I 
113TH CONGRESS 
2D SESSION 
H. R. 5319 
To amend the Internal Revenue Code of 1986 to modify certain rules 
applicable to qualified small issue manufacturing bonds. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 31, 2014 
Mr. HULTGREN (for himself and Mr. NEAL) 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 manufac-
turing bonds. 
Be it enacted by the Senate and House of Representa-
tives 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 PRO-
DUCTION OF INTANGIBLE PROPERTY AND FUNCTIONALLY 
RELATED
FACILITIES.—Subparagraph (C) of section 
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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 ‘manu-
facturing 
facility’ 
means 
any 
facility 
which— 
‘‘(I) is used in the manufacturing 
or production of tangible personal 
property (including the processing re-
sulting 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
IN-
CLUDED.—The term ‘manufacturing facil-
ity’ includes facilities that are directly re-
lated and ancillary to a manufacturing fa-
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cility (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 sec-
tion 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 Amer-
ican 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 Manufac-
turing Bonds Act applies)), either directly 
or in a series of refundings.’’. 
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(b) INCREASE IN LIMITATIONS.—Paragraph (4) of 
section 144(a) of the Internal Revenue Code of 1986 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. 
Æ 
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