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Industrial Revenue Bonds (IRBs)

Industrial Revenue Bonds (IRBs) are available to for-profit companies that are expanding, not-for-profit organizations that are developing new facilities, affordable housing projects associated with tax credits and developers with projects in designated redevelopment areas.

For profit companies may be considered for IRBs if they are investing capital to develop new facilities, adding machinery and equipment and creating new jobs.

To qualify, companies must generate the majority of their revenue from outside of Sedgwick County and wages for the new jobs must meet certain standards.


Doc's Friends utilized IRBs for a sales tax exemption for a museum and education center for Doc, a Boeing B-29 Superfortress, manufactured in Wichita.

IRBs are available to private, not-for-profit 501(C)3 organizations adding new facilities. The organization is typically eligible for an ad valorem property tax abatement based on the 501(C)3 tax status of the organization and therefore a tax abatement request is not usually associated with this request. The organization can benefit from a sales tax exemption on construction materials as well as a potentially lower interest rate (tax-exempt interest rate) on financing based upon the organizations’ credit and ability to sell the bonds to the market.

The benefits associated with IRBs include a potential sales tax exemption on construction materials as well as a potential tax abatement. The percentage of tax abatement is based on a variety of criteria and may be for a period of up to ten years, with a compliance review at the five-year mark. Please see the Economic Development Guidelines for further details. The bonds are not typically sold to the market (for-profit projects). For-profit entities qualifying for IRBs utilize traditional financing for its project, with the bond issue being subordinate to the debt. Therefore, the interest rate is not normally lower due to the use of IRBs.


Bombardier Wichita Service Center

Abatement Percentage Calculation

New Jobs 5-25 26-50 >50
Abatement Percent 30% 40% 50%
New Capital Investment $1M<$5M $5M-10M >$10M
Abatement Percent 40% 50% 60%

​Additional Considerations

  • Regional Growth Plan sector 10%
  • Utilizing State, federal or utility incentives 10%
  • Sustainable Development/Alternative Energy use 15%
  • Investing in, or funding, entrepreneurship 25%
  • Talent attraction plan (must be documented) 25%
  • Locating in Redevelopment Area 25%
  • Community and Workforce Development Benefits 25%

Have you read the IRB guidelines and ready to apply?

IRB Application

Are you considering a project and need additional information or guidance?

Project Information Request

​For additional information, contact:
Tim Goodpasture, Economic Development Analyst
City of Wichita – Office of Economic Development
TGoodpasture@wichita.gov
316-268-4383

Industrial Revenue Bonds are utilized to finance the construction or purchase of a facility and/or equipment. IRBs are issued by the City and purchased by investors (e.g. banks, private investors or the company). IRBs may provide lower interest rate financing and the possibility of a tax abatement for eligible companies.

Qualific​​ations

The percentage of taxes abated is based on capital investment and job creation. Majority of goods or services sold must be destined for customers outside of the Wichita Metropolitan Statistical Area (MSA). Company must pay average wages equal to or greater than the industry or Wichita MSA wage rate. City benefit/cost ration must be at least 1.3 to 1.

Speculative Industrial Buildings

In 2017, the City of Wichita adopted a Speculative Industrial Building Program.  The Spec Industrial Program provides an incentive to provide large industrial/warehouse space needed in Wichita for Economic Development recruitment.  The program specifics are provided in the program summary and an application is provided below.

Docum​ents

Sedgwick County/City of Wichita Economic Development Guidelines IRB Economic Development Company Information Sheet CEDBR-Fiscal Impact Model


Speculative Industrial Revenue Bonds (IRBs)

In 2017, the City of Wichita adopted a Speculative Industrial Building Program. The Spec Industrial Program provides an incentive to provide large industrial/warehouse space needed in Wichita for Economic Development recruitment. The program specifics are provided in the program summary and an application is provided below.

Docum​ents

Spec IRB Program Exemption Application Spec Industrial IRB Application/Request for Letter of Intent​​​