,,ii #aag? ,,congress #a/ ,session ,s4 #bajg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,june #ag1 #bjba,mr4 ,wyd5 7= himself1 ,mr4 ,crapo1 ,mr4 ,w>n]1 ,mr4 ,cornyn1 ,ms4 ,/ab5[1 & ,mr4 ,da9es7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to e/abli% ! semiconductor manufactur+ inve/m5t cr$it4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,facilitat+ ,am]ican-,built ,semiconductors ,act or ! ,,fabs ,act4 #b4 ,semiconductor ,manufactur+ ,inve/m5t ,cr$it 7a7 ,9 g5]al ,subp>t ,e ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #dh;,c ! foll[+ new section3 #dh;,d4 ,semiconductor manufactur+ inve/m5t cr$it 7a7 ,9 g5]al ,= purposes ( section #df1 ! semiconductor manufactur+ inve/m5t cr$it = any taxable ye> is an am\nt equal to ! sum (-- 7#a7 #be p]c5t ( ! qualifi$ inve/m5t = su* taxable ye> ) respect to any semiconductor manufactur+ facility1 & 7#b7 #be p]c5t ( ! qualifi$ inve/m5t = su* taxable ye> ) respect to any semiconductor manufactur+ prop]ty4 7b7 ,qualifi$ inve/m5t ) respect to semiconductor manufactur+ facilities 7#a7 ,9 g5]al ,= purposes ( subsection 7a77#a71 ! qualifi$ inve/m5t ) respect to any semiconductor manufactur+ facility = any taxable ye> is ! basis ( any qualifi$ prop]ty plac$ 9 s]vice by ! taxpay] dur+ su* taxable ye> :i* is "p ( a semiconductor manufactur+ facility4 7#b7 ,qualifi$ prop]ty ,= purposes ( ?is subsection1 ! t]m qualifi$ prop]ty means prop]ty-- 7,a7 :i* is tangible prop]ty 7includ+ a build+ or its /ructural compon5ts7 :i* is an integral "p ( a semiconductor manufactur+ facility1 7,b7 ) respect to :i* depreciation 7or amortization 9 lieu ( depreciation7 is all[able1 7,c7 :i* is-- 7i7 con/ruct$1 recon/ruct$1 or erect$ by ! taxpay]1 or 7ii7 acquir$ by ! taxpay] if ! orig9al use ( su* prop]ty comm5ces ) ! taxpay]1 & 7,d7 :i* is necess>y = ! manufactur+ or process+ (1 or p]=m+ rese>* ) respect to1 semiconductors or semiconductor tool+ equipm5t4 7#c7 ,semiconductor manufactur+ facility ,= purposes ( ?is subp>t1 ! t]m semiconductor manufactur+ facility means a facility = :i* ! prim>y purpose is ! manufactur+ or process+ (1 or p]=m+ rese>* ) respect to1 semiconductors or semiconductor tool+ equipm5t4 7#d7 ,coord9ation ) rehabilitation cr$it & semiconductor manufactur+ prop]ty ,! qualifi$ inve/m5t ) respect to any semiconductor manufactur+ facility = any taxable ye> %all n include t portion ( ! basis ( any prop]ty :i* is-- 7,a7 attributable to qualifi$ rehabilitation exp5ditures 7z def9$ 9 section #dg7;c77#b771 or 7,b7 semiconductor manufactur+ prop]ty 7z def9$ 9 subsection 7c77#b774 7c7 ,qualifi$ inve/m5t ) respect to semiconductor manufactur+ prop]ty 7#a7 ,9 g5]al ,= purposes ( subsection 7a77#b71 ! qualifi$ inve/m5t ) respect to semiconductor manufactur+ prop]ty = any taxable ye> is ! basis ( any semiconductor manufactur+ prop]ty plac$ 9 s]vice by ! taxpay] dur+ su* taxable ye>4 7#b7 ,semiconductor manufactur+ prop]ty ,= purposes ( ?is subp>t1 ! t]m semiconductor manufactur+ prop]ty means tangible prop]ty-- 7,a7 = :i* ! prim>y purpose is to manufacture or process1 or p]=m rese>* ) respect to1 semiconductors or semiconductor tool+ equipm5t1 7,b7 ) respect to :i* depreciation 7or amortization 9 lieu ( depreciation7 is all[able1 & 7,c7 :i* is-- 7i7 con/ruct$1 recon/ruct$1 or erect$ by ! taxpay]1 or 7ii7 acquir$ by ! taxpay] if ! orig9al use ( su* prop]ty comm5ces ) ! taxpay]4 7d7 ,c]ta9 progress exp5diture rules made applicable ,rules simil> to ! rules ( subsections 7c77#d7 & 7d7 ( section #df 7z 9 effect on ! day be=e ! date ( ! enactm5t ( ! ,rev5ue ,reconciliation ,act ( #aiij7 %all apply = purposes ( subsection 7a74 7e7 ,regulations & guidance ,! ,secret>y %all prescribe su* regulations or o!r guidance z may be necess>y or appropriate to c>ry out ! purposes ( ?is section1 includ+ regulations or