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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 773 Introduced in Senate (IS)]

<DOC>

115th CONGRESS
  1st Session
                                 S. 773

  To amend the Internal Revenue Code of 1986 to modify certain rules 
        applicable to qualified small issue manufacturing bonds.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 29, 2017

 Mr. Brown (for himself and Mr. Perdue) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To amend the Internal Revenue Code of 1986 to modify certain rules 
        applicable to qualified small issue manufacturing bonds.

    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 American Manufacturing 
Bonds Act''.

SEC. 2. MODIFICATIONS TO QUALIFIED SMALL ISSUE BONDS.

    (a) Manufacturing Facilities To Include Production of Intangible 
Property and Functionally Related Facilities.--Section 144(a)(12)(C) 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 American 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 American Manufacturing Bonds Act 
                        applies)), either directly or in a series of 
                        refundings.''.
    (b) Increase in Limitations.--Section 144(a)(4) of such Code is 
amended--
            (1) by striking ``$10,000,000'' in subparagraph (A)(i) and 
        inserting ``$30,000,000'', and
            (2) by striking ``$10,000,000'' in the heading and 
        inserting ``$30,000,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.
                                 <all>
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