 28.3 96 5.0
 Tennessee 119 6.7 257 14.4

 Selected bond purpose

 Qualified All other bonds,
 residential rental combined[3]

 Percentage Percentage
State of issue Amount of State Amount of State
 total total

 (8) (9) (10) (11)

Total, All States 7,359 8.5 6,893 8.0
 California 1,852 17.6 212 2.0
 New York 1,622 19.8 1,869 22.8
 Texas 367 7.2 433 8.5
 Pennsylvania d d d d
 Massachusetts 237 5.9 d d
 Florida 258 6.8 d d
 Illinois 292 7.7 0 0.0
 Louisiana d d 0 0.0
 Ohio 82 3.1 0 0.0
 Georgia 214 8.5 d d
 Washington 387 16.3 d d
 Michigan 219 9.4 0 0.0
 Mississippi 30 d d d
 Arizona 98 5.1 d d
 Tennessee 122 6.8 857 48.0

d--Data deleted to avoid disclosure of information about
specific bonds. However, the data are included in the appropriate
totals.

[1] For purposes of this figure, "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 public safety and housing,
that are not shown separately in this figure. See Table 1.

[2] U.S. Possessions include Puerto Rico, the U.S. Virgin
Islands, Guam, and the Northern Mariana Islands.

[3] For purposes of this figure, certain bond purposes were
combined. For this reason, data in this figure will differ
slightly from the data in Tables 8 and 9.

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

Figure D

New Money Long-Term Tax-Exempt Private Activity Bonds, Carryforward,
and Volume Cap, by State of Issue, 2007

[Money amounts are in millions of dollars]

 Amount subject to
State of issue Total amount of bonds the unified State
 issued volume cap [1]

 (1) (2)

Total, All States 86,673 31,928.0
 Alabama 1,280 355.0
 Alaska 297 228.0
 Arizona 1,917 506.0
 Arkansas 150 80.0
 California 10,530 3,722.0
 Colorado 1,371 552.0
 Connecticut 1,547 311.0
 Delaware 549 439.0
 District of Columbia 1,106 198.0
 Florida 3,805 1,125.0
 Georgia 2,510 835.0
 Hawaii d d
 Idaho 526 510.0
 Illinois 3,787 1,555.0
 Indiana 889 214.0
 Iowa 649 279.0
 Kansas 630 437.0
 Kentucky 486 331.0
 Louisiana 2,922 402.0
 Maine 385 261.0
 Maryland 1,508 589.0
 Massachusetts 4,053 512.0
 Michigan 2,331 1,033.0
 Minnesota 1,469 488.0
 Mississippi 1,963 422.0
 Missouri 1,395 548.0
 Montana 538 361.0
 Nebraska 658 567.0
 Nevada 816 302.0
 New Hampshire 554 266.0
 New Jersey 1,667 730.0
 New Mexico 323 278.0
 New York 8,210 2,020.0
 North Carolina 1,435 826.0
 North Dakota 442 363.0
 Ohio 2,638 942.0
 Oklahoma 461 299.0
 Oregon 665 226.0
 Pennsylvania 4,562 1,284.0
 Rhode Island 357 262.0
 South Carolina 862 383.0
 South Dakota 386 290.0
 Tennessee 1,787 1,260.0
 Texas 5,080 1,848.0
 Utah 607 292.0
 Vermont 350 275.0
 Virginia 1,614 789.0
 Washington 2,380 761.0
 West Virginia 402 248.0
 Wisconsin 1,191 526.0
 Wyoming 316 307.0
 U.S. Possessions [4] d d

 Amount not subject to the
 volume cap
State of issue under a carryforward Total volume
 election [2] cap allocation [3]

 (3) (4)

Total, All States 15,025.0 28,549.9
 Alabama 193.0 390.9
 Alaska 228.0 256.2
 Arizona 252.0 524.1
 Arkansas 47.0 256.2
 California 1,309.0 3,098.9
 Colorado 268.0 404.0
 Connecticut 36.0 297.9
 Delaware 439.0 256.2
 District of Columbia 185.0 256.2
 Florida 822.0 1,537.6
 Georgia 416.0 795.9
 Hawaii d d
 Idaho 430.0 256.2
 Illinois 714.0 1,090.7
 Indiana 0.0 536.6
 Iowa 67.0 256.2
 Kansas 316.0 256.2
 Kentucky 7.0 357.5
 Louisiana 56.0 364.5
 Maine 175.0 256.2
 Maryland 345.0 477.3
 Massachusetts 4.0 547.2
 Michigan 310.0 858.1
 Minnesota 161.0 439.2
 Mississippi 305.0 256.2
 Missouri 147.0 496.6
 Montana 208.0 256.2
 Nebraska 500.0 256.2
 Nevada 136.0 256.2
 New Hampshire 83.0 256.2
 New Jersey 796.0 741.6
 New Mexico 64.0 256.2
 New York 646.0 1,641.0
 North Carolina 359.0 752.8
 North Dakota 305.0 256.2
 Ohio 331.0 975.6
 Oklahoma 33.0 304.2
 Oregon 162.0 314.6
 Pennsylvania 509.0 1,057.5
 Rhode Island 263.0 256.2
 South Carolina 48.0 367.3
 South Dakota 241.0 256.2
 Tennessee 1,037.0 513.3
 Texas 264.0 1,998.2
 Utah 113.0 256.2
 Vermont 28.0 256.2
 Virginia 561.0 649.6
 Washington 128.0 543.6
 West Virginia 197.0 256.2
 Wisconsin 275.0 472.3
 Wyoming 216.0 256.2
 U.S. Possessions [4] d d

d--Data deleted to avoid disclosure of information for specific
bonds when compared to other published data. However, the data
are included in the appropriate totals.

[1] These calculations are based on the data reported on Part
II of Form 8038 for type of issue, and include the following:
mass commuting facilities, water furnishing facilities, sewage
facilities, solid waste disposal facilities, qualified residential
rental projects, local electric energy or gas furnishing facilities,
local district heating and cooling facilities, qualified
hazardous waste facilities, high-speed intercity rail facilities,
qualified mortgage bonds, qualified small issue bonds, qualified
student loan bonds, and qualified redevelopment bonds.

No distinction was made for governmentally-owned solid waste or
high-speed intercity rail facilities (which are not subject to
the volume cap). As a result, figures could be slightly

[2] As reported on Form 8038, line 44b. An issuing authority
can elect to carry forward its unused volume cap for one or
more carry forward purposes (see IRC section 146(f)). If the
election is made, bonds issued with respect to a specified
carry forward purpose are not subject to the volume cap under
IRC section 146(a) during the 3 calendar years following the
calendar year in which the carry forward arose, but only to the
extent that the amount of such bonds does not exceed the amount of
the carry forward elected for that purpose.

[3] The volume cap amount was calculated based on State
population estimates produced by the U.S. Bureau of the Census
and published in Internal Revenue Bulletin Number 2007-11
(Notice 2007-23). For 2007, the volume cap was the greater of
$85 per capita or $256.2 million.

[4] U.S. possessions include Puerto Rico, the U.S. Virgin
Islands, Guam, and the Northern Mariana Islands.

NOTE: Detail may not add to totals because of rounding.
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Author:Shammas, Emily
Publication:Statistics of Income. SOI Bulletin
Date:Sep 22, 2009
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