H.R. 1524 — Introduced in House

I 113th CONGRESS 1st Session H. R. 1524 IN THE HOUSE OF REPRESENTATIVES April 12, 2013 Mr. Garamendi (for himself, Mr. Conyers, Mr. DeFazio, Mr. Duncan of Tennessee, Mr. Grijalva, Mr. Kildee, Ms. Lee of California, Mr. Lipinski, Ms. Schakowsky, Mr. Ryan of Ohio, Mr. Yarmuth, Mr. Hoyer, Mr. Nolan, Mr. Andrews, Mr. Higgins, Mr. Crowley, and Ms. Kaptur) introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To require 85 percent domestic content in green technologies purchased by Federal agencies or by States with Federal funds and in property eligible for the renewable energy production or investment tax credits. 1. Short title This Act may be cited as the Make it in America: Create Clean Energy Manufacturing Jobs in America Act. 2. Requirements for purchase of green technologies with 85 percent domestic content for use by Federal Government and States (a) Requirement for purchases by Federal Government Notwithstanding chapter 83 of title 41, United States Code (popularly referred to as the Buy American Act), and subject to subsection (c), only green technologies that are 85 percent manufactured in the United States, from articles, materials, or supplies 85 percent of which are grown, produced, or manufactured in the United States, may be acquired for use by the Federal Government. (b) Requirement for purchases by States using Federal funds Subject to subsection (c), Federal funds may not be provided to a State for the purchase of green technologies unless the State agrees that the funds shall be used to purchase only green technologies that are 85 percent manufactured in the United States, from articles, materials, or supplies 85 percent of which are grown, produced, or manufactured in the United States. (c) Phase-In of requirement During the first two fiscal years occurring after the date of the enactment of this Act, subsections (a) and (b) shall be applied— (1) during the first fiscal year beginning after such date of enactment, by substituting 50 percent for 85 percent; and (2) during the second fiscal year beginning after such date of enactment, by substituting 60 percent for 85 percent. (d) Green technologies defined In this Act, the term green technologies means renewable energy and energy efficiency products and services that— (1) reduce dependence on unreliable sources of energy by encouraging the use of sustainable biomass, wind, small-scale hydroelectric, solar, geothermal, and other renewable energy and energy efficiency products and services; and (2) use hybrid fossil-renewable energy systems. (e) Effective date This section shall apply to purchases of green technologies on and after October 1 of the first fiscal year beginning after the date of the enactment of this Act. 3. Renewable energy production and investment tax credits limited to domestically produced property (a) Credit for electricity produced from certain renewable resources Subsection (d) of section 45 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (12) Domestic content requirement (A) In general In the case of any facility originally placed in service after the date of the enactment of the Make it in America: Create Clean Energy Manufacturing Jobs in America Act, such facility shall not be treated as a qualified facility for purposes of this section unless such facility is 85 percent manufactured in the United States, from articles, materials, or supplies 85 percent of which are grown, produced, or manufactured in the United States. (B) Transitional rule In the case of any facility originally placed in service before January 1, 2015, subparagraph (A) shall be applied— (i) in the case a facility originally placed in service during 2013, by substituting 50 percent for 85 percent both places it appears, and (ii) in the case a facility originally placed in service during 2014, by substituting 60 percent for 85 percent both places it appears. . (b) Investment energy credit Section 48 of such Code is amended by adding at the end the following new subsection: (e) Domestic content requirement (1) In general In the case of any property for any period after the date of the enactment of the Make it in America: Create Clean Energy Manufacturing Jobs in America Act, such property shall not be treated as energy property for purposes of this section unless such property is 85 percent manufactured in the United States, from articles, materials, or supplies 85 percent of which are grown, produced, or manufactured in the United States. (2) Transitional rule In the case of any property for any period before January 1, 2015, paragraph (1) shall be applied— (A) in the case of any period during 2013, by substituting 50 percent for 85 percent both places it appears, and (B) in the case of any period during 2014, by substituting 60 percent for 85 percent both places it appears. . (c) Effective dates (1) Production credit The amendments made by subsection (a) shall apply to facilities originally placed in service after the date of the enactment of this Act. (2) Investment credit The amendments made by subsection (b) shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).