ANNOUNCEMENT 16 Dec 2010

Utilizing a special provision of Federal tax law, City of Moorhead, Minnesota issued Recovery Zone Facility Revenue Bonds for the American Crystal Sugar Company.

 

 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 16 Dec 2010 | Removal date: open ended
Still in force

State loan

On December 16, 2010 the City of Moorhead, Minnesota issued Recovery Zone Facility Revenue Bonds for the American Crystal Sugar Company Project, Series 2010 (MN). At issuance these bonds were collectively valued at $15,000,000. Recovery Zone Facility Bonds (RZFBs) are a type of traditional tax‚Äźexempt private activity bond that may be used by private businesses in designated recovery zones to finance a broad range of depreciable capital projects. They were authorized by Federal law — the American Recovery & Reinvestment Act of 2009 (ARRA) — which created several new types of tax-exempt bonds and tax credit bonds under the Internal Revenue Code. The governmental issuer of these bonds may elect (in lieu of issuing tax-exempt bonds) to receive a direct refundable credit payment from the Federal government equal to a percentage of the interest payments on these bonds. RZFBs are subject to a nationwide volume cap limitation.

AFFECTED SECTORS

 

AFFECTED PRODUCTS