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.
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act, H.R.1, which preserves PABs.
Representative Sam Graves' Letter to Speaker Ryan, Leader McConnell, and Chairmen Hatch and Brady
Hospital Sisters' Letter to Congressman Shimkus - Defense of PABs
Congressman Randy Hultgren's letter in support of Private Activity Bonds and Press Release
National Association of College and University Business Officers - Tax reform - Negative Impact - Education -12/5/2017
National Association of College and University Business Officers Website
American Hospital Association - Non-Profit Hospital Positive Economic Impact - October 2017
American Hospital Association - Support Hospitals' Access to Tax-exempt Bond Financing
American Hospital Association Website
NAHEFFA Economic Impact Highlights
NAHEFFA Economic Impact Report
News Release Economic Impact Report - October 2013
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
Click here for a list of completed projects.
For more information about the benefits of private activity bonds, please contact Mari Money at 312-651-1319 or send an email to email@example.com