ECIDA Financial Services: Bonds and Bond Financing

To promote economic development, the Essex County IDA is authorized to issue tax-exempt, taxable and civic facility bonds. Project costs eligible for financing include the purchase and rehabilitation of existing buildings, construction of new buildings, or the construction of additions to existing facilities.

General Municipal Bonds

Eligible projects include: puchase and rehabilitation of existing buildings, construction of new buildings and expansions.

Benefits include: mortgage recording tax exemption, sales tax exemption and project may be eligible for property tax abatements.

Tax-Exempt Industrial Revenue Bond (IRB's)

Eligible projects include: manufacturing facilities which are used in manufacturing or production of tangible personal property and facilities which are directly related and ancillary to a manufacturing facilities if such facilities are located on the same site as the manufaturing facility and are not more than 25% of the net proceeds of the bonds are used to provide for diretly related and ancillary facilities. These directly related and ancillary facilities include office and warehouse space. Ancillary activities must be subordinate to and intergral to the manufatcuring process. There is a $10 million volume cap for tax-exempt bond financing.

Benefits include: reduced interest rate for financing, bond financed projects exempt from sales tax for development and mortgage recording tax and the project may be eligible for property tax abatements.

Civic Facility Bonds (Non-manufacturing)

Eligible projects incude: facilities owned or operated by a "not-for-profit" corporation organized for special use and existing under the laws of New York State or authorized to conduct activities in New York State. Organizations that are exempt from Federal income taxation under the Code commonyl referred to as the 501(c)(3) organizations are generally permitted to finance their exempt activities on a tax exempt basis. Certain limations do apply.

Benefits include: reduced interest rate for financing.

Please note: tax-exempt bond can be issued for projects that include both manufacturing and non-manufacturing activities (not for profits) special use facilities.