What does an "Industrial Development Revenue Bond" (IDR) finance?

An "Industrial Development Revenue Bond" (IDR) is designed to finance the leasing of government facilities to private corporations. These bonds are issued by governmental entities to raise capital for the construction of facilities that will be leased to private businesses, typically for projects that will stimulate economic development and create jobs within the community. The interest on these bonds is often tax-exempt, making them an attractive financing mechanism for both issuers and investors.

The purpose of IDRBs is to foster private sector growth and development while providing public benefits, such as job creation and economic revitalization. By leasing facilities to corporations, the local government utilizes private investment to enhance public resources. This financing tool is particularly effective in encouraging businesses to invest in specific regions or sectors, thus contributing to the local economy.

The other choices do not correctly describe the purpose of IDRs. Financing public facilities, state parks development, and funding non-profit organizations fall outside the scope of what IDRBs are intended for, as they focus specifically on facilitating industrial and commercial projects that involve private business participation.