[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2100 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2100
To amend the Internal Revenue Code of 1986 to modify certain rules
applicable to qualified small issue manufacturing bonds, to expand
certain exceptions to the private activity bond rules for first-time
farmers, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 17, 2025
Ms. Ernst (for herself, Mr. Warner, and Mrs. Hyde-Smith) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify certain rules
applicable to qualified small issue manufacturing bonds, to expand
certain exceptions to the private activity bond rules for first-time
farmers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Modernizing Agricultural and
Manufacturing Bonds Act''.
SEC. 2. MODIFICATIONS TO QUALIFIED SMALL ISSUE BONDS.
(a) Manufacturing Facilities To Include Production of Intangible
Property and Functionally Related Facilities.--Subparagraph (C) of
section 144(a)(12) of the Internal Revenue Code of 1986 is amended to
read as follows:
``(C) Manufacturing facility.--For purposes of this
paragraph--
``(i) In general.--The term `manufacturing
facility' means any facility which--
``(I) is used in the manufacturing
or production of tangible personal
property (including the processing
resulting in a change in the condition
of such property),
``(II) is used in the creation or
production of intangible property which
is described in section
197(d)(1)(C)(iii), or
``(III) is functionally related and
subordinate to a facility described in
subclause (I) or (II) if such facility
is located on the same site as the
facility described in subclause (I) or
(II).
``(ii) Certain facilities included.--The
term `manufacturing facility' includes
facilities that are directly related and
ancillary to a manufacturing facility
(determined without regard to this clause) if--
``(I) those facilities are located
on the same site as the manufacturing
facility, and
``(II) not more than 25 percent of
the net proceeds of the issue are used
to provide those facilities.
``(iii) Limitation on office space.--A rule
similar to the rule of section 142(b)(2) shall
apply for purposes of clause (i).
``(iv) Limitation on refundings for certain
property.--Subclauses (II) and (III) of clause
(i) shall not apply to any bond issued on or
before the date of the enactment of the
Modernizing Agricultural and Manufacturing
Bonds Act, or to any bond issued to refund a
bond issued on or before such date (other than
a bond to which clause (iii) of this
subparagraph (as in effect before the date of
the enactment of the Modernizing Agricultural
and Manufacturing Bonds Act applies)), either
directly or in a series of refundings.''.
(b) Increase in Limitations.--
(1) In general.--Section 144(a)(4) of such Code is
amended--
(A) in subparagraph (A)(i), by striking
``$10,000,000'' and inserting ``$30,000,000'', and
(B) in the heading, by striking ``$10,000,000'' and
inserting ``$30,000,000''.
(2) Increase in additional capital expenditures not taken
into account.--Section 144(a)(4)(G) of such Code is amended by
inserting ``$30,000,000, in the case of bonds issued after the
date of the enactment of the Modernizing Agricultural and
Manufacturing Bonds Act''.
(3) Increase in aggregate limit per taxpayer.--Section
144(a)(10)(A) of such Code is amended by striking
``$40,000,000'' and inserting ``$120,000,000''.
(4) Adjustment for inflation.--Section 144(a) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(13) Adjustment for inflation.--In the case of any
calendar year after 2025, the $30,000,000 amounts in paragraph
(4)(A), the $30,000,000 amount in paragraph (4)(G), and the
$120,000,000 amount in paragraph (10)(A) shall each be
increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year, determined
by substituting `calendar year 2024' for `calendar year
2016' in subparagraph (A)(ii) thereof.
If any amount as increased under the preceding sentence is not
a multiple of $100,000, such amount shall be rounded to the
nearest multiple of $100,000.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 3. EXPANSION OF CERTAIN EXCEPTIONS TO THE PRIVATE ACTIVITY BOND
RULES FOR FIRST-TIME FARMERS.
(a) Increase in Dollar Limitation.--
(1) In general.--Section 147(c)(2)(A) of the Internal
Revenue Code of 1986 is amended by striking ``$450,000'' and
inserting ``$1,000,000''.
(2) Repeal of separate lower dollar limitation on used farm
equipment.--Section 147(c)(2) of such Code is amended by
striking subparagraph (F) and by redesignating subparagraphs
(G) and (H) as subparagraphs (F) and (G), respectively.
(3) Qualified small issue bond limitation conformed to
increased dollar limitation.--Section 144(a)(11)(A) of such
Code is amended by striking ``$250,000'' and inserting
``$1,000,000''.
(4) Inflation adjustment.--
(A) In general.--Section 147(c)(2)(G) of such Code,
as redesignated by paragraph (2), is amended--
(i) by striking ``after 2008, the dollar
amount in subparagraph (A) shall be increased''
and inserting ``after 2026, the dollar amounts
in subparagraph (A) and section 144(a)(11)(A)
shall each be increased'',
(ii) in clause (ii), by striking ``2007''
and inserting ``2025'', and
(iii) in the last sentence, by striking
``$100'' each place it appears and inserting
``$10,000''.
(B) Cross-reference.--Section 144(a)(11) of such
Code is amended by adding at the end the following new
subparagraph:
``(D) Inflation adjustment.--For inflation
adjustment of dollar amount contained in subparagraph
(A), see section 147(c)(2)(G).''.
(b) Substantial Farmland Determined on Basis of Average Rather Than
Median Farm Size.--Section 147(c)(2)(E) of such Code is amended by
striking ``median'' and inserting ``average''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after December 31, 2025.
<all>