U.S. Rep. Dan Kildee (D-MI) has joined three colleagues to introduced legislation that would expedite economic development through manufacturing and agriculture bond rule updates.
Modernizing Agricultural and Manufacturing Bonds Act proponents noted the bonds are exempt from federal tax and serve as state and local agency tools such as the Michigan Economic Development Corporation (MEDC) to support small manufacturers and farmers and spur economic development.
U.S. Reps. Darin LaHood (R-IL), Randy Feenstra (R-IA) and Dwight Evans (D-PA) are co-sponsors of the measure.
“Manufacturing and agricultural bonds can be powerful economic development tools to support farmers and small manufacturing businesses, but the bond programs need to better work for small businesses and farmers,” Kildee, a House of Representatives Ways and Means Committee member, said. “Modernizing these bonds and cutting government red tape will grow our local economy and create more good-paying jobs in mid-Michigan. I’m proud to introduce this bill with Republican and Democratic support.”
Legislation provisions include increasing the maximum manufacturing bond size to $30 million from $10 million; modernizing the definition of a manufacturing facility to include high-tech manufacturing processes that involve bio-technology, design and formula development; and increasing the amount of bond proceeds allocated to first-time farmers to $1 million from $450,000; and allowing new farmers to use bond proceeds to upgrade existing agricultural buildings and property and purchase farm equipment.
“When farmers and manufacturers succeed, our communities thrive in central and northwestern Illinois,” LaHood said. “The Modernizing Agricultural and Manufacturing Bonds Act will provide entrepreneurs and first-time farmers with the financing tools they need to grow, creating good-paying jobs, and bolstering our economy.”