S.2100 - Modernizing Agricultural and Manufacturing Bonds Act (119th Congress)
Summary
S.2100, the Modernizing Agricultural and Manufacturing Bonds Act, aims to amend the Internal Revenue Code of 1986 to modify rules for qualified small issue manufacturing bonds and expand exceptions to private activity bond rules for first-time farmers. The bill seeks to include the production of intangible property in the definition of manufacturing facilities and increase the limitations on qualified small issue bonds. It also adjusts dollar limitations for first-time farmers and modifies the determination of substantial farmland.
Expected Effects
If enacted, the bill would likely lead to increased investment in manufacturing and agriculture, particularly benefiting small businesses and first-time farmers. The changes could stimulate economic activity and job creation in these sectors. The increased bond limits and expanded definitions may also incentivize innovation and modernization within these industries.
Potential Benefits
- Increased investment in manufacturing and agriculture.
- Greater access to capital for small businesses and first-time farmers.
- Stimulation of economic activity and job creation.
- Incentivization of innovation and modernization.
- Simplified rules and reduced administrative burden.
Potential Disadvantages
- Potential for increased government debt due to expanded bond usage.
- Risk of misallocation of resources if projects are not carefully vetted.
- Possible inflationary pressures from increased investment.
- Complexity in administering the new regulations.
- Uncertainty regarding the long-term impact on the economy.
Constitutional Alignment
The bill appears to align with the Constitution's Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States. By modifying tax rules and providing financial incentives for manufacturing and agriculture, the bill aims to promote economic growth and support specific sectors of the economy. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).