,i #aacth ,,congress #ast ,session ,h4 ,r4 #fae ,,in ,,the ,,house ,,of ,,representatives ,february #ab1 #bjac ,mr4 ,honda 7for himself1 ,mr4 ,cicilline1 ,mr4 ,conyers1 ,mr4 ,grijalva1 and ,mr4 ,michaud7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide market-based manufacturing incentives1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,market ,based ,manufacturing ,incentives ,act of #bjac4 #b4 ,credit for retail purchase of certain domestic products 7a7 ,in general ,subpart ,b of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #cj;,e4 ,domestic manufacturing consumer credit 7a7 ,allowance of credit ,there shall be allowed as a credit against the tax imposed by this chapter for any taxable year an amount equal to the applicable percentage of the aggregate amount paid or incurred by the taxpayer for specified products during any portion such taxable year which is part of the eligible period4 7b7 ,applicable percentage2 eligible period ,for purposes of this section-- 7#a7 ,applicable percentage ,the term applicable percentage means1 with respect to any specified product1 the percentage 7not less than #e percent nor more than #bj percent7 determined by the ,commission under subsection 7e77#d7 with respect to such product4 7#b7 ,eligible period ,the term eligible period means1 with respect to any specified product1 the period 7not less than #e years nor more than #aj years7 determined by the ,commission under subsection 7e77#e7 with respect to such product4 7#c7 ,separate application to each specified product ,subsection 7a7 shall be applied separately with respect to each of the specified products designated under subsection 7e74 7c7 ,specified product ,for purposes of this section-- 7#a7 ,in general ,the term specified product means any designated domestic product-- 7,a7 the original use of which commences with the taxpayer1 and 7,b7 which is acquired by the taxpayer for use or lease1 but not for resale4 7#b7 ,designated domestic product ,the term designated domestic product means any designated product which has been certified by the ,secretary as-- 7,a7 having been assembled in the ,united ,states1 and 7,b7 consisting at least #fj percent of components assembled or otherwise arising in the ,united ,states4 7#c7 ,designated product ,the term designated product means the #aj products designated by the ,secretary1 in consultation with the ,commission1 under subsection 7e74 7d7 ,application with other credits 7#a7 ,business credit treated as part of general business credit ,so much of the credit which would be allowed under subsection 7a7 for any taxable year 7determined without regard to this subsection7 that is attributable to property used by the taxpayer in the conduct of a trade or business shall be treated as a credit listed in section #ch7;b7 for such taxable year 7and not allowed under subsection 7a774 7#b7 ,personal credit ,for purposes of this title1 the credit allowed under subsection 7a7 for any taxable year 7determined after application of paragraph 7#a77 shall be treated as a credit allowable under subpart ,a for such taxable year4 7e7 ,selection of designated products 7#a7 ,in general ,the ,secretary1 in consultation with the ,commission1 shall designate #aj products for purposes of this section4 7#b7 ,eligible products ,a product shall not be eligible for designation under this section unless-- 7,a7 such product represents a technological innovation1 and 7,b7 the designation of such product has the potential to produce substantial long-term job opportunities in the ,united ,states4 7#c7 ,criteria for designation ,in making designations of products under this subsection1 the ,secretary shall take into consideration-- 7,a7 the number of jobs in the ,united ,states that the ,secretary estimates will result 7directly and indirectly7 from the designation of such product1 and 7,b7 the speed with which such jobs are likely to be created4 7#d7 ,determination of credit percentage ,the ,secretary1 in consultation with the ,commission1 shall determine the applicable percentage which applies for purposes of subsection 7a7 with respect to each product designated under this subsection4 ,such percentage shall not be less than #e percent and shall not be more than #bj percent4 ,such percentage shall be determined on the basis of the incentive needed with respect to each such product taking into account the market factors with respect to such product4 7#e7 ,determination of period during which credit allowed ,the ,secretary1 in consultation with the ,commission1 shall determine the eligible period which applies for purposes of subsection 7a7 with respect to each product designated under this subsection4 ,such period shall not be less than #e years and shall not be more than #aj years4 ,such period shall be determined on the basis of the incentive needed with respect to each such product taking into account the market factors with respect to such product4 7f7 ,other definitions and special rules ,for purposes of this section-- 7#a7 ,commission ,the term ,commission means the #bast ,century ,american ,manufacturing ,commission established under section #c of the ,market ,based ,manufacturing ,incentives ,act of #bjac4 7#b7 ,reduction in basis ,for purposes of this subtitle1 the basis of any property for which a credit is allowable under subsection 7a7 shall be reduced by the amount of such credit so allowed 7determined without regard to subsection 7d774 7#c7 ,no double benefit ,the amount of any deduction or other credit allowable under this chapter with respect to any property shall be reduced by the amount of the credit allowed under subsection 7a7 for such property 7determined without regard to subsection 7d774 7#d7 ,property used by tax-exempt entity ,in the case of property whose use is described in paragraph 7#c7 or 7#d7 of section #ej7;b7 and which is not subject to a lease1 the person who sold such property to the person or entity using such property shall be treated as the taxpayer that placed such vehicle in service1 but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection 7a7 with respect to such property 7determined without regard to subsection 7d774 ,for purposes of subsection 7d71 property to which this paragraph applies shall be treated as property used by the taxpayer in the conduct of a trade or business4 7#e7 ,property used outside ,united ,states1 etc41 not qualified ,no credit shall be allowable under subsection 7a7 with respect to any property referred to in section #ej7;b77#a74 7#f7 ,recapture ,the ,secretary shall1 by regulations1 provide for recapturing