CDFA's American Manufacturing Bond Finance Act
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. 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 through the issuance of tax-exempt 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 seven reforms will expand the capacity and usability of manufacturing bonds to help create American jobs immediately. The seven reforms are as follows:



1. Expand the Definition of Manufacturing to Include both Tangible and Intangible Manufacturing Production for Manufacturing Bonds

x


2. Eliminate the Restrictions on “Functionally Related and Subordinate Facilities” for Manufacturing Bonds

x


3. Increase the Maximum Bond Size Limitation from $10M to $30M for Manufacturing Bonds

x


4. Increase the Capital Expenditure Limitation from $20M to $40M for Manufacturing Bonds

x


5. Expand and Raise the Limits for Bank Deductibility to $30M for Manufacturing Bonds and 501(c)(3) Bonds

x


6. Eliminate the Restriction on the Use of Accelerated Depreciation by Manufacturers Using Manufacturing Bonds

x


7. Expand the 2% De Minimis Rule to Financial Institutions for Manufacturing Bonds and 501(c)(3) Bonds

8. Allow Qualified Small Issue Manufacturing Bond volume cap allocation to be carried forward in accordance with other bonds subject to volume cap

Below you will find links and resources to learn more, send support letters, sign the petition and attend CDFA Capitol Hill Day to help pass the American Manufacturing Bond Finance Act.

>>>Read the American Manufacturing Bond Finance Act

>>>Read the American Manufacturing Bond Finance Act Press Release

>>>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, click here.

>>>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.

Questions/comments, contact Erin Tehan, 614-224-1323.