Bipartisan legislation recently reintroduced by U.S. Rep. Randy Hultgren (R-IL) would modernize rules governing the use of manufacturing bonds that have been on the books for three decades.
The Modernizing American Manufacturing Bonds Act (MAMBA), H.R. 1115, would update rules on manufacturing bonds to help manufacturers expand operations, invest in new equipment and hire more employees.
Hultgren, along with U.S. Reps. Jim Renacci (R-OH) and Richard Neal (D-MA), reintroduced the House version of the bill on Feb. 17.
“Illinois’ manufacturers are ready for the challenge of increasing engagement in our global and technology-based economy,” Hultgren said. “Unfortunately, decades-old policies governing a key tool that manufacturers use to expand operations no longer address today’s challenges, needlessly impeding growth and job creation in the Illinois manufacturing sector. MAMBA is a bipartisan bill that sensibly reforms these outdated rules without raising taxes.”
H.R. 1115 would expand the definition of manufacturing facilities to include those that produce intangible products like software, patents and other intellectual property. The measure also would remove other restrictions to make it easier for manufacturers to finance products.
The bill also would increase the size limit on industrial development or manufacturing bonds to $30 million from $10 million. In addition, it would increase the six-year capital expenditure limitation on manufacturing bonds to $40 million from $20 million to make long-term expansion easier for manufacturers.
Mark Denzler, the chief operating officer at the Illinois Manufacturers’ Association, said, “Industrial revenue bonds provide low-cost and efficient access to capital for small and mid-sized manufacturing companies but this important job creation tool has not been updated in nearly 30 years. The Modernizing American Manufacturing Bonds Act will help bring good jobs back to America’s shores and help expand today’s manufacturing renaissance in Illinois and across the country.”