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.
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act, H.R.1, which preserves PABs.
Government Finance Officers Association (GFOA)
National Association of Health and Educational Facilities Finance Authorities (NAHEFFA)
Council of Development Finance Agencies (CDFA)
FY24 Illinois Bonded Indebtedness and Long-Term Obligations Report (information on the Authority can be found on pages 47, 49, and 82 – 120)
UChicago Center for Municipal Finance
For more information about the benefits of private activity bonds, please contact Erin O'Leary at 312-651-1314 or send an email to pab@il-fa.com