Infrastructure Projects

Exempt-Facility Bonds

Paying for infrastructure may be the most difficult hurdle when attempting to pay for a development.  One way to lower the cost is it use tax-exempt bonds.

• Eligible Projects
  • Airports, docks, wharves, mass commuting facilities, parking facilities;
  • Facilities for sewage/solid waste disposal;
  • Facilities for the local furnishing of electric energy or gas;
  • Facilities for furnishing water;
  • Local District heading or cooling facilities;
  • Qualified hazardous waste facilities;
  • Air or water pollution control facilities;
  • Research and development facilities;
  • New or existing correctional facilities within the State; and
  • Qualified green building and sustainable design projects

• Requirements for Exempt Facility Bonds
  • At least 95 percent of the net proceeds of the bonds (bond proceeds less amounts in the reasonable required reserve or replacement fund) must be used to finance the facilities.
  • The facility must serve or be available on a regular basis for general public use, OR be part of a facility that is so used.
  • More on Exempt-Facility Requirements