How long is the term limit for revenue bond projects?

Revenue bonds are typically used to finance projects that generate a dedicated revenue stream, such as utilities or toll roads. One of the key features of revenue bonds is their flexibility concerning the term limits for the projects they finance. In many cases, the terms can be structured to fit the cash flow and longevity of the asset generating the revenue.

Because these types of bonds are secured by the revenues from the project rather than the general taxing power of a jurisdiction, there is no federally mandated limit on the term of revenue bonds. This allows issuers the freedom to establish terms that align with the expected life of the asset and its revenue-generating capacity.

This flexibility is instrumental in financial planning, as it allows jurisdictions to issue bonds that can extend over long periods, potentially up to several decades, depending on the specifics of the project and the expected revenues.