Modernizing Agricultural and Manufacturing Bonds Act
Jun 2, 2026
Introduced: Jun 2, 2026
Jun 2, 2026
Introduced: Jun 2, 2026
Summary
Makes it easier for small manufacturers and first-time farmers to get funding by increasing the size of special, tax-free loans they can receive.
What problem does this solve?
Financing rules for small manufacturers and new farmers are outdated, with loan limits that have not kept up with modern costs. This bill raises those loan limits and updates the rules to help these groups get the money they need to start or grow their businesses.
What does this bill do?
Increases bond limits for small manufacturers
Raises the maximum size of a tax-exempt manufacturing bond issue from $10 million to $30 million, and the total limit per taxpayer from $40 million to $120 million.
Increases loan amounts for first-time farmers
More than doubles the amount a first-time farmer can borrow using tax-exempt bonds, increasing the limit from $450,000 to $1,000,000.
Reference
Text:
Section:
Sec. 2(a)
Header:
Manufacturing Facilities To Include Production of Intangible Property and Functionally Related Facilities
Expands what manufacturing bonds can fund
Allows bonds to be used for facilities that create intangible property, like patents or software, and for related support facilities located on the same site.
Adjusts bond limits for inflation
Adds a new rule to automatically increase the new bond limits for both manufacturing and farming over time to keep up with rising costs.
Reference
Text:
Section:
Sec. 3(a)(2)
Header:
Repeal of separate lower dollar limitation on used farm equipment
Simplifies rules for buying used farm equipment
Removes a separate, lower funding limit for purchasing used farm equipment, making it easier for new farmers to acquire necessary machinery.
Reference
Text:
Section:
Sec. 3(b)
Header:
Substantial farmland determined on basis of average rather than median farm size
Changes how 'substantial farmland' is measured
Modifies the definition of substantial farmland to be based on the 'average' farm size in a county, instead of the 'median', which could affect eligibility for farm loans.
Who does this affect?
- Small manufacturers
- First-time farmers
- Investors in municipal bonds
What is the real world impact?
•
Boosts small-scale manufacturing and farming
Updates old funding limits to help small manufacturers and new farmers get the money they need to grow, create jobs, and compete in the modern economy.
When does this start?
The changes for manufacturing and farming bonds have different start dates.
Manufacturing bond changes
The new rules for manufacturing bonds will apply to all bonds issued after this bill becomes law.
First-time farmer bond changes
The new rules for first-time farmer bonds will apply to all bonds issued after December 31, 2025.