Revenue Bonds Industrial Development

Proceeds are utilized by private manufacturing companies interested in locating a facility in nevada or expanding an existing nevada based business.

Revenue bonds industrial development. Industrial revenue bonds irb are municipal debt securities issued by a government agency on behalf of a private sector company and intended to build or acquire factories or other heavy equipment. Bond proceeds may be used for either new construction or renovation and may be used to purchase new equipment. How irbs work irbs came into wide use in the period after world war ii when southern states employed them to lure investment by northern manufacturing companies. This program primarily supports the following wedc strategic pillar and focus area.

The ifa issues tax exempt industrial development revenue bonds irb s on behalf of manufacturing companies to finance the acquisition of fixed assets including land buildings and equipment. Industrial development revenue bonds idrbs are a type of tax exempt municipal bond public debt instrument. Industrial development revenue bonds incentive. Industrial revenue bonds irbs are issued by industrial development corporations sponsored by a government unit but their proceeds are passed on to private businesses which are generally responsible for debt service payment.

An industrial revenue bond also formerly known as an industrial development bond is a unique type of revenue bond organized by a state or local government. Idbs can provide low interest loans for large projects by permitting the borrower to take advantage of long term financing with lower than prime interest rates. The bond issue is sponsored by a government entity but the proceeds are directed to a private for profit business. The best known form of private activity bonds are industrial revenue bonds irbs which are also known as industrial development bonds.

Business retention and expansion. Industrial development bonds idb s are tax exempt securities issued up to 10 million by a government agency to provide money for the acquisition construction rehabilitation and equipping of manufacturing and processing facilities for private companies. The industrial revenue bonds irb program is to incent expansions of manufacturing facilities in the state of wisconsin.