4.7.1 Categories of Qualified Private Activity Bonds
Bonds that meet the Private Activity Bonds Tests will not be treated as governmental bonds, and instead will be private activity bonds. The interest on private activity bonds will not be tax exempt unless the bonds meet the requirements to be issued as qualified private activity bonds. Each type of qualified private activity bonds is based on the specific type of facility to be financed or manner in which the proceeds of the bonds are used. The types of qualified private activity bonds include the following:
- Exempt facility bonds
- Qualified mortgage bonds (single family mortgage revenue bonds)
- Qualified veterans mortgage bonds
- Qualified student loan bonds
- Qualified small issue bonds
- Qualified redevelopment bonds
- Qualified 501(c)(3) bonds