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BDA to Join CDFA in Support of Industrial Development Bonds Legislation

The BDA is joining forces with the Council of Development Finance Agencies in support of the Modernizing Agricultural and Manufacturing Bonds Act (MAMBA). The bill, sponsored by Reps. Stephanie Murphy (D-FL) and Darin LaHood (R-IL), would modernize the Internal Revenue Code as it relates to small issue bonds, specifically the private activity bond rules for first-time farmers and manufacturing bonds.

In the coming days, the sponsors are planning a push to enlist new co-sponsors and the BDA along with the CDFA are working to assist this effort including a letter of support from the BDA along with a joint lobbying campaign.

The Modernizing Agricultural and Manufacturing Bonds Act

The MAMBA will reform small issue bonds by making six key changes to the tax code.

Those changes include:

Expand the definition of “manufacturing facility”
Eliminate restrictions on “directly related and ancillary facilities”
Increase the maximum IDB size limitation from $10 million to $30 million
Increase the limitation on small issue bond proceeds for first-time farmers
Repeal the separate dollar limitation on the use of bond proceeds for depreciable property

The BDA will continue to provide updates when they become available

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