,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bidj  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,augu/ #a1 #bjac ,mr4 
,k9d 7= himself1 ,mr4 ,neal1 ,mr4       
,rangel1 ,mr4 ,pascrell1 ,mr4 ,l>son (  
,connecticut1 ,mr4 ,mc,dermott1 ,mr4    
,lewis1 ,ms4 ,s*w>tz1 ,mr4 ,danny ,k4   
,davis ( ,ill9ois1 & ,mr4 ,lev97        
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to r$uce ! rate ( tax on  
dome/ic manufactur+ income to #bj p]c5t4
  #a4 ,%ort title2 f9d+s  7a7 ,%ort     
title ,?is ,act may be cit$ z !         
,rebuild+ ,am]ican ,manufactur+ ,act (  
#bjac4  7b7 ,f9d+s ,congress f9ds !     
foll[+3  7#a7 ,am]ican manufactur+ is   
vital to our economy1 & ^? :o produce   
,am]ican goods & hire ,am]ican work]s   
%\ld be a priority4  7#b7 ,manufactur+  
is an ess5tial s\rce ( innovation t is  
critical to our cont9u$ prosp]ity 9 an  
increas+ly competitive global economy4  
7#c7 ,approximately #a4b million        

,am]icans are employ$ by ! manufactur+  
indu/ry4  7#d7 ,! manufactur+ indu/ry   
provides /able jobs ) su/a9able wages to
 ,am]icans 9 e ,/ate4  7#e7 ,manufactur+
 jobs provide1 on av]age1 wages t are   
above ! national av]age & provide a     
gateway to ! middle class4  7#f7 ,!     
effective tax rate ( dome/ic            
manufactur]s ranges f #bg to #ca p]c5t1 
dep5d+ on location & ! size ( equipm5t  
us$ 9 production4  7#g7 ,tax re=m mu/   
make ! ,unit$ ,/ates m competitive1 boo/
 economic gr[?1 & fo/] ! creation (     
su/a9able ,am]ican jobs4  7#h7 ,tax re=m
 %\ld p>ticul>ly focus on ^? companies t
 gr[1 build1 & create goods 9 ! ,unit$  
,/ates4  7#i7 ,! tax rate ( dome/ic     
manufactur]s %\ld reflect ! indu/ry's   
contributions ( employm5t1 gr[?1        
innovation1 & competition 9 ! ,unit$    
,/ates4  #b4 #bj p]c5t income tax rate =
 dome/ic manufactur+ income  7a7 ,9     
g5]al ,"p ,,vi ( sub*apt] ,b ( *apt] #a 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by add+ at ! end ! foll[+ new     

section3  #bjj4 ,dome/ic manufactur+    
income  7a7 ,all[ance ( d$uction ,!re   
%all be all[$ z a d$uction an am\nt     
equal to #ej4e p]c5t 7#dc p]c5t 9 ! case
 ( a ,c corporation7 ( ! less] (--  7#a7
 ! dome/ic manufactur+ income ( !       
taxpay] = ! taxable ye>1 or  7#b7       
taxable income 7det]m9$ )\t reg>d to ?is
 section & section #aii7 = ! taxable    
ye>4  7b7 ,limitation bas$ on dome/ic   
inve/m5t ,= purposes ( ?is section--    
7#a7 ,9 g5]al ,! am\nt ( ! d$uction     
all[able "u subsection 7a7 = any taxable
 ye> %all n exce$ #be p]c5t ( !         
taxpay]'s qualify+ dome/ic inve/m5t = ! 
taxable ye>4  7#b7 ,qualify+ dome/ic    
inve/m5t am\nt ,! t]m qualify+ dome/ic  
inve/m5t means1 ) respect to any taxpay]
 = any taxable ye>1 ! sum (--  7,a7 !   
,w-#b wages ( su* taxpay] = su* taxable 
ye>1  7,b7 ! sum ( ! d$uctions all[able 
"u sections #afg1 #afi1 #agi1 & #agi;,d 
to su* taxpay] = su* taxable ye>1 plus  
7,c7 ! d$uction all[able "u section #agd
 to su* taxpay] = su* taxable ye>4  7#c7

