[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2885 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2885

 To amend the Internal Revenue Code of 1986 to expand the availability 
of industrial development bonds to facilities manufacturing intangible 
                               property.


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                   IN THE SENATE OF THE UNITED STATES

                             April 17, 2008

Ms. Snowe (for herself, Mr. Kerry, Mr. Smith, and Mr. Brown) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to expand the availability 
of industrial development bonds to facilities manufacturing intangible 
                               property.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXPANSION OF AVAILABILITY OF INDUSTRIAL DEVELOPMENT BONDS TO 
              FACILITIES MANUFACTURING INTANGIBLE PROPERTY.

    (a) Expansion to Intangible Property.--
            (1) In general.--The first sentence of section 
        144(a)(12)(C) of the Internal Revenue Code of 1986 (defining 
        manufacturing facility) is amended--
                    (A) by inserting ``, creation,'' after ``used in 
                the manufacturing'', and
                    (B) by inserting ``or intangible property which is 
                described in section 197(d)(1)(C)(iii)'' before the 
                period at the end.
            (2) Clarification.--The last sentence of section 
        144(a)(12)(C) of such Code is amended to read as follows: ``For 
        purposes of the first sentence of this subparagraph, the term 
        `manufacturing facility' includes--
                            ``(i) facilities which are functionally 
                        related and subordinate to a manufacturing 
                        facility (determined without regard to this 
                        clause), and
                            ``(ii) facilities which are directly 
                        related and ancillary to a manufacturing 
                        facility (determined without regard to this 
                        clause) if--
                                    ``(I) such facilities are located 
                                on the same site as the manufacturing 
                                facility, and
                                    ``(II) not more than 25 percent of 
                                the net proceeds of the issue are used 
                                to provide such facilities.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
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