[Davisgig] [SPAM?] Fwd: All But Two States and Puerto Rico Can Issue More PABs in 2016 | The Bond Buyer
rob at omsoft.com
Thu Jan 14 15:18:36 PST 2016
Is anyone savvy enough in this area to help us look into this more as a
financing option for DavisGIG?
Thanks ELT for the link!
All But Two States and Puerto Rico Can Issue More PABs in 2016 | The
FYI Eric T.
All But Two States and Puerto Rico Can Issue More PABs in 2016
WASHINGTON – All but two U.S. states and the Commonwealth of Puerto Rico
will be able to issue more private-activity bonds in 2016, based on
The states -- Illinois and Connecticut -- and Puerto Rico had population
losses and lower PAB volume caps for this year, based on recent data
published by the U.S. Census Bureau the Internal Revenue Service's
formula for PABs.
California is, by far, the state with the largest PAB volume cap for
2016, followed by Texas and Florida.
But Colorado had the highest percentage increase in its cap for the
year. The Rocky Mountain State, Texas and Florida were among nine states
with PAB caps that rose more than 1%.
*Private-activity bonds generally are issued by state and local
governments or authorities to provide low-cost financing for the
projects of nonprofit organizations or companies that serve a public
Most PABs must be issued under state volume caps, which are based on a
formula established annually by the IRS. These include exempt facility
qualified PABs bonds such as those issued to *finance mass commuting
facilities*, water and sewer projects, and single-family and multifamily
housing projects. They also include qualified small issue industrial
development, student loan, and redevelopment bonds. States can carry
over any unused cap for up to three years.
Some PABs are not subject to volume caps. These include qualified PABs
for docks and wharves, environmental enhancements of hydro-electric
generating facilities, and governmentally-owned solid waste facilities.
Also included in this category are qualified 501(c)(3) bonds and
veterans' mortgage revenue bonds.
The formula for the PAB cap for 2016, published by the IRS in October,
is $100 per capita or $302.88 million, whichever is higher. While the
per capita amount did not change this year from last, the minimum
increased to $302.88 million from $301.52 million for states with lower
The total PAB volume cap for the 50 states, the District of Columbia and
Puerto Rico this year is nearly $32.49 billion, $245.07 million or 0.76%
higher than the cap for last year.
The increase is due to population gains, as well as a higher minimum
amount of cap allowed by the Internal Revenue Service.
But Illinois, Connecticut and Puerto Rico lost population in 2015,
according to the latest figures published by the Census Bureau late last
month. The population estimates have a reference date of July 1.
Puerto Rico had the biggest population and PAB cap drop. Its population
fell by 60,706 to 3.47 million in 2015 from 3.53 million the year
before. Its PAB cap fell 1.72% to $347.42 million for 2016 from $353.49
million for last year.
Illinois' population slipped 22,194 to 12.86 million in 2015 from 12.88
million the previous year. As a result, its cap fell 0.17% to $1.286
billion this year from $1.288 billion in 2015.
Connecticut's population edged down by 3,876 to 3.591 million from 3.595
million. Its PAB cap fell 0.11% to $359.09 million this year from
California has the largest PAB volume cap, at $3.91 billion, after a
0.91% increase in its $3.88 billion cap for 2015.
Colorado had the highest gain in its cap -- a 1.89% increase to $545.66
million for this year from $535.56 for 2015. The increase was due to a
population gain of 100,986 to 5.46 million.
The eight other states with increases in PAB volume caps above 1% are:
Florida, up 1.84% to $2.03 billion; Texas, up 1.82% to $2.75 billion;
Washington State, up 1.52% to $717.04 million; Arizona, up 1.48% to
$682.81 million; Oregon, up 1.45% to $402.90 million; South Carolina, up
1.39% to $489.61 million; Georgia, up 1.17% to $1.02 billion; and North
Carolina, up 1.03% to $1.00 billion.
Twenty-one states have the minimum cap of $302.88 million for 2016.
The PAB volume cap figures do not include American Samoa, Guam, the
Northern Mariana Islands and the U.S. Virgin Islands because they were
not included in the recently released population estimates from the
Download File <PAB-Table.php>
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