 ,w-#b wages ,! t]m ,w-#b wages means1 )
 respect to any p]son = any taxable ye>1
 ! sum ( ! am\nts describ$ 9 p>agraphs  
7#c7 & 7#h7 ( section #fjea7;a7 paid by 
su* p]son ) respect to employm5t (      
employees by su* p]son dur+ ! cal5d> ye>
 end+ dur+ su* taxable ye>4 ,su* t]m    
%all n include any am\nt :i* is n       
prop]ly includ$ 9 a return fil$ ) !     
,social ,security ,adm9i/ration on or   
be=e ! #fj? day aft] ! due date 7includ+
 ext5sions7 = su* return4  7#d7         
,limitation to am\nts attributable to   
dome/ic production ,! t]m qualify+      
dome/ic inve/m5t %all n include any     
am\nt :i* is n prop]ly allocable to     
dome/ic manufactur+ gross receipts =    
purposes ( subsection 7c7 7& %all       
include any am\nt :i* is s allocable "u 
subsection 7c77#d774  7#e7 ,acquisitions
 & dispositions ,! ,secret>y %all       
provide = ! application ( ?is subsection
 9 cases :]e ! taxpay] acquires1 or     
disposes (1 ! major portion ( a trade or
 bus9ess or ! major portion ( a sep>ate 

unit ( a trade or bus9ess dur+ ! taxable
 ye>4  7c7 ,dome/ic manufactur+ income  
,= purposes ( ?is section--  7#a7 ,9    
g5]al ,! t]m dome/ic manufactur+ income 
= any taxable ye> means an am\nt equal  
to ! excess 7if any7 (--  7,a7 !        
taxpay]'s dome/ic manufactur+ gross     
receipts = su* taxable ye>1 ov]  7,b7 ! 
sum (--  7i7 ! co/ ( goods sold t are   
allocable to su* receipts1 &  7ii7 o!r  
exp5ses1 losses1 or d$uctions 7o!r ?an !
 d$uction all[$ "u ?is section71 :i* are
 prop]ly allocable to su* receipts4     
7#b7 ,allocation me?od ,! ,secret>y %all
 prescribe rules = ! prop] allocation ( 
items describ$ 9 p>agraph 7#a7 =        
purposes ( det]m9+ dome/ic manufactur+  
income4 ,su* rules %all provide = !     
prop] allocation ( items :e!r or n su*  
items are directly allocable to dome/ic 
manufactur+ gross receipts4  7#c7       
,special rules = det]m9+ co/s  7,a7 ,9  
g5]al ,= purposes ( det]m9+ co/s "u     
clause 7i7 ( p>agraph 7#a77;,b71 any    
item or s]vice br\ght into ! ,unit$     

,/ates %all be treat$ z acquir$ by      
pur*ase1 & its co/ %all be treat$ z n   
less ?an its value imm$iately aft] x    
ent]$ ! ,unit$ ,/ates4 ,a simil> rule   
%all apply 9 det]m9+ ! adju/$ basis (   
leas$ or r5t$ prop]ty :]e ! lease or    
r5tal gives rise to dome/ic manufactur+ 
gross receipts4  7,b7 ,exports = fur!r  
manufacture ,9 ! case ( any prop]ty     
describ$ 9 subp>agraph 7,a7 t _h be5    
export$ by ! taxpay] = fur!r            
manufacture1 ! increase 9 co/ or adju/$ 
basis "u subp>agraph 7,a7 %all n exce$ !
 diff]5ce betwe5 ! value ( ! prop]ty :5 
export$ & ! value ( ! prop]ty :5 br\ght 
back into ! ,unit$ ,/ates aft] ! fur!r  
manufacture4  7#d7 ,treatm5t ( c]ta9    
accel]at$ depreciation d$uctions ,9 !   
case ( prop]ty plac$ 9 s]vice aft]      
,decemb] #ca1 #bjjg1 & be=e ! fir/      
taxable ye> ( ! taxpay] beg9n+ aft]     
,decemb] #ca1 #bjab1 ! d$uction "u      
section #afh ) respect to su* prop]ty   
:i* is treat$ z prop]ly allocable to    
dome/ic manufactur+ gross receipts ( !  

