Business  |  Volume Cap


For Assistance, Contact

Veronica McDaniel
Financial Incentives Operations Officer,
Office of Strategic Business Investments
Business Services Division
(614) 466-4302

Volume Cap


Volume Cap is federally authorized and refers to the maximum amount of tax-exempt private activity bonds that can be issued annually in each state.  Tax-exempt private activity bonds facilitate public and private sector collaboration in providing financing for eligible projects at interest rates below that of the conventional market.  The interest that bondholders earn is not subject to federal taxes, and may not be subject to state and local income tax depending upon the type of bond issuer.  Each state establishes rules for allocating the state ceiling among those governmental units and authorities in the state that have authority to issue tax -exempt private activity bonds (i.e. counties, cities, port authorities, housing authorities, quasi state agencies, as well as some states).  Annually, each state receives an allocation of Volume that is referred to as the “state ceiling”.  This ceiling is based upon an IRS Inflation Adjustment and IRS Calendar Year Resident Population Estimates.  The intent of the program is to provide assistance to industrial development projects, redevelopment projects, agricultural projects, homeownership financing projects, multi-family housing development and various other special project uses, such as solid waste disposal, mass commuting and environmental enhancement projects, commonly referred to as exempt facilities.

2019 Allocations of State Ceiling

Set-Aside Category Set-Aside Amount
Single Family Housing $300,000,000
Multi-Family Housing $120,000,000
Qualified Small Issue $100,000,000
Exempt Facilities $100,000,000
Qualified Student Loan $116,894,420
Director's Discretionary $432,049,780
Total $1,168,944,200

Private Activity Bonds are used to attract private investment for projects that have public benefits.  The tax-exemption enables projects to access capital at lower interest rates, facilitating a larger more secure project. Private Activity Bonds have historically provided financing for energy facilities, housing, manufacturing facilities, airports, and many other private and public projects. 

The State of Ohio accepts applications for allocation of Volume Cap from authorized bond issuers or bond counsel.  In addition, the Director of Ohio Development Services Agency is authorized with a set-aside of Volume Cap for allocation on a discretionary basis. 

Note: Those interested should consult with bond counsel and the federal tax codes governing private activity bonds before applying for Volume Cap.

For those qualified Multi-Family Housing, Qualified Small Issue and Exempt Facility bonds below $20 million in requested allocation please note the ‘Notice of Intent-Set Aside’ application form under the Applications menu to the left.  Please use these versions of the application form for allocations below the $20 million threshold.  For those Notice of Intent applications greater than $20 million, please use the ‘Notice of Intent-Director’s Discretionary’ application.

In accordance with the Ohio Administrative Code Rules 122-4-05 (A)(3) and 122-4-06 (D), project owners and bond counsel will need to comply with the following filing fees during each stage of acquiring Volume Cap state-ceiling:

  •  A filing of a Notice of Intent for an allocation will not be deemed to be filed until and unless a refundable fee in an amount equal to the lesser of ¾ of 1% of the amount requested in the Notice of Intent or $150,000 plus $1,000 non-refundable filing fee is received by the Director of Ohio Development Services Agency.
  •  A confirmation request for a 60-day extension will not be deemed to be filed until accompanied by a $1,000 non-refundable extension application fee and an additional refundable fee in an amount equal to the lesser of ¾ of 1% of the amount requested in the original confirmation or $150,000. 
  •  A filing of a Notice of Intent for carryforward must be accompanied by a refundable fee in an amount equal to the lesser of ¾ of 1% of the amount requested in the Notice of Intent or $500,000 plus $1,000 non-refundable fee.

Note: Please refer to the "Process for Obtaining Volume Cap Allocation" document link for a breakdown of the program’s process for obtaining allocation.  Contained within, detailed information surrounding the fee structure for filing Notice of Intent for an allocation, 60-day extension request, and carryforward allocation requests.