Issue Brief:

CDFA continues to push Congress to act quickly on extending the many bond finance provisions of the American Recovery and Reinvestment Act. These critical provisions are set to expire at the end of 2010. Billions of dollars of resources are currently threatened by the December 31, 2010 expiration date set in the original ARRA legislation. Senate bill 3793 authorizes the extension of many of these programs, and CDFA is asking industry stakeholders to let Congress know the importance of passage by year end. Follow the link below to view sample letters for reaching out to Congress on this important legislative effort.

Senator Baucus introduced legislation in September, S.3793, which contains extensions of many ARRA bond provisions, among them the extension of Build America Bonds and Recovery Zone Bonds, the elimination of the alternative minimum tax on tax-exempt bonds, extending the Federal Home Loan Bank authority to issue letters of credit on tax-exempt non-housing bonds, and continuing the relief offered to bank-qualification 501(c)(3) bonds. All of these provisions increase access to capital and aid in job creation, a critical need during the current economic downturn. Allowing these provisions to expire at the end of 2010 will hamper job creation and increase borrowing costs for businesses and local governments.

In addition to these items, CDFA is also pushing for an expanded definition of manufacturing for Industrial Development Bonds (IDBs), which was not included in S. 3793. The expanded definition allows high-tech and biotech firms to have access to IDB financing, which has only been available for traditional manufacturing companies in the past. Extending this provision will give additional financing opportunities to a high-growth, high-wage sector of the economy. This provision also eliminates restrictions concerning what portions of a new or expanding facility can be financed with IDBs. Industrial development bonds are the number one source of financing for small- to medium-sized manufacturers in the United States. This financing tool has been available for over thirty years and this expanded authority has allowed manufacturers to invest in capital improvements and to retain and create new jobs. We ask that this additional extension be added to S.3793 prior to the extenders being passed.

Urgent Action Item:

Central to extension of ARRA bond provisions is Congressional offices receiving input from their constituents. CDFA is asking supporters to write their Congressional delegation, urging extension of these vital bond provisions using the sample letters below. Regardless of your Congressional delegations make-up, any and all letters to both Senate and House Democrats and Republicans is encouraged.

CDFA has crafted sample letters for both the House and Senate. These sample letters should be modified and placed on your letterhead. In addition, be sure to cite specific projects in your community or state that have benefited or could benefit from these important bond financing provisions. Case studies, job and investment impact and real life examples are highly effective in motivating Congressional action. These letters should be sent as soon as possible with the hope that hundreds of letters can be delivered to Congress over the next ten days

Please be sure to copy CDFA on any and all letters sent to Congress. CDFA's legislative team will be working to follow-up on this outreach effort. Again, any and all should be encouraged to send letters to Congress encouraging them to act quickly on the extension of critical bond finance provisions of the American Recovery and Reinvestment Act before billions of dollars of resources are lost.

Legislative Proposal:

• Legislation - S. 3793

• Summary of S. 3793
• Sample House Support Letter
• Sample Senate Support Letter