Who is eligible to use Small Issue Intangible Property Bonds, and what can they be used for?
A. Businesses that produce certain kinds of “intangible property” as defined in the United States Code Section 197(d)(1)(C)(iii) are eligible. The Code defines “intangible property” to include “any patent, copyright, formula, process, design, pattern, knowhow, format, or similar item.” Under this program, these businesses, along with traditional manufacturing businesses, may work with a qualified bond issuing authority to issue a tax-exempt bond to finance construction of business facilities, business expansion projects, or purchase of equipment.
