Tax-Exempt Bond Financing (Delaware)
Last modified on February 12, 2015.
|Applies to States or Provinces||Delaware|
|Name||Tax-Exempt Bond Financing (Delaware)|
|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, Tidal Energy, Wave Energy, Wind energy|
|Program Administrator||Delaware Economic Development Office|
The Delaware Economic Development Authority provides tax-exempt bond financing for financial assistance to new or expanding businesses, governmental units and certain organizations that are exempt from federal income taxation.
Eligible Projects: The availability of tax-exempt status for bonds issued to finance a given project is governed by various provisions of the Internal Revenue Code of 1986 (the “Code”) and the regulations and administrative rulings of the Internal Revenue Service.
In general, eligible projects include the following major categories:
Qualified 501(c)(3) Bonds - Tax-exempt bonds can be issued for the benefit of organizations that are tax exempt under Section 501(c)(3) of the Code, if 95 percent of the net proceeds of the bonds are used by the organization in furtherance of its exempt purpose. Depending on the project being financed, certain other limitations may apply.
Exempt Facility Bonds - Tax-exempt bonds can be issued to finance certain types of utility projects, including sewage facilities, solid waste disposal facilities, facilities for the local furnishing of electricity and gas and other types of facilities.
|Department||Delaware Economic Development Office|
|Division||Delaware Economic Development Authority|