Manufacturing Companies - Defined under federal law as "the manufacturing or production of tangible property (including processing resulting in a change in condition of such property)." A manufacturing facility can include office space, research and development space, and warehousing space, provided they are located on the premises of the manufacturing facility, are directly related to it, and compose less than 25% of the financing to be obtained. As part of the application process, companies will be required to obtain a legal opinion regarding their eligibility under the federal law.

Non-Profit Entities - Charitable organizations described in Section 501 (c)(3) of the Internal Revenue Code. These include nursing homes, health care facilities and educational facilities.

Exempt Facilities - Certain facilities including solid waste disposal facilities, mass commuting facilities, docks, airports, hazardous waste disposal facilities, sewage facilities, water and electricity furnishings facilities, and other facilities designated by federal tax law as eligible for tax-exempt financing.

Land - Includes acquisition, site preparation and improvements, infrastructure development (i.e. water, sewer & rail) and environmental testing. The cost of land cannot exceed 25% of the total real estate acquisition cost.

Building - Includes acquisition, construction, rehabilitation, engineering, architectural, legal and other related costs. For a building acquisition, an amount equal to at least 15% of the tax-exempt portion used to acquire the building and any equipment contained within must be used for rehabilitation. This rehabilitation must be done within 2 years of the funding date.

New Equipment - Includes acquisition, delivery and installation. Used equipment may only qualify if contained in a building being acquired.

Soft Costs - Includes legal, architectural, engineering, surveying, test boring, title insurance, appraisals, accounting, and financing costs for the project.

There is no minimum size for tax-exempt mortgages or bonds, although generally it is not economical to issue bonds for amounts under $3,000,000. Amounts under $3,000,000 are usually funded through a tax-exempt mortgage.

Under federal law, the borrower and occupant cannot incur more than $20,000,000 of capital costs, in the city or township of the project, during the six-year period beginning 3 years before the date when the proposed bonds will be issued and ending 3 years after the issuance of the bonds. These capital costs include the current financing costs and any prior outstanding small issues.

The non-profit entity and all related persons cannot have more than $150,000,000 of outstanding nonhospital tax-exempt financing, including the proposed financing.

There is no maximum loan size for exempt facility bonds.

Companies wishing to apply for tax-exempt financing should contact Mike Grigalonis or Kathy Field at the Chester County Industrial Development Authority (610.458.5700) to determine eligibility and obtain an application.

Applications must be submitted by the 1st of the month. CCIDA Board review will occur on the third Wednesday of each month. Following CCIDA approval, the application will be forwarded to the Board of Chester County Commissioners for their approval and then to the Pennsylvania Department of Community and Economic Development for the Secretary of Commerce Approval.

Project construction and/or acquisition cannot begin until approval has been received from the Chester County Industrial Development Authority. Deposits on real estate made prior to the approval are financable through the program if the acquisition of the real estate occurs after the approval.

Equipment, especially that which may have an extended delivery time, may be ordered prior to project approval and the costs (including advance payments) may be financed, provided that the equipment is "off the shelf' and is not custom built equipment, and provided that delivery and final payment for the equipment occur after approval.