,,ii  #aae? ,,congress  #a/ ,session    
,s4 #aedj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ab1 #bjag ,ms4  
,/ab5[ 7= h]self1 ,mr4 ,br[n1 & ,mr4    
,pet]s7 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to all[ a cr$it   
aga9/ tax = inve/m5ts 9 qualifi$        
production facilities4  #a4 ,%ort title 
,?is ,act may be cit$ z ! ,gr[+ ,small  
,bus9esses ,act4  #b4 ,cr$it = qualify+ 
production facilities  7a7 ,income tax  
cr$it  7#a7 ,9 g5]al ,section #df ( !   
,int]nal ,rev5ue ,code ( #aihf is       
am5d$--  7,a7 by /rik+ & at ! end (     
p>agraph 7#e72  7,b7 by /rik+ ! p]iod at
 ! end ( p>agraph 7#f7 & ins]t+ 1 &2 &  
7,c7 by add+ at ! end ! foll[+ new      
p>agraph3  7#g7 ! qualify+ production   
facility cr$it4  4  7#b7 ,am\nt ( cr$it 
,subp>t ,e ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] section   
#dh;,d ! foll[+ new section3  #dh;,e4   

,cr$it = qualify+ production facilities 
7a7 ,9 g5]al ,= purposes ( section #df1 
9 ! case ( an eligible employ]1 !       
qualify+ production facility cr$it = any
 taxable ye> is an am\nt equal to #be   
p]c5t ( ! basis ( eligible prop]ty plac$
 9 s]vice dur+ ! taxable ye>4  7b7      
,eligible employ] ,= purposes ( ?is     
section-- 7#a7 ,9 g5]al ,! t]m eligible 
employ] means any employ]--  7,a7 :i*   
has no m ?an #ej full-"t equival5t      
employees 7)9 ! mean+ ( section         
#de,r7d77#b77 = ! taxable ye>1 &  7,b7  
:i* has n 7prior to plac+ 9 s]vice !    
production facility designat$ = purposes
 ( ?is section7 plac$ 9 s]vice a d$icat$
 facility = ! production ( goods = sale4
  7#b7 ,safe h>bor  7,a7 ,9 g5]al ,an   
employ] %all n be treat$ z hav+         
previ\sly plac$ 9 s]vice a facility     
describ$ 9 p>agraph 7#a77;,b7 if--  7i7 
a cr$it "u ?is section has n previ\sly  
be5 all[$ to ! employ]1 &  7ii7 ! co/ ( 
applicable prop]ty plac$ into s]vice by 
! employ] = ea* taxable ye> dur+ !      

#e-taxable-ye> p]iod end+ imm$iately    
be=e ! taxable ye> did n exce$ #g1ejj4  
7,b7 ,applicable prop]ty ,= purposes (  
subp>agraph 7,a71 ! t]m applicable      
prop]ty means p]sonal prop]ty :i* w\ld h
 qualifi$ z eligible prop]ty "u         
subsection 7c77#a77;,b7 if su* prop]ty 7
 plac$ 9 s]vice by an eligible employ]  
at a qualifi$ production facility aft]  
enactm5t ( ?is ,act = ! production ( a  
qualify+ product4  7#c7 ,self-employ$   
individual treat$ z employee ,= purposes
 ( p>agraph 7#a77;,a71 ! t]m employee   
includes an individual describ$ 9       
section #dja7;c77#a74  7c7 ,eligible    
prop]ty ,= purposes ( ?is section-- 7#a7
 ,9 g5]al ,! t]m eligible prop]ty       
means--  7,a7 any qualify+ production   
facility-- 7i7 7,i7 ! con/ruction1      
recon/ruction1 or erection ( :i* is     
complet$ by ! taxpay]1 or  7,,ii7 :i* is
 acquir$ by ! taxpay] by pur*ase 7z     
def9$ 9 section #agi7;d77#b771 &  7ii7 =
 :i* a d$uction is all[able "u section  
#afg1 &  7,b7 any p]sonal prop]ty-- 7i7 

:i* is plac$ 9 s]vice )9 #ab mon?s ( !  
date on :i* a qualify+ production       
facility = :i* a cr$it is all[$ "u      
subsection 7a7 is plac$ 9 s]vice1  7ii7 
:i* is us$ exclusively at su* qualify+  
production facility prim>ily = !        
production ( a qualify+ product1 &      
7iii7 = :i* a d$uction is all[able "u   
section #afg4  7#b7 ,special rule =     
leas$ facilities ,9 ! case ( any ( a    
qualify+ production facility :i* is     
leas$ by ! taxpay]1 p>agraph 7#a77;,b7  
%all be appli$ by sub/itut+ ! date on   
:i* ! qualify+ production facility 0    
fir/ leas$ by ! taxpay] = ! date on :i* 
a qualify+ production facility = :i* a  
cr$it is all[$ "u subsection 7a7 is     
plac$ 9 s]vice 9 clause 7i74  7d7 ,o!r  
def9itions ,= purposes ( ?is section--  
7#a7 ,qualify+ production facility ,!   
t]m qualify+ production facility means  
any facility :i*--  7,a7 is us$ to      
produce qualify+ products1 &  7,b7 is   
designat$ by ! taxpay] z a qualify+     
production facility = purposes ( ?is    

