You are here

Tax-Exempt Bond Financing (Delaware)

Eligibility 
Utility
Commercial
Agricultural
Investor-Owned Utility
State/Provincial Govt
Industrial
Construction
Municipal/Public Utility
Local Government
Installer/Contractor
Rural Electric Cooperative
Tribal Government
Retail Supplier
Systems Integrator
Fuel Distributor
Transportation
Savings Category 
Fuel Cells
Photovoltaics
Program Info
State 
Delaware
Program Type 
Bond Program
Provider 
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.