,i #aaeth ,,congress #ast ,session ,h4 ,r4 #cgjb ,,in ,,the ,,house ,,of ,,representatives ,september #g1 #bjag,mr4 ,mc,kinley 7for himself and ,mr4 ,rush7 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 incentives for the expansion of manufacturing in the ,united ,states4 #a4 ,short title ,this ,act may be cited as the ,manufacturing ,economic ,recovery ,act of #bjag4 #b4 ,credit for acquisition of manufacturing property 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to rules for computing credit for investment in certain depreciable property7 is amended by inserting after section #dh;,d the following new section3 #dh;,e4 ,acquisition of manufacturing property 7a7 ,in general ,for purposes of section #df1 the manufacturing recovery credit for any taxable year is an amount equal to-- 7#a7 the applicable percentage of the taxpayer's basis in manufacturing real property placed in service by the taxpayer during the taxable year1 and 7#b7 the applicable percentage of the taxpayer's basis in manufacturing tangible personal property placed in service by the taxpayer during the taxable year4 7b7 ,applicable percentages ,for purposes of this section-- 7#a7 ,real property ,in the case of manufacturing real property1 the applicable percentage is-- 7,a7 #aj percent in the case of property located on existing manufacturing property1 7,b7 #ae percent in the case property of located on former manufacturing property1 and 7,c7 #bj percent in the case of property located on future manufacturing property4 7#b7 ,tangible personal property ,in the case of manufacturing tangible personal property1 the applicable percentage shall be determined in accordance with the following table3 ,if the aggregate manufacturing tangible personal property placed in service during the taxable year is3,to the extent located on existing manufacturing property1 the applicable percentage is3,to the extent located on former manufacturing property1 the applicable percentage is3,to the extent located on future manufacturing property1 the applicable percentage is3 ,not over #bej1jjje percent#aj percent#ae percent ,over #bej1jjj but not over #a1jjj1jjjg4e percent#ab4e percent#ag4e percent ,over #a1jjj1jjjaj percent#ae percent#bj percent4 7#c7 ,increased credit for property located in economically disadvantaged areas 7,a7 ,in general ,if the manufacturing property is located in an economically disadvantaged area1 each of the percentages under paragraphs 7#a7 and 7#b7 shall be increased by #e percentage points4 7,b7 ,extremely economically disadvantaged areas ,if the manufacturing property is located in an extremely economically disadvantaged area1 each of the percentages under paragraphs 7#a7 and 7#b7 shall1 in lieu of an increase under subparagraph 7,a71 be increased by #aj percentage points4 7,c7 ,economically disadvantaged areas ,for purposes of this paragraph-- 7i7 ,in general ,the term economically disadvantaged area means any area-- 7,i7 for which there is a single #e-;digit postal zip code1 and 7,,ii7 which includes any portion of a census tract in which the median annual household income is less than #dj1jjj per year4 7ii7 ,extremely economically disadvantaged areas ,the term extremely economically disadvantaged area means any area which would be described in clause 7i7 if #cb1jjj were substituted for #dj1jjj in subclause 7,,ii7 thereof4 7iii7 ,household income ,median annual household income shall be determined using the #bjaj census1 as updated by the ,american ,community ,survey of the ,bureau of the ,census4 7iv7 ,areas not within census tracts ,in the case of an area which is not tracted for population census tracts1 the equivalent county divisions 7as defined by the ,bureau of the ,census for purposes of defining poverty areas7 shall be used for purposes of determining median annual household income4 7c7 ,manufacturing property ,for purposes of this section-- 7#a7 ,manufacturing property 7,a7 ,in general ,the term manufacturing property means tangible property used in the ,united ,states in the trade or business of manufacturing tangible personal property4 7,b7 ,manufacturing of residential real property not included ,such term does not include property used to manufacture residential real property1 including such property used on a transient basis4 7#b7 ,existing manufacturing property ,the term existing manufacturing property means any property which was a manufacturing facility1 or a part of a manufacturing facility1 at any time during the period beginning #e years before the date of the enactment of this section and ending on the day before its purchase by the taxpayer4 7#c7 ,former manufacturing property ,the term former manufacturing property means any property 7other than an existing manufacturing property7 which was a manufacturing facility1 or a part of a manufacturing facility1 at any time before the period described in paragraph 