The "private-activity" rate is 5% usage by for profit entities.  The 10% cited
can be used when only when certain non-related non-profits are involved in the
usage.  This 10% includes both those non-profits and the for-profits, but the
latter can still be no more than 5%.

No matter how you measure, 5% is pretty easy to surpass.

Do not promise to license or assign anything away in advance of knowing what it
is, assessing its potential value, and allowing others the opportunity to offer
you something for it.  #3 comes close to killing the competitive edge of the
sponsor!

Do that type of research in a facility not funded by bonds, or, assuming the
use is greater than 5%, refund that portion of the bonds relating to that
portion of the facility in such work is being conducted, and pay a taxable rate
on that portion of the debt.

John Dickinson
Assistant to the VP for Finance
University of Alaska
910 Yukon Drive, Suite 207
PO Box 73147
Fairbanks, AK  99775-5120
phone:  (907) 474-5012
fax:    (907) 474-5140
e-mail:  xxxxxx@orca.alaska.edu