Senators Send Letter to President Supporting Tax-Exempt Bonds
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.
2013 CDFA Policy Agenda
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.
NY Times Rebuttal: Private Activity Bonds Support Job Creation & Economic Development
-- Flawed, Inaccurate Times Article Debunked --
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.
Municipal Bonds for America Coalition
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.
CDFA's American Manufacturing Bond Finance Act
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.
Send Letters to Congress Supporting the American Manufacturing Bond Finance Act
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.
Sign the American Manufacturing Bond Finance Act Petition
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.
CDFA Built by Bonds
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.
Case Study: Deal Utilizing Expanded Definition of Manufacturing
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.
President Signs Stimulus Bill Expanding Use of IDBs - Major Legislative Victory for CDFA
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.
CDFA-Supported FHLB Legislation Signed Into Law
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.
CDFA’s Capital Expenditure Limitation Amendment Passes Congress, Signed By President
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.
CDFA Gets Capital Expenditure Limit Increased
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.