To amend the Internal Revenue Code of 1986 to restore the regular investment tax credit for domestically produced property.

Amends the Internal Revenue Code to repeal provisions which terminated the regular percentage used in determining the investment tax credit for general business property. Revises provisions concerning property that is completed abroad or is predominantly of foreign origin.

 
HR 3841 IH
101st CONGRESS
1st Session
 H. R. 3841
To amend the Internal Revenue Code of 1986 to restore the regular investment
tax credit for domestically produced property.
IN THE HOUSE OF REPRESENTATIVES
November 21, 1989
Mr. TAYLOR introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to restore the regular investment
tax credit for domestically produced property.
  Be it enacted by the Senate and House of Representatives of the United States
  of America in Congress assembled, That (a) section 49 of the Internal
  Revenue Code of 1986 (relating to termination of regular percentage)
  is hereby repealed.
  (b) Paragraph (7) of section 48(a) of such Code (relating to property
  completed abroad or predominantly of foreign origin) is amended to read
  as follows:
  `(7) PROPERTY COMPLETED ABROAD OR PREDOMINANTLY OF FOREIGN ORIGIN- Property
  shall not be treated as section 38 property if--
  `(A) such property was completed outside the United States, or
  `(B) less than 90 percent of the basis of such property is attributable
  to value added within the United States.
For purposes of this paragraph, the term `United States' includes the
Commonwealth of Puerto Rico and the possessions of the United States.'
  (c) The table of sections for subpart E of part IV of subchapter A of chapter
  1 of such Code is amended by striking the item relating to section 49.
  (d) The amendments made by this section shall apply to property placed in
  service after the date of the enactment of this Act.