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Economic Development Revenue Bonds

Tax-Exempt Financing for Large-Scale Capital Investment

Anne Arundel County encourages private sector investment through the issuance of private activity revenue bonds. These tax-exempt bonds provide access to long-term capital markets for fixed-asset financing at favorable tax-exempt rates, helping eligible organizations fund major projects that strengthen our local economy.

Ideal For: Manufacturers, eligible 501(c)(3) nonprofit organizations, and certain energy projects pursuing large-scale capital investments. 

Loan Amount: Based on project size and financing structure 

Use of Funds: Fixed-asset financing such as land acquisition, building construction, facility expansion, and major equipment purchases through tax-exempt bonds. 

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Overview & Benefits

Economic Development Revenue Bonds (also known as Industrial Revenue Bonds or IRBs) are a powerful financing tool that enables eligible organizations to access tax-exempt capital for major fixed-asset projects.

Eligibility is limited by federal tax law to:

  • Manufacturing facilities
  • 501(c)(3) nonprofit organizations
  • Certain qualifying energy projects

Additional limitations may apply depending on the specific transaction structure.

AAEDC serves as your initial point of contact and trusted resource throughout the entire process — working closely with bond counsel, financial institutions, and County leadership to guide your project from application through approval and closing.

Key Advantages

  • Access to long-term, tax-exempt financing
  • Lower borrowing costs compared to conventional taxable debt
  • Supports major capital investments and expansion
  • Structured through established capital markets
  • Dedicated support from AAEDC’s Financial Services team
Loan Terms

Interest Rate: Tax-exempt (structured through bond issuance)
Term: Based on bond structure and financing agreement
Collateral & Security: Determined by lender and bond structure

Application Fee

  • $1,000 due at time of application
  • Payable to Anne Arundel County, Maryland
  • Credited against the User Fee if the bond closes

User Fee (Payable at Closing)

New Projects

  • One-eighth of one percent (0.125%) per year of the outstanding principal
  • Typically paid as a lump sum at closing (present value calculation)
  • Borrower may elect annual installment payments

Refunding Projects

  • One-fourth of one percent (0.25%) of the principal amount approved for refunding

(User Fees are defined by Anne Arundel County Code, Article Four, Section 11-108.)

Ready to Explore Tax-Exempt Financing?

If your organization is planning a major capital project and may qualify for tax-exempt bond financing, connect with AAEDC’s Financial Services team to discuss eligibility and next steps.

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