IDA's provide four basic benefits to a qualified project: low cost financing, an abatement of real property taxes, and exemptions form both the mortgage recording tax and sales tax attributable to the construction and equipping of the IDA project. IDA's can be used as a financing mechanism by allowing the applicant access to the industrial revenue bond market, which can often translate in to lower rates and more favorable terms than conventional financing. Or applicants can choose traditional financing, but still receive a property tax abatement, as well as substantial savings by avoiding the mortgage recording tax and sales tax on any item that is used to construct, equip and furnish the facility. All Industrial Revenue Bond projects also enjoy these tax savings.
