Industrial Revenue Bonds

  • Eddy County and the City of Carlsbad can both issue Industrial Revenue Bonds (IRB) for the expansion and relocation of commercial and industrial projects.  Significant property tax and compensating tax exemptions can occur through the use of an IRB. An IRB is a loan from the bond purchaser to a company where the loan proceeds and repayment flows through a governmental issuer. Instead of purchasing a facility directly, companies can enter into a lease with the issuer, provided the company will lease the facility from the issuer and, at the end of the lease, purchase the facility from the issuer for a nominal amount.
  • IRBs can generally range from 50% for 20 years to 75% for 30 years.
  • The benefit of remaining property tax exemptions can be passed on to the new owner or flow through a lease in event of a sale or lease to a new user, under certain qualifying conditions.  The County Commission must vote to induce an IRB, and the community does not lend its credit to an IRB.  The company must secure its own purchase of IRBs or the company can purchase its own IRB.
  • Assume a company invests $10 million in Carlsbad or Eddy County: $5 million in land and building, and $5 million in equipment purchased out of state:

Tax Exemption 



Property Tax Exemption on Land and Building

($5,000,000/3) x 0.045951


Nominal value for 20 years:

$76,585 x 20 years


Property Tax Exemption on Equipment (first year)

($5,000,000/3) x 0.045951


Nominal value for 7 years

(Depreciated value/3) x 0.045951


Tax Exemption on Equipment

$5,000,000 x 0.05



Carlsbad Department of Development


400-2 Cascades Ave, Suite 201
Carlsbad, NM 88220

Phone: (575) 887-6562

Category: Local Incentives

While the Carlsbad Airport Industrial Park has significant water, sewer, gas, communications, and electrical utilities, the City of Carlsbad is willing to assist with additional needed infrastructure for certain industrial projects.  This is made available through a job creation-based grant made possible by the...
Learn More
The City of Carlsbad has some property available for certain industrial projects. This property could also be made available through a job creation-based grant or low rate lease made possible by the Local Economic Development Act.
Learn More
Since 1999, the Carlsbad Department of Development together with the US Department of Commerce’s Economic Development Administration have managed a Revolving Loan Fund Program.  This loan program supplies small businesses and entrepreneurs with the gap financing needed to start or expand their business.
Learn More