Tax dollars that are generated by businesses locating or expanding within these boundaries can receive infrastructure improvements via the issuance of bonds by the political entity. Tax revenue generated by the business or businesses involved will be set aside to retire the bond. These bonds are widespread and, although the popularity of these financing vehicles has fallen, there are still instances where the use of these bonds trigger other benefits such as sales tax exemptions. These fees can range into the thousands of dollars for larger projects. Utility Tax Exemptions and Rate Reductions Larger projects that involve expansion or new developments can negotiate with public utilities for rate reductions.
Some states statutorily offer sales tax exemptions or reductions for qualifying projects.