In nineteen hundred sixty-six the General Assembly of the Commonwealth of Virginia created the Industrial Development and Revenue Bond Act to encourage investment in manufacturing facilities in the Commonwealth. This Act was amended in nineteen hundred seventy to include medical facilities. Since the approval of the enabling legislation by the State Supreme Court in nineteen hundred sixty-seven, local development authorities in Virginia have issued industrial revenue bonds in excess of $214 million to attract and expand industry (see Appendix 1). There are over one hundred local industrial revenue bond authorities in the State (see Appendix 2). Some serve entire counties, others specific towns or cities. The purpose of the present industrial facilities financing program is to encourage industries to locate or expand in the Commonwealth of Virginia.

The Industrial Facilities Financing Study Commission was created under Senate Joint Resolution Number 69.