Development Financing (Industrial Development)

Through the Development Financing program, NIFA encourages the investment of private capital in order to stimulate economic activity, create jobs, provide adequate health care facilities and expand the tax base throughout the state. NIFA does this primarily by providing technical assistance to project participants for financing through tax-exempt issuers such as counties and cities.

Development Financing Tax-Exempt Bonds

Development Financing Tax Exempt Bonds Description-

 

Eligible Projects

Eligible projects for development financing or industrial development bond financing generally include land, buildings or other improvements, or real or personal property (new or existing), used in connection with the activities listed below. No more than 25% of the bond proceeds may be used to acquire land or an interest in land. In the descriptions below, non-profit entities are those created for purposes unrelated to the operation for profit; i.e., no part of the income is distributable to its members, directors or officers, such as non-profit corporations created in accordance with Nebraska law. In order for interest on the bonds to be tax-exempt for federal income tax purposes, such non-profit entities must qualify as a 501(c)(3) corporation under federal law.

Financing Process

Typical steps of the bond financing process, when NIFA is the issuer, are as follows:

Application

Parties interested in financing a project through NIFA are encouraged to complete and submit the NIFA application form. The application must demonstrate that the proposed project meets all eligibility requirements by providing information that shows: