Issue Brief
Expand Private Activity Bonds (PABs)
Expand Financing Options for Innovative and Critical Projects

Many capital projects with a private use provide essential public benefit, such as airports, seaports, waste disposal facilities, housing, 501(c)(3) institutions, and many more. A PAB is a bond issued to finance a facility that includes some private use, through ownership, management agreements, a lease, or another economic interest in the facility.
Why We Care
The Internal Revenue Code (IRC) provides specific categories of qualified PABs that may qualify to be issued on a tax-exempt basis due to the public benefit they offer. In certain instances, the volume of qualified PABs a state is allowed to issue each year is capped. States frequently reach their volume cap well before the end of the year― limiting access to financing opportunities for innovative and critical infrastructure projects and public-private partnerships.
NABL Stance
Congress and the Administration should expand certain categories of qualified private activity bonds (PABs) and raise state volume caps to leverage greater investment in national and local infrastructure projects. NABL endorses bills on a case-by-case basis but is supportive of efforts to expand the use of qualified PABs or to alleviate pressures on state volume caps. For further inquiries, email advocacy@nabl.org.
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