Industrial revenue bonds, also known as self-sustaining bonds, are a type of revenue bond. These qualified private activity bonds are tax-exempt bonds issued by a state or local government, the proceeds of which are used for a defined qualified purpose by an entity other than the governmental entity issuing the bonds (the “conduit borrower”). The interest on the bonds is exempt from both federal and state income tax, resulting in lower debt service, and the bonds are repaid from the project and/or the borrower’s revenues.
About CI’s IRB Program
IRBs offer flexible amortization and maturity—up to 40 years or 120% of the economic life of the asset that is financed. Bonds can equal 100% of the project cost and are customarily credit-enhanced when sold to the public, although privately- placed bonds may not require credit enhancement. Bonds are typically secured by a mortgage or security interest.
Eligibility and Conditions
Additional information can be found at: http://www.irs.gov/pub/irs-pdf/p4078.pdf
For more information or an application, contact Karin Lawrence at 860-258-7814 or at Karin.Lawrence@ctinnovations.com.
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