industrial development bond

Industrial Revenue Bond

A tax-exempt municipal bond in which a local government entity is seeking to raise money for a private company. It may be used, for example, to build a factory or some other facility on behalf of a private company. A municipality issues an industrial revenue bond when it wishes to attract a business and the jobs in brings to the area, especially when the business may be otherwise unable to obtain financing for the project. The municipality issuing the bond must be able to prove that a public benefit will be derived from the industrial revenue bond in order to qualify for tax-exempt status.

industrial development bond

A type of municipal revenue bond in which interest and principal payments are secured by the credit of a private firm rather than by the municipality. Also called industrial revenue bond. See also private activity bond.

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industrial revenue bond

References in periodicals archive ?

The Industrial Development Bond Cap was created by the Federal Tax Reform Act of 1986 and establishes an annual bond volume cap ceiling for the issuance of certain tax exempt private activity bonds issued by the State and other authorized entities during a calendar year.

United States : Governor Cuomo announces State Allocates $771 Million in Tax Exempt Bonds to New York City to Help Address the Affordable Housing and Homelessness Crises

The IDB can also provide tax-exempt industrial development bond financing to assist qualified projects.

Memphis has the edge

04 million tax-exempt industrial development bond on behalf of Horn Packaging Corp.

MONEY BRIEFS

The Oregon Economic and Community Development Department has provided $750 million in industrial development bond financing to Oregon companies since the state launched the bond program in 1975.

Honey maker may blossom with large Glenwood plant

Barbara Left, (R-Paradise Valley) Chairman of the House Commerce Committee, for her sponsorship and outstanding effort on HB 2390, the Multifamily Industrial Development Bond Allocation bill.

AMA recognizes house member for industry involvement. (NAA Today)

1 million industrial development bond package to construct a new newspaper plant, but due to time constraints in meeting an Oct.

Newspaper plant construction delayed: city council OKs Northern California newspaper's multimillion-dollar development bond package, but deal falls through

According to a nationwide survey of states' private activity volume cap usage by The Bond Buyer, the portion of the cap devoted to the industrial development bond sector shrank significantly in 2001.

IDBs down, housing up. (News Briefs)

These companies were financed through ADFA's and the Arkansas Economic Development Commission's Industrial Development Bond Program, which enables the state to expand its industrial base and create employment by offering tax-exempt and taxable interest rates.

ADFA financing helps seven local industries

Finally, the authors discuss the growth of industrial development bond (IDB) issues in the Detroit area.

Bidding for Business: The Efficacy of Local Economic Development Incentives in a Metropolitan Area