Grants and Incentives

Tax-exempt Bonds

 

Private Activity Bonds greater than $3 million, often called Industrial Revenue Bonds (IRBs) or Industrial Development Bonds (IDBs), are bonds issued by state or local governmental entities for the benefit of a private company. Interest on the bonds is generally exempt from federal income taxes for investors, which typically results in lower long-term interest rates to the borrower. IEDC recommends that you contact your lender to determine if this program is right for you.

The IEDC can issue bonds to finance qualified manufacturing facilities (land acquisition and construction), manufacturing equipment, pollution control facilities and other projects permitted under federal law. Applicants can save significant interest costs on projects by using tax-exempt bonds.

Fees

  • A $3,000 non-refundable application fee, payable to the Indiana Finance Authority, must accompany the application.  It does not include volume cap fees.
  • The IEDC will either serve as Issuer's Counsel or select outside counsel in certain circumstances.  If the IEDC acts as Issuer's Counsel, there will be a fee of $5,000 (or $10,000 if there are multiple series with both fixed and variable rate bonds).  The Applicant is responsible for paying outside Issuer's counsel fees (if the IEDC does not serve in this capacity) and financial advisor fees (if any) relating to the project.  The Applicant may choose its own Indiana Bond Counsel and finance team.
  • A Closing Fee of 10 basis points, payable to the Indiana Finance Authority, is due at closing (maximum fee is $30,000 per project).

Tax-exempt financing promotes economic development, HIGHER PAYING JOBS AND COMPETITIVE BUSINESS practices across Indiana.

Not-for-Profit

The IEDC can also issue tax-exempt bonds for certain 501(c)(3) entities, including but not limited to child care facilities, charter schools and cultural institutions. Examples of past transactions include the Indiana Historical Society, the NCAA, Goodwill Industries and the Culver Educational Foundation. Borrowing for capital expenses at a lower rate can achieve significant cost savings for not-for-profit organizations. The IEDC can also refund bonds issued by the IEDC or local issuers to reduce long-term interest costs to the borrower. 501(c)(3)s do not require an allocation of Volume Cap.

Contact Information

Mailing Address:

Indiana Economic Development Corporation
One North Capitol, Suite 700
Indianapolis, IN 46204
(317) 233-9168 Phone
Office Hours: Monday - Friday
8:00 am to 5:00 pm

Contact:

Matt Tuohy, Program Manager, (317) 233-9138

Comparing the cost to do business in New York with Indiana showed that the best place for us to grow our business was here at home.

-Gregg Baumbaugh, chief executive, FlexForm Technologies