[Congressional Record Volume 143, Number 144 (Thursday, October 23, 1997)]
[Extensions of Remarks]
[Page E2072]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  INTRODUCTION OF LEGISLATION TO INCREASE THE CAPITAL EXPENDITURE FOR 
                TAX-EXEMPT INDUSTRIAL DEVELOPMENT BONDS

                                 ______
                                 

                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                       Thursday, October 23, 1997

  Mr. NEAL of Massachusetts. Mr. Speaker, today Congressmen Houghton, 
English, and I are introducing legislation which would have a positive 
impact on small manufacturers. This legislation would increase the 
capital expenditure limitation for tax-exempt industrial development 
bonds [IDBs] from $10 to $20 million.
  Under current law, the issuance of tax-exempt industrial development 
bonds for qualified purposes is limited to $10 million. This limitation 
was set in 1978 and it needs to be increased to account for inflation. 
The $10 million limit in capital expenditure limits restricts the use 
of IDB's to provide businesses with affordable capital as part of local 
economic programs.
  Increasing the cap to $20 million would allow many small businesses 
to grow. This legislation would allow a larger number of small 
manufacturers in Massachusetts to use low cost, tax-exempt financing to 
expand their operations and add jobs.
  I urge my colleagues to show their support for small manufacturers by 
cosponsoring this legislation. Increasing the level of tax-exempt 
financing will result in capital expenditures that will create job 
growth.