Creditworthy manufacturing companies, 501(c)(3) not-for-profit organizations, and exempt facilities in New Jersey may be eligible for long-term financing under the Bond Financing Program.

NJEDA issues conduit tax-exempt private activity bonds, the proceeds of which are used to provide financing. 


Through a federally authorized program, the  NJEDA issues conduit tax-exempt private activity bonds, the proceeds of which are used to provide financing.

Taxable bonds are also available for a wide variety of businesses, such as manufacturing, commercial, warehouse, and distribution, etc. Taxable bonds offer similar flexibility in structuring rates and terms but are not subject to the restrictions placed on tax-exempt financing under the IRC.

Bonds are sold via direct purchase or public offering. A financial intermediary, typically a bank, will directly purchase bonds from the NJEDA once it has performed a credit review on the applicant’s project. The bank sets the interest rate, terms and other financial details. In a public offering, bonds are purchased by an underwriter and sold to private investors in the public marketplace and may be structured with a bank’s commitment to provide a letter of credit (LOC) or a municipal bond insurance policy. Market conditions will determine the interest rate, while the bond’s terms and other financial details are set by the LOC provider


Borrowers must meet the eligibility requirements outlined in the Internal Revenue Code (IRC) in order to qualify for tax-exempt bond financing, including:

  • Manufacturing/processing facilities
  • Governmentally owned public airports, docks, wharves
  • Facilities that furnish water, electric, and gas; sewer facilities; and solid waste disposal, including certain recycling facilities
  • Certain facilities for governmental bodies, which qualify as tax-exempt governmental obligations
  • Certain not-for-profit 501(c)(3) entities, including service organizations, educational institutions and health care facilities
  • Certain assisted living facilities, which qualify as residential rental projects.


  • Application fee: $1,000
  • Application fee for Bond w/ Guarantee: $2,000
  • Closing fee for tax-exempt bonds: 0.5% of tax-exempt bond amount of up to first $15 million; 0.375% of the next $10 million and 0.5% of the bond amount in excess of $25 million
  • Closing fee for taxable bonds: one half of the closing tax-exempt bond fee noted above
  • Closing fee for not-for-profit corporations and governmental bodies: 0.5% of tax-exempt bond amount up to $10 million and 0.25% above this amount
  • Closing fees for conduit bond transactions, except for conduit bond transactions that support multi-jurisdictional, interstate projects: capped at $300,000
  • Guarantee fee: if required, will be up to 0.5% sized to percentage guarantee required, not to exceed 0.5%. (For example, 25% guarantee will require a 0.25% fee, 50% guarantee will require a 0.5% fee.


Division of Taxation Tax Clearance Certificate required. 

Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.

If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.

Please note:  It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate.  If a current and clear certificate is not evidenced to NJEDA at time of closing, NJEDA will not proceed with closing.

The NJEDA’s list of Designated Bond Counsel Firms comprises private law firms approved by the State Attorney General’s Office as having particular experience and expertise in this specialized area of federal tax law. Bond Counsel represents the Authority, drafting necessary resolutions and financing documents concerning the project. At the bond closing, bond counsel delivers an opinion that the project qualifies and the interest income earned on the NJEDA’s bonds is exempt from federal income taxes, subject to certain limitations.

At the time an application is submitted for the issuance of bonds, applicants must select a firm from the list to act as Bond Counsel for their project. The NJEDA encourages applicants to utilize a competitive process to make their selection. Applicants still need to have their own legal counsel to represent their interests in the transaction.

Bond Counsel fees are paid by the applicant at the closing of the bond transaction and may be financed with bond proceeds subject to certain limits. Applicants may be charged a fee by Bond Counsel even though the project does not close with Authority bonds.

You should consult with Authority staff concerning the details of Bond Counsel selection.

Click here for the NJEDA’s list of Designated Bond Counsel Firms.

Projects utilizing NJEDA financial assistance for construction related costs are subject to state prevailing wage requirements.
Effective April 1, 2020 all construction contracts in which prevailing wage applies must provide proof of valid NJ Department of Labor Construction Registration Certification. Please email if you have any questions about this requirement. Please be advised that a valid Contractor Registration Certificate is required to perform construction on this NJEDA financially assisted project