,i #aaeth ,,congress #ast ,session ,h4 ,r4 #cdj ,,in ,,the ,,house ,,of ,,representatives ,january #e1 #bjag,mr4 ,serrano 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 costs and to allow a credit against tax for qualified manufacturing facility construction costs4 #a4 ,short title ,this ,act may be cited as the ,next ,generation ,american ,manufacturing ,act of #bjag4 ,i ,consumer ,credit #aja4 ,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 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 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 an advancement in science1 technology1 engineering1 or math1 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 #ajb of the ,next ,generation ,american ,manufacturing ,act of #bjag4 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 #ajb7;b7 of this ,act4 #ajb4 ,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 the ,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 #aja7;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 at the ,secretary may request but not later than #a year after making such recommendations4 ,,ii ,manufacturer ,credit #bja4 ,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 section-- 7#a7 ,in general ,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 manufacturing facility1 7,e7 which is a start-up company1 and 7,f7 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 7#b7 ,start-up company ,the term start-up company means any corporation or partnership-- 7,a7 which first has both gross receipts and qualified research expenses 7as defined in section #da7;b77 in a taxable year beginning after ,december #ca1 #bjaf1 or 7,b7 which both gross receipts and qualified research expenses 7as so defined7 in fewer than #c taxable years beginning after ,december #ca1 #bjaf1 and before ,january #a1 #bjbb4 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 to 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 adding at the end 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 ,section #ch7;b7 of the such ,code1 as amended by this ,act1 is amended by striking plus at the end of paragraph 7#cf71 by striking the period at the end of paragraph 7#cg7 and inserting 1 plus1 and by inserting after paragraph 7#cg7 the following3 7#ch7 manufacturing facility expenditure credit determined under section #de,s7a74 4 7d7 ,conforming amendment ,section #ajaf7;a7 of such ,code1 as amended by this ,act1 is amended by striking and at the end of paragraph 7#cg71 by striking the period at the end of paragraph 7#ch7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#ci7 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