o!r guidance ) respect to-- 7#a7 det]m9+ ! basis ( qualifi$ prop]ty & semiconductor manufactur+ prop]ty1 7#b7 any su* measures z are deem$ appropriate to avoid abuse or fraud ) respect to ! cr$it all[$ "u ?is section1 & 7#c7 ensur+ t su* cr$it is n all[$ to multiple taxpay]s4 4 7b7 ,election = direct paym5t ,section #dh;,d ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by subsection 7a71 is am5d$ by add+ at ! end ! foll[+3 7f7 ,election = direct paym5t 7#a7 ,9 g5]al ,9 ! case ( any qualifi$ prop]ty or semiconductor manufactur+ prop]ty plac$ 9 s]vice dur+ any taxable ye> 7) ! exception ( any su* prop]ty to :i* subsection 7d7 appli$771 ! am\nt ( any cr$it det]m9$ "u subsection 7a7 ) respect to su* prop]ty = su* taxable ye> %all1 at ! election ( ! taxpay]1 be treat$ z a paym5t equal to su* am\nt :i* is made by ! taxpay] aga9/ ! tax impos$ by *apt] #a = su* taxable ye> 7reg>dless ( :e!r su* tax w\ld h be5 on su* taxpay]74 7#b7 ,=m & effect ( election ,an election "u p>agraph 7#a7 %all be made prior to ! date on :i* ! qualifi$ prop]ty or semiconductor manufactur+ prop]ty is plac$ 9 s]vice & 9 su* mann] z ! ,secret>y may prescribe4 ,su* election1 once made1 %all-- 7,a7 be irrevocable ) respect to ! qualifi$ prop]ty or semiconductor manufactur+ prop]ty to :i* su* election applies1 & 7,b7 r$uce ! am\nt ( ! cr$it :i* w\ld 7b = ?is subsection7 be all[able "u ?is section ) respect to su* prop]ty = ! taxable ye> 9 :i* su* prop]ty is plac$ 9 s]vice to z]o4 7#c7 ,application to p>tn]%ips & ,s corporations ,9 ! case ( a p>tn]%ip or ,s corporation :i* makes an election "u p>agraph 7#a7-- 7,a7 su* p>agraph %all apply ) respect to su* p>tn]%ip or corporation )\t reg>d to ! fact t no tax is impos$ by *apt] #a on su* p>tn]%ip or corporation1 & 7,b7 7i7 9 ! case ( a p>tn]%ip1 ea* p>tn]'s di/ributive %>e ( ! cr$it det]m9$ "u subsection 7a7 ) respect to ! qualifi$ prop]ty or semiconductor manufactur+ prop]ty %all be deem$ to be z]o1 & 7ii7 9 ! case ( a ,s corporation1 ea* %>ehold]'s pro rata %>e ( ! cr$it det]m9$ "u subsection 7a7 ) respect to su* prop]ty %all be deem$ to be z]o4 4 7c7 ,con=m+ am5dm5ts 7#a7 ,section #df ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7,a7 by /rik+ 8&0 at ! end ( p>agraph 7#e71 7,b7 by /rik+ ! p]iod at ! end ( p>agraph 7#f7 & ins]t+ 81 &01 & 7,c7 by add+ at ! end ! foll[+ new p>agraph3 7#g7 ! semiconductor manufactur+ inve/m5t cr$it4 4 7#b7 ,section #di7;a77#a77;,c7 ( su* ,code is am5d$-- 7,a7 by /rik+ 8&0 at ! end ( clause 7iv71 7,b7 by /rik+ ! p]iod at ! end ( clause 7v7 & ins]t+ a comma1 & 7,c7 by add+ at ! end ! foll[+ new clauses3 7vi7 ! basis ( any qualifi$ prop]ty 7z def9$ 9 section #dh;,d7b77#b77 :i* is "p ( a semiconductor manufactur+ facility1 & 7vii7 ! basis ( any semiconductor manufactur+ prop]ty4 4 7#c7 ,section #ej7;a77#b77;,e7 ( su* ,code is am5d$ by /rik+ or #dh;,c7b77#b7 & ins]t+ #dh;,c7b77#b71 or #dh;,d7d74 7#d7 ,section #ei;,a7b77#a77;,b77ii7 ( su* ,code is am5d$-- 7,a7 9 subclause 7,i71 by /rik+ plus1 7,b7 by r$esignat+ subclause 7,,ii7 z subclause 7,,iii71 & 7,c7 by ins]t+ aft] subclause 7,i7 ! foll[+3 7,,ii7 ! cr$it all[$ "u section #ch = ! taxable ye> :i* is prop]ly allocable to ! portion ( ! inve/m5t cr$it det]m9$ "u section #df t is prop]ly allocable to section #dh;,d7a71 plus 4 7#e7 ,! table ( sections = subp>t ,e ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #dh;,c ! foll[+ new item3 #dh;,d4 ,semiconductor manufactur+ inve/m5t cr$it4 4 7d7 ,effective date 7#a7 ,9 g5]al ,except z provid$ "u p>agraph 7#b71 ! am5dm5ts made by ?is section %all apply to prop]ty plac$ 9 s]vice aft] ,decemb] #ca1 #bjba1 "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 7#b7 ,election = direct paym5t ,! am5dm5ts made by subsection 7b7 %all be effective ) respect to any election made aft] ,decemb] #ca1 #bjba4