taxpay] = any taxable ye> %all be       
det]m9$ )\t reg>d to section            
#afh7k77#a74  7#e7 ,treatm5t ( def]r$   
comp5sation "u nonqualifi$ plans ,9 !   
case ( comp5sation paid or incurr$ by ! 
taxpay] :i* is def]r$ "u a nonqualifi$  
def]r$ comp5sation plan 7z def9$ 9      
section #dji;,a7d77#a771 ! am\nt "u     
p>agraph 7#a77;,b77ii7 %all be det]m9$ z
 ?\gh ! d$uction = su* comp5sation is   
all[$ = ! taxable ye> 9 :i* ! s]vices = 
:i* su* comp5sation 0 paid or incurr$   
are p]=m$4 ,?is p>agraph %all n apply ) 
respect to comp5sation paid or incurr$ =
 s]vices p]=m$ 9 taxable ye>s beg9n+    
be=e ! fir/ taxable ye> ( ! taxpay]     
beg9n+ aft] ,decemb] #ca1 #bjab4  7d7   
,dome/ic manufactur+ gross receipts ,=  
purposes ( ?is section--  7#a7 ,9 g5]al 
,! t]m dome/ic manufactur+ gross        
receipts means ! gross receipts ( !     
taxpay] :i* are d]iv$ f any lease1      
r5tal1 lic5se1 sale1 ex*ange1 or o!r    
disposition ( qualifi$ prop]ty :i* 0    
manufactur$1 produc$1 or gr[n by !      

taxpay] 9 :ole or 9 significant "p )9 ! 
,unit$ ,/ates4 ,su* t]m %all n include  
gross receipts ( ! taxpay] :i* are d]iv$
 f ! sale ( food & bev]ages prep>$ by ! 
taxpay] at a retail e/abli%m5t4  7#b7   
,special rule = c]ta9 gov]nm5t contracts
 ,gross receipts d]iv$ f ! manufacture  
or production ( any prop]ty %all n fail 
to be treat$ z meet+ ! requirem5ts (    
p>agraph 7#a7 solely because title or   
risk ( loss ) respect to su* prop]ty is 
held by ! ,f$]al ,gov]nm5t if--  7,a7   
su* prop]ty is manufactur$ or produc$ by
 ! taxpay] pursuant to a contract ) !   
,f$]al ,gov]nm5t1 &  7,b7 ! ,f$]al      
,acquisition ,regulation requires t     
title or risk ( loss ) respect to su*   
prop]ty be transf]r$ to ! ,f$]al        
,gov]nm5t be=e ! manufacture or         
production ( su* prop]ty is complete4   
7#c7 ,qualifi$ prop]ty ,! t]m qualifi$  
prop]ty means--  7,a7 any tangible      
p]sonal prop]ty o!r ?an--  7i7 oil1 gas1
 & prim>y products !re( 7)9 ! mean+ (   
section #aii7;d77#i77;,c771  7ii7       

prop]ty ) respect to :i* section #fac   
applies1  7iii7 prop]ty describ$ 9      
p>agraph 7#c7 or 7#d7 ( section         
#afh7;f71 &  7iv7 electricity & potable 
wat]1 &  7,b7 any comput] s(tw>e o!r ?an
 video games rat$ ,m1 ,,ao1 ,,rp1 or any
 simil> rat+ z det]m9$ by ! ,secret>y1  
by ! ,ent]ta9m5t ,s(tw>e ,rat+ ,bo>d4   
7#d7 ,p>tn]%ips own$ by exp&$ affiliat$ 
gr\ps ,= purposes ( ?is subsection1 if  
all ( ! int]e/s 9 ! capital & pr(its ( a
 p>tn]%ip are own$ by memb]s ( a s+le   
exp&$ affiliat$ gr\p at all times dur+ !
 taxable ye> ( su* p>tn]%ip1 ! p>tn]%ip 
& all memb]s ( su* gr\p %all be treat$ z
 a s+le taxpay] dur+ su* p]iod4  7#e7   
,relat$ p]sons  7,a7 ,9 g5]al ,! t]m    
dome/ic manufactur+ gross receipts %all 
n include any gross receipts ( ! taxpay]
 d]iv$ f prop]ty leas$1 lic5s$1 or r5t$ 
by ! taxpay] = use by any relat$ p]son4 
7,b7 ,relat$ p]son ,= purposes (        
subp>agraph 7,a71 a p]son %all be treat$
 z relat$ to ano!r p]son if su* p]sons  
are treat$ z a s+le employ] "u          

