,,ib ,union ,calendar ,no4 #ii #aahth ,,congress #ast ,session ,h4 ,r4 #cich ,report ,no4 #aah-abg ,,in ,,the ,,house ,,of ,,representatives ,june #i1 #bjbc,mr4 ,smith of ,missouri introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,june #cj1 #bjbc,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed,strike out all after the enacting clause and insert the part printed in italic,for text of introduced bill1 see copy of bill as introduced on ,june #i1 #bjbc ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to encourage economic growth4 #a4 ,short title2 table of contents1 etc 7a7 ,short title ,this ,act may be cited as the ,build ,it in ,america ,act4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents1 etc4,title ,i--,investment in ,america,sec4 #aja4 ,deduction for research and experimental expenditures4,sec4 #ajb4 ,extension of allowance for depreciation1 amortization1 or depletion in determining the limitation on business interest4,sec4 #ajc4 ,extension of #ajj percent bonus depreciation4,title ,,ii--,supply ,chain ,security,sec4 #bja4 ,termination of ,hazardous ,substance ,superfund financing rate4,sec4 #bjb4 ,election to determine foreign income taxes paid or accrued to certain ,western ,hemisphere countries without regard to certain regulations4,sec4 #bjc4 ,imposition of tax on the acquisition of ,united ,states agricultural interests by disqualified persons4,title ,,iii--,repeal of ,special ,interest ,tax ,provisions,sec4 #cja4 ,repeal of clean electricity production credit4,sec4 #cjb4 ,repeal of clean electricity investment credit4,sec4 #cjc4 ,modification of clean vehicle credit4,sec4 #cjd4 ,repeal of credit for previously-owned clean vehicles4,sec4 #cje4 ,repeal of credit for qualified commercial clean vehicles4 ,i ,investment in ,america #aja4 ,deduction for research and experimental expenditures 7a7 ,delay of amortization of research and experimental expenditures ,section #agd is amended by adding at the end the following new subsection3 7e7 ,suspension of application ,this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjbe 7and shall not apply to amounts paid or incurred in taxable years beginning on or before such date74 4 7b7 ,reinstatement of expensing for research and experimental expenditures ,part ,,vi of subchapter ,b of chapter #a is amended by inserting after section #agd the following new section3 #agd;,a4 ,temporary rules for research and experimental expenditures 7a7 ,treatment as expenses ,notwithstanding section #bfc1 there shall be allowed as a deduction any research or experimental expenditures which are paid or incurred by the taxpayer during the taxable year in connection with the taxpayer's trade or business4 7b7 ,amortization of certain research and experimental expenditures 7#a7 ,in general ,at the election of the taxpayer1 made in accordance with regulations or other guidance provided by the ,secretary1 research or experimental expenditures which-- 7,a7 are paid or incurred by the taxpayer in connection with his trade or business1 and 7,b7 would 7but for subsection 7a77 be chargeable to capital account but not chargeable to property of a character which is subject to the allowance under section #afg 7relating to allowance for depreciation1 etc47 or section #faa 7relating to allowance for depletion71 may be treated as deferred expenses to which subsection 7a7 does not apply4 ,in computing taxable income1 such deferred expenses shall be allowed as a deduction ratably over such period of not less than #fj months as may be selected by the taxpayer 7beginning with the month in which the taxpayer first realizes benefits from such expenditures74 ,such deferred expenses are expenditures properly chargeable to capital account for purposes of section #ajaf7;a77#a7 7relating to adjustments to basis of property74 7#b7 ,time for and scope of election ,the election provided by paragraph 7#a7 may be made for any taxable year1 but only if made not later than the time prescribed by law for filing the return for such taxable year 7including extensions thereof74 ,the method so elected1 and the period selected by the taxpayer1 shall be adhered to in computing taxable income for the taxable year for which the election is made and for all subsequent taxable years unless1 with the approval of the ,secretary1 a change to a different method 7or to a different period7 is authorized with respect to part or all of such expenditures4 ,the election shall not apply to any expenditure paid or incurred during any taxable year before the taxable year for which the taxpayer makes the election4 7c7 ,election to capitalize expenses ,in the case of a taxpayer which elects 7at such time and in such manner as the ,secretary may provide7 the application of this subsection1 subsections 7a7 and 7b7 shall not apply4 ,such election shall not apply to any expenditure paid or incurred during any taxable year before the taxable year for which the taxpayer makes the election and may be made with respect to part of the expenditures paid or incurred during any taxable year only with the approval of the ,secretary4 7d7 ,land and other property ,this section shall not apply to any expenditure for the acquisition or improvement of land1 or for the acquisition or improvement of property to be used in connection with the research or experimentation and of a character which is subject to the allowance under section #afg 7relating to allowance for depreciation1 etc47 or section #faa 7relating to allowance for depletion72 but for purposes of this section allowances under section #afg1 and allowances under section #faa1 shall be considered as expenditures4 7e7 ,exploration expenditures ,this section shall not apply to any expenditure paid or incurred for the purpose of ascertaining the existence1 location1 extent1 or quality of any deposit of ore or other mineral 7including oil and gas74 7f7 ,software development ,for purposes of this section1 any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure4 7g7 ,only reasonable research expenditures eligible ,this section shall apply to a research or experimental expenditure only to the extent that the amount thereof is reasonable under the circumstances4 7h7 ,coordination with research credit 7#a7 ,in general ,section #da7;d77#a77;,a7 shall be applied by substituting expenses under section #agd;,a for specified research or experimental expenditures under section #agd4 7#b7 ,denial of double benefit 7,a7 ,in general ,section #bhj;,c7c7 shall not apply and the amount taken into account under this section as research or experimental expenditures shall be reduced by the amount of the credit allowable under section #da7;a74 7,b7 ,election of reduced credit 7i7 ,in general ,in the case of any taxable year for which an election is made under this subparagraph-- 7,i7 subparagraph 7,a7 shall not apply1 and 7,,ii7 the amount of the credit under section #da7;a7 shall be the amount determined under clause 7ii74 7ii7 ,amount of reduced credit ,the amount of credit determined under this clause for any taxable year shall be the amount equal to the excess of-- 7,i7 the amount of credit determined under section #da7;a7 without regard to this subparagraph1 over 7,,ii7 the product of the amount described in subclause 7,i71 multiplied by the rate of tax under section #aa7;b74 7iii7 ,election ,an election under this subparagraph for any taxable year shall be made not later than the time for filing the return of tax for such year 7including extensions71 shall be made on such return1 and shall be made in such manner as the ,secretary may prescribe4 ,such an election1 once made1 shall be irrevocable4 7,c7 ,controlled groups ,paragraph 7#c7 of section #bhj;,c7b7 shall apply for purposes of this paragraph4 7i7 ,coordination with long-term contract rules ,for purposes of determining percentage of completion under section #dfj7;b77#a77;,a71 any research or experimental expenditures paid or incurred by the taxpayer in connection with the taxpayer's trade or business shall be taken into account as a cost allocated to the contract for the taxable year in which so paid or incurred4 7j7 ,coordination with certain other provisions ,a reference to the corresponding provision of this section shall be treated as included in any reference to section #agd in section #ef7;b71 #ei7;e71 #add7;a71 #afh7;i71 #agj7;e71 #aie7;c71 #bfc7;a71 #bfc;,a7c71 #dfi7;c71 #edc7;d71 #hfd7;g71 #iic7;d71 #ajaf7;a77#ad71 #abjb7;a71 or #abih7;e74 7k7 ,termination 7#a7 ,in general ,this section shall not apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjbe4 7#b7 ,change in method of accounting ,paragraph 7#a7 7and the corresponding application of section #agd7 shall be treated as a change in method of accounting for purposes of section #dha and-- 7,a7 such change shall be treated as initiated by the taxpayer1 7,b7 such change shall be treated as made with the consent of the ,secretary1 and 7,c7 such change shall be applied only on a cut-off basis for any research or experimental expenditures paid or incurred in taxable years beginning after ,december #ca1 #bjbe1 and no adjustment under section #dha7;a7 shall be made4 4 7c7 ,coordination of amortization with certain other provisions ,section #agd1 as amended by subsection 7a71 is amended by redesignating subsection 7e7 as subsection 7f7 and by inserting after subsection 7d7 the following new subsection3 7e7 ,coordination with certain other provisions 7#a7 ,coordination with alternative minimum tax ,sections #ef7;b77#b7 and #ei7;e77#b77;,b7 shall not apply to specified research or experimental expenditures to which this section applies4 7#b7 ,coordination with basis adjustment rules ,section #ajaf7;a77#ad7 shall be applied by substituting an amortization deduction under section #agd7;a7 for deductions as deferred expenses under section #agd7;b77#a74 7#c7 ,coordination with long-term contract rules ,for purposes of determining percentage of completion under section #dfj7;b77#a77;,a71 the amortization deduction under subsection 7a7 shall be taken into account as a cost allocated to the contract4 4 7d7 ,conforming amendments 7#a7 ,section #acbjf of ,public ,law #aae-ig is amended by striking subsection 7b7 7relating to change in method of accounting74 7#b7 ,the table of sections for part ,,vi of subchapter ,b of chapter #a is amended by inserting after the item relating to section #agd the following new item3 ,sec4 #agd;,a4 ,temporary rules for research and experimental expenditures4 4 7e7 ,effective date 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjba4 7#b7 ,repeal of superceded change in method of accounting rules ,the amendment made by subsection 7d77#a7 shall take effect as if included in ,public ,law #aae-ig4 7f7 ,transition rules 7#a7 ,election regarding treatment as change in method of accounting ,in the case of any taxpayer which 7as of the date of the enactment of this ,act7 had adopted a method of accounting provided by section #agd of the ,internal ,revenue ,code of #aihf 7as in effect prior to the amendments made by this section7 for the taxpayer's first taxable year beginning after ,december #ca1 #bjba1 and elects the application of this paragraph-- 7,a7 the amendments