,i #aaith ,,congress #ast ,session ,h4 ,r4 #bjjh ,,in ,,the ,,house ,,of ,,representatives ,march #aj1 #bjbe,mr4 ,nunn of ,iowa 7for himself1 ,ms4 ,houlahan1 and ,ms4 ,de,lauro7 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 allow an investment credit for certain domestic infant formula manufacturing projects and to allow a domestic production credit for certain infant formula4 #a4 ,short title ,this ,act may be cited as the ,infant ,formula ,made in ,america ,act of #bjbe4 #b4 ,domestic infant formula manufacturing investment credit 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dh;,e the following new section3 #dh;,f4 ,domestic infant formula manufacturing investment credit 7a7 ,in general ,for purposes of section #df1 in the case of an eligible taxpayer1 the domestic infant formula manufacturing credit for any taxable year is an amount equal to #cj percent of the qualified investment for such taxable year4 7b7 ,qualified investment 7#a7 ,in general ,for purposes of this section1 the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying infant formula manufacturing project4 7#b7 ,certain qualified progress expenditures rules made applicable ,rules similar to the rules of subsections 7c77#d7 and 7d7 of section #df 7as in effect on the day before the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of this section4 7#c7 ,limitation ,the amount which is treated as the qualified investment for all taxable years with respect to any qualifying infant formula manufacturing project shall not exceed the amount designated by the ,secretary as eligible for the credit4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,eligible taxpayer 7,a7 ,in general ,for purposes of this section1 the term eligible taxpayer means a taxpayer if such taxpayer's total global revenue for the calendar year that precedes the calendar year in which the taxpayer submits an application under subsection 7d77#a77;,a7 does not exceed #gej1jjj1jjj4 7,b7 ,aggregation rules ,for purposes of this paragraph1 all persons which are treated as a single employer under subsections 7a7 and 7b7 of section #eb shall be treated as a single taxpayer4 7#b7 ,qualifying infant formula manufacturing project ,the term qualifying infant formula manufacturing project means a project1 any portion of the qualified investment of which is certified by the ,secretary under subsection 7d7 as eligible for a credit under this section1 which re-equips1 expands1 or establishes a facility for the manufacture of eligible infant formula4 7#c7 ,eligible property ,the term eligible property means any property-- 7,a7 which is necessary for the manufacture of eligible infant formula1 7,b7 which is-- 7i7 tangible personal property1 or 7ii7 other tangible property 7not including a building or its structural components71 but only if such property is used as an integral part of a facility described in paragraph 7#b71 and 7,c7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable4 7#d7 ,eligible infant formula ,the term eligible infant formula means infant formula that-- 7,a7 may lawfully be sold in the ,united ,states1 and 7,b7 is manufactured in the ,united ,states4 7d7 ,certification 7#a7 ,in general 7,a7 ,establishment ,not later than #ahj days after the date of the enactment of this section1 the ,secretary shall establish a qualifying infant formula manufacturing project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying infant formula manufacturing projects4 7,b7 ,application period ,each applicant for certification under this paragraph shall submit an application-- 7i7 certifying that not less than #ej percent of the eligible infant formula manufactured using the eligible property to which such application relates during the #a-year period beginning on the date on which the qualifying infant formula manufacturing project is placed in service shall be sold for use in the ,united ,states1 and 7ii7 containing such information as the ,secretary shall require4 7,c7 ,time to meet criteria for certification ,each applicant for certification shall have #a year from the date of acceptance by the ,secretary of the application during which to provide to the ,secretary evidence that the requirements of the certification have been met4 7,d7 ,period of issuance ,an applicant which receives a certification shall have #c years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period1 then the certification shall no longer be valid4 7#b7 ,limitations 7,a7 ,project amount ,the amount of credit that may be allocated under paragraph 7#a7 shall not exceed #aej1jjj1jjj4 7,b7 ,aggregate amount ,the total amount of credits that may be allocated under paragraph 7#a7 shall not exceed #gej1jjj1jjj4 7,c7 ,sunset ,the ,secretary may not allocate any credit dollar amount with respect to any project that commences construction after the date that is #aj years after the date of the enactment of this section4 7#c7 ,review and redistribution 7,a7 ,review ,not later than #d years after the date of enactment of this section1 the ,secretary shall review the credits allocated under this section as of such date4 7,b7 ,redistribution ,the ,secretary may reallocate credits awarded under this section if the ,secretary determines that-- 7i7 there is an insufficient quantity of qualifying applications for certification pending at the time of the review1 or 7ii7 any certification made pursuant to paragraph 7#a7 has been revoked pursuant to paragraph 7#a77;,b7 because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project4 7,c7 ,reallocation ,if the ,secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in subparagraph 7,b71 the ,secretary is authorized to conduct an additional program for applications for certification4 7#d7 ,disclosure of allocations ,the ,secretary shall1 upon making a certification under this subsection1 publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant4 7e7 ,recapture 7#a7 ,in general ,if during the recapture period there is a recapture event1 then the tax imposed by this chapter for the taxable year in which such recapture period ends shall be increased by the sum of-- 7,a7 the aggregate decrease in the credits allowed to the taxpayer under section #ch for all prior taxable years which would have resulted if no credit had been determined under this section with respect to the qualifying infant formula manufacturing project1 plus 7,b7 interest at the underpayment rate established under section #ffba on the amount determined under subparagraph 7,a7 for each prior taxable year for the period beginning on the due date