This bill modernizes federal tax rules for manufacturing and agricultural development bonds. It expands the definition of manufacturing facilities to include production of intangible property like software and patents, and increases the dollar limits for qualified small issue bonds from $10 million to $30 million per project, with an aggregate limit rising from $40 million to $120 million per taxpayer. For first-time farmers, the bill raises the maximum bond amount from $450,000 to $1 million and eliminates separate, lower limits on used farm equipment financing. The legislation also establishes automatic inflation adjustments for these limits starting in 2025 and 2026, ensuring they keep pace with economic changes. These changes take effect for bonds issued after the bill's enactment, making it easier for small manufacturers and beginning farmers to access tax-advantaged financing for equipment and facilities.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.