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Large Bond Program

Private Activity Bonds greater than $3 million, often called Industrial Revenue Bonds (IRBs) or Industrial Development Bonds (IDBs), are bonds issued by state or local governmental entities for the benefit of a private company. Interest on the bonds is generally exempt from federal income taxes for investors, which typically results in lower long-term interest rates to the borrower. IFA recommends that you contact an Indiana Bond Counsel (an attorney licensed to practice law in Indiana whose firm maintains an office in Indiana) to see if your project qualifies for the issuance of tax-exempt bonds.

The IFA can issue bonds to finance qualified manufacturing facilities (land acquisition and construction), manufacturing equipment, pollution control facilities and other projects permitted under federal law. Applicants can save significant interest costs on projects by using tax-exempt bonds.


  • A $3,000 non-refundable application fee, payable to the Indiana Finance Authority, must accompany the application. It does not include volume cap fees.
  • The IFA will either serve as Issuer's Counsel or select outside counsel in certain circumstances. If the IFA acts as Issuer's Counsel, there will be a fee of $7,500-$15,000. The Applicant is responsible for paying outside Issuer's counsel fees (if the IFA does not serve in this capacity) and financial advisor fees (if any) relating to the project. The Applicant may choose its own Indiana Bond Counsel and finance team.
  • A Closing Fee of 10 basis points, payable to the Indiana Finance Authority, is due at closing (maximum fee is $40,000 per project).
  • See IFA Bond Fees for more detail.

Tax-exempt financing promotes economic development,
practices across Indiana.

The IFA can also issue tax-exempt bonds for certain 501(c)(3) entities, including but not limited to health care facilities, child care facilities, charter schools, private institutions of higher education and cultural institutions. Examples of past transactions include Butler University, Deaconess Hospital, the NCAA, Purdue Research Foundation and Community Enterprises Properties LLC. Borrowing for capital expenses at a lower rate can achieve significant cost savings for not-for-profit organizations. The IFA can also refund bonds issued by the IFA or local issuers to reduce long-term interest costs to the borrower. 501(c)(3)s do not require an allocation of Volume Cap.

Application Information

Sample Documents

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