In addition to our reliable wastewater, solid waste management, and water reuse activities, GCA supports Texas economic development and environmental protection by providing financing services through tax-exempt or taxable conduit bond issuances. GCA has previously provided over $3 billion in financial services to support industrial and clean water initiatives in the State of Texas. GCA’s statutory authority was modernized in the 87th Regular Legislative Session (2021) to allow its Industrial Development Authority (GCIDA) to provide governmental conduit bond financing services nationwide and to provide financial services for Property Assessed Clean Energy (PACE) projects, also nationwide.
For more information on Conduit Bond Financing Services provided by GCA and/or GCIDA, please use this form.
FAQ’s about GCA’s Bond Financing
What type of bonds financing can GCA do?
GCA can issue two types of tax-exempt bonds, Government Municipal Bonds and Private Activity Bonds (PAB’s).
What is the difference between a Municipal Bond and a Private Activity Bond (PAB)?
Municipal bonds are issues for traditional governmental activities in which 90% of the use is by governmental entities. PAB’s are bonds issued where private entities have a 10% or greater interest in either the facilities being financed or 10% or greater share of the proceeds of the bonds.
Are all the GCA Bonds tax exempt?
Most of the bonds that GCA can issue are tax exempt, however with the tax reform of 1986 Private Activity bonds that are issued for water and air pollution control facilities are no longer tax exempt.
What type of PAB’s are tax exempt?
The type of Private Activity Bonds that GCA can issue are for:
- Water Supply Facilities
- Sewage Facilities
- Solid Waste Disposal Facilities
- Local Furnishing of Steam or Electricity
- Dock and Wharf Facilities
Are there other types of facilities that PAB’s can be issued for?
Taxable Private Activity bonds can be issued by the Authority for Water Pollution Control Facilities, and Air Pollution Control Facilities. In addition, Water Supply facilities that are not governmental entities where the water is not considered available for public use can qualify for these taxable bonds.
The Gulf Coast Industrial Development Corporation, a component unit of Gulf Coast Authority can also issue taxable bonds for the following type of facilities that are built for the creation of primary jobs:
- Research and development facilities
- Military facilities, including closed or realigned military bases
- Transportation facilities including:
- Rail ports
- Rail switching facilities
- Maintenance and repair facilities
- Cargo facilities
- Related infrastructure located on or adjacent to:
- Airport facility
- Rail port facility
- Marine ports
- Inland ports
- Mass commuting facilities
- Parking facilities
- Distribution centers
- Small warehouse facilities that serve as decentralized storage and distribution centers
- Primary job training facilities used by higher education institutions
- Regional or national corporate headquarters facilities
- Streets and roads, rail spurs, water and sewer facilities, electric utilities, gas utilities drainage, site improvements and related improvements.
- Telecommunications and internet improvements
- Beach remediation along the Gulf of Mexico
- Projects for the creation or retention of primary jobs for the Coast Guard (subject to certain conditions)
- Projects suitable for use for a career center (subject to certain conditions)
The property assessed clean energy (PACE) program in an innovative mechanism to finance energy efficiency and renewable energy improvements on commercial properties.
Bond Financing Form
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Gulf Coast Authority
910 Bay Area Blvd.
Houston, TX 77058
Phone: (281) 488-4115