Reuters, Ground Zero Muslim Center May Get Public Financing:

The Muslim center planned near the site of the World Trade Center attack could qualify for tax-free financing. …  The mosque's backers hope to raise a total of $70 million in tax-exempt debt to build the center, according to the New York Times. Tax laws allow such funding for religiously affiliated non-profits if they can prove the facility will benefit the general public and their religious activities are funded separately. The bonds could be issued through a local development corporation created for this purpose, experts said.