Industrial Development Authority Tax-Exempt Financing Program
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The Industrial Development Authority Tax-Exempt Financing Program, administered by the YCIDA, provides private sector financing at lower than conventional interest rates to eligible businesses for the acquisition of land and buildings, building improvements, machinery and equipment, closing costs (subject to a federal cap) and other uses as permitted by federal tax law.

Businesses qualifying as tax-exempt are manufacturing firms, 501 (c)(3) organizations, federally defined exempt facilities and qualifying first time farmers. All proposed projects from tax-exempt businesses must comply with federal tax law qualifications

Manufacturing and 501 (c)(3) projects are eligible to apply for financing up to $10,000,000, subject to federal capital expenditure limitations and allocation of federal volume cap by the Pennsylvania Department of Community and Economic Development. All other projects are subject to federal tax laws when applying for financing. Effective rates on tax-exempt financing are approximately 75% to 85% of the prime interest rate. Tax-exempt financings are structured as tax-exempt bank loans or bond issues with rates determined by the private sector lender and the bond market respectively. A letter of credit typically backs bond issues. The loan term for tax-exempt projects is determined by the life of the asset being financed. As job creation is the goal of the program, all proposed projects from tax-exempt businesses must create or retain one full time job for every $50,000 borrowed.

For more information regarding the Industrial Development Authority Tax-Exempt Financing Program, please contact Kenetha Hansen, Vice President, Economic Development, at 717-846-8879 or complete the contact form.