Manufacturing Bonds

Certain small- and medium-sized manufacturing businesses can utilize the Port Authority for tax-exempt financing. The federal government permits the Port Authority to issue tax-exempt “qualified small issue bonds” on behalf of manufacturing businesses that do not invest more than $20 million in Warren County, Ohio over a six-year period of time covering the date of the bond transaction. “Qualified small issue bonds” may be issued in principal amount of up to $10 million to fund assets used by the manufacturing businesses. The proceeds of “qualified small issue bonds” must be used according to two key restrictions: 1) 95% of bond proceeds must be used to pay the costs of depreciable assets used in the manufacturing process, and 2) 75% of bond proceeds must be used to pay the costs of assets that are “core” assets of the manufacturing process. An allocation of “volume cap,” or issuing authority, must be obtained from the Ohio Department of Development for “qualified small issue bonds” issued within the State of Ohio, and the Port Authority can assist in obtaining such an allocation.