Bipartisan laws designed to assist small to medium producers and farmers was introduced Tuesday by U.S. Rep. Dan Kildee (D-Flint).
Kildee, who sits on the highly effective Home Methods and Means Committee, says the Modernizing Agricultural and Manufacturing Bonds Act updates the federal guidelines for manufacturing and agricultural bonds. Utilized by state and native businesses, together with the Michigan Financial Improvement Company (MEDC), the bonds are exempt from federal taxes and have been used to spur financial improvement that helps small producers and farmers.
Nonetheless, Kildee mentioned in a ready assertion that the use of some of these bonds has declined during the last decade attributable to outdated guidelines and rules.
“Manufacturing and agricultural bonds may be highly effective financial improvement instruments to help farmers and small manufacturing companies, however the bond packages want to higher work for small companies and farmers,” Kildee mentioned. “Modernizing these bonds and chopping authorities crimson tape will develop our native economic system and create extra good-paying jobs in mid-Michigan. I’m proud to introduce this invoice with Republican and Democratic help.”
Kildee launched the laws, H.R. 3787, with U.S. Reps. Darin LaHood (R-IL), Randy Feenstra (R-IA) and Dwight Evans (D-PA).
The laws will “present entrepreneurs and first-time farmers with the financing instruments they should develop, creating good-paying jobs, and bolstering our economic system,” LaHood mentioned.
If handed, the invoice would:
- Increase the utmost manufacturing bond dimension to $30 million from $10 million and tie the brink to future will increase in inflation.
- Modernize the definition of a “manufacturing facility” to incorporate high-tech manufacturing processes, together with bio-technology, design and formulation improvement.
- Get rid of restrictions that forestall bond proceeds from getting used in the direction of workplaces house, locker rooms and cafeterias at small manufacturing services.
- Enhance the quantity of bond proceeds that may go to first-time farmers to $1 million from $450,000 and permit new farmers to make use of bond proceeds to improve present agricultural buildings and property and buy farm tools.
- Align the definition of “substantial farmland” within the federal tax code with present regulation.
Tony Stamas, president and CEO of the Midland Enterprise Alliance, mentioned the laws would replace financing choices for the state’s agricultural neighborhood.
“The laws will carry pricing fashions as much as present requirements and approaches to farming. As operator of our neighborhood’s farmers market, we particularly admire that this invoice would alleviate challenges for first-time farmers,” he mentioned.
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