Recently, 14 U.S. Senators came together and sent President Obama a letter expressing concern that the tax-exempt status of muni bonds would have detrimental impacts on state and local finances and future investment. States to sign this letter included Alaska, California, Iowa, Louisiana, Massachusetts, Minnesota, New Mexico, New York, North Dakota, South Dakota, Vermont, Washington, and Wisconsin.

CDFA's policy agenda represents a diverse cross section of development finance industry issues. In 2013, CDFA will focus on a variety of efforts that will enact the American Manufacturing Bond Finance Act, which will modernize IDBs, enact legislation to advance clean energy and bonds financing opportunities, defend and preserve tax-exempt bonds, advocate for the State Small Business Credit Initiative (SSBCI), and support federal financing programs.

Toby Rittner, President & CEO, Council of Development Finance Agencies

The New York Times article, A Stealth Tax Subsidy for Business Faces New Scrutiny, is riddled with inaccuracies and misinterpretations of one of the nation’s most important economic development tools: qualified private activity bonds (PABs). The story, sensational and misleading throughout, highlights perceived misuses and infers abuses of the U.S. tax code, all the while ignoring the essential public purpose that these bonds serve. PABs are exactly as they sound, a bond instrument, supported and endorsed by the United States Congress since 1914, that catalyze private investment in projects and industries that may otherwise not receive conventional financing. PABs are one of the oldest tax policies on record and were included in our Nation’s first formal tax code.

CDFA has reacted and responded strongly to the flawed and inaccurate New York Times article with a thorough debunking of this alarming piece. Read the full piece online and learn the true story behind America’s most important and productive job creation financing tool.

CDFA has joined the Municipal Bonds for America Coalition to preserve tax-exempt bonds. Tax-exempt bonds are a low-cost financing options for state and local governments to fund essential capital improvement projects, manufacturers, energy and economic development. The MBFA is a non-partisan coalition of municipal bond issuers and state and local government officials combined with senior private sector leadership working together to explain the many benefits of the traditional municipal bond market. CDFA is asking stakeholders to join the coalition to help support the preservation of tax-exempt bonds. Visit the MBFA website to join.

The American Manufacturing Bond Finance Act is a comprehensive reform package that will modernize and revolutionize Qualified Small Issue Manufacturing Bonds, more commonly known as Industrial Development Bonds (IDBs) or simply manufacturing bonds. This bedrock tools is the single most actively used bond tool for financing the small- to mid-sized manufacturing sector and are a key economic development tool for state and local economic development agencies. The reforms will expand the capacity and usability of manufacturing bonds to help create American jobs immediately.

CDFA has begun a targeted letter-writing campaign. We ask that industry stakeholders send letters to the House and Senate members to support CDFA's American Manufacturing Bond Finance Act and the suggested reforms to modernize and revolutionize Qualified Small Issue Manufacturing Bonds. To make this process easier, we have created sample letters for your use.

CDFA requests your support for the American Manufacturing Bond Finance Act. We are specifically looking for organizational support to show Congress the importance of this legislation. If your organization is able to support the Act, complete the short form by clicking read more.

This unique publication from CDFA provides the definitive argument for tax-exempt bond finance, which is a critical tool for American economic development and job creation.

August 7, 2013

CDFA will take the development finance industry's message to Capitol Hill during the 2013 National Development Finance Summit. During the 2013 CDFA Capitol Hill Day, you can join CDFA staff as we meet with the representatives from your state to discuss important issues that affect development finance. This event is included as part of the National Development Finance Summit registration and everyone is encouraged to help CDFA spread the message.

The American Manufacturing Bond Finance Act is a comprehensive reform package that will modernize Qualified Small Issue Manufacturing Bonds, more commonly known as Industrial Development Bonds (IDBs), or simply "manufacturing bonds." Manufacturing bonds are a type of Private Activity Bond (PAB) that allow the public sector to pass considerable interest rate reductions on to private companies who wish to expand capacity and create jobs.

CDFA is an advocate for the continued development of financing tools that support clean energy development, renewable energy production and energy infrastructure. The federal development finance toolbox for supporting clean energy and renewable energy projects is underdeveloped, and new federal programming is necessary to support ongoing, and to spur additional, investment in this sector.

CDFA has established a strong standing in the municipal bond industry, and it will continue to defend the full deductibility of tax-exempt bonds. Tax-exempt bonds remain the bedrock of development finance and are critical to the ongoing growth, development and maintenance of communities throughout the United States.

The State Small Business Credit Initiative (SSBCI) program, housed and managed by the U.S. Department of Treasury, represents one of the most important advancements in state/federal development finance efforts in decades. CDFA has taken a national leadership position to advocate for, and maximize the impact of, the SSBCI program for states.

The federal government provides a wide variety of financing opportunities for state and local development finance needs. To support the ongoing ability of the federal government to offer these programs, CDFA has established priorities to support in 2012.

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This case study from Illinois is one example of the types of projects and companies that can now utilize industrial development bonds thanks to CDFA's expanded definition of manufacturing passed in 2009. CDFA supporters are urged to submit similar case studies of projects completed to demonstrate to Congress the importance of extending this provision beyond 2010.

February 19, 2009 - CDFA's legislation to expand the use of industrial development bonds (IDBs) for new technology manufacturing was signed into law by President Barack Obama as part of the $787 billion American Recovery and Reinvestment Tax Act of 2009. This is a major legislative victory for CDFA and the entire development finance industry.

July 31, 2008 - President Bush signed the highly anticipated Housing Bill into law in July 2008. Included in the bill is a CDFA-supported provision allowing Federal Home Loan Bank members to issue letters of credit on tax-exempt industrial development bonds (IDBs). As part of the Council's legislative agenda, CDFA's legislative team had been actively working towards the passage of this legislation for over a year.

May 18, 2006 - After nearly two years of relentless lobbying and grassroots efforts, CDFA has succeeded in passing its number one legislative priority through the United States Congress when the Senate approved the final version of the Tax Increase Prevention and Reconciliation Act of 2005. Included in the final version of the tax bill is the Council's amendment accelerating an increase in the capital expenditure limit on IDBs from September 30, 2009 to December 31, 2006. The increase raises the capital expenditure limit from $10 million to $20 million.

October 11, 2004 - The US Senate passed significant legislation that reinforces CDFA's legislative efforts on improving the use of small issue industrial development bonds. As agreed to and passed by the House last week, the Senate today approved HR 4520 that effectively raises the capital expenditure limit on projects financed with industrial development bonds to $20 million starting in 2009.