Bill > S2100

This bill aims to modernize and expand agricultural and manufacturing bonds by making several key changes to the Internal Revenue Code. First, it broadens the definition of a "manufacturing facility" to include the production of intangible property and facilities functionally related to manufacturing, allowing more types of businesses to qualify for tax-advantaged bonds. The bill increases the bond limitation for small issues from $10 million to $30 million and raises the aggregate limit per taxpayer from $40 million to $120 million. For first-time farmers, the bill increases the dollar limitation on tax-exempt bonds from $450,000 to $1 million and removes the separate limitation on used farm equipment. The legislation also introduces an inflation adjustment mechanism for these dollar amounts, ensuring the limits will be periodically updated based on the cost of living, starting from 2026. Additionally, when determining substantial farmland, the bill changes the calculation from using the median farm size to the average farm size. These modifications are intended to provide more financial flexibility for manufacturers and agricultural businesses by expanding access to tax-exempt bonding opportunities and adjusting limits to reflect economic changes.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2100/all-info