Modernizing Agricultural and Manufacturing Bonds Act

Modernizing Agricultural and Manufacturing Bonds Act

This bill modifies provisions relating to qualified small issue bonds for manufacturing purposes by expanding the definition of manufacturing facility to include a facility that (1) is used in the creation or production of intangible property; or (2) is functionally related, subordinate to, and located on the same site as a facility used in the manufacturing or production of tangible or intangible personal property. The bill also increases from $10 million to $50 million the maximum bond size limitation.

The bill modifies requirements for private activity bond financing for first-time farmers. The modified provisions (1) increase from $450,000 to $552,500 (adjusted annually for inflation) the amount of bond proceeds that may be used by a first-time farmer to acquire land for farming purposes, (2) repeal the separate dollar limitation on the use of bond proceeds for used farm equipment, and (3) revise the definition of substantial farmland to determine farm size by reference to the average (instead of median) size of a farm in the county in which the farm is located.

Bill 117 HR 2737, also known as the Modernizing Agricultural and Manufacturing Bonds Act, aims to update and improve the regulations surrounding agricultural and manufacturing bonds in the United States. The bill seeks to make it easier for farmers and manufacturers to access the necessary bonds to support their operations.

One key aspect of the bill is the establishment of a new program that would allow farmers and manufacturers to obtain bonds through a streamlined process. This program would help reduce the administrative burden and costs associated with obtaining bonds, making it easier for these businesses to secure the financial support they need.

Additionally, the bill includes provisions to increase the maximum bond amount that can be issued to farmers and manufacturers. This would provide these businesses with greater flexibility and access to larger amounts of capital to support their operations and growth. Overall, the Modernizing Agricultural and Manufacturing Bonds Act aims to support the agricultural and manufacturing sectors in the United States by modernizing and improving the regulations surrounding bonds. By making it easier for farmers and manufacturers to access the financial support they need, the bill seeks to promote growth and innovation in these important industries.