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Modernizing Agricultural and Manufacturing Bonds Act
12/15/2023, 4:08 PM
Summary of Bill S 2723
One key aspect of the bill is the establishment of a new program that will provide guarantees for certain types of bonds issued by agricultural and manufacturing businesses. This program is designed to reduce the risk for lenders and make it more attractive for them to provide financing to these industries.
Additionally, the bill includes provisions to streamline the application process for these bonds, making it quicker and more efficient for businesses to obtain the necessary funding. This will help to spur growth and innovation in the agricultural and manufacturing sectors, ultimately benefiting the overall economy. Overall, the Modernizing Agricultural and Manufacturing Bonds Act is aimed at modernizing and improving the bond regulations for these important industries, with the goal of promoting economic growth and stability.
Congressional Summary of S 2723
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 $30 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 $1 million (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.
