Machinery and Equipment Bond Program

Owner-developers of manufacturing, airport cargo and recycling facilities may qualify for triple tax-exempt Industrial Development Agency (IDA) bonds to acquire new production machinery and equipment. Financings are typically cost-effective starting at $500,000. Applicants work with participating equipment financing companies to secure a bond purchase agreement. A $10 million issuance cap may apply.

In addition, owner-developers of manufacturing facilities may finance the acquisition, renovation, construction and equipping of facilities with low-interest tax-exempt IDA bonds. Financings are typically $2 million or less and may be cost-effective for projects at or below $1 million. The program provides a predetermined bond purchaser and a letter of credit. Projects may also qualify for exemptions on mortgage recording, real estate and sales taxes. To convey the tax benefits for real estate projects, the IDA must hold nominal title to the project property.

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