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Tax Incentive Finance

Monetizing Incentive Revenues

KeyBanc Capital Markets logoDeep industry expertise allows us to guide your business toward its strategic goals through customized financial solutions.

Expertise

The bond financing experts at KeyBanc Capital Markets (KBCM) understand the unique challenges of tax incentive finance programs and can deliver solutions for developers to fill a funding gap in their capital stack. By leveraging future tax incentive cash flows for up-front proceeds on a non-recourse basis, KeyBanc Capital Markets identifies and executes the most cost-effective bond financing solutions for development projects.

Our public finance team has deep experience with bond financing for all project types, including mixed-use developments, retail centers, lifestyle centers, multifamily developments, industrial developments, and commercial office parks. Bonds can be used to finance general project costs, demolition, land acquisition, parking structures, sidewalks and streetscape, public amenities, roadwork, and water/sewer infrastructure.

Bond Attributes

  • Non-recourse
  • Pre- or post-construction
  • Taxable or tax-exempt
  • Public sale or private placement
  • Long-term
  • Fixed interest rates

Bond Types

Depending on the project type, location, and projected revenues or impact on the community, different bond types may prove to be the best option for your project. Our team can help you assess what may work for your development.

  • Tax Increment Financing
    • TIF Revenue Bonds
      • Monetizes projected future ad valorem tax revenues from a project
      • Property taxes, payments in lieu of taxes (PILOTs), tax allocation districts
  • Sales Tax Incentives
    • Sales Tax and Revenue (STAR) Bonds
      • Monetizes projected future sales tax revenues from a project
      • Sales taxes, business district taxes, tourism surcharges, economic activity taxes (EATs), community improvement district taxes
  • Special Assessment Bonds
    • Community Development Districts
      • Secured by an additional tax/assessment levied on the property or development to benefit from the bond proceeds

How can KBCM help?

KBCM experts take an analytical approach to identifying and evaluating TIF solutions that can steer your development to fruition. We offer counsel and lead the process throughout, from providing structuring expertise to identifying and educating investors during underwriting to pricing execution for the bond issuance.

Recent Deals

KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp® and its subsidiaries, KeyBanc Capital Markets Inc., Member FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A.

Securities products and services: Not FDIC Insured • No Bank Guarantee • May Lose Value

Please read our complete KeyBanc Capital Markets disclosure statement.

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