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  • January 25, 2023
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Small-Issue Bond

A bond that is issued as part of a municipal bond issue not exceeding an aggregate face amount of $10 million or so. This bond is used for private purposes such as manufacturing facilities or land for fist-time farmers. For that reason, interest on the bond is federally tax-deductible. However, there is a limit on the issue size and the total number of issues beyond which interest ceases to be tax-exempt.


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