subsection 7a7 or 7b7 ( section #eb or  
subsection 7m7 or 7o7 ( section #dad1   
except t det]m9ations "u subsections 7a7
 & 7b7 ( section #eb %all be made )\t   
reg>d to section #aefc7;b74  7e7        
,special rules  7#a7 ,elective          
application ( d$uction ,except z o!rwise
 provid$ by ! ,secret>y1 ! taxpay] may  
elect n to take any item ( income into  
acc\nt z dome/ic manufactur+ gross      
receipts = purposes ( ?is section4  7#b7
 ,coord9ation ) section #aii ,if a      
d$uction is all[$ "u ?is section )      
respect to any taxpay] = any taxable    
ye>1 any gross receipts ( ! taxpay] :i* 
are tak5 into acc\nt "u ?is section =   
su* taxable ye> 7& any items prop]ly    
allocable !reto "u subsections 7b7 or   
7c77 %all n be tak5 into acc\nt "u      
section #aii = su* taxable ye>4  7#c7   
,application ( section to pass-?ru      
entities  7,a7 ,p>tn]%ips & ,s          
corporations ,9 ! case ( a p>tn]%ip or  
,s corporation--  7i7 ?is section %all  
be appli$ at ! p>tn] or %>ehold] level1 

7ii7 ea* p>tn] or %>ehold] %all take    
into acc\nt su* p]son's allocable %>e ( 
ea* item describ$ 9 subp>agraph 7,a7 or 
7,b7 ( subsection 7c77#a7 7det]m9$ )\t  
reg>d to :e!r ! items describ$ 9 su*    
subp>agraph 7,a7 exce$ ! items describ$ 
9 su* subp>agraph 7,b771 &  7iii7 ea*   
p>tn] or %>ehold] %all be treat$ =      
purposes ( subsection 7b7 z hav+ an     
am\nt ( ea* item tak5 into acc\nt 9     
det]m9+ qualify+ dome/ic inve/m5t ( !   
p>tn]%ip or ,s corporation = ! taxable  
ye> equal to su* p]son's allocable %>e (
 su* item 7z det]m9$ "u regulations     
prescrib$ by ! ,secret>y74  7,b7 ,tru/ &
 e/ates ,9 ! case ( a tru/ or e/ate--   
7i7 ! items ref]r$ to 9 subp>agraph     
7,a77ii7 7z det]m9$ !re97 & ! qualify+  
dome/ic inve/m5t ( ! tru/ or e/ate = !  
taxable ye>1 %all be apportion$ betwe5 !
 b5efici>ies & ! fiduci>y 7& among !    
b5efici>ies7 "u regulations prescrib$ by
 ! ,secret>y1 &  7ii7 = purposes (      
p>agraph 7#d71 adju/$ gross income ( !  
tru/ or e/ate %all be det]m9$ z provid$ 

