[Congressional Record Volume 147, Number 178 (Thursday, December 20, 2001)]
[Extensions of Remarks]
[Pages E2386-E2387]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           INDUSTRIAL DEVELOPMENT BOND PROMOTION ACT OF 2002

                                 ______
                                 

                           HON. AMO HOUGHTON

                              of new york

                    in the house of representatives

                      Thursday, December 20, 2001

  Mr. HOUGHTON. Mr. Speaker, I am pleased to be joined by my 
colleagues, Mr. Neal and Mr. English, in introducing the ``Industrial 
Development Bond Promotion Act of 2002.'' While retaining the dollar 
limit on the tax-exempt issue itself, the bill broadens the pool of 
manufacturers who may be eligible to take advantage of the benefits of 
qualified small issue bonds.

[[Page E2387]]

  Qualified small issue bonds play an important role in creating and 
sustaining a vibrant manufacturing sector in rural communities. Today, 
however, the so-called ``$10 million limit'' impedes many growing 
manufacturers from taking advantage of the benefits of qualified small 
issue bonds. This rule states that the aggregate face amount of the 
issue, together with the aggregate amount of certain related capital 
expenditures during a six-year period beginning three years before the 
date of issue and ending three years after that date, must not exceed 
$10 million. This $10 million limit was imposed in 1978. It does not 
consider changes in the economy, inflation, or the increased costs 
associated with the construction of manufacturing facilities. Even in 
small rural communities like those in the district, industrial 
development authorities have projects that routinely exceed this $10 
million limit and are therefore ineligible for this type of financing.
  The Industrial Development Bond Promotion Act of 2002 would permit 
capital expenditures of $30 million to be disregarded in determining 
the aggregate face amount of certain qualified small issue bonds.
  Given today's global economy and proof that U.S. manufacturers are 
not adverse to building and manufacturing offshore, it is most 
important that the calculation of the limit be changed. Across the 
country, manufacturing jobs are declining. The manufacturing sector's 
share of all U.S. jobs slipped from 17 percent ten years ago to 13 
percent today. Small issue bonds are a valuable tool to local economic 
development authorities and go a long way toward creating and 
maintaining investment in manufacturing facilities in communities 
throughout our country.
  We encourage our colleagues to join us in cosponsoring this 
legislation.

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