CDFA Legislative Front
September 2008
CDFA Adds Co-Sponsor on S. 2885
--Highlights an Otherwise Quiet Month on the Hill--
CDFA’s top legislative priority, expanding the definition of manufacturing for industrial development bonds (IDBs), continues to gain support as S. 2885 added another co-sponsor last month.
This summer has been very productive for CDFA’s legislative efforts as S. 2885 continues to increase support and CDFA-supported Federal Home Loan Bank legislation permitting the issuance of letters of credit by FHLBanks on tax-exempt bonds was signed into law.
With Congress out of town for summer recess, last month was a quiet one in Washington, D.C. After passage of the housing bill on July 31, Congress adjourned until after the Republican and Democratic national conventions in September.
Despite Congress not being in session, CDFA’s grassroots efforts have remained active. The summer recess has been an opportune time for CDFA’s legislative team to meet with congressional staffers.
Senator Blanche Lincoln Signs On To IDB Legislation
Thanks to grassroots lobbying efforts by CDFA members in Arkansas, Senator Blanche Lincoln is now an official co-sponsor of S. 2885.
Senator Lincoln is a two-term Senator and key member of the Senate Finance Committee, the authorizing committee for CDFA’s legislation.
>>>READ THE FULL PRESS RELEASE
S. 2885 would allow for manufacturing companies who produce both tangible and intangible property to access IDBs. The changing U.S. economy is providing new and exciting employment opportunities in the area of software development and biotechnology. Traditional tax-exempt bond finance programs operated by state and local finance agencies do not extend to these important and growing sectors of the manufacturing economy. CDFA’s proposed legislation remedies this challenge.
CDFA members have been active contacting their Congressional offices asking for support of S. 2885. CDFA is requesting its members contact their Senators to ask for support and additional co-sponsorship of this key development finance legislation. Senate Finance Committee members will be specifically targeted in coming weeks for co-sponsorships. The following Senators on the Finance Committee are of particular importance at this time:
· Senator John Rockefeller – WV
· Senator Charles Grassley – IA
· Senator Ken Salazar – CO
· Senator Jon Kyl – AZ
· Senator Maria Cantwell – WA
· Senator Jeff Bingaman - NM
· Senator Ron Wyden – OR
Given the desire for Congress to pursue legislation that encourages economic growth, CDFA’s proposed legislation should receive strong interest. Learn More about CDFA’s legislative agenda and S. 2885. >>>READ MORE
CDFA Writing Administration Transition Paper
In preparation for the upcoming presidential election, the CDFA Legislative Committee has begun work on an Administration Transition Paper. The paper will offer a brief summary of the state of the development finance industry, the role of the federal government, and recommended policy considerations on a wide variety of topics concerning development finance.
Once completed and approved, the CDFA Administration Transition Paper will be sent to each of the candidate’s campaigns and key congressional offices on Capitol Hill. The document will also be sent for consideration to the appropriate members of the president-elect’s transition team after the election.
Senator Bingaman Considering Intro of Tax-Exempt Legislation
With the House already considering two pieces of legislation dealing with municipal and tax-exempt bonds, New Mexico Senator J Bingaman is expected to move ahead with an introduction in the Senate.
Sen. Bingaman’s legislation is anticipated to mirror H. 6333 introduced by Reps. Barney Frank and Richard Neal of Massachusetts. H. 6333 makes changes to bank deductibility restrictions for tax-exempt bonds, raising the limit from $10 million to $30 per year. It would allow borrowers to apply the $30 million yearly limit to themselves, instead of the conduit issuers, permitting more borrowers to qualify through conduit issuers. The legislation also expands the 2% de minimis rule which would allow more corporations to own municipal bonds. This would allow more banks and securities firms to purchase tax-exempt bonds from small issuers.
Rep. Frank also introduced the Municipal Bond Fairness Act, which passed the House Financial Services Committee, last month.