section at su* "t & 9 su* mann] z !     
,secret>y %all prescribe4  7#b7         
,qualify+ product ,! t]m qualify+       
product means any ( ! foll[+3 7,a7      
,tangible p]sonal prop]ty4  7,b7        
,comput] s(tw>e 7z def9$ 9 section      
#afg7;f77#a77;,b774  7,c7 ,prop]ty      
describ$ 9 section #afh7;f77#c74  7,d7  
,prop]ty describ$ 9 section             
#afh7;f77#d74  7,e7 ,food & bev]ages :i*
 are prep>$ by ! taxpay] b n prim>ily = 
consumption at prop]ty own$ by !        
taxpay]4  7e7 ,special rules ,= purposes
 ( ?is section-- 7#a7 ,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#b7 ,pr$ecessor ,any ref]5ce 
9 ?is section to an employ] %all include
 a ref]5ce to any pr$ecessor ( su*      
employ]4  7#c7 ,c]ta9 qualifi$ progress 
exp5ditures rules made applicable ,rules
 simil> to ! rules ( subsections 7c77#d7

 & 7d7 ( section #df 7z 9 effect on !   
day be=e ! enactm5t ( ! ,rev5ue         
,reconciliation ,act ( #aiij7 %all apply
 = purposes ( ?is section4  7f7         
,election ,to apply cr$it aga9/ payroll 
taxes  7#a7 ,9 g5]al ,at ! election ( ! 
eligible employ]1 section #caaa7;f7 %all
 apply to ! payroll tax cr$it portion ( 
! cr$it o!rwise det]m9$ "u subsection   
7a7 = ! taxable ye> & su* portion %all n
 be treat$ 7o!r ?an = purposes ( section
 #ej7;c77 z a cr$it det]m9$ "u          
subsection 7a74  7#b7 ,payroll tax cr$it
 portion ,= purposes ( ?is subsection1 !
 payroll tax cr$it portion ( ! cr$it    
det]m9$ "u subsection 7a7 ) respect to  
any qualifi$ small bus9ess = any taxable
 ye> is ! lea/ (--  7,a7 ! am\nt        
specifi$ 9 ! election made "u ?is       
subsection1  7,b7 ! cr$it det]m9$ "u    
subsection 7a7 = ! taxable ye> 7det]m9$ 
be=e ! application ( ?is subsection71 or
  7,c7 9 ! case ( an eligible employ]   
o!r ?an a p>tn]%ip or ,s corporation1 ! 
am\nt ( ! bus9ess cr$it c>ry=w>d "u     

section #ci c>ri$ f ! taxable ye>       
7det]m9$ be=e ! application ( ?is       
subsection to ! taxable ye>74  7#c7     
,election  7,a7 ,9 g5]al ,any election  
"u ?is subsection = any taxable ye>--   
7i7 %all specify ! am\nt ( ! cr$it to   
:i* su* election applies1  7ii7 %all be 
made on or be=e ! due date 7includ+     
ext5sions7 (-- 7,i7 9 ! case ( an       
eligible employ] :i* is a p>tn]%ip1 !   
return requir$ to be fil$ "u section    
#fjca1  7,,ii7 9 ! case ( an eligible   
employ] :i* is an ,s corporation1 !     
return requir$ to be fil$ "u section    
#fjcg1 &  7,,iii7 9 ! case ( any o!r    
eligible employ]1 ! return ( tax = !    
taxable ye>1 &  7iii7 may be revok$ only
 ) ! cons5t ( ! ,secret>y4  7,b7        
,limitations ,! am\nt specifi$ 9 any    
election made "u ?is subsection %all n  
exce$ #bej1jjj4  7,c7 ,special rule =   
p>tn]%ips & s corporations ,9 ! case (  
an eligible employ] :i* is a p>tn]%ip or
 ,s corporation1 ! election made "u ?is 
subsection %all be made at ! entity     

level4  7#d7 ,aggregation rules  7,a7 ,9
 g5]al ,except z provid$ 9 subp>agraph  
7,b71 all p]sons or entities treat$ z a 
s+le taxpay] "u subsection 7e77#a7 %all 
be treat$ z a s+le taxpay] = purposes ( 
?is subsection4  7,b7 ,special rules ,= 
purposes ( ?is subsection & section     
#caaa7;g7-- 7i7 ea* ( ! p]sons treat$ z 
a s+le taxpay] "u subp>agraph 7,a7 may  
sep>ately make ! election "u p>agraph   
7#a7 = any taxable ye>1 &  7ii7 !       
#bej1jjj am\nt "u p>agraph 7#c77;,b77i7 
%all be allocat$ among all p]sons treat$
 z a s+le taxpay] "u subp>agraph 7,a7 9 
! mann] provid$ by ! ,secret>y :i* is   
simil> to ! mann] provid$ "u section    
#da7;f77#a74  7#e7 ,regulations ,!      
,secret>y %all prescribe su* regulations
 z may be necess>y to c>ry out !        
purposes ( ?is subsection1 includ+--    
7,a7 regulations to prev5t ! avoidance (
 ! purposes ( ! limitations &           
aggregation rules "u ?is subsection1    
7,b7 regulations to m9imize compliance &
 recordkeep+ burd5s "u ?is subsection1 &

