The Bucks County Economic Development Corporation (BCEDC) has a new partner in offering tax free financing to manufacturing companies, tax exempt projects, and 501C3 entities. The new partner is the Quakertown Area Industrial and Commercial Development Authority (QAICDA).
On September 23, 2013 QAICDA held a meeting before Quakertown Borough Council’s regularly scheduled meeting to approve a cooperation agreement between the QAICDA and the BCEDC. The QAICDA board of directors is the borough council members. The agreement has BCEDC acting as the agent for the QAICDA to promote and process industrial development authority loans throughout the County of Bucks.
The tax free financing which is referred to as the Revenue Bond and Mortgage Program is a financing program provided by the Commonwealth to stimulate economic development and create jobs. This objective is attained by providing tax-free, low interest loans to business and industry. One job must be retained or created for each $50,000 borrowed through the Revenue Bond and Mortgage Program. The maximum capital expenditure allowed on a project in the period of three years prior to and three years subsequent to the project date is $20,000,000.00. If that limit is exceeded, the bond or mortgage issue becomes taxable retroactively.