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

SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL DEVELOPMENT BONDS TO FACILITIES MANUFACTURING INTANGIBLE PROPERTY.(a) In General.—Subparagraph (C) of section 144(a)(12) is amended—(1) by striking “For purposes of this paragraph, the term” and inserting “For purposes of this paragraph—“(i) In general.—The term”, and(2) by striking the last sentence and inserting the following new clauses:“(ii) Certain facilities included.—Such term includes 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.“(iii) Special rules for bonds issued in 2009 and 2010.—In the case of any issue made after the date of enactment of this clause and before January 1, 2011, clause (ii) shall not apply and the net proceeds from a bond shall be considered to be used to provide a manufacturing facility if such proceeds are used to provide—“(I) a facility which is used in the creation or production of intangible property which is described in section 197(d)(1)(C)(iii), or123 STAT. 345“(II) a facility which is functionally related and subordinate to a manufacturing facility (determined without regard to this subclause) if such facility is located on the same site as the manufacturing facility.”.(b) Effective Date.—The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.