Manufacturing Facility Bonds

The Phoenix IDA provides taxable and tax-exempt bond financing through industrial revenue bonds for the acquisition, construction, equipping or improvement of qualified manufacturing projects located within the City of Phoenix.

Industrial Development Bond (IDB) Financing

• Bond proceeds must be used to finance land, building, and new equipment that will be engaged in manufacturing and certain processing activities. "Manufacturing facility" means any facility that is used in the manufacturing, creation, or production of tangible property.
• Existing manufacturing facilities (including equipment) may be acquired by bond proceeds under certain circumstances.
• Capital expenditures by the borrower (and related parties) within the city where the bond proceeds are being spent are limited to $20 million aggregating during a six year period beginning three (3) years prior to the bond closing and continuing until three (3) years after the bond closing.
• Borrower must obtain an Inducement Resolution from the Phoenix IDA within 60 days of taking title to assets that are to be financed with bond proceeds.
• Borrower has up to three (3) years to spend bond proceeds and may want to consider several phases of expansion plans.
• Current refundings of existing IDBs may also be available.

Eligible Projects

Projects may include acquisition, construction, equipping, or improving the borrower's land, building, or equipment. Tax-exempt IDBs are available for manufacturers, processors and nonprofit organizations. The project may include an 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, an educational facility, a commercial project in an enterprise zone, or a healthcare facility.