Providing financial assistance for affordable housing, and community and economic development since 1981.

Tax-Exempt Industrial Development Bond (IDBs) Financing

Under this special program, the Authority has the power to issue tax-exempt bonds by acting as a conduit through which qualified entities gain access to the tax-exempt bond market.

Interest paid on IDBs is exempt from federal and Arizona income taxes, so bondholders are willing to accept a lower interest rate from the borrower. Thus, this tax exemption significantly lowers the borrower's finance cost. The proceeds from the tax-exempt bonds are loaned to the qualified entities to finance qualified projects valued up to $20 million.

Eligible Projects:

The projects may include acquisition, construction, equipping, or improving the borrower's land, building, or equipment. Tax-exempt IDBs are available for manufacturers, processors and non-profit organizations. The project may include industrial or manufacturing plant, a research or development park, an agricultural processing or storage facility, a warehousing or distribution facility, a headquarter facility, a tourism facility, and education facility, a commercial project in an enterprise zone or a healthcare facility.