American Recovery and Reinvestment Act
(Economic Stimulus Bill)
Industrial Development Bonds
Manufacturing facilities can also receive tax exempt bond financing. With the stimulus package, the definition of a manufacturing facility has been amended to include intangible property as well as tangible property. Intangible property is re-defined by the stimulus package as any patent, copyright, formula, process, design, pattern, know-how, format or other similar item.
This new definition can result in a significant increase of certain tax-exempt bonds to aid manufacturers. For companies that own intangible processes, the industrial development bonds can assist in obtaining additional financing to expand and alter intangible processes for future projects.
Business owners should seek professional advice from tax consultants and accountants to take advantage of the provisions offered in the stimulus bill.
Helpful Link: www.irs.gov