for filing the return for the prior taxable year involved4 7#b7 ,recapture event ,for purposes of this subsection1 the term recapture event means-- 7,a7 a failure by the taxpayer to meet the requirements of the certification made by the taxpayer under subsection 7d77#a77;,a77i71 or 7,b7 any property with respect to which an allocation was made under this section ceases to be eligible property which is part of a qualifying infant formula manufacturing project4 7#c7 ,recapture period ,for purposes of this subsection1 the term recapture period means the #a-year period beginning on the date on which a qualifying infant formula manufacturing project with respect to which an allocation is made under this section is placed in service4 7#d7 ,no deduction for interest ,no deduction shall be allowed under this chapter for interest described in paragraph 7#a77;,b74 7#e7 ,special rules 7,a7 ,tax benefit rule ,the tax for the taxable year shall be increased under paragraph 7#a7 only with respect to credits allowed by reason of this section which were used to reduce tax liability4 ,in the case of credits not so used to reduce tax liability1 the carryforwards and carrybacks under section #ci shall be appropriately adjusted4 7,b7 ,no credits against tax ,any increase in tax under this subsection shall not be treated as a tax imposed by this chapter for purposes of determining the amount of any credit under this chapter or for purposes of section #ee4 7f7 ,coordination with rehabilitation credit ,the qualified investment with respect to any qualifying infant formula manufacturing project for any taxable year shall not include that portion of the basis of any project which is attributable to qualified rehabilitation expenditures 7as defined in section #dg7;c77#b774 7g7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section1 including regulations providing for the appropriate conversion of quantities of liquid concentrate eligible infant formula to pounds of dry eligible formula4 4 7b7 ,inclusion in investment credit ,section #df of such ,code is amended-- 7#a7 in paragraph 7#e7 by striking and at the end1 7#b7 in paragraph 7#f71 by striking the period and inserting 1 and1 and 7#c7 by adding after paragraph 7#f7 the following new paragraph3 7#g7 the domestic infant formula manufacturing investment credit4 4 7c7 ,credit made transferable ,section #fdah7;f77#a7 of such ,code is amended by adding at the end the following new clause3 7xii7 ,the domestic infant formula manufacturing investment credit determined under section #dh;,f4 4 7d7 ,elective payment of credit ,section #fdag7;b7 of such ,code is amended by adding at the end the following new paragraph3 7#ac7 ,the domestic infant formula manufacturing investment credit determined under section #dh;,f4 4 7e7 ,certain nonrecourse financing excluded from credit base ,section #di7;a77#a77;,c7 of such ,code is amended by striking and at the end of clause 7v71 by striking the period at the end of clause 7vi7 and inserting 1 and1 and by adding at the end the following new clause3 7vii7 the basis of any eligible property 7as defined in section #dh;,f7c77#c77 which is part of a qualifying infant formula manufacturing project under section #dh;,f4 4 7f7 ,clerical amendment ,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;,e the following new item3 ,sec4 #dh;,f4 ,domestic infant formula manufacturing investment credit4 4 7g7 ,effective date ,the amendments made by this section shall apply to projects the construction of which commences after the date of the enactment of this ,act4 #c4 ,infant formula production credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de;,,bb4 ,infant formula production credit 7a7 ,in general ,in the case of a qualified taxpayer1 for purposes of section #ch1 the infant formula production credit for any taxable year is an amount equal to the product of-- 7#a7 the amount in pounds 7determined consistent with regulations issued under section #dh;,f7g7 with respect to liquid concentrate7 of eligible infant formula manufactured by such taxpayer and sold for use in the ,united ,states during such taxable year1 multiplied by 7#b7 #b4 7b7 ,qualified taxpayer ,for purposes of this section1 the term qualified taxpayer means1 with respect to a taxable year-- 7#a7 a taxpayer if such taxpayer's total global revenue for the preceding taxable year does not exceed #gej1jjj1jjj1 or 7#b7 a taxpayer to whom a credit was allowed under this section in the preceding taxable year4 7c7 ,eligible infant formula defined ,for purposes of this section1 the term eligible infant formula has the meaning given such term in section #dh;,f4 7d7 ,limitations 7#a7 ,maximum amount of formula ,for purposes of determining the amount of the credit under subsection 7a71 the amount of eligible infant formula determined under subsection 7a7 with respect to any taxable year shall not exceed #ah1jjj1jjj pounds4 7#b7 #e-year limitation ,no credit shall be allowed under subsection 7a7 to a taxpayer for a taxable year unless-- 7,a7 no credit has been allowed to such taxpayer in any prior taxable year1 or 7,b7 such taxable year occurs during the #e taxable year period beginning on the first day of the first taxable year for which a credit was allowed under subsection 7a7 to such taxpayer4 7e7 ,aggregation rules ,for purposes of this section1 all persons which are treated as a single employer under subsections 7a7 and 7b7 of section #eb shall be treated as a single taxpayer4 7f7 ,coordination with investment credit ,infant formula produced at a facility with respect to which a credit was allowed under section #dh;,f shall not be taken into account for purposes of subsection 7a74 4 7b7 ,credit made transferable ,section #fdah7;f77#a7 of such ,code 7as amended by section #b7 is amended by adding at the end the following new clause3 7xiii7 ,the infant formula production credit determined under section #de;,,bb4 4 7c7 ,elective payment of credit ,section #fdag7;b7 of such ,code 7as amended by section #b7 is amended by adding at the end the following new paragraph3 7#ad7 ,the infant formula production credit determined under section #de;,,bb4 4 7d7 ,credit allowed as part of general business credit ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the infant formula production credit determined under section #de;,,bb7a74 4 7e7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #de;,,bb4 ,infant formula production credit4 4 7f7 ,effective date ,the amendments made by this section shall apply to formula manufactured after the date of the enactment of this ,act4