Private activity bonds – Act soon to add more to your manufacturing facility for less

Description

Abstract: The American Recovery and Reinvestment Act of 2009, commonly referred to as the Stimulus act, has sweetened tax-exempt private activity bonds, which are available to finance “manufacturing facilities.” This definition now includes facilities used in the creation or production of intangible property, such as computer software or intellectual property. Traditional manufacturers may also benefit by using the money from a private activity bond to finance the development of on-site facilities. The act also lessens alternative minimum tax risk. But these and other tax breaks (described in a sidebar) may not be around for long, so it’s important to act fast.