ARIZONA INDUSTRIAL DEVELOPMENT AUTHORITY
Through the Arizona Industrial Development Authority (AZIDA), private borrowers can reduce their financing costs through the issuance of tax-exempt bonds.
Nationally, private activity bonds (PABs) are issued by industrial development authorities for the benefit of private users. Repayment of the bonds is an obligation of the private user, not of the issuing authority. The proceeds of these bonds are used for industrial and other private purposes and the interest on the bonds may be exempt from federal income tax (IRC Sec. 103). In Arizona, the interest on the bonds is also exempt from state income tax.
The AZIDA issues both taxable and tax-exempt bonds for commercial activities using a streamlined process at competitive rates.
Arizona IDA Procedural Pamphlet