,i #aacth ,,congress #ast ,session ,h4 ,r4 #faf ,,in ,,the ,,house ,,of ,,representatives ,february #ab1 #bjac ,mr4 ,honda 7for himself and ,mr4 ,carney7 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 allow a credit against tax for qualified manufacturing facility construction costs4 #a4 ,short title ,this ,act may be cited as the ,scaling ,up ,manufacturing ,act of #bjac4 #b4 ,credit for manufacturing facility costs 7a7 ,in general ,subpart ,d 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 #de,s4 ,manufacturing facility expenditures 7a7 ,general rule ,for purposes of section #ch1 in the case of an eligible business1 the manufacturing facility expenditure credit for any taxable year is an amount equal to #be percent of the qualified facility construction expenditures of the taxpayer for the taxable year4 7b7 ,eligible business ,for purposes of this section1 the term eligible business means any corporation or partnership-- 7#a7 which is engaged in an active trade or business1 7#b7 which is headquartered in the ,united ,states1 7#c7 substantially all of the management or administrative activities of which are performed in the ,united ,states1 7#d7 which has not 7prior to placing into service the manufacturing facility designated for purposes of this section7 placed in service a dedicated commercial manufacturing facility1 7#e7 with respect to which all debt obligations issued by1 and equity interests in1 have a rating of ,b minus 7or its substantial equivalent7 or higher from a credit rating agency registered with the ,securities and ,exchange ,commission as a nationally recognized statistical rating organization 7as defined in section #c7;a7 of the ,securities ,exchange ,act of #aicd74 7c7 ,qualified facility construction expenditures ,for purposes of this section-- 7#a7 ,in general ,the term qualified facility construction expenditures means amounts paid or incurred by the taxpayer-- 7,a7 for the construction of a facility 7designated for purposes of this section by the taxpayer at such time and in such form and manner as the ,secretary shall prescribe7 in the ,united ,states to manufacture a qualified product 7including amounts for professional services necessary for the planning of such construction71 and 7,b7 for the purchase of specialized equipment for use at such facility and required for the manufacture of such product4 7#b7 ,qualified product ,the term qualified product means any product which1 prior to construction of the facility with respect to which a credit is allowed under this section1 the taxpayer has produced and sold to a bona fide purchaser1 and such purchaser has placed such product in service4 7d7 ,special rules ,for purposes of this section-- 7#a7 ,recapture 7,a7 ,in general ,if1 as of the close of any taxable year1 there is a recapture event with respect to any facility of the taxpayer with respect to which a credit was allowed under this section1 then the tax of the taxpayer under this chapter for such taxable year shall be increased by an amount equal to the product of-- 7i7 the applicable recapture percentage1 and 7ii7 the aggregate decrease in the credits allowed under section #ch for all prior taxable years which would have resulted if the qualified facility construction expenditures of the taxpayer described in subsection 7c77#a7 with respect to such facility had been zero4 7,b7 ,applicable recapture percentage 7i7 ,in general ,for purposes of this subsection1 the applicable recapture percentage shall be determined in accordance with the following table3 ,if the recapture event occurs in3,the applicable recapture percentage is3 ,year #aajj ,year #bhj ,year #cfj ,year #ddj ,year #ebj ,years #f and thereafter#j4 7ii7 ,years ,for purposes of clause 7i71 year #a shall begin on the first day of the taxable year in which the facility with respect to which a credit was allowed under this subsection was placed in service4 7,c7 ,recapture event ,for purposes of this paragraph-- 7i7 ,in general ,a recapture event occurs with respect to any facility if-- 7,i7 the taxpayer becomes insolvent1 or 7,,ii7 the taxpayer disposes of the facility to another person who1 at this time of the disposition1 is not an eligible business4 7ii7 ,special rule for facilities not placed in service within #e years ,in the case of a facility with respect to which a credit is allowed under this section which is not placed in service before the close of the #eth taxable year beginning after the first taxable year for which the credit was so allowed1 a recapture event shall be treated as having occurred with respect to such facility in year #a4 7#b7 ,credit may be assigned ,the amount of qualified facility construction expenditures with respect to a facility which would 7but for this paragraph7 be taken into account under subsection 7a7 for any taxable year by any person 7hereafter in this paragraph referred to as the initial taxpayer7-- 7,a7 may be taken into account by any other person to whom such expenditures are assigned by the initial taxpayer1 and 7,b7 shall not be taken into account by initial taxpayer4 ,any person to whom such expenditures are assigned under subparagraph 7,a7 shall be treated for purposes of this title as the taxpayer with respect to such expenditures4 7#c7 ,controlled group ,all members of the same controlled group of corporations 7within the meaning of section #eb7;a77 and all persons under common control 7within the meaning of section #eb7;b77 shall be treated as #a person for purposes of this section4 7#d7 ,predecessor ,any reference in this section to a corporation or partnership shall include a reference to any predecessor of such corporation or partnership4 7#e7 ,denial of double benefit ,for purposes of this subtitle1 if a credit is allowed under this section in connection with any expenditure for any property1 the basis of such property shall be reduced by the amount of the credit so allowed4 4 7b7 ,denial of double benefit ,section #bhj;,c of such ,code is amended by inserting after subsection 7h7 the following new subsection3 7i7 ,manufacturing facility expenditures ,no deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction taken into account in determining the credit under section #de,s for the taxable year which is equal to the amount of the credit determined for such taxable year under section #de,s7a74 4 7c7 ,credit ,to be part of general business credit ,subsection 7b7 of section #ch 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 inserting after paragraph 7#cf7 the following3 7#cg7 manufacturing facility expenditure credit determined under section #de,s7a74 4 7d7 ,conforming amendment ,subsection 7a7 of section #ajaf 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 #de,s7d77#b74 4 7e7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this ,act4