WASHINGTON — States will be allowed to issue 5.2% more of private activity bonds in 2014, freeing money for projects that would otherwise be ineligible for tax-exempt financing.

The increase to $34.891 billion from the $33.170 billion cap in 2013 is based on the latest population figures released Monday by the Census Bureau and a new PAB cap formula published by the Internal Revenue Service in November. Increasing populations and a more generous formula means that some states will see sharp increases, and no state will have a smaller cap.

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