Who is eligible to use Recovery Zone Economic Development Bonds, and what can they be used for?
A. Under this program, counties and large municipalities (greater than 100,000 in population) are eligible to issue tax-exempt bonds called “Recovery Zone Economic Development Bond” to finance economic activities in a Recovery Zone. A Recovery Zone is defined as an area having significant poverty, unemployment, home foreclosures, or general distress; or an area that has already been federally designated as an Empowerment Zone or Renewal Community. Aside from the federally designated areas, the county or municipality may designate areas within their jurisdiction as Recovery Zones. Economic development activities qualified under this program include: 1. Capital expenditures paid or incurred for property in Recovery Zones. 2. Expenditures for public infrastructure and construction of public facilities. 3. Expenditures for job training and educational programs. Private activities, defined as those in which a substantial portion of the bond or tax credit proceeds benefit a private business