made by this section shall be treated as a change in method of accounting for purposes of section #dha of such ,code1 7,b7 such change shall be treated as initiated by the taxpayer for the taxpayer's immediately succeeding taxable year1 7,c7 such change shall be treated as made with the consent of the ,secretary1 and 7,d7 such change shall be applied on a modified cut-off basis1 taking into account for purposes of section #dha7;a7 of such ,code only the capitalized expenditures which were not allowed as an amortization deduction by reason of section #agd prior to amendment by this ,act for the taxpayer's first taxable year beginning after ,december #ca1 #bjba4 7#b7 ,election regarding #aj-year writeoff 7,a7 ,in general ,an eligible taxpayer which files1 during the #a-year period beginning on the date of the enactment of this ,act1 an amended income tax return for the taxable year described in subparagraph 7,b77ii7 may elect the application of section #ei7;e7 of the ,internal ,revenue ,code of #aihf with respect to qualified expenditures described in section #ei7;e77#b77;,b7 of such ,code with respect to such taxable year4 ,such election shall be filed with such amended income tax return and shall be effective only to the extent that such election would have been effective if filed with the original income tax return for such taxable year4 7,b7 ,eligible taxpayer ,for purposes of subparagraph 7,a71 the term eligible taxpayer means any taxpayer which-- 7i7 does not elect the application of paragraph 7#a71 and 7ii7 filed an income tax return for such taxpayer's first taxable year beginning after ,december #ca1 #bjba1 before the earlier of-- 7,i7 the due date for such return1 and 7,,ii7 the date of the enactment of this ,act4 #ajb4 ,extension of allowance for depreciation1 amortization1 or depletion in determining the limitation on business interest 7a7 ,in general ,section #afc7;j77#h77;,a77v7 is amended by striking ,january #a1 #bjbb and inserting ,january #a1 #bjbf4 7b7 ,effective date 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjbb4 7#b7 ,election to apply extension retroactively ,in the case of a taxpayer which elects 7at such time and in such manner as the ,secretary may provide7 the application of this paragraph1 paragraph 7#a7 shall be applied by substituting ,december #ca1 #bjba for ,december #ca1 #bjbb4 #ajc4 ,extension of #ajj percent bonus depreciation 7a7 ,in general ,section #afh7k77#f77;,a7 is amended-- 7#a7 in clause 7i7-- 7,a7 by striking #bjbc and inserting #bjbf1 and 7,b7 by adding and at the end1 and 7#b7 by striking clauses 7ii71 7iii71 and 7iv71 and redesignating clause 7v7 as clause 7ii74 7b7 ,property with longer production periods ,section #afh7k77#f77;,b7 is amended-- 7#a7 in clause 7i7-- 7,a7 by striking #bjbd and inserting #bjbg1 and 7,b7 by adding and at the end1 and 7#b7 by striking clauses 7ii71 7iii71 and 7iv71 and redesignating clause 7v7 as clause 7ii74 7c7 ,plants bearing fruits and nuts ,section #afh7k77#f77;,c7 is amended-- 7#a7 in clause 7i7-- 7,a7 by striking #bjbc and inserting #bjbf1 and 7,b7 by adding and at the end1 and 7#b7 by striking clauses 7ii71 7iii71 and 7iv71 and redesignating clause 7v7 as clause 7ii74 7d7 ,effective dates 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjbb4 7#b7 ,plants bearing fruits and nuts ,the amendments made by subsection 7c7 shall apply to specified plants planted or grafted after ,december #ca1 #bjbb4 ,,ii ,supply ,chain ,security #bja4 ,termination of ,hazardous ,substance ,superfund financing rate 7a7 ,in general ,section #dfaa 7as amended by section #acfja of ,public ,law #aag-afi7 is amended by inserting after subsection 7d7 the following new subsection3 7e7 ,application of ,hazardous ,substance ,superfund financing rate ,the ,hazardous ,substance ,superfund financing rate under this section shall not apply after ,december #ca1 #bjbb4 4 7b7 ,termination of authority for advances ,section #iejg7;d77#c77;,b7 7as so amended7 is amended-- 7#a7 by striking ,december #ca1 #bjcb and inserting the date of the enactment of the ,build ,it in ,america ,act1 and 7#b7 by striking on or before such date and inserting as soon as practicable thereafter4 7c7 ,effective date 7#a7 ,in general ,the amendment made by subsection 7a7 shall take effect on ,january #a1 #bjbc4 7#b7 ,termination of authority for advances ,the amendments made by subsection 7b7 shall take effect on the date of the enactment of this ,act4 #bjb4 ,election to determine foreign income taxes paid or accrued to certain ,western ,hemisphere countries without regard to certain regulations 7a7 ,election with respect to determining certain foreign income taxes ,in the case of any taxpayer which elects 7at such time and in such manner as the ,secretary may provide7 the application of this subsection1 the determination of whether any ,western ,hemisphere tax paid or accrued by such taxpayer is an income1 war profits1 or excess profits tax for purposes of any provision of the ,internal ,revenue ,code of #aihf shall be made without regard to any specified regulation4 7b7 ,separate election with respect to allocation and apportionment of foreign income taxes relating to disregarded payments from certain disregarded entities 7#a7 ,in general ,if the owner of any specified disregarded entity elects 7at such time and in such manner as the ,secretary may provide7 the application of this subsection with respect to such entity1 then for purposes of allocating and apportioning any foreign income taxes 7as defined in section #ihf7;a77#d7 of the ,internal ,revenue ,code of #aihf and determined