Qualified Small Issue Bond Law and Legal Definition

Qualified small issue bond is a tax-exempt private activity bond issue used to finance manufacturing facilities and to benefit certain first-time farmers. Generally, issue is made not exceeding $1 million, of which 95 percent or more of the net proceeds is used to finance the acquisition of land and depreciable property or to refund such issues. Occasionally, an election to take certain capital expenditures into account can increase the limit on bond size, from $1 million to $10 million.