H.R. 9100

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9100 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 9100

To amend the Internal Revenue Code of 1986 to modify certain rules 
applicable to qualified small issue manufacturing bonds, to expand 
certain exceptions to the private activity bond rules for first-time 
farmers, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 2, 2026

Mr. LaHood (for himself, Mr. Evans of Pennsylvania, Mr. Feenstra, and 
Ms. Sewell) introduced the following bill; which was referred to the 
Committee on Ways and Means

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to modify certain rules 
applicable to qualified small issue manufacturing bonds, to expand 
certain exceptions to the private activity bond rules for first-time 
farmers, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Modernizing Agricultural and 
Manufacturing Bonds Act''.

SEC. 2. MODIFICATIONS TO QUALIFIED SMALL ISSUE BONDS.

(a) Manufacturing Facilities To Include Production of Intangible 
Property and Functionally Related Facilities.--Subparagraph (C) of 
section 144(a)(12) of the Internal Revenue Code of 1986 is amended to 
read as follows:
``(C) Manufacturing facility.--For purposes of this 
paragraph--
``(i) In general.--The term `manufacturing 
facility' means any facility which--
``(I) is used in the manufacturing 
or production of tangible personal 
property (including the processing 
resulting in a change in the condition 
of such property),
``(II) is used in the creation or 
production of intangible property which 
is described in section 
197(d)(1)(C)(iii), or
``(III) is functionally related and 
subordinate to a facility described in 
subclause (I) or (II) if such facility 
is located on the same site as the 
facility described in subclause (I) or 
(II).
``(ii) Certain facilities included.--The 
term `manufacturing facility' includes 
facilities that are directly related and 
ancillary to a manufacturing facility 
(determined without regard to this clause) if--
``(I) those facilities are located 
on the same site as the manufacturing 
facility, and
``(II) not more than 25 percent of 
the net proceeds of the issue are used 
to provide those facilities.
``(iii) Limitation on office space.--A rule 
similar to the rule of section 142(b)(2) shall 
apply for purposes of clause (i).
``(iv) Limitation on refundings for certain 
property.--Subclauses (II) and (III) of clause 
(i) shall not apply to any bond issued on or 
before the date of the enactment of the 
Modernizing Agricultural and Manufacturing 
Bonds Act, or to any bond issued to refund a 
bond issued on or before such date (other than 
a bond to which clause (iii) of this 
subparagraph (as in effect before the date of 
the enactment of the Modernizing Agricultural 
and Manufacturing Bonds Act applies)), either 
directly or in a series of refundings.''.
(b) Increase in Limitations.--
(1) In general.--Section 144(a)(4) of such Code is 
amended--
(A) in subparagraph (A)(i), by striking 
``$10,000,000'' and inserting ``$30,000,000'', and
(B) in the heading, by striking ``$10,000,000'' and 
inserting ``$30,000,000''.
(2) Increase in additional capital expenditures not taken 
into account.--Section 144(a)(4)(G) of such Code is amended by 
inserting ``$30,000,000, in the case of bonds issued after the 
date of the enactment of the Modernizing Agricultural and 
Manufacturing Bonds Act''.
(3) Increase in aggregate limit per taxpayer.--Section 
144(a)(10)(A) of such Code is amended by striking 
``$40,000,000'' and inserting ``$120,000,000''.
(4) Adjustment for inflation.--Section 144(a) of the 
Internal Revenue Code of 1986 is amended by adding at the end 
the following new paragraph:
``(13) Adjustment for inflation.--In the case of any 
calendar year after 2025, the $30,000,000 amounts in paragraph 
(4)(A), the $30,000,000 amount in paragraph (4)(G), and the 
$120,000,000 amount in paragraph (10)(A) shall each be 
increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year, determined 
by substituting `calendar year 2024' for `calendar year 
2016' in subparagraph (A)(ii) thereof.
If any amount as increased under the preceding sentence is not 
a multiple of $100,000, such amount shall be rounded to the 
nearest multiple of $100,000.''.
(c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 3. EXPANSION OF CERTAIN EXCEPTIONS TO THE PRIVATE ACTIVITY BOND 
RULES FOR FIRST-TIME FARMERS.

(a) Increase in Dollar Limitation.--
(1) In general.--Section 147(c)(2)(A) of the Internal 
Revenue Code of 1986 is amended by striking ``$450,000'' and 
inserting ``$1,000,000''.
(2) Repeal of separate lower dollar limitation on used farm 
equipment.--Section 147(c)(2) of such Code is amended by 
striking subparagraph (F) and by redesignating subparagraphs 
(G) and (H) as subparagraphs (F) and (G), respectively.
(3) Qualified small issue bond limitation conformed to 
increased dollar limitation.--Section 144(a)(11)(A) of such 
Code is amended by striking ``$250,000'' and inserting 
``$1,000,000''.
(4) Inflation adjustment.--
(A) In general.--Section 147(c)(2)(G) of such Code, 
as redesignated by paragraph (2), is amended--
(i) by striking ``after 2008, the dollar 
amount in subparagraph (A) shall be increased'' 
and inserting ``after 2026, the dollar amounts 
in subparagraph (A) and section 144(a)(11)(A) 
shall each be increased'',
(ii) in clause (ii), by striking ``2007'' 
and inserting ``2025'', and
(iii) in the last sentence, by striking 
``$100'' each place it appears and inserting 
``$10,000''.
(B) Cross-reference.--Section 144(a)(11) of such 
Code is amended by adding at the end the following new 
subparagraph:
``(D) Inflation adjustment.--For inflation 
adjustment of dollar amount contained in subparagraph 
(A), see section 147(c)(2)(G).''.
(b) Substantial Farmland Determined on Basis of Average Rather Than 
Median Farm Size.--Section 147(c)(2)(E) of such Code is amended by 
striking ``median'' and inserting ``average''.
(c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after December 31, 2025.
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