after the application of subsection 7a7 of this section7 paid or accrued by reason of any remittance made by such entity to such owner during the applicable period1 any items of foreign gross income included by reason of the receipt of such remittance shall be assigned to a category based on current and accumulated earnings and profits of such entity 7in lieu of being assigned on the basis of the tax book value method described in a specified regulation74 7#b7 ,specified disregarded entity ,for purposes of this subsection1 the term specified disregarded entity means any entity 7including any trade or business7 if-- 7,a7 such entity is disregarded as an entity separate from its owner for purposes of applying chapter #a of the ,internal ,revenue ,code of #aihf1 7,b7 such entity is created or organized in a possession of the ,united ,states or a foreign country described in subsection 7d77#a77;,b71 7,c7 at all times after ,december #ca1 #bjai 7or1 if later1 the date on which such entity is created or organized7 substantially all of the income of such entity is derived from trades or businesses conducted in the possession or country referred to in subparagraph 7,b71 and 7,d7 at all times after the date on which such entity is created or organized1 such entity maintains separate books and records4 7c7 ,application to deemed paid credit ,in the case of any tax paid or accrued by a controlled foreign corporation and deemed to have been paid by a ,united ,states shareholder under section #ifj of the ,internal ,revenue ,code of #aihf-- 7#a7 any election under subsection 7a7 or 7b7 shall be made by such controlled foreign corporation and shall be binding on all ,united ,states shareholders of such controlled foreign corporation1 and 7#b7 the applicable period under subsection 7d7 shall be determined with respect to the taxable years of such controlled foreign corporation4 7d7 ,western ,hemisphere tax ,for purposes of this section-- 7#a7 ,in general ,the term ,western ,hemisphere tax means any tax which is paid or accrued for a taxable year which is in the applicable period to-- 7,a7 any possession of the ,united ,states1 or 7,b7 any foreign country 7other than ,cuba and ,venezuela7 which is located in ,north1 ,central1 or ,south ,america 7including the ,west ,indies74 7#b7 ,applicable period ,the term applicable period means-- 7,a7 in the case of any election made under subsection 7a71 all taxable years beginning after ,december #ca1 #bjba1 and before ,january #a1 #bjbg1 and 7,b7 in the case of any election made under subsection 7b71 all taxable years beginning after ,december #ca1 #bjai1 and before ,january #a1 #bjbg4 7#c7 ,determination based on taxable year for which tax actually paid or accrued ,the determination of the taxable year for which any tax is paid or accrued for purposes of determining whether a foreign tax is paid or accrued for a taxable year which is in the applicable period shall be made without regard to any taxable year with respect to which such tax is deemed to have been paid under section #ijd7;c7 or #ifj of the ,internal ,revenue ,code of #aihf4 7e7 ,specified regulation ,for purposes of this section1 the term specified regulation means-- 7#a7 ,treasury ,regulations relating to 8,guidance ,related to the ,foreign ,tax ,credit2 ,clarification of ,foreign-,derived ,intangible ,income0 7#hg ,fed4 ,reg4 #bgf2 published on ,january #d1 #bjbb71 7#b7 proposed ,treasury ,regulations relating to 8,guidance ,related to the ,foreign ,tax ,credit0 7#hg ,fed4 ,reg4 #gabga2 published on ,november #bb1 #bjbb71 and 7#c7 any regulation or other guidance published after ,january #d1 #bjbb1 to the extent that such regulation or other guidance is substantially similar to1 or predicated upon1 any portion of the regulations referred to in paragraph 7#a7 or 7#b74 ,in the case of any regulation or other guidance which is published after the date of the enactment of this ,act and any portion of which is described in paragraph 7#c71 the ,secretary shall identify such regulation or guidance 7or portion thereof7 as not applying with respect to taxpayers which have elected the application of subsection 7a7 or 7b71 as the case may be4 7f7 ,secretary ,for purposes of this section1 the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 #bjc4 ,imposition of tax on the acquisition of ,united ,states agricultural interests by disqualified persons 7a7 ,in general ,subtitle ,d is amended by inserting after chapter #ej;,a the following new chapter3 #ej;,b ,acquisition of ,united ,states agricultural interests by disqualified persons ,sec4 #ejjj;,e4 ,imposition of tax on acquisition of ,united ,states agricultural interests by disqualified persons4 #ejjj;,e4 ,imposition of tax on acquisition of ,united ,states agricultural interests by disqualified persons 7a7 ,in general ,in the case of any acquisition of any ,united ,states agricultural interest by any disqualified person1 there is hereby imposed on such person a tax equal to #fj percent of the amount paid for such interest4 7b7 ,disqualified person ,for purposes of this section-- 7#a7 ,in general ,the term disqualified person means-- 7,a7 any citizen of a country of concern 7other than a citizen1 or lawful permanent resident1 of the ,united ,states and other than an individual domiciled in ,taiwan possessing a valid identification card or number issued by the government of ,taiwan71 7,b7 any entity domiciled in a country of concern 7other than an entity domiciled in ,taiwan71 7,c7 any country of concern and any political subdivision1 agency1 or instrumentality thereof1 and 7,d7 