Available to local for-profit entities expanding and making a significant investment. For-profit entities may use withholding taxes generated by entity to repay debt. Two options are available for EDPF: Self-Financing or Public / Bond Financing. Also available to local governments for infrastructure assets which must be owned by the local government.
A $100 million infrastructure Pool is created for bonding local governments for:
- County/municipal roads & bridges.
- Water treatment facilities.
- Solid waste management facilities.
- Railway and utility systems.
- Other infrastructure assets owned by local government.
- Bonds issued by the infrastructure pool are financed or repaid from sales taxes voted by the local community.
- A $100 million Economic Development Pool was created for public finance to local governments in conjunction with a for-profit entity through ODFA.
- The Economic Development Pool shall be used for economic development projects in the state.
- Debt issued from the Economic Development Pool may be paid from withholding taxes, and other revenue, at the for‐profit entity benefited by the financing.
- For debt obligations issued under this act, there is a maximum maturity of 25 years and a maximum coupon rate of 14%.
- Requires a letter of determination from the Oklahoma Department of Commerce that the project is net benefit positive for the state.
- Sixty‐five percent of the net proceeds from both the Infrastructure Pool and the Economic Development Pool shall be used by ODFA for municipalities that do not exceed 300,000 people.
- The remaining thirty‐five percent may be used by the ODFA for any eligible local government.
- Effective September 1, 2010 an evergreen clause permits the renewal of issuing capacity by ODFA.
The materials contained on this website have been prepared by the Oklahoma Department of Commerce for informational purposes only and do not constitute legal or tax advice. This information is subject to change based on judicial interpretation and legislative action. The application of the information is subject to your unique facts and circumstances. YOU SHOULD NOT ACT UPON ANY INFORMATION CONTAINED IN THESE MATERIALS WITHOUT SEEKING YOUR OWN PROFESSIONAL LEGAL AND TAX ADVICE.