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Tax-Exempt Economic Development Bonds "Industrial Revenue" and "Exempt Facilities" Bonds Tax Status Bond interest is exempt from federal income tax (subject to AMT). Eligible Projects Manufacturing and processing project located in Washington. "Exempt facilities" projects include waste disposal and other types of infrastructure. Call WEDFA staff to discuss your project further. Eligible Costs Land acquisition, building construction and acquisition of new equipment. Used equipment can be financed only if purchased as part of an existing plant. Project Size For industrial revenue bonds, maximum total capital expenditure for the project - including the proposed and any existing bond issues - of $20 million measured over a period beginning three years before and ending three years after bond issuance. For "exempt facilities" projects, no set dollar limit, however, bond cap allocation is currently restricted to 30% of initial category allocation (approx. $32.1 million) in a given year. Financing Source National tax-exempt credit markets; no governmental funds or guarantees are involved. Bonds must be either sold on the open market or privately placed with qualified institutional/individual investors. Security for the Bonds No governmental financial support, either direct or indirect, is provided. Payment of interest and principal is solely the responsibility of the borrowing company. Publicly sold bonds must be credit enhanced by a letter of credit from an investment grade-rated bank . Issuing Authority Washington Economic Development Finance Authority (WEDFA), a public corporation of the state authorized by the legislature to issue nonrecourse tax- exempt/taxable economic development revenue bonds.
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