Industrial Revenue Bonds

PROGRAM DESCRIPTION

IRBs are tax-exempt bonds that can be used to stimulate capital investment and job creation by providing private borrowers with access to financing at interest rates that are lower than conventional bank loans. The IRB process involves five separate entities – the borrower, lender, bond attorney, issuer, and WEDC. Each year, federal law establishes a “volume cap” which applies at the state level. The volume cap limits the amount of bonding authority that a municipality or county can issue to businesses in that year. Once the annual cap is established under federal law, WEDC allocates bonding authority to the various municipalities and counties to issue IRBs pursuant to Wis. Stat. §238.10 and the Policy on the Allocation of Volume Cap.(1) The municipalities and counties sell the IRBs and loan the proceeds to eligible businesses undertaking eligible projects.
(1) Wis. Stat. §238.10
 

REQUIREMENT

SITE DETAILS

Energy Efficiency:

  • Focus on Energy can provide a number of incentives for the use of cost effective energy efficiency and renewable energy projects incorporated in a new facility. 

TID Availability
  • TIF District would be created to support infrastructure and incentives. 

Municipality Offers:
  • Financial assistance, including low-cost financing RLF Funds and Industrial Revenue Bonds (IRB’s)
  • Developer agreement incentives
  • Land cost write-down or free land
  • Free use of temporary office space during startup phase

 

Other Possible Incentives:
  • Land: Land is owned by the City of Waupun and price is negotiable as part of an overall developer’s agreement.
  • Tax Increment Financing (TIF): City of Waupun would create a TIF District to assist in project development. 
  • Economic Development Association (EDA) Grants:  grant to offset investments in traditional public works projects to support development. 
  • Community Development Block Grant (CDBG) – Public Facilities for Economic Development:  Similar to the EDA, pays for public infrastructure to support economic development.  Grants up to $500,000 based on an allowance of up to $35,000 per job created or 50% of the eligible infrastructure costs.
  • Community Development Block Grant (CDBG):  Low interest loans up to $1M, based on an allowance of up to $35K per job created for the express purpose of supporting economic development in WI communities under 50,000 residents.
  • Property Assessed Clean Energy (PACE) Financing:  Low interest Gap financing option that can be used for new construction with the goal of fostering investment in energy efficient operations. 
  • Transportation Economic Assistance (TEA) Grant:  Grant to fund public projects that support economic development investments, rail, roads, etc.  $5,000 per job created, capped at $500K.
  • Manufacturing and Agriculture Tax Credit:   Tax credits available for income derived from manufacturing and agricultural property located in WI.  This program offsets a significant share of WI income taxes. 
  • New Load Market Tariff:  Waupun Utilities offers a wholesale pricing tariff for electric utility services as an economic development incentive for new business for a period up to four years.
  • Energy Efficiency Shared Savings Loan:  Loan to provide upfront capital up to $500,000 towards energy efficient equipment contingent and repayable based on expected energy savings of installed equipment  
  • New Construction Design Assistance:  Waupun Utilities in conjunction with WPPI Energy offers incentives for the design and construction of whole-building energy efficiency technologies.

 

Training assistance programs – availability and structure

Wisconsin Fast Forward Training Grant available through the Office of Skills Development, Wisconsin Department of Workforce Development, is a matching grant.  Matching funds can be either monetary contribution or in-kind contributions, or any combination thereof.  The grant funds customized training programs that support job creation and skill/wage advancement and can be awarded directly to employers or a partner agency.

 

Workforce Advancement Training Grants available through the Wisconsin Technical College System are available on an ongoing basis until funds are depleted.  Grant pays approximately 50% of total training cost. Moraine Park Technical College provides customized training for employers to address workforce gaps and both writes and manages grants for partner companies.

 

Short-Term Bootcamp Training available through Moraine Park Technical college to train entry-level CNC (Computer Numerical Control), Welders, and Industrial Maintenance workers for area manufacturers. 

 

 

Supporting Documents

PDF icon Industrial Revenue Bond Program Information (504 KB)

Web Links

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