,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #ecai  ,,in ,,the ,,house ,,of  
,,representatives  ,july #ca1 #bjad ,mr4
 ,hultgren 7for himself and ,mr4 ,neal7 
introduced the following bill2 which was
 referred to the ,committee on ,ways and
 ,means  ,a ,,bill  ,to amend the       
,internal ,revenue ,code of #aihf to    
modify certain rules applicable to      
qualified small issue manufacturing     
bonds4  #a4 ,short title ,this ,act may 
be cited as the ,modernizing ,american  
,manufacturing ,bonds ,act4  #b4        
,modifications to qualified small issue 
bonds  7a7 ,manufacturing facilities ,to
 include production of intangible       
property and functionally related       
facilities ,subparagraph 7,c7 of section
 #add7;a77#ab7 of the ,internal ,revenue
 ,code of #aihf is amended to read as   
follows3  7,c7 ,manufacturing facility  
,for purposes of this paragraph--  7i7  
,in general ,the term manufacturing     
facility means any facility which--     
7,i7 is used in the manufacturing or    

production of tangible personal property
 7including the processing resulting in 
a change in the condition of such       
property71  7,,ii7 is used in the       
creation or production of intangible    
property which is described in section  
#aig7;d77#a77;,c77iii71 or  7,,iii7 is  
functionally related and subordinate to 
a facility described in subclause 7,i7  
or 7,,ii7 if such facility is located on
 the same site as the facility described
 in subclause 7,i7 or 7,,ii74  7ii7     
,certain facilities included ,the term  
manufacturing facility includes         
facilities that are directly related and
 ancillary to a manufacturing facility  
7determined without regard to this      
clause7 if--  7,i7 those facilities are 
located on the same site as the         
manufacturing facility1 and  7,,ii7 not 
more than #be percent of the net        
proceeds of the issue are used to       
provide those facilities4  7iii7        
,limitation on office space ,a rule     
similar to the rule of section          

#adb7;b77#b7 shall apply for purposes of
 clause 7i74  7iv7 ,limitation on       
refundings for certain property         
,subclauses 7,,ii7 and 7,,iii7 of clause
 7i7 shall not apply to any bond issued 
on or before the date of the enactment  
of the ,modernizing ,american           
,manufacturing ,bonds ,act1 or to any   
bond issued to refund a bond issued on  
or before such date 7other than a bond  
to which clause 7iii7 of this           
subparagraph 7as in effect before the   
date of the enactment of the            
,modernizing ,american ,manufacturing   
,bonds ,act applies771 either directly  
or in a series of refundings4  4  7b7   
,increase in limitations ,paragraph 7#d7
 of section #add7;a7 of the ,internal   
,revenue ,code of #aihf is amended--    
7#a7 by striking #aj1jjj1jjj in         
subparagraph 7,a77i7 and inserting      
#cj1jjj1jjj1 and  7#b7 by striking      
#aj1jjj1jjj in the heading and inserting
 #cj1jjj1jjj4  7c7 ,effective date ,the 
amendments made by this section shall   

apply to obligations issued after the   
date of the enactment of this ,act4