In a bipartisan effort, Congressman Darin LaHood has introduced the Modernizing Manufacturing and Agricultural Bonds Act, aimed at revitalizing small and medium manufacturers and farmers across the nation. Joining Congressman LaHood in this endeavor are Representatives Dan Kildee (D-MI), Randy Feenstra (R-IA), and Dwight Evans (D-PA).
The legislation addresses the need to update federal rules pertaining to manufacturing and agricultural bonds, which play a vital role in supporting economic development and job creation. These bonds, exempt from federal tax, have seen a decline in usage due to outdated regulations.
"The Modernizing Agricultural and Manufacturing Bonds Act will equip entrepreneurs and first-time farmers with essential financing tools to foster growth, generate good-paying jobs, and strengthen our economy," emphasized Congressman LaHood. "By championing this bipartisan initiative, I am committed to ensuring that our farmers and manufacturers have the necessary resources to thrive in today's 21st-century economy."
Key provisions of the proposed act include raising the maximum manufacturing bond size to $30 million, updating the definition of a "manufacturing facility" to encompass modern processes, and removing restrictions on the use of bond proceeds for various facility needs.
Tthe legislation seeks to increase the amount of bond proceeds available to first-time farmers, enabling them to upgrade existing agricultural infrastructure and purchase essential equipment. By aligning the definition of "substantial farmland" with existing law, the bill streamlines operations and promote growth in the agricultural sector.