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Congress·In Committee·S. 2100

Congress Raises Tax-Advantaged Bond Limits for Manufacturers and First-Time Farmers

Modernizing Agricultural and Manufacturing Bonds Act

2 months ago·View on Congress.gov

Legislative Progress

Senate
House
President
Law

Key Points

  • Raises the cap on certain tax-advantaged manufacturing bonds from $10 million to $30 million, and boosts the per-taxpayer limit from $40 million to $120 million.
  • Broadens what counts as a “manufacturing facility” to include making certain intangible products and some related on-site support buildings, with limits on how much bond money can go to extras.
  • Adds annual inflation adjustments after 2025 so the new bond limits can rise over time instead of staying fixed.
  • Expands bond financing options for first-time farmers by raising the dollar limit for qualifying property from $450,000 to $1,000,000 and removing a separate lower cap for used farm equipment.
  • Changes how “substantial farmland” is measured (using average farm size instead of median) and sets most farm-related changes to start for bonds issued after Dec. 31, 2025.
TaxesAgricultureSmall BusinessEconomy

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Positive Impacts(1)
Farmer Rancher
Helps

Milestones

2 milestones3 actions
Jan 14, 2026Senate

Committee on Small Business and Entrepreneurship. Hearings held.

Jun 17, 2025Senate

Read twice and referred to the Committee on Finance.

Jun 17, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

After the date the bill becomes law (the enactment date)

Expanded manufacturing bond rules apply to newly issued bonds

Manufacturing projects can qualify more easily (including certain intangible-product production) and can use higher bond limits when they line up new financing.

After enactment, for bonds issued after that date

Higher dollar caps for small manufacturing bonds become available ($30M per issue; $120M per taxpayer)

Companies planning expansions may be able to finance larger projects with lower-interest bond money instead of traditional borrowing.

Calendar years after 2025

Inflation adjustments for the new manufacturing bond dollar limits begin

Starting after 2025, the $30,000,000 and $120,000,000 limits can rise over time with inflation, which helps the program keep up with higher construction and equipment costs.

2026-01-01

First-time farmer bond expansion takes effect for new bonds

Eligible first-time farmers can use the higher $1,000,000 limit and no longer face a separate lower cap for used equipment, but only for bonds issued starting in 2026.

Calendar years after 2026

Inflation adjustments for first-time farmer limits begin under the updated schedule

After 2026, the $1,000,000 limit can increase over time with inflation, which may help new farmers as land and equipment prices rise.

Source Information

Document Type

Congressional Bill

Official Title

Modernizing Agricultural and Manufacturing Bonds Act

Bill NumberS 2100
Congress119th Congress
ChamberSenate
Latest ActionCommittee on Small Business and Entrepreneurship. Hearings held.

Sponsor

Cosponsors

(2)
D: 1R: 1

Analysis generated by AI. Always verify with official sources.