A Republican bill with 1 Democratic cosponsor · See all 2 cosponsors
Last activity — Committee on Small Business and Entrepreneurship. Hearings held.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Modernizing Agricultural and Manufacturing Bonds Act aims to amend the Internal Revenue Code of 1986. It seeks to modify rules for qualified small issue manufacturing bonds by expanding the definition of manufacturing facilities to include intangible property. The bill also increases several dollar limitations related to these manufacturing bonds. Additionally, it expands exceptions to private activity bond rules specifically for first-time farmers. This includes increasing dollar limitations and changing how substantial farmland is determined.
Yes· 3 of 8
- Scored +8
Would farmers be better off under this?
The bill significantly increases bond limitations and adjusts farmland determination to favor first-time farmers.
- Scored +7
Would business owners be better off under this?
The bill provides significant financial flexibility for manufacturing and agricultural business owners through bond adjustments.
- Scored +6
Does this make it easier to run a small business?
The bill specifically increases financial support thresholds for small-scale manufacturing and first-time farmers.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Expanded Manufacturing Definitions: Manufacturing facilities may now include the production of intangible property or facilities functionally related and subordinate to those used for tangible property (Section 2(a)). This could benefit those involved in the creation of specific intangible property described in section 197(d)(1)(C)(iii).
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Increased Bond Limits for Manufacturing: The bill increases the dollar amount for certain small issue manufacturing bonds from $10,000,000 to $30,000,000 (Section 2(b)(1)(A)). It also increases the limit for additional capital expenditures to $30,000,000 (Section 2(b)(2)) and the aggregate limit per taxpayer to $120,000,000 (Section 2(b)(3)).
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Inflation Protections: For manufacturing bond amounts, the bill introduces an adjustment for inflation for calendar years after 2025 (Section 2(b)(4)).
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Increased Support for First-Time Farmers: The dollar limitation for certain private activity bond exceptions for first-time farmers is increased from $450,000 to $1,000,000 (Section 3(a)(1)). This also increases the qualified small issue bond limitation to $1,000,000 (Section 3(a)(3)).
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Changes to Farmland Determination: The determination for substantial farmland will now be based on the "average" rather than the "median" farm size (Section 3(b)).
Potential Negative Impacts for People
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Limitations on Certain Property: The expansion of manufacturing facilities to include intangible property and related facilities will not apply to bonds issued on or before the date of the Act's enactment, nor to certain refundings of those bonds (Section 2(a)(ii)).
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Office Space Restrictions: The definition of a manufacturing facility remains subject to a limitation on office space (Section 2(a)(ii)(iii)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would farmers be better off under this? — The bill significantly increases bond limitations and adjusts farmland determination to favor first-time farmers. Would business owners be better off under this? — The bill provides significant financial flexibility for manufacturing and agricultural business owners through bond adjustments. Would people in rural areas be better off under this? — Increased agricultural support benefits rural economies and individual farmers.
- Economy And Finance
- Does this make it easier to run a small business? — The bill specifically increases financial support thresholds for small-scale manufacturing and first-time farmers. Does this cut taxes for small businesses? — The bill increases bond limitations for manufacturing and provides higher thresholds for first-time farmers. Is this likely to grow the economy? — The expansion of bond limits and definitions aims to stimulate the manufacturing and agricultural sectors. Is this likely to create jobs? — Expanding manufacturing bond definitions and farmer support may stimulate industrial and agricultural job growth.
- Environment Energy And Infrastructure
- Does this invest in rural communities? — By increasing bond limits for first-time farmers, the bill supports agricultural stability in rural areas.
- 1/14/2026
- Committee on Small Business and Entrepreneurship. Hearings held.
- 6/17/2025
- Read twice and referred to the Committee on Finance.
- 2 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Cindy Hyde-SmithRepublican · Mississippi
Mark WarnerDemocrat · Virginia