Modernizing Agricultural and Manufacturing Bonds Act
- Bill Number
- H.R. 9100
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-02: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-12T13:43:03Z
AI-Generated Summary
Modernizing Agricultural and Manufacturing Bonds Act (H.R. 9100)
Purpose This bill amends the Internal Revenue Code of 1986 to update rules for certain tax-exempt bonds. It aims to expand financing options for small manufacturers and first-time farmers by broadening eligibility and raising limits on bond amounts.
Key Provisions
- Manufacturing Bond Updates (Section 2):
- Redefines "manufacturing facility" to include facilities producing intangible property (such as certain intellectual property) and related support facilities on the same site.
- Allows up to 25% of bond proceeds for directly related ancillary facilities.
- Raises the per-project limit from $10 million to $30 million and the per-taxpayer aggregate limit from $40 million to $120 million.
- Adds annual inflation adjustments starting after 2025, rounded to the nearest $100,000.
- Applies new rules to bonds issued after the bill's enactment date.
- First-Time Farmer Bond Updates (Section 3):
- Increases the dollar limit for qualified bonds from $450,000 to $1 million and removes a separate lower limit for used farm equipment.
- Aligns the small-issue bond limit for farmers with the new $1 million amount.
- Changes the test for "substantial farmland" from median to average farm size in the area.
- Introduces inflation adjustments after 2026, rounded to the nearest $10,000.
- Applies to bonds issued after December 31, 2025.
Significant Changes to Existing Law The bill modifies sections 144 and 147 of the Internal Revenue Code. It expands the types of facilities eligible for tax-exempt qualified small-issue bonds and significantly increases dollar caps that have remained unchanged for years. It also updates inflation indexing and eliminates certain restrictions on farm equipment financing.
Potential Impacts
- Government Agencies: The Internal Revenue Service would administer broader eligibility and higher limits for tax-exempt bond issuances, potentially increasing oversight of private activity bonds.
- Citizens and Businesses: Small manufacturers and first-time farmers may gain easier access to lower-cost financing through tax-exempt bonds.
- International Relations: No direct effects are outlined in the bill.
Main Stakeholders Affected
- Small manufacturers and related businesses seeking bond financing.
- First-time farmers and agricultural operations.
- State and local governments that issue these bonds.
- The Internal Revenue Service.
- Bond underwriters and financial institutions involved in tax-exempt debt.
Notable Legal, Constitutional, or Political Implications The changes rely on Congress's authority to set tax policy under Article I of the Constitution. By raising limits on private activity bonds, the bill could affect state volume caps on such bonds, though it focuses on specific exceptions. The legislation was introduced with bipartisan cosponsors and referred to the House Committee on Ways and Means.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Rep. Evans, Dwight [D-PA-3], Rep. Feenstra, Randy [R-IA-4], Rep. Sewell, Terri A. [D-AL-7], Rep. Neguse, Joe [D-CO-2]
Recent Actions
- 2026-06-02: Referred to the House Committee on Ways and Means.
- 2026-06-02: Introduced in House
- 2026-06-02: Introduced in House
Bill Versions
- Modernizing Agricultural and Manufacturing Bonds Act — issued 2026-06-02 — PDF (7 pages)