Support American Manufacturing
Reform Manufacturing Bonds
CDFA proposes a set of efficient and effective reforms to the laws governing Qualified Small Issue Manufacturing Bonds. The Modernizing American Manufacturing Bonds 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.
This bedrock tool is the single most actively used bond for financing small- to mid-sized manufacturing sector growth and is a key economic development tool for state and local economic development agencies.
The following four reforms will expand the capacity and usability of manufacturing bonds to help create American jobs now:
1. Expand the definition of "manufacturing" to meet the needs of twenty first century manufacturers by permitting bond financing for both tangible and intangible production
2. Eliminate restrictions on "Functionally Related and Subordinate Facilities" for manufacturing bonds to avoid arbitrary challenges and unnecessary inefficiencies that are currently associated with issuances
3. Increase the maximum bond size limitation from $10M to $30M for manufacturing bonds.
4. Increase the capital expenditure limitation from $20M to $40M for manufacturing bonds.
Legislative language for the Modernizing American Manufacturing Bonds Act has been drafted by CDFA, and was introduced in the House of Representatives in 2015 by Reps. Hultgren (R-IL) and Neal (D-MA).
Learn more about the Modernizing American Manufacturing Bonds Act.
Permanently Reauthorize the Investing in Manufacturing Communities Partnership (IMCP) Program
The IMCP Program has been an overwhelming success and should be made a permanent federal offering. From an efficiency standpoint, the program has aligned ten federal agencies within one focused program to assist regions with manufacturing initiatives. The IMCP Program currently receives no federal funding and is set to expire in 2017, thus eliminating the progress made to date. CDFA highly recommends that Congress permanently authorize the IMCP Program and provide an annual appropriation of just $10 million to facilitate programming.
Read the 2017 Policy Agenda