Industrial Development Bonds

RCED-92-247R: Published: Jul 24, 1992. Publicly Released: Aug 24, 1992.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO provided information on small issue industrial development bonds (IDB), issued by state or local governments to help private companies finance the construction or expansion of small manufacturing projects. GAO noted that: (1) the federal government forgoes about $2 billion annually in tax revenue for IDB interest, which is tax exempt; (2) in 1991, states issued about $1.2 billion in IDB; (3) the Internal Revenue Code (IRC) only requires that IDB be restricted to manufacturing projects that do not exceed $10 million and does not require IDB issuers to establish criteria to assess public benefits of IDB-financed projects; (4) most states and localities do not have any criteria other than IRC requirements for issuing IDB; and (5) in 1991, Ohio approved 33 IDB-financed projects, but generally did not target IDB approval for such public benefits as fostering economic development in distressed areas, creating jobs, assisting start-up companies, and keeping manufacturing operations in the United States.

Apr 26, 2017

Apr 25, 2017

Mar 29, 2017

Mar 2, 2017

Jan 12, 2017

Jan 9, 2017

Nov 21, 2016

Aug 10, 2016

Jul 14, 2016

May 26, 2016

Looking for more? Browse all our products here