Private Activity Bonds and Volume Cap Allocation
Private businesses can issue tax exempt bonds for certain facilities and uses enumerated in the Internal Revenue Code such as low and moderate income housing, small manufacturing, transportation facilities (airports, seaports, high-speed rail), water and pollution control facilities and facilities used by charitable organizations are permitted. Even within these areas restrictions apply, including an annual limit on the amount of issuance of private activity bonds in each state. Each state is responsible for the distribution of this allocation among the issuers within their borders. In Florida, the Division has been designated to distribute this allocation which is called the State volume cap or private activity bond allocation.
The federally imposed State volume limitation is $105 per capita for each calendar year. Allocation is generally distributed on a first-come, first-served system.