12/22/2008 — Master site admin
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As you visit this site you will find pieces of information that you may want to add to a Custom Profile. To do that simply click the "add" link that is associated with that information. Once you are finished gathering data simply click "View Custom Report" and that will take you directly to your report. From there you can email, print or create a PDF of that report.
Industrial Revenue Bonds
Tax-Exempt Industrial Revenue Bonds are designed to provide tax-exempt financing to finance land and depreciable property for eligible industrial or manufacturing projects. Under Title XIII of Revenue Reconcilliaiton Act of 1993 and the Development Corporation Act of 1979, Local Industrial Development Corporations (IDC's) can issue tax exempt bonds and the IDC acts as a conduit for the financing. Project costs eligible include the acquisition of land and existing facilities; construction of new facilities; purchase of machinery, tools, equipment; and bond issuance costs in limited amounts. Only costs that have been incurred aafter the execution of an inducement resolution by the IDC can be recovered through bond issuance. The IDC acts as a conduit through which monies are provided. Bond debt service is often paid by the business under the terms of a lease, sale or loan agreement and a bond issue does not constitute a debt or obligation of the governmental unit, the IDC or the State of Texas. The maximum bond amount is $10,000,000; howevwer, the actual amount may be lower since the bond amount and certain capital expenditures made by the business within the issuer's jurisdiction for three years back and three years forward cannot exceed $10,000,000.
These issues must receive a reservation under the State’s volume limitation (“volume cap”) managed by the Texas Bond Review Board and must receive approval from the Texas Department of Economic Development and and also by the Attorney General's Office. Projects must be located within the boundaries of the sponsoring issuer and governmental unit unless the IDC is requested to issue bonds by another governmental unit. All three Counties in the Katy Area have IDC's. The terms may be fixed or variable, less than prime, and amortized over the userful life of the assets being financed.
The Tax Reform Act of 1986 imposes a volume ceiling on the aggregate principal amount of “private activity bonds” that may be issued with the State during any calendar year. Generally, the reservation of state ceiling issues is allocated by lottery in October each program year. For more information on the “volume cap” or the lottery dates, contact the at Texas Bond Review Board at 512-463-1741.