Private Activity Bonds
Overview
- PA-1 Private Activity State Ceiling Application
- PA -2 Final Certification of Private Activity Bond Issuance
- List of Yearly PA Bond Appointments
Private activity bonds are bonds in which the proceeds are used to finance projects that primarily benefit private businesses, as defined under the Internal Revenue Code (the Code). Under federal law, a bond is generally considered a private activity bond if more than a specified portion of the proceeds is used in a private business, is secured by, or repaid from, private business revenues, or if a portion of the proceeds is used to make loans to non-governmental persons.
Most private activity bonds are taxable, but federal law allows certain types, known as qualified private activity bonds, to be issued on a tax-exempt basis. Federal tax reform in 1986 placed annual limits on how much of this tax-exempt debt each state may issue. Oklahoma adopted the Private Activity Bond Allocation Act (the Act) to manage these limits and ensure the state complies with federal requirements.
Oklahoma Private Activity Bond Allocation Act
House Bill 1549, passed during the 2025 legislative session, updated the Act by simplifying how the state’s private activity bond capacity is managed and directing more resources toward current priorities. The bill created a clearer framework, increased cap capacity for housing and economic development, and removed outdated or underused statutory pools. It also updated application timelines, helping ensure the state’s volume cap is used efficiently to support affordable housing, job creation, and other projects that benefit communities across Oklahoma.
The Act, which is administered by the Deputy Treasurer for Debt Management, ensures Oklahoma complies with the provisions of federal limits on private activity bonds and provides for the systematic distribution of the state’s annual volume cap. Federal law sets an annual cap on tax-exempt private activity bonds based on population or a minimum dollar amount established by the Internal Revenue Service. For calendar year 2026, Oklahoma’s volume cap is $552.9, representing an increase of approximately $20 million from the prior year.
Yearly PA Bond Apportionments
2026 State Volume Ceiling: $552,878,055
| Statutory Allocation Pools | % of Total | Pool Total |
| Student Loan | 10.0% | $55,287,806 |
| Economic Development | 25.0% | $138,219,514 |
| Housing | 40.0% | $221,151,222 |
| Discretionary | 25.0% | $138,219,514 |
| Total | 100.0% | $552,878,055 |