7#b74 7#d7 ,future manufacturing property ,the term future manufacturing property means any existing or former manufacturing property on which there are no permanent vertical structures4 7#e7 ,manufacturing real property ,the term manufacturing real property means manufacturing property which is land or section #abej property 7as defined in section #abej7;c774 7#f7 ,manufacturing tangible personal property ,the term manufacturing tangible personal property means manufacturing property which is tangible property other than manufacturing real property4 7d7 ,credit not allowable for certain relocations of manufacturing facilities ,this section shall not apply to property acquired as part of a relocation of a manufacturing facility unless the new location-- 7#a7 is in a different ,state than the prior location1 or 7#b7 is more than #ajj miles from the prior location4 7e7 ,special rules 7#a7 ,credit not allowable if remediation deduction claimed ,this section shall not apply to any property located on a site with respect to which the taxpayer 7or a related party7 is allowed a deduction under section #aih 7relating to expensing of environmental remediation costs74 7#b7 ,basis adjustment ,for purposes of this subtitle1 if a credit is allowed under this section for an expenditure related to property1 the basis of such property shall be reduced by the amount of such credit4 7#c7 ,controlled groups ,for purposes of this section1 all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb or subsection 7m7 or 7o7 of section #dad shall be treated as a single taxpayer4 4 7b7 ,inclusion as part of investment credit ,section #df of such ,code is amended by striking and at the end of paragraph 7#e71 by striking the period at the end of paragraph 7#f7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#g7 the manufacturing recovery credit4 4 7c7 ,conforming amendments 7#a7 ,section #di7;a77#a77;,c7 of such ,code is amended-- 7,a7 by striking #8#8and'' at the end of clause 7v71 7,b7 by striking the period at the end of clause 7vi7 and inserting #8#81 and''1 and 7,c7 by adding at the end the following new clause3 7vii7 the basis of any property which is manufacturing property under section #dh;,e4 4 7#b7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item relating to section #dh;,d the following new item3 ,sec4 #dh;,e4 ,acquisition of manufacturing property44 7d7 ,effective date ,the amendments made by this section shall apply to property placed in service after the date of the enactment of this ,act in taxable years ending after such date4 #c4 ,incentives for hiring manufacturing recovery employees 7a7 ,in general ,paragraph 7#a7 of section #ea7;d7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subparagraph 7,i71 by striking the period at the end of subparagraph 7,j7 and inserting 1 or1 and by adding at the end the following new subparagraph3 7,k7 a manufacturing recovery employee4 4 7b7 ,manufacturing recovery employee ,subsection 7d7 of section #ea of such ,code is amended by adding at the end the following new paragraph3 7#af7 ,manufacturing recovery employee 7,a7 ,in general ,the term manufacturing recovery employee means any individual who is certified by the designated local agency as having a hiring date which is after the date of the enactment of the ,manufacturing ,economic ,recovery ,act of #bjag and before the close of the #c-year period beginning on the date that the employer first operated the manufacturing facility at which the individual is employed4 7,b7 ,increased credit for hiring unemployed ,in the case of a manufacturing recovery employee who is certified by the designated local agency as having received unemployment compensation under ,state or ,federal law for not less than #d weeks during the #c-year period ending on the hiring date1 subsection 7a7 shall be applied by substituting #ej percent for #dj percent4 7,c7 ,no credit for less than full-time employment ,an individual shall not be treated as a manufacturing recovery employee for any week during which-- 7i7 the individual is employed by the employer for less than #ce hours at a manufacturing facility of the employer1 or 7ii7 the individual performs less than #ij percent of individual's services for the employer at the manufacturing facility4 7,d7 ,manufacturing facility must be in united states ,no credit shall be allowable by reason of this paragraph unless the manufacturing facility is located in the ,united ,states4 4 7c7 ,permanent credit for manufacturing recovery employees ,paragraph 7#d7 of section #ea7;c7 of such ,code 7relating to termination7 is amended by adding at the end the following3 ,the preceding sentence shall not apply to any manufacturing recovery employee4 4 7d7 ,effective date ,the amendments made by this section shall apply to individuals who first begin work for the employer after the date of the enactment of this ,act4