Financing + Incentives
Butte-Silver Bow Tax Increment Financing Industrial District
The Butte-Silver Bow Local Government through its Tax increment Financing Industrial District (TIFID) program allows the local government to utilize property taxes brought about by new development in the area to construct infrastructure and assist with facility construction to support additional industrial uses in the area. The TIFID is located approximately seven miles west of Butte in the Montana Connections Business Development Park. The TIFID program is designed to help offset the cost of infrastructure needed by new companies and organizations within the Park. The TIFID administration will work with the project developers to determine its specific infrastructure needs and how the TIFID program can be used to assist in offsetting these costs. All development programs under the TIFID are based upon availability of funds.

The qualifying infrastructure includes streets, roads, curbs, gutters, sidewalks, parking, sewers, sewer lines, storm sewers, waterlines, natural gas lines, electrical lines, telecommunication lines, rail lines and spurs, and construction of facilities.

The TIFID program also includes an interest rate write-down option where the TIFID would participate in any conventional financing needed for the project by guaranteeing the lending institution an annual payment. For example, assuming the current commercial financing rate is seven percent but the project needs the rate to be five percent for the project to be successful—the TIFID would then guarantee the bank a two percent interest payment to reduce the rate the project pays from seven percent down to five percent. By law, the TIFID will not be able to continue the interest rate write-down assistance program past the expiration date of the TIFID in 2022, therefore all financial assistance granted to the project would need to be utilized before 2022.

In addition, the TIFID can provide low interest loans independently from the above programs. Loans can be used to assist with construction of the facility. Loans are intended to supplement the project’s other financing sources including commercial and public assistance (i.e., loans and grants), and public and private investments. The maximum loan amount is $400,000, and depending on the risk of the project and use of funds, will carry an interest rate from three to five percent and term from 10 to 25 years.

 



Site Selection Magazine
Nov 2012 Area Spotlight

"Montana: A Surplus of Riches"

From huge energy reserves to a record state balance, Montana lures companies with an aggressive recruitment pitch and a frequent-flyer recruiter.

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Butte, Montana - The Richest Hill on Earth Watch Video >