Economic Development Bond Program (Iowa)
Last modified on February 12, 2015.
|Applies to States or Provinces||Iowa|
|Name||Economic Development Bond Program (Iowa)|
|Policy Category||Financial Incentive|
|Policy Type||Bond Program|
|Affected Technologies||Biomass/Biogas, Coal with CCS, Concentrating Solar Power, Energy Storage, Fuel Cells, Geothermal Electric, Hydroelectric, Hydroelectric (Small), Natural Gas, Nuclear, Solar Photovoltaics, Wind energy|
|Funding Source||Iowa Finance Authority|
|Program Administrator||Iowa Finance Authority|
| Last Substantive Modification
Through its Economic Development Bond Program, the Iowa Finance Authority (IFA) issues tax-exempt bonds on behalf of private entities or organizations for eligible purposes. The responsibility for repayment of the bonds rests with the applicant. Neither IFA nor the State of Iowa has any liability to repay the debt. IFA does not buy the bonds or sell the bonds. Applicants are responsible for finding an entity to purchase the bonds.
If the project is qualified and IFA will be the issuer of the bonds, an Economic Development Revenue Bond Program application must be completed and submitted to IFA, along with a $1,000 fee for applications up to $10 million and $2,500 fee for applications over $10 million. The application fee will be subtracted from the issuer fee at closing.
Once the application is submitted and the application fee is paid, the application is considered by IFA’s Board of Directors. IFA’s Board meets monthly. Applications must be received approximately ten days prior to a Board meeting to be considered at that meeting. If the application is approved by the Board of Directors, IFA will hold a public hearing and consider approving the issuance of the bonds for the borrower at a later meeting.
Because Federal tax requirements limit the amount and type of expenses that can be reimbursed with bond proceeds, the borrower should seek approval of the project by the Board before beginning work or expending funds on the project. Economic Development Bond applications will expire if the bonds are not issued within 18 months.
At the time of closing, IFA requires the borrower to pay a fee, usually 10 basis points, for administrative costs. IFA does not pay for costs or legal fees of the borrower or any other costs incurred as a result of the issuance of the bonds.
There will be a $2,500 charge for any resolution coming before the IFA Board that is not part of a bond issue that will have a closing fee. This would primarily include amending resolutions to prior bond issues.
The fee for a special IFA Board meeting is $2,500. This fee is in addition to any other fees charged.
|Contact Name||Lori Beary|
|Department||Iowa Finance Authority|