The Illinois Finance Authority is one of the largest issuers of private activity bonds in the nation.  Private activity bonds (PABs or federally tax-exempt conduit infrastructure bonds) enable the following types of charities and 501(c)(3) organizations to finance their capital infrastructure projects at generally lower interest rates and longer maturities – and to create long-term economic value for communities throughout Illinois:

  • hospitals and health systems;
  • schools – research universities, colleges, charter schools and others;
  • museums and cultural institutions; and
  • organizations that provide housing for seniors, students and working people

PABs also allow a small number of other qualified entities or facilities (small farmers and manufacturers, solid waste disposal, and logistics facilities of regional importance) to do the same.

The Authority does not finance professional sports stadiums.



NAHEFFA Economic Impact Highlights

NAHEFFA Economic Impact Report

News Release Economic Impact Report - October 2013

Bond Buyer Article

KBRA Research Report on the Cost of Tax Exemption

Breakdown of IFA PAB Projects for Calendar Years 2016 and 2017

Portfolio Substitution and The Revenue Cost of Exempting State and Local Government Interest Payments from Federal Income Tax