Scaling Up Manufacturing Act of 2013 - Amends the Internal Revenue Code to allow certain corporations or partnerships that are headquartered in the United States a tax credit for up to 25% of their costs for the construction of a manufacturing facility and for the purchase of specialized equipment for use at such facility.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 616 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 616
To amend the Internal Revenue Code of 1986 to allow a credit against
tax for qualified manufacturing facility construction costs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 12, 2013
Mr. Honda (for himself and Mr. Carney) 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 allow a credit against
tax for qualified manufacturing facility construction costs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Scaling Up Manufacturing Act of
2013''.
SEC. 2. CREDIT FOR MANUFACTURING FACILITY COSTS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45S. MANUFACTURING FACILITY EXPENDITURES.
``(a) General Rule.--For purposes of section 38, in the case of an
eligible business, the manufacturing facility expenditure credit for
any taxable year is an amount equal to 25 percent of the qualified
facility construction expenditures of the taxpayer for the taxable
year.
``(b) Eligible Business.--For purposes of this section, the term
