Industrial Revenue Bonds are an attractive means for manufacturing companies to expand their business by offering a competitive interest rate and tax exempt income for the holder of the bonds. IRB’s are used to finance fixed assets and include a $10 million dollar cap within each jurisdiction over a six-year period. The cap affects both the amount of the bonds and capital expenditures going both backwards and forwards three years. The maximum any company may have outstanding nationwide is $40 million at any given period.
Industrial Revenue Bonds are most cost effective for companies planning to invest at least $1.5 million and not exceed $10 million. Bonds are approved and processed in a process including both the county and state. Bond counsel is required.
For additional details and program information, contact the NC Department of Commerce’s Commerce Finance Center at (919) 733-4151.