Bond Process | Other Incentives
The DAFC issues taxable and tax-exempt bonds for qualified economic development projects across Fulton County and its municipalities, including the City of Atlanta.
The bonds, the interest on which may be taxable or tax-exempt from income taxation, facilitate financing for a company or institution, allowing the company to buy land, build new facilities, expand existing facilities, upgrade equipment, or otherwise make investments that enhance value and create jobs within Fulton County.
In addition to tax-exempt financing for manufacturing and other qualified projects, including 501(c)(3) projects, under federal law, many state and local governments offer taxable bonds as a way to encourage economic development. For project owners and developers, bonds are an often-overlooked source of capital that may offer significant tax advantages, thereby reducing the overall cost of financing projects.
For projects meeting certain criteria, the DAFC issues a taxable bond (for which the client must identify a purchaser). The Authority holds ownership of the property and leases it to the client. The leasehold interest in the property is initially valued, for ad valorem tax purposes, at 50% of the assessed fee interest, and that value increases by 5% annually over a 10-year period. Thereafter, the leasehold interest terminates, and the property is fully taxable.
Projects range from new construction and equipment upgrades to the renovation and expansion of existing facilities. DAFC clients include small entrepreneurial enterprises, non-profit organizations and major corporations and institutions funding diverse projects: warehouses, manufacturing facilities, mixed-use developments, hotels, performing arts centers, educational and athletic facilities, corporate headquarters, employee training facilities, technology upgrades, hospitals, and more.
Bond financing applicants, whose projects are subject to DAFC qualifying guidelines, must first complete an application to be reviewed by DAFC staff. The professional staff of the DAFC evaluates each proposed project, including the number and quality of new jobs each project creates, and works in conjunction with the Fulton County Board of Assessors as applicable.