,i #aac? ,,congress #a/ ,session ,h4 ,r4 #faf ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,febru>y #ab1 #bjac ,mr4 ,honda 7= himself & ,mr4 ,c>ney7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to all[ a cr$it aga9/ tax = qualifi$ manufactur+ facility con/ruction co/s4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,scal+ ,up ,manufactur+ ,act ( #bjac4 #b4 ,cr$it = manufactur+ facility co/s 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #de,s4 ,manufactur+ facility exp5ditures 7a7 ,g5]al rule ,= purposes ( section #ch1 9 ! case ( an eligible bus9ess1 ! manufactur+ facility exp5diture cr$it = any taxable ye> is an am\nt equal to #be p]c5t ( ! qualifi$ facility con/ruction exp5ditures ( ! taxpay] = ! taxable ye>4 7b7 ,eligible bus9ess ,= purposes ( ?is section1 ! t]m eligible bus9ess means any corporation or p>tn]%ip-- 7#a7 :i* is engag$ 9 an active trade or bus9ess1 7#b7 :i* is headqu>t]$ 9 ! ,unit$ ,/ates1 7#c7 sub/antially all ( ! managem5t or adm9i/rative activities ( :i* are p]=m$ 9 ! ,unit$ ,/ates1 7#d7 :i* has n 7prior to plac+ into s]vice ! manufactur+ facility designat$ = purposes ( ?is section7 plac$ 9 s]vice a d$icat$ comm]cial manufactur+ facility1 7#e7 ) respect to :i* all debt obligations issu$ by1 & equity int]e/s 91 h a rat+ ( ,b m9us 7or its sub/antial equival5t7 or high] f a cr$it rat+ ag5cy regi/]$ ) ! ,securities & ,ex*ange ,commission z a nationally recogniz$ /ati/ical rat+ organization 7z def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd74 7c7 ,qualifi$ facility con/ruction exp5ditures ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m qualifi$ facility con/ruction exp5ditures means am\nts paid or incurr$ by ! taxpay]-- 7,a7 = ! con/ruction ( a facility 7designat$ = purposes ( ?is section by ! taxpay] at su* "t & 9 su* =m & mann] z ! ,secret>y %all prescribe7 9 ! ,unit$ ,/ates to manufacture a qualifi$ product 7includ+ am\nts = pr(essional s]vices necess>y = ! plann+ ( su* con/ruction71 & 7,b7 = ! pur*ase ( specializ$ equipm5t = use at su* facility & requir$ = ! manufacture ( su* product4 7#b7 ,qualifi$ product ,! t]m qualifi$ product means any product :i*1 prior to con/ruction ( ! facility ) respect to :i* a cr$it is all[$ "u ?is section1 ! taxpay] has produc$ & sold to a bona fide pur*as]1 & su* pur*as] has plac$ su* product 9 s]vice4 7d7 ,special rules ,= purposes ( ?is section-- 7#a7 ,recapture 7,a7 ,9 g5]al ,if1 z ( ! close ( any taxable ye>1 !re is a recapture ev5t ) respect to any facility ( ! taxpay] ) respect to :i* a cr$it 0 all[$ "u ?is section1 !n ! tax ( ! taxpay] "u ?is *apt] = su* taxable ye> %all be increas$ by an am\nt equal to ! product (-- 7i7 ! applicable recapture p]c5tage1 & 7ii7 ! aggregate decrease 9 ! cr$its all[$ "u section #ch = all prior taxable ye>s :i* w\ld h result$ if ! qualifi$ facility con/ruction exp5ditures ( ! taxpay] describ$ 9 subsection 7c77#a7 ) respect to su* facility _h be5 z]o4 7,b7 ,applicable recapture p]c5tage 7i7 ,9 g5]al ,= purposes ( ?is subsection1 ! applicable recapture p]c5tage %all be det]m9$ 9 accordance ) ! foll[+ table3 ,if ! recapture