The Internal Revenue Service has determined that some tax-exempt enterprise zone facility bonds issued to finance the construction of a business within a zone will remain tax-exempt even if the facility is sold to another buyer to operate it after its construction.

"We conclude that a sale of the facility to a person who will operate the facility as an enterprise zone business but who will not be the first-time user of the facility in the zone will not cause the bonds to be other than qualified enterprise zone facility bonds," the service stated in its letter.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.