Several types of bonds are available. Tax-Exempt Industrial Revenue Bonds for Manufacturing Projects are issued to finance land and depreciable property for industrial and manufacturing facilities. Taxable Industrial Revenue Bonds typically have higher interest rates than tax-exempt issues, but these issues do not have restrictions on the use or amount. Sales Tax Bonds are available only for those cities that have passed the economic development sales tax. These taxable or tax-exempt bonds, depending on the type of project and business, are primarily for manufacturing or industrial projects, but can also be issued for commercial, recreational, infrastructure, and other types of projects. The Governor's Office Economic Development Division has more information on bond financing options.
Bonds may be issued by non-profit development corporations or authorities for eligible projects in order to promote new and existing businesses, encourage employment in the state, and increase the tax base of the community where the project is located.