ev5t occurs 93,! applicable recapture p]c5tage is3 ,ye> #aajj ,ye> #bhj ,ye> #cfj ,ye> #ddj ,ye> #ebj ,ye>s #f & !reaft]#j4 7ii7 ,ye>s ,= purposes ( clause 7i71 ye> #a %all beg9 on ! fir/ day ( ! taxable ye> 9 :i* ! facility ) respect to :i* a cr$it 0 all[$ "u ?is subsection 0 plac$ 9 s]vice4 7,c7 ,recapture ev5t ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,a recapture ev5t occurs ) respect to any facility if-- 7,i7 ! taxpay] becomes insolv5t1 or 7,,ii7 ! taxpay] disposes ( ! facility to ano!r p]son :o1 at ?is "t ( ! disposition1 is n an eligible bus9ess4 7ii7 ,special rule = facilities n plac$ 9 s]vice )9 #e ye>s ,9 ! case ( a facility ) respect to :i* a cr$it is all[$ "u ?is section :i* is n plac$ 9 s]vice be=e ! close ( ! #e? taxable ye> beg9n+ aft] ! fir/ taxable ye> = :i* ! cr$it 0 s all[$1 a recapture ev5t %all be treat$ z hav+ occurr$ ) respect to su* facility 9 ye> #a4 7#b7 ,cr$it may be assign$ ,! am\nt ( qualifi$ facility con/ruction exp5ditures ) respect to a facility :i* w\ld 7b = ?is p>agraph7 be tak5 into acc\nt "u subsection 7a7 = any taxable ye> by any p]son 7h]eaft] 9 ?is p>agraph ref]r$ to z ! initial taxpay]7-- 7,a7 may be tak5 into acc\nt by any o!r p]son to :om su* exp5ditures are assign$ by ! initial taxpay]1 & 7,b7 %all n be tak5 into acc\nt by initial taxpay]4 ,any p]son to :om su* exp5ditures are assign$ "u subp>agraph 7,a7 %all be treat$ = purposes ( ?is title z ! taxpay] ) respect to su* exp5ditures4 7#c7 ,controll$ gr\p ,all memb]s ( ! same controll$ gr\p ( corporations 7)9 ! mean+ ( section #eb7;a77 & all p]sons "u common control 7)9 ! mean+ ( section #eb7;b77 %all be treat$ z #a p]son = purposes ( ?is section4 7#d7 ,pr$ecessor ,any ref]5ce 9 ?is section to a corporation or p>tn]%ip %all include a ref]5ce to any pr$ecessor ( su* corporation or p>tn]%ip4 7#e7 ,d5ial ( d\ble b5efit ,= purposes ( ?is subtitle1 if a cr$it is all[$ "u ?is section 9 connection ) any exp5diture = any prop]ty1 ! basis ( su* prop]ty %all be r$uc$ by ! am\nt ( ! cr$it s all[$4 4 7b7 ,d5ial ( d\ble b5efit ,section #bhj;,c ( su* ,code is am5d$ by ins]t+ aft] subsection 7h7 ! foll[+ new subsection3 7i7 ,manufactur+ facility exp5ditures ,no d$uction %all be all[$ = t portion ( ! exp5ses o!rwise all[able z a d$uction tak5 into acc\nt 9 det]m9+ ! cr$it "u section #de,s = ! taxable ye> :i* is equal to ! am\nt ( ! cr$it det]m9$ = su* taxable ye> "u section #de,s7a74 4 7c7 ,cr$it ,to be "p ( g5]al bus9ess cr$it ,subsection 7b7 ( section #ch ( su* ,code is am5d$ by /rik+ plus at ! end ( p>agraph 7#ce71 by /rik+ ! p]iod at ! end ( p>agraph 7#cf7 & ins]t+ 1 plus1 & by ins]t+ aft] p>agraph 7#cf7 ! foll[+3 7#cg7 manufactur+ facility exp5diture cr$it det]m9$ "u section #de,s7a74 4 7d7 ,con=m+ am5dm5t ,subsection 7a7 ( section #ajaf ( su* ,code is am5d$ by /rik+ & at ! end ( p>agraph 7#cf71 by /rik+ ! p]iod at ! end ( p>agraph 7#cg7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new p>agraph3 7#ch7 to ! ext5t provid$ 9 section #de,s7d77#b74 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to am\nts paid or incurr$ aft] ! date ( ! enactm5t ( ?is ,act4