,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #edbb  ,,in ,,the ,,house ,,of  
,,representatives  ,december #ab1       
#bjai,mrs4 ,murphy of ,florida 7for     
herself and ,mr4 ,la,hood7 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 bonds1 to     
expand certain exceptions to the private
 activity bond rules for first-time     
farmers1 and for other purposes4  #a4   
,short title ,this ,act may be cited as 
the ,modernizing ,agricultural and      
,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 ,agricultural and   
,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 ,agricultural and          
,manufacturing ,bonds ,act applies771   
either directly or in a series of       
refundings4  4  7b7 ,increase in        
limitations ,section #add7;a77#d7 of    
such ,code is amended-- 7#a7 in         
subparagraph 7,a77i71 by striking       
#aj1jjj1jjj and inserting #cj1jjj1jjj1  

and  7#b7 in the heading1 by striking   
#aj1jjj1jjj and inserting #cj1jjj1jjj4  
7c7 ,adjustment for inflation ,section  
#add7;a77#d7 of the ,internal ,revenue  
,code of #aihf is amended by adding at  
the end the following new subparagraph3 
7,h7 ,adjustment for inflation ,in the  
case of any calendar year after #bjbj1  
the #cj1jjj1jjj amount in subparagraph  
7,a7 shall be increased by an amount    
equal to-- 7i7 such dollar amount1      
multiplied by  7ii7 the cost-of-living  
adjustment determined under section     
#a7;f77#c7 for the calendar year1       
determined by substituting calendar year
 #bjai for calendar year #bjaf in       
subparagraph 7,a77ii7 thereof4  ,if any 
amount as increased under the preceding 
sentence is not a multiple of #ajj1 such
 amount shall be rounded to the nearest 
multiple of #ajj4  4  7d7 ,effective    
date ,the amendments made by this       
section shall apply to obligations      
issued after the date of the enactment  
of this ,act4  #c4 ,expansion of certain

 exceptions to the private activity bond
 rules for first-time farmers  7a7      
,increase in dollar limitation  7#a7 ,in
 general ,section #adg7;c77#b77;,a7 of  
the ,internal ,revenue ,code of #aihf is
 amended by striking #dej1jjj and       
inserting #eeb1ejj4  7#b7 ,repeal of    
separate lower dollar limitation on used
 farm equipment ,section #adg7;c77#b7 of
 such ,code is amended by striking      
subparagraph 7,f7 and by redesignating  
subparagraphs 7,g7 and 7,h7 as          
subparagraphs 7,f7 and 7,g71            
respectively4  7#c7 ,qualified small    
issue bond limitation conformed to      
increased dollar limitation ,section    
#add7;a77#aa77;,a7 of such ,code is     
amended by striking #bej1jjj and        
inserting #eeb1ejj4  7#d7 ,inflation    
adjustment  7,a7 ,in general ,section   
#adg7;c77#b77;,g7 of such ,code1 as     
redesignated by paragraph 7#b71 is      
amended--  7i7 by striking after #bjjh1 
the dollar amount in subparagraph 7,a7  
shall be increased and inserting after  

#bjbj1 the dollar amounts in            
subparagraph 7,a7 and section           
#add7;a77#aa77;,a7 shall each be        
increased1 and  7ii7 in clause 7ii71 by 
striking #bjjg and inserting #bjai4     
7,b7 ,cross-reference ,section          
#add7;a77#aa7 of such ,code is amended  
by adding at the end the following new  
subparagraph3  7,d7 ,inflation          
adjustment ,for inflation adjustment of 
dollar amount contained in subparagraph 
7,a71 see section #adg7;c77#b77;,g74  4 
7b7 ,substantial farmland determined on 
basis of average rather than median farm
 size ,section #adg7;c77#b77;,e7 of such
 ,code is amended by striking median and
 inserting average4  7c7 ,effective date
 ,the amendments made by this section   
shall apply to bonds issued after the   
date of the enactment of this ,act4