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

Latest on PABs

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Request for IRS Guidance on Carbon Capture Bonds

Request for the Internal Revenue Service (IRS) to issue clarifying guidance surrounding qualified carbon dioxide capture facilities enacted under the Infrastructure Investment and Jobs Act (IIJA) of 2021.

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Statement for the Record: Our Nation’s Crumbling Infrastructure and The Need for Immediate Action

Statement for the Record of Dee P. Wisor, President, National Association of Bond Lawyers (NABL) in response to a U.S. House of Representatives Committee on Ways and Means hearing entitled…

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Letter to the 116th Congress

Letter welcoming the 116th Congress and sharing our key priorities for the year.