the benefit of any credit allowable under subsection 7a7 with respect to any property which ceases to be property eligible for such credit 7including recapture in the case of a lease period of less than the economic life of the property74 7#g7 ,election to not take credit ,no credit shall be allowed under subsection 7a7 for any vehicle if the taxpayer elects to not have this section apply to such property4 7g7 ,termination ,this section shall not apply to property acquired after the date which is #aj years after the date of the enactment of this section4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cg7 the portion of the domestic manufacturing consumer credit to which section #cj;,e7d77#a7 applies4 4 7#b7 ,section #ajaf7;a7 of such ,code is amended by striking and at the end of paragraph 7#cf71 by striking the period at the end of paragraph 7#cg7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#ch7 to the extent provided in section #cj;,e7f77#b74 4 7#c7 ,section #feja7m7 of such ,code is amended by inserting #cj;,e7f77#g71 after #cj;,d7e77#d714 7#d7 ,the table of sections for subpart ,b of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #cj;,e4 ,domestic manufacturing consumer credit4 4 7c7 ,,cbo report ,the ,congressional ,budget ,office shall1 during the #c;d1 #eth1 and #gth years after the effective date of the domestic manufacturing consumer credit 7described in subsection 7d771 report to ,congress on the economic effects of such credit4 ,such report shall include the aggregate value of the domestic manufacturing consumer credits determined with respect to taxpayers under section #cj;,e of the ,internal ,revenue ,code of #aihf and an estimate of the economic activity stimulated by such credits4 7d7 ,effective date ,the amendments made by this section shall apply to property acquired after the date which is #a year after the date on which the #bast ,century ,american ,manufacturing ,commission makes its recommendations to the ,secretary of the ,treasury under section #c7;b7 of this ,act4 #c4 ,establishment of #bast ,century ,american ,manufacturing ,commission 7a7 ,in general ,there is established a commission to be known as the #bast ,century ,american ,manufacturing ,commission4 7b7 ,duties ,the ,commission shall conduct research regarding appropriate products to make eligible for the tax credit provided by section #cj;,e of the ,internal ,revenue ,code of #aihf and shall make recommendations to the ,secretary of the ,treasury regarding which products should be designated for purposes of such section and the applicable percentage and eligible period which should be determined with respect to each such product4 ,the commission shall make such recommendations to the ,secretary of the ,treasury not later than #f months after the date of the enactment of this ,act4 7c7 ,membership 7#a7 ,in general ,the ,commission shall be composed of #aj members who shall be appointed by the ,secretary of the ,treasury or his designee not later than #cj days after the enactment of this ,act4 7#b7 ,selection ,in determining who to appoint to the ,commission1 the ,secretary of ,treasury shall consider a geographically diverse group of individuals with experience in the areas of-- 7,a7 managing manufacturing companies1 including businesses with fewer than #ajj employees1 7,b7 conducting manufacturing-related research and development1 7,c7 commercialization of scientific innovation1 7,d7 managing supply chain providers1 7,e7 finance1 and 7,f7 analyzing manufacturing policy and economic competitiveness4 7#c7 ,political affiliation ,not more than #e members may be of the same political party4 7#d7 ,terms ,each member shall be appointed for the life of the ,commission4 7#e7 ,vacancies ,a vacancy in the ,commission shall be filled in the manner in which the original appointment was made4 7#f7 ,pay of members 7,a7 ,in general ,members shall each be entitled to receive the daily equivalent of the maximum annual rate of basic pay for grade ,,gs-#aa of the ,general ,schedule for each day 7including travel time7 during which they are engaged in the actual performance of duties vested in the ,commission4 7,b7 ,travel expenses ,each member shall receive travel expenses1 including per diem in lieu of subsistence1 in accordance with applicable provisions under subchapter ,i of chapter #eg of title #e1 ,united ,states ,code4 7#g7 ,prevention of conflicts of interest and nepotism 7,a7 ,agreement ,the ,secretary of the ,treasury shall not appoint any individual to be a member of the ,commission unless such individual has first signed an agreement with the ,secretary to prevent conflicts of interest and nepotism4 ,such agreement shall include a requirement that the individual comply with the provisions of subparagraph 7,b7 and shall include such penalties for failure to so comply as the ,secretary determines appropriate4 7,b7 ,requirements ,a member of the ,commission shall not1 during the #e-year period beginning on the effective date of the domestic manufacturing consumer credit 7described in section #b7;d771 hold1 directly or indirectly1 any interest in any person associated with any designated product1 any component of any designated product1 or any equipment to manufacture any such product or component4 ,an interest held in any fund held by such member shall be taken into account under the preceding sentence unless such fund is a broad-based index fund4 ,any interest held by such member prior to the beginning of such #e-year period which is not 7consistent with the requirements of this subparagraph7 permitted to be held during such period1 shall be disposed of prior to such period4 7d7 ,chairperson ,the ,chairperson of the ,commission shall be designated by the ,secretary of the ,treasury 7or his designee7 at the time of appointment4 7e7 ,staff ,any staff of the ,commission shall be appointed subject to the provisions of title #e1 ,united ,states ,code1 governing appointments in the competitive service1 and shall be paid in accordance with the provisions of chapter #ea and subchapter ,,iii of chapter #ec of that title relating to classification and ,general ,schedule pay rates4 7f7 ,termination 7#a7 ,in general ,except as provided in paragraph 7#b71 the ,commission shall terminate #cj days after making recommendations to the ,secretary of the ,treasury described in subsection 7b74 7#b7 ,extension ,at the request of the ,secretary of the ,treasury or his designee1 the ,commission shall continue in existence for such period as the ,secretary may request but not later than #a year after making such recommendations4