White Paper

9 Pages
  • 9 Pages

An Introduction to Tax-Exempt Financing

 

Tax-exempt financing provides lower cost debt financing for state and local government agencies as well as qualified non-profit private entities. By making the interest earned on these bonds tax-free, investors are able to offer lower interest rates than are generally available. Bond issuances can be used for a variety of projects and can be used for both long and short-term financing needs. As with any tax advantage, there are numerous regulatory requirements that must be complied with to ensure favorable tax treatment, which are outlined in this white paper.

Learning Objectives

- Identify who is eligible for tax-exempt financing.

- Learn how the manner in which tax-exempt bond proceeds are used is determined.

- Review the IRS concerns with arbitrage.