State officials said Thursday that most of the money will be used to fund various capital projects for the state’s Harbors Modernization Plan.

They say some $39 million will go to refinance existing bonds for debt service savings of more than $2.5 million.

The $164 million new money bonds are tax-exempt under the American Recovery and Reinvestment Act.

Officials say while the bonds typically need to be sold subject to alternative minimum tax, the act provides an exemption to the tax that is scheduled to end this year.

They say the timing of the bond sale helped the Harbors Divisions realize about $24 million in savings.