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Volume Cap Program

What is Volume Cap?

"Volume Cap" is the amount of tax-exempt financing available for certain types of private companies or developers in a calendar year. Federal law determines project eligibility. A project must obtain an award of Volume Cap before it can have tax-exempt bonds issued. IFA recommends that you contact an Indiana Bond Counsel to determine if this program is right for you.

The IFA allocates Indiana's private activity bond volume, or "Volume Cap". The IFA awarded approximately $135.0 million in 2022 to one manufacturing facility lowering the cost of long-term financing and enabling businesses to be more competitive. All issuers statewide apply to the IFA for Volume Cap, which is awarded on a competitive basis under the IFA's Volume Cap Guidelines.

Manufacturing and Exempt Facility Financing

Approximately $381 million is available annually for manufacturing projects and exempt facility projects (pollution control or solid waste disposal facilities) that are part of manufacturing facilities. For manufacturing projects, the IFA could award as much as approximately $35 million in Volume Cap each month, January through October. Projects are scored objectively based on new jobs created or retention of existing jobs, the wages of the jobs (in relation to the county average), the amount of capital investment and the dollars of Volume Cap used per job. The IFA also considers the location of the project (disadvantaged counties are favored) and issues such as whether the applicant is a high-skilled/high-growth company with its headquarters in Indiana, if it is providing advanced training and other opportunities for its employees, and whether the financing would allow the company to utilize new processes or markets. Monthly awards are posted on the IFA's website.

Indiana Code 5-1.2-16 allocates volume in the following manner:

IFA (Indiana Finance Authority)


ISMEL (Indiana Secondary Market for Education)


IHCDA (Indiana Housing & Community Development Authority)


LIM (Manufacturing projects issued locally)


LIC (Multi-family housing issued locally)


The IFA has the authority to reallocate Volume Cap as necessary.

Housing Financing

Volume Cap is awarded competitively for low-income, multi-family housing projects; projects are scored by the Indiana Housing & Community Development Authority (IHCDA) and awarded by the IFA.

Volume Cap is also used by the IHCDA for single family housing programs.

Application Information

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