except as provided in paragraph 7#c71 any entity if persons described in subparagraph 7,a71 7,b71 or 7,c7 7in the aggregate7 #aj-percent control such entity4 7#b7 ,country of concern ,the term country of concern means any country the government of which is engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the ,united ,states or the security and safety of ,united ,states persons1 including the ,people's ,republic of ,china1 the ,russian ,federation1 ,iran1 ,north ,korea1 ,cuba1 and the regime of ,nicolas ,maduro in ,venezuela4 7#c7 ,exception for certain publicly traded corporations 7,a7 ,in general ,an entity shall not be treated as described in paragraph 7#a77;,d7 if-- 7i7 such entity is a specified publicly traded corporation1 or 7ii7 specified publicly traded corporations 7in the aggregate7 control such entity4 7,b7 ,specified publicly traded corporation 7i7 ,in general ,the term specified publicly traded corporation means any corporation if-- 7,i7 the stock of such corporation is regularly traded on an established securities market located in the ,united ,states1 and 7,,ii7 specified disqualified persons do not 7in the aggregate7 control such corporation4 7ii7 ,specified disqualified persons ,the term specified disqualified persons means1 with respect to any corporation referred to in clause 7i71 any person which-- 7,i7 is described in subparagraph 7,a71 7,b71 or 7,c7 of paragraph 7#a71 and 7,,ii7 #aj-percent controls such corporation4 7c7 ,prorated tax on acquisitions by entities not more than #ej percent controlled by disqualified persons 7#a7 ,in general ,in the case of any disqualified person described in subsection 7b77#a77;,d7 with respect to which persons described in subparagraphs 7,a71 7,b71 or 7,c7 of subsection 7b77#a7 do not 7in the aggregate7 control such disqualified person1 subsection 7a7 shall be applied by substituting the applicable percentage of the amount for the amount4 7#b7 ,applicable percentage ,for purposes of this section1 the term applicable percentage means1 with respect to any disqualified person to which paragraph 7#a7 applies1 the highest percentage which could be substituted for #ej percent both places it appears in section #ied7;d77#c7 without causing persons described in subparagraph 7,a71 7,b71 or 7,c7 of subsection 7b77#a7 7in the aggregate7 to control 7determined by taking into account such substitution7 such disqualified person4 7d7 ,control ,for purposes of this section-- 7#a7 ,in general ,the term control has the meaning given such term under section #ied7;d77#c71 determined by treating the rules of section #ieh7;a77#b7 as applying to both foreign and domestic corporations1 partnerships1 trusts1 and estates4 7#b7 #aj-percent control ,the term #aj-percent control means control 7as defined in paragraph 7#a771 determined by substituting #aj percent for #ej percent both places it appears in section #ied7;d77#c74 7e7 ,united ,states agricultural interest ,for purposes of this section-- 7#a7 ,in general ,the term ,united ,states agricultural interest has the meaning which would be given the term ,united ,states real property interest by section #hig7;c7 if-- 7,a7 paragraph 7#a77;,a77i7 were applied by substituting an interest in agricultural land for an interest in real property and all that follows1 7,b7 paragraph 7#a77;,a77ii7 were applied by substituting such corporation was not a ,united ,states real property holding corporation at the time of acquisition for such corporation and all that follows1 7,c7 paragraph 7#a77;,b7 did not apply1 and 7,d7 paragraph 7#c7 were applied by substituting at the time of acquisition for at some time during the shorter of the periods described in paragraph 7#a77;,a77ii74 7#b7 ,agricultural land ,for purposes of paragraph 7#a71 the term agricultural land means-- 7,a7 agricultural land as defined in section #i of the ,agricultural ,foreign ,investment ,disclosure ,act of #aigh 7#g ,u4,s4,c4 #cejh71 and 7,b7 land located in one or more ,states and used for livestock production purposes 7determined under rules similar to the rules that apply under such section #i74 4 7b7 ,reporting requirements 7#a7 ,in general ,subpart ,b of part ,,iii of subchapter ,a of chapter #fa is amended by adding at the end the following new section3 #fjej;,,aa4 ,returns relating to acquisition of ,united ,states agricultural interests by disqualified persons 7a7 ,in general ,the required reporting person1 with respect to any acquisition of any ,united ,states agricultural interest by a presumptively disqualified person to which section #ejjj;,e7a7 applies1 shall make a return at such time as the ,secretary may provide setting forth-- 7#a7 the name1 address1 and ,,tin of such presumptively disqualified person1 7#b7 a description of such ,united ,states agricultural interest 7including the street address1 if applicable71 and 7#c7 the amount paid for such ,united ,states agricultural interest4 7b7 ,statement to be furnished to presumptively disqualified person ,every person required to make a return under subsection 7a7 shall furnish1 at such time as the ,secretary may provide1 to each presumptively disqualified person whose name is required to be set forth in such return a written statement showing-- 7#a7 the name and address of the information contact of the required reporting person1 and 7#b7 the information described in paragraphs 7#a71 7#b71 and 7#c7 of subsection 7a7 which relates to such disqualified person4 7c7 ,required reporting person ,for purposes of this section1 the term required reporting person means1 with respect to any acquisition of any ,united ,states agricultural interest-- 7#a7 the person 7including any attorney or title company7 responsible for closing the transaction in which such ,united ,states agricultural interest is acquired1 or 7#b7 if no one is responsible for closing such transaction 7or in such other cases as the ,secretary may provide71 the transferor of such ,united ,states agricultural interest4 7d7 ,presumptively disqualified person ,for purposes of this section1 the term presumptively disqualified person means any person unless such person furnishes to the required reporting person an affidavit by the such person stating1 under penalty of perjury1 that such person is not a disqualified person 7as defined in section #ejjj;,e7b774 7e7 ,requirement to request affidavit ,if the required reporting person1 with respect to any acquisition of any ,united ,states agricultural interest1 has not1 as of the time of such acquisition1 been furnished the affidavit described in subsection 7d7 by the acquirer of such interest1 such required reporting person shall furnish to such acquirer1 at such time1 a written statement informing such acquirer of the required reporting person's obligation to make the return described in subsection 7a7 with respect to such acquisition and including such other information as the ,secretary may require4 7f7 ,united ,states agricultural interest ,for purposes of this section1 the term ,united ,states agricultural interest has the meaning given such term in section #ejjj;,e4 4 7#b7 ,penalties ,section #fgbd7;d7 is amended-- 7,a7 in paragraph 7#a77;,b71 by striking or at the end of clause 7xxvii71 by striking and at the end of clause 7xxviii7 and inserting or1 and by adding at the end the following new clause3 7xxix7 section #fjej;,,aa7a7 7relating to returns relating to acquisition of ,united ,states agricultural interests by disqualified persons71 and 1 and 7,b7 in paragraph 7#b71 by striking or at the end of subparagraph 7,,kk71 by striking the period at the end of subparagraph 7,,ll7 and inserting 1 or1 and by inserting after subparagraph 7,,ll7 the following new subparagraph3 7,,mm7 subsection 7b7 or 7e7 of section #fjee;,,aa 7relating to statements relating to acquisition of ,united ,states agricultural interests by disqualified persons74 4 7c7 ,clerical amendments 7#a7 ,the table of chapters for subtitle ,d is amended by inserting after the item relating to chapter #ej;,a the following new item3 ,chapter #ej;,b4 ,acquisition of ,united ,states agricultural interests by disqualified persons4 4 7#b7 ,the table of sections for subpart ,b of part ,,iii of subchapter ,a of chapter #fa is amended by adding at the end the following new item3 ,sec4 #fjej;,,aa4 ,returns relating to acquisition of ,united ,states agricultural interests by disqualified persons4 4 7d7 ,effective date ,the amendments made by this section shall apply to acquisitions after the date of the enactment of this ,act4 ,,iii ,repeal of ,special ,interest ,tax ,provisions #cja4 ,repeal of clean electricity production credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by striking section #de,y 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 is amended by striking paragraph 7#ci7 and redesignating paragraphs 7#dj7 and 7#da7 as paragraphs 7#ci7 and 7#dj71 respectively4 7#b7 ,section #fdag7;b7 is amended by striking paragraph 7#h7 and redesignating paragraphs 7#i7 through 7#ab7 as paragraphs 7#h7 through 7#aa71 respectively4 7#c7 ,section #fdah7;f77#a7 is amended-- 7,a7 in subparagraph 7,a71 by striking clause 7vii7 and by redesignating clauses 7viii7 through 7xi7 as clauses 7vii7 through 7x71 respectively1 and 7,b7 in subparagraph 7,b71 by striking 7v71 or 7vii7 and inserting or 7v74 7c7 ,effective date ,the amendments made by this section shall take effect as if included in section #acgja of ,public ,law #aag-afi4 #cjb4 ,repeal of clean electricity investment credit 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a is amended by striking section #dh;,e 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendments 7#a7 ,section #df1 as amended by ,public ,law #aag-afi1 is amended-- 7,a7 in paragraph 7#e71 by adding and at the end1 7,b7 in paragraph 7#f71 by striking 1 and and inserting a period1 and 7,c7 by striking paragraph 7#g74 7#b7 ,section #dh7;e77#d77;,d7 is amended by striking except as provided in section #dh;,e7h77#d77;,d77ii74 7#c7 ,section #dh;,c7f7 is amended by striking #dh;,e14 7#d7 ,section #di7;a77#a77;,c71 as amended by ,public ,law #aag-afi1 is amended-- 7,a7 by adding and at the end of clause 7v71 7,b7 by striking the comma at the end of clause 7vi7 and inserting a period1 and 7,c7 by striking clauses 7vii7 and 7viii74 7#e7 ,section #ej7;a77#b77;,e71 as amended by ,public ,law #aag-afi1 is amended by striking #dh;,d7b77#e71 or #dh;,e7e7 and inserting or #dh;,d7b77#e74 7#f7 ,section #ej7;c77#c71 as amended by ,public ,law #aag-afi1 is amended by striking or clean electricity investment credit4 7#g7 ,section #afh7;e77#c77;,b71 as amended by ,public ,law #aag-afi1 is amended-- 7,a7 in clause 7vi77,,iii71 by inserting and at the end1 7,b7 in clause 7vii71 by striking 1 and and inserting a period1 and 7,c7 by striking clause 7viii74 7#h7 ,section #fdag7;b71 as amended by the preceding provisions of this ,act1 is amended by striking paragraph 7#aa74 7#i7 ,section #fdah7;f77#a77;,a71 as amended by the preceding provisions of this ,act1 is amended by striking clause 7x74 7c7 ,effective date ,the amendments made by this section shall take effect as if included in section #acgjb of ,public ,law #aag-afi4 #cjc4 ,modification of clean