manufacturing facility
(12) Termination dates (A) In general This subsection shall not apply to— (i) any bond (other than a bond described in clause (ii)) issued after December 31, 1986 , or (ii) any bond (or series of bonds) issued to refund a bond issued on or before such date unless— (I) the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue, (II) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and (III) the net proceeds of the refunding bond are used to redeem the refunded bond not later than 90 days after the date of the issuance of the refunding bond. For purposes of clause (ii)(I), average maturity shall be determined in accordance with section 147(b)(2)(A). (B) Bonds issued to finance manufacturing facilities and farm property Subparagraph (A) shall not apply to any bond issued as part of an issue 95 percent or more of the net proceeds of which are to be used to provide— (i) any manufacturing facility, or (ii) any land or property in accordance with section 147(c)(2). (C) Manufacturing facility For purposes of this paragraph— (i) In general The term “manufacturing facility” means any facility which is used in the manufacturing or production of tangible personal property (including the processing resulting in a change in the condition of such property). A rule similar to the rule of section 142(b)(2) shall apply for purposes of the preceding sentence. (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), or (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.