  7,c7 regulations = recaptur+ ! b5efit 
( cr$its det]m9$ "u section #caaa7;g7 9 
cases :]e !re is a recapture or a       
subsequ5t adju/m5t to ! payroll tax     
cr$it portion ( ! cr$it det]m9$ "u      
subsection 7a71 includ+ requir+ am5d$   
income tax returns 9 ! cases :]e !re is 
su* an adju/m5t4  4  7#c7 ,special rules
 relat+ to recapture  7,a7 ,c]ta9 relat$
 p>ty transaction ,p>agraph 7#d7 (      
section #ej7;a7 ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new s5t5ce3 ,subp>agraph 7,b7  
%all n apply to inve/m5t cr$it prop]ty  
describ$ 9 section #dh;,e 9 any case 9  
:i* ! transaction is a transaction      
betwe5 relat$ p]sons44  7,b7 ,loss (    
eligible employ] /atus ,p>agraph 7#e7 ( 
section #ej7;a7 ( su* ,code is am5d$ by 
add+ at ! end ! foll[+ new p>agraph3    
7,d7 ,treatm5t ( eligible employ] /atus 
= qualify+ production facility cr$it    
,p>agraphs 7#a7 & 7#b7 %all n apply )   
respect to any cr$it all[$ "u section   
#dh;,e solely because ! taxpay] has     

ceas$ to be an eligible employ] 7z def9$
 9 section #dh;,e7b77 9 any taxable ye> 
aft] ! ye> 9 :i* ! cr$it is all[$4  4   
7#d7 ,con=m+ am5dm5ts  7,a7 ,section    
#di7;a77#a77;,c7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$--  7i7 by /rik+ &
 at ! end ( clause 7v72  7ii7 by /rik+ !
 p]iod at ! end ( clause 7vi7 & ins]t+ 1
 &2 &  7iii7 by add+ aft] clause 7vi7 ! 
foll[+ new clause3  7vii7 ! basis ( any 
eligible prop]ty "u section #dh;,e4  4  
7,b7 ,! table ( sections = subp>t ,e (  
"p ,,iv ( sub*apt] ,a ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#dh;,d ! foll[+ new item3  ,sec4 #dh;,e4
 ,cr$it = qualify+ production           
facilities4  4  7b7 ,payroll tax cr$it  
,section #caaa ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subsection3  7g7 ,cr$it =  
qualify+ production facilities  7#a7 ,9 
g5]al ,9 ! case ( a taxpay] :o has made 
an election "u section #dh;,e7f7 = a    
taxable ye>1 !re %all be all[$ z a cr$it

 aga9/ ! tax impos$ by subsection 7a7 = 
! fir/ cal5d> qu>t] :i* beg9s aft] !    
date on :i* ! taxpay] files ! return    
specifi$ 9 section                      
#dh;,e7f77#c77;,a77ii7 an am\nt equal to
 ! payroll tax cr$it portion det]m9$ "u 
section #dh;,e7f77#b74  7#b7 ,limitation
 ,! cr$it all[$ by p>agraph 7#a7 %all n 
exce$ ! tax impos$ by subsection 7a7 =  
any cal5d> qu>t] on ! wages paid )      
respect to ! employm5t ( all individuals
 9 ! employ ( ! employ]4  7#c7 ,c>ryov] 
( unus$ cr$it ,if ! am\nt ( ! cr$it "u  
p>agraph 7#a7 exce$s ! limitation (     
p>agraph 7#b7 = any cal5d> qu>t]1 su*   
excess %all be c>ri$ to ! succe$+ cal5d>
 qu>t] & all[$ z a cr$it "u p>agraph    
7#a7 = su* qu>t]4  7#d7 ,d$uction all[$ 
= cr$it$ am\nts ,! cr$it all[$ "u       
p>agraph 7#a7 %all n be tak5 into acc\nt
 = purposes ( det]m9+ ! am\nt ( any     
d$uction all[$ "u *apt] #a = taxes      
impos$ "u subsection 7a74  4  7c7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to p]iods aft] ! date

 ( ! enactm5t ( ?is ,act1 "u rules      
simil> to ! rules ( section #dh7m7 ( !  
,int]nal ,rev5ue ,code ( #aihf 7z 9     
effect on ! day be=e ! date ( ! enactm5t
 ( ! ,rev5ue ,reconciliation ,act (     
#aiij74