Capital Expenditure Limitation Increases
Effective December 31, 2006 the capital expenditure limitation on the use of small issue industrial development bonds (i.e. tax-exempt manufacturing bonds like those issued as part of industrial revenue bonds and PEDFA composite bond pools) increased from the previous $10 million to $20 million. The single bond issue limit remains $10 million.
The $10 million capital expenditure limitation was established more than twenty years ago, but had never been adjusted for inflation in that time.
We believe this development will allow more businesses that previously had been stymied by the $10 million cap to avail themselves of this cost-effective funding source.