Midwestern Disaster Area Bonds

Overview

The Heartland Disaster Tax Relief Act of 2008 (the “Act”) was signed into law as part of the Emergency Economic Stabilization Act of 2008 on October 3, 2008. The Act provides a variety of tax relief and financial incentives for designated regions in the Midwestern Disaster Area.

Among the benefits designed to assist individuals and businesses affected by the disaster, the Act provides for a new category of tax-exempt Midwestern Disaster Area Bonds (“MDABs”) for certain multi-family rental, nonresidential real property, public utility property and principal residential projects.

Benefits

Midwestern Disaster Area Bonds provide low interest financing for projects by excluding interest on tax-exempt bonds from federal gross income tax. Furthermore, MDABs are not an item of tax preference for purposes of the federal alternative minimum tax.

Eligible Counties

The Midwestern Disaster Area includes specified counties within the states of Arkansas, Illinois, Iowa, Indiana, Missouri, Nebraska and Wisconsin (Kansas, Michigan and Minnesota are included in the Act but do not qualify for issuance of Midwestern Disaster Area Bonds) that were declared major disaster areas by the President due to severe storms, tornados or flooding.

Click on the states below to see a list of Counties that qualify:

  Arkansas

Arkansas Benton Cleburne Conway Crittenden Grant Lonoke Mississippi Phillips Pulaski Saline Van Buren

  Illinois

Adams Calhoun Coles Clark Crawford Cumberland Douglas Edger Hancock Henderson Jasper Jersey Lake Lawrence Mercer Rock Island Whiteside Winnebago

  Indiana

Adams Bartholomew Brown Clay Daviess Dearborn Decatur Gibson Grant Greene Hamilton Hancock Hendricks Henry Huntington Jackson Jefferson Jennings Johnson Knox Lawrence Madison Marion Monroe Morgan Owen Parke Pike Posey Putnam Randolph Ripley Rush Shelby Sullivan Tippecanoe Vermillion Vigo Washington Wayne

  Iowa

Adair Adams Allamakee Appanoose Audubon Benton Black Hawk Boone Bremer Buchanan Butler Cass Cedar Cerro Gordo Chickasaw Clarke Clayton Clinton Crawford Dallas Davis Decatur Delaware Des Moines Dubuque Fayette Floyd Franklin Fremont Greene Grundy Guthrie Hamilton Hancock Hardin Harrison Henry Howard Humboldt Iowa Jackson Jasper Johnson Jones Keokuk Kossuth Lee Linn Louisa Lucas Madison Mahaska Marion Marshall Mills Mitchell Monona Monroe Montgomery Muscatine Page Polk Pottawattamie Poweshiek Ringgold Scott Story Tama Union Van Buren Wapello Warren Washington Webster Winnebago Winneshiek Worth Wright

  Missouri

Adair Andrew Barry Callaway Cass Chariton Clark Gentry Greene Harrison Holt Jasper Johnson Lewis Lincoln Linn Livingston Marion Macon Monroe Newton Nodaway Pike Putnam Ralls St. Charles Stone Taney Vernon Webster

  Nebraska

Buffalo Buttler Colfax Custer Dawson Douglas Gage Hamilton Holt Jefferson Kearney Lancaster Platte Richardson Sarpy Saunders

  Wisconsin

Adams Calumet Crawford Columbia Dane Dodge Fond Du Lac Grant Green Lake Iowa Jefferson Juneau Kenosha La Crosse Manitowoc Marquette Milwaukee Monroe Ozaukee Racine Richland Rock Sauk Sheboygan Vernon Walworth Washington Waukesha Winnebago

Eligible Uses

1. Acquisition, construction, reconstruction or renovation costs of nonresidential real property for “Eligible Loss or Replacement Business.” An “Eligible Loss or Replacement Business” includes most business, provided it has been designated as having either suffered a loss attributable to sever storms, tornados or flooding during the period of May 20, 2008 – August 1, 2008; or if the business is designated as replacing a trade or business with respect to another person who suffered such a loss.
2. Multi-Family residential rental projects for low and moderate income individuals.
3. Repair or reconstruction of public utility property damaged by severe storms, tornados or flooding during the period of May 20, 2008 – August 1, 2008.
4. Examples include:

   Warehouses Electrical facilities Office buildings Retail stores

   Restaurants Theaters Solar facilities Affordable housing

Additional Requirements

All MDAB project financing requests are subject to availability and an award of volume cap allocation from the local government or state in which the proposed project is located. PFA will assist potential borrowers in this effort.

Contact Us

For more information regarding PFA’s MDAB Program or project eligibility, please contact a PFA Program Manager.