State Incentive

Industrial Revenue Bonds

Summary

The State of Texas Industrial Revenue Bond Program (IRB) is designed to provide tax-exempt or taxable financing for eligible industrial or manufacturing projects as defined in the Development Corporation Act of 1979.  These projects typically involve significant private activity.

KEDC may issue tax-exempt bonds to finance land and depreciable property for manufacturing facilities. Proceeds are passed on to private businesses, which are responsible for debt service payment.

 The maximum bond amount is $20,000,000 for tax exempt bonds and the total capital expenditure limitation for the project is $20,000,000. The bonds are subject to the state’s private activity bond volume cap administered by the Texas Bond Review Board.