A type of private activity bond (PAB) permitted under Section 144(a) of the Code of under $1,000,000 in face value to finance certain projects relating to manufacturing facilities.
Industrial Development Bonds
Although technically Industrial Development Bonds do not exist under the Code, the 1954 Code term is still in use. Under the 1954 Code, the term Industrial Development Bonds was used to describe what are now referred to as Private Activity Bonds (PABs) and, most frequently, Qualified Small Issue Bonds.
The term used in the Code to describe any bond issued as part of a bond issue that meets both of the private business tests or meets the private loan financing test.