vehicle credit 7a7 ,per vehicle dollar limitation ,section #cj;,d7b7 is amended by striking paragraphs 7#b7 and 7#c7 and inserting the following3 7#b7 ,base amount ,the amount determined under this paragraph is #b1ejj4 7#c7 ,battery capacity ,in the case of a vehicle which draws propulsion energy from a battery with not less than #e kilowatt hours of capacity1 the amount determined under this paragraph is #dag1 plus #dag for each kilowatt hour of capacity in excess of #e kilowatt hours4 ,the amount determined under this paragraph shall not exceed #e1jjj4 4 7b7 ,final assembly ,section #cj;,d7d7 is amended-- 7#a7 in paragraph 7#a71 by striking subparagraph 7,g71 and 7#b7 by striking paragraph 7#e74 7c7 ,additional modifications to vehicle definition 7#a7 ,in general ,section #cj;,d7d71 as amended by subsection 7b71 is amended-- 7,a7 in the heading1 by striking ,clean and inserting ,qualified plug-in electric drive motor1 7,b7 in paragraph 7#a7-- 7i7 in the matter preceding subparagraph 7,a71 by striking clean and inserting qualified plug-in electric drive motor1 7ii7 in subparagraph 7,c71 by striking qualified before manufacturer1 7iii7 in subparagraph 7,e71 by adding and at the end1 7iv7 in subparagraph 7,f7-- 7,i7 in clause 7i71 by striking #g and inserting #d1 and 7,,ii7 in clause 7ii71 by striking the comma at the end and inserting a period1 and 7v7 by striking subparagraph 7,h71 7,c7 in paragraph 7#c7-- 7i7 in the heading1 by striking qualified manufacturer and inserting ,manufacturer1 and 7ii7 by striking ,the term qualified manufacturer means and all that follows through the period and inserting ,the term manufacturer has the meaning given such term in regulations prescribed by the ,administrator of the ,environmental ,protection ,agency for purposes of the administration of title ,,ii of the ,clean ,air ,act 7#db ,u4,s4,c4 #geba et seq4741 and 7,d7 by striking paragraph 7#f74 7#b7 ,conforming amendments ,section #cj;,d is amended-- 7,a7 in subsection 7a71 by striking new clean vehicle and inserting new qualified plug-in electric drive motor vehicle1 and 7,b7 in subsection 7b77#a71 by striking new clean vehicle and inserting new qualified plug-in electric drive motor vehicle4 7d7 ,critical mineral and battery component requirement modifications 7#a7 ,in general ,section #cj;,d7e71 as added by ,public ,law #aag-afi1 is amended by striking paragraphs 7#a7 and 7#b71 by redesignating paragraph 7#c7 as paragraph 7#d71 and by inserting before paragraph 7#d7 7as so redesignated7 the following new paragraphs3 7#a7 ,critical minerals requirement ,no credit shall be allowed under this section with respect to any vehicle unless1 with respect to the battery from which the electric motor of such vehicle draws electricity1 the percentage of the value of the applicable critical minerals 7as defined in section #de,x7c77#f77 contained in such battery that were-- 7,a7 extracted or processed-- 7i7 in the ,united ,states1 or 7ii7 in any country with which the ,united ,states has a free trade agreement in effect1 or 7,b7 recycled in ,north ,america1 is equal to or greater than #hj percent 7as certified by the manufacturer1 in such form or manner as prescribed by the ,secretary74 ,for purposes of subparagraph 7,a77ii71 the term free trade agreement means an international agreement approved by ,congress that eliminates duties and other restrictive regulations of commerce on substantially all the trade between the ,united ,states and one or more other countries4 7#b7 ,battery components ,no credit shall be allowed under this section with respect to any vehicle unless1 with respect to the battery from which the electric motor of such vehicle draws electricity1 all of the components contained in such battery were manufactured or assembled in ,north ,america 7as certified by the manufacturer1 in such form or manner as prescribed by the ,secretary74 7#c7 ,restriction on foreign entities of concern ,no credit shall be allowed under this section which respect to any vehicle placed in service after ,december #ca1 #bjbd1 if any of the applicable critical minerals contained in the battery of such vehicle 7as described in paragraph 7#a77 were extracted1 processed1 or recycled by a foreign entity of concern 7as defined in section #djbjg7;a77#e7 of the ,infrastructure ,investment and ,jobs ,act 7#db ,u4,s4,c4 #ahgda7;a77#e7774 4 7#b7 ,conforming amendment ,section #cj;,d7d7 is amended by striking paragraph 7#g74 7e7 ,transfer of credit repealed 7#a7 ,in general ,section #cj;,d is amended by striking subsection 7g74 7#b7 ,conforming amendments reversed ,section #cj;,d7f7 is amended-- 7,a7 by inserting after paragraph 7#b7 the following3 7#c7 ,property used by tax-exempt entity ,in the case of a vehicle the use of which 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 vehicle to the person or entity using such vehicle 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 vehicle 7determined without regard to subsection 7c774 ,for purposes of subsection 7c71 property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation4 1 and 7,b7 in paragraph 7#h71 by striking 1 including any vehicle with respect to which the taxpayer elects the application of subsection 7g74 7f7 ,reinstatement of limitation on number of vehicles eligible for credit ,section #cj;,d is amended by inserting after subsection 7f7 the following3 7g7 ,limitation on number of new qualified plug-in electric drive motor vehicles eligible for credit 7#a7 ,in general ,in the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period1 only the applicable percentage of the credit