Industrial Development Bonds (IDB or IRB)
These bonds are used to finance acquisition, construction, expansion, or renovation of manufacturing facilities and the purchase of machinery and equipment depending upon state law. IDB financing is subject to state and local laws, and federal income tax laws and regulations, if the interest on the bonds is expected to be exempt from federal income taxation.A source of funding available to municipalities, states, and in certain cases, development agencies to finance the construction or purchase of industrial, commercial, or manufacturing facilities, and/or equipment for private use. IDBs are backed by the credit of the private user and generally are not considered liabilities of government entity that issued the bond. The authorization to issue IDBs is provided by state statute.