,,ii  #aae? ,,congress  #a/ ,session    
,s4 #adjg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #bb1 #bjag ,mr4  
,coons 7= himself & ,mrs4 ,capito7      
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to enhance tax    
inc5tives = manufactur+ 9 ! ,unit$      
,/ates4  #a4 ,%ort title ,?is ,act may  
be cit$ z ! ,made 9 ,am]ica ,d$uction   
,enhancem5t 7,,made7 ,act4  #b4 ,enhanc$
 d$uction = c]ta9 dome/ic production    
7a7 ,9 g5]al ,section #aii ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7e7  
,enhanc$ manufactur+ d$uction  7#a7 ,9  
g5]al ,if an eligible taxpay] has       
qualifi$ core manufactur+ income = any  
taxable ye>1 ! am\nt o!rwise all[able z 
a d$uction "u subsection 7a7 %all be    
increas$ by ! applicable p]c5tage ( !   
lea/ (--  7,a7 ! qualifi$ core          
manufactur+ income ( ! taxpay] = !      
taxable ye>1  7,b7 ! qualifi$ production

 activities income ( ! taxpay] = !      
taxable ye>1 or  7,c7 taxable income    
7det]m9$ )\t reg>d to ?is section74     
7#b7 ,eligible taxpay] ,= purposes ( ?is
 subsection1 ! t]m eligible taxpay]     
means1 ) respect to any taxable ye>1 any
 taxpay] if ! dome/ic input p]c5tage =  
su* taxable ye> is m ?an #ge p]c5t4     
7#c7 ,dome/ic input p]c5tage ,= purposes
 ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m
 dome/ic input p]c5tage means ! ratio   
7express$ z a p]c5tage7 (--  7i7        
dome/ically produc$ input co/s1 to  7ii7
 ! total co/s ( direct mat]ial inputs   
includ$ 9 ! co/ ( goods sold :i* are    
allocable to gross receipts d]iv$ f     
qualifi$ prop]ty4  7,b7 ,dome/ically    
produc$ input co/s ,= purposes (        
subp>agraph 7,a7-- 7i7 ,9 g5]al ,! t]m  
dome/ically produc$ input co/s means !  
co/s describ$ 9 subp>agraph 7,a77ii7 =  
mat]ials--  7,i7 :i* become an integral 
"p ( prop]ty produc$ by ! eligible      
taxpay]1 or  7,,ii7 :i* c be id5tifi$ or
 associat$ ) p>ticul> units or gr\ps (  

units ( prop]ty produc$ by ! eligible   
taxpay]1  if all or virtually all ( su* 
mat]ial is produc$ 9 ! ,unit$ ,/ates4   
7ii7 ,det]m9ation ,= purposes ( ?is     
subp>agraph-- 7,i7 ! det]m9ation ( :e!r 
all or virtually all ( a mat]ial is     
produc$ 9 ! ,unit$ ,/ates %all be made  
bas$ on rules simil> to ! guidel9es ( ! 
,f$]al ,trade ,commission ) respect to  
goods adv]tis$ z ,made 9 ,,usa1 &       
7,,ii7 all or virtually all ( a mat]ial 
%all n be treat$ z produc$ 9 ! ,unit$   
,/ates unless ! taxpay] has a reasonable
 basis to support su* claim4  7iii7     
,unit$ ,/ates ,= purposes ( ?is         
subp>agraph1 ! ,unit$ ,/ates includes   
any possession ( ! ,unit$ ,/ates4  7#d7 
,qualifi$ core manufactur+ income2      
qualifi$ prop]ty ,= purposes ( ?is      
subsection--  7,a7 ,9 g5]al ,! t]m      
qualifi$ core manufactur+ income means =
 any taxable ye> ! qualifi$ production  
activities income :i* is attributable to
 ! manufacture ( qualifi$ prop]ty dur+  
su* taxable ye>4  7,b7 ,qualifi$ prop]ty

 ,! t]m qualifi$ prop]ty means tangible 
p]sonal prop]ty o!r ?an-- 7i7 a film1   
7ii7 comput] s(tw>e1  7iii7 prop]ty     
describ$ 9 section #afh7;f77#d71  7iv7 a
 natural res\rce extract$ by ! taxpay]1 
or  7v7 prop]ty produc$ 9 a f>m+ bus9ess
 7)9 ! mean+ ( section #bfc;,a7e77#d774 
7#e7 ,applicable p]c5tage ,= purposes ( 
p>agraph 7#a71 ! applicable p]c5tage is 
! p]c5tage :i* be>s ! same ratio to #i  
p]c5t z--  7,a7 s mu* ! dome/ic input   
p]c5tage z exce$s #ge p]c5t1 be>s to    
7,b7 #be p]c5t4  4  7b7 ,effective date 
,! am5dm5t made by ?is section %all     
apply to taxable ye>s beg9n+ aft] ! date
 ( ! enactm5t ( ?is ,act4