otherwise allowable under subsection 7a7 shall be allowed4 7#b7 ,phaseout period ,for purposes of this subsection1 the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph 7#a7 sold for use in the ,united ,states after ,december #ca1 #bjji1 is at least #bjj1jjj4 7#c7 ,applicable percentage ,for purposes of paragraph 7#a71 the applicable percentage is-- 7,a7 #ej percent for the first #b calendar quarters of the phaseout period1 7,b7 #be percent for the #crd and #dth calendar quarters of the phaseout period1 and 7,c7 #j percent for each calendar quarter thereafter4 7#d7 ,controlled groups ,rules similar to the rules of section #cj;,b7f77#d7 shall apply for purposes of this subsection4 4 7g7 ,termination repealed ,section #cj;,d is amended by striking subsection 7h74 7h7 ,additional conforming amendments 7#a7 ,the heading of section #cj;,d is amended by striking clean vehicle credit and inserting new qualified plug-in electric drive motor vehicles4 7#b7 ,section #cj;,b7h77#h7 is amended by inserting 1 except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle1 before the period at the end4 7#c7 ,section #ch7;b77#cj7 is amended by striking clean and inserting qualified plug-in electric drive motor4 7#d7 ,the table of sections for subpart ,b of part ,,iv of subchapter ,a of chapter #a is amended by striking the item relating to section #cj;,d and inserting after the item relating to section #cj;,c the following item3 ,sec4 #cj;,d4 ,new qualified plug-in electric drive motor vehicles4 7i7 ,gross up repealed ,section #acdja of ,public ,law #aag-afi is amended by striking subsection 7j74 7j7 ,effective dates 7#a7 ,in general ,except as otherwise provided in this subsection or subsection 7k71 the amendments made by this section shall apply to vehicles placed in service after ,june #i1 #bjbc4 7#b7 ,final assembly and manufacturer limitation ,the amendments made by subsections 7b7 and 7f7 shall apply to vehicles sold after ,june #i1 #bjbc4 ,notwithstanding the preceding sentence1 the phaseout period 7as defined in section #cj;,d7g7 of the ,internal ,revenue ,code of #aihf1 as amended by this section7 shall be determined by taking into account all vehicles described in section #cj;,d7g7 of such ,code 7as so amended74 7k7 ,transition rule ,notwithstanding subsection 7j7 7other than the last sentence of subsection 7j77#b771 the amendments made by this section shall not apply with respect to any vehicle which is-- 7#a7 acquired by the taxpayer pursuant to a written binding contract that was in effect on ,june #i1 #bjbc1 and 7#b7 placed in service before ,june #i1 #bjbd4 7l7 ,coordination with provisions which have not taken effect 7#a7 ,transfer of credit ,notwithstanding subsection 7k77#d7 of section #acdja of ,public ,law #aag-afi1 the amendments made by subsection 7g7 of such section shall not apply4 7#b7 ,per vehicle dollar limits and related requirements ,notwithstanding subsection 7k77#c7 of section #acdja of ,public ,law #aag-afi1 the amendments made by subsection 7a7 of such section shall not apply unless the guidance referred to in such subsection 7k77#c7 is issued on or before ,june #i1 #bjbc4 #cjd4 ,repeal of credit for previously-owned clean vehicles 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended by striking section #be;,e 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendment ,section #fbac7;g77#b7 is amended-- 7#a7 in subparagraph 7,t71 by adding and at the end1 7#b7 by striking subparagraph 7,u71 and 7#c7 by redesignating subparagraph 7,v7 as subparagraph 7,u74 7c7 ,effective date ,the amendments made by this section shall apply to vehicles acquired after ,june #i1 #bjbc4 7d7 ,transition rule ,notwithstanding subsection 7c71 the amendments made by this section shall not apply with respect to any vehicle which is-- 7#a7 acquired by the taxpayer pursuant to a written binding contract that was in effect on ,june #i1 #bjbc1 and 7#b7 placed in service before ,june #i1 #bjbd4 7e7 ,coordination with provisions which have not taken effect ,notwithstanding subsection 7c77#b7 of section #acdjb of ,public ,law #aag-afi1 the amendments made by subsection 7b7 of such section shall not apply4 #cje4 ,repeal of credit for qualified commercial clean vehicles 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by striking section #de,w 7and by striking the item relating to such section in the table of sections for such subpart74 7b7 ,conforming amendments 7#a7 ,section #ch7;b71 as amended by the preceding provisions of this section1 is amended by striking paragraph 7#cg7 and redesignating paragraphs 7#ch7 through 7#dj7 as paragraphs 7#cg7 through 7#ci71 respectively4 7#b7 ,section #fbac7;g77#b71 as amended by the preceding provisions of this ,act1 is amended-- 7,a7 in subparagraph 7,s71 by adding and at the end1 7,b7 in subparagraph 7,t71 by striking 1 and and inserting a period1 and 7,c7 by striking subparagraph 7,u74 7#c7 ,section #fdag7;b71 as amended by the preceding provisions of this ,act1 is amended by striking paragraph 7#f7 and redesignating paragraphs 7#g7 through 7#aj7 as paragraphs 7#f7 through 7#i71 respectively4 7c7 ,effective date ,the amendments made by this section shall apply to vehicles acquired after ,june #i1 #bjbc4 7d7 ,transition rule ,notwithstanding subsection 7c71 the amendments made by this section shall not apply with respect to any vehicle which is-- 7#a7 acquired by the taxpayer pursuant to a written binding contract that was in effect on ,june #i1 #bjbc1 and 7#b7 placed in service before ,june #i1 #bjbd4 ,june #cj1 #bjbc,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed