Industrial Revenue Bonds (IRB)
- North Carolina bond programs allow tax-exempt bonds at 1.5-2.5 percentage points below corporate bond rates. The cost of the bond issuance can be spread over the term of the bond issue. The total amount of IRB’s outstanding at all related business operations cannot exceed $40 million in accordance with federal tax laws.
- Issuance requirements:
- A certain number of new or retained jobs are required. Currently there must be one job per $250,000 of financing.
- Business must certify it is not abandoning another facility in NC.
- Bonds must be sold to a sophisticated investor or backed by a letter of credit. The company must be able to borrow on its own credit.
- Business must secure any required environmental certifications or permits.
- Other bonds:
- Exempt Facility/Solid Waste Disposal- used to finance solid waste disposal facilities for collection, storage, treatment, utilization, processing or disposal of solid waste. These bonds are tax exempt.
- Industrial or Pollution Control Facilities- issued to finance industrial or solid pollution control facilities that do not meet requirements for tax exemption. These are not exempt from federal tax but are exempt from state income tax.