Tax-Exempt Financing

Manufacturing Facilities

Finance Your Factory

Manufacturers have access to tax-exempt (low-interest) loans.  That means your interest rate could be up to 40% less than the market rate, which could save you tens of thousands of dollars in interest payments each year.

  • What Can Be Financed?
    • New buildings and equipment used for manufacturing and the purchase of existing manufacturing facilities including equipment
  • What is Manufacturing
    • Core manufacturing resulting in a change in category of personal property. Examples include turning milk into cheese; transforming rolls of paper into paper bags;
  • Benefits of Tax-Exempt Financing Manufacturing
    • Higher Loan to Value (can be 100% financed)
    • Longer Terms (up to 120% of life of asset)
    • Lower Interest Rate
    • Can be combined with traditional financing
  • Conditions

 

Maricopa County IDA

Kovach Building Enclosures $4,232,000

Manufacturing

Kovach used tax-exempt financing to purchase their 130,000 SF fabrication facility in Chandler.

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