9 section #fg7;e7 ) ! adju/m5ts describ$
 9 su* p>agraph4  7,c7 ,regulations ,!  
,secret>y may prescribe rules requir+ or
 re/rict+ ! allocation ( items &        
qualify+ dome/ic inve/m5t "u ?is        
p>agraph & may prescribe su* report+    
requirem5ts z ! ,secret>y det]m9es      
appropriate4  7#d7 ,application to      
individuals ,9 ! case ( an individual1  
subsection 7a77#b7 %all be appli$ by    
sub/itut+ adju/$ gross income = taxable 
income4 ,= purposes ( ! prec$+ s5t5ce1  
adju/$ gross income %all be det]m9$--   
7,a7 aft] application ( sections #hf1   
#ace1 #acg1 #bai1 #bba1 #bbb1 & #dfi1 & 
7,b7 )\t reg>d to ?is section & section 
#aii4  7#e7 ,application ( o!r rules    
,rules simil> to ! rules ( p>agraphs    
7#c71 7#d71 7#e71 7#f71 7#g71 & 7#aj7 ( 
section #aii7;d7 %all apply = purposes (
 ?is section4  4  7b7 ,con=m+ am5dm5ts  
7#a7 ,section #ef7;d77#a77;,a7 ( su*    
,code is am5d$ by /rik+ d$uction "u     
section #aii bo? places x appe>s &      
ins]t+ d$uctions "u sections #aii &     

#bjj4  7#b7 ,section #ef7;g77#d77;,c7 ( 
su* ,code is am5d$ by add+ at ! end !   
foll[+ new clause3  7vii7 ,d$uction =   
dome/ic bus9ess income ,clause 7i7 %all 
n apply to any am\nt all[able z a       
d$uction "u section #bjj4  4  7#c7 ,!   
foll[+ provisions ( su* ,code are ea*   
am5d$ by ins]t+ #bjj1 aft] #aii14  7,a7 
,section #hf7;b77#b77;,a74  7,b7        
,section #ace7;c77#d77;,a74  7,c7       
,section #acg7;b77#c77;,a74  7,d7       
,section #bai7;g77#c77;,a77ii74  7,e7   
,section #bba7;b77#b77;,c77i74  7,f7    
,section #bbb 7b77#b77;,c77i74  7,g7    
,section #bdf7;b77#a74  7,h7 ,section   
#dfi7;i77#c77;,f77iii74  7#d7 ,section  
#afc7;j77#f77;,a77i7 ( su* ,code is     
am5d$ by /rik+ & at ! end ( subclause   
7,,iii7 & by ins]t+ aft] subclause      
7,,iv7 ! foll[+ new subclause3  7,v7 any
 d$uction all[able "u section #bjj1 &  4
  7#e7 ,section #agj7;b77#b77;,c7 ( su* 
,code is am5d$ by /rik+ & at ! end (    
clause 7iv71 by /rik+ ! p]iod at ! end (
 clause 7v7 & ins]t+ 1 &1 & by ins]t+   

aft] clause 7v7 ! foll[+ new clause3    
7vi7 section #bjj4  4  7#f7 ,section    
#agb7;d7 ( su* ,code is am5d$ by add+ at
 ! end ! foll[+ new p>agraph3  7#h7     
,dome/ic bus9ess income ,! d$uction "u  
section #bjj %all n be all[$4  4  7#g7  
,section #aii7;d77#b77;,a7 ( su* ,code  
is am5d$ by ins]t+ #bjj1 aft] #acg14    
7#h7 ,section #fac7;a7 ( su* ,code is   
am5d$ by /rik+ d$uction "u section #aii 
& ins]t+ d$uctions "u sections #aii &   
#bjj4  7#i7 ,section #fac;,a7d77#a7 (   
su* ,code is am5d$ by r$esignat+        
subp>agraphs 7,c71 7,d71 & 7,e7 z       
subp>agraphs 7,d71 7,e71 & 7,f71        
respectively1 & by ins]t+ aft]          
subp>agraph 7,b7 ! foll[+ new           
subp>agraph3  7,c7 any d$uction all[able
 "u section #bjj1  4  7#aj7 ,section    
#adjb7;a7 ( su* ,code is am5d$ by /rik+ 
& at ! end ( p>agraph 7#af71 by         
r$esignat+ p>agraph 7#ag7 z p>agraph    
7#ah71 & by ins]t+ aft] p>agraph 7#af7 !
 foll[+ new p>agraph3  7#ag7 ! d$uction 
provid$ by section #bjj %all n be all[$2

 &  4  7#aa7 ,! table ( sections = "p   
,,vi ( sub*apt] ,b ( *apt] #a ( su*     
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #bjj4 ,dome/ic        
manufactur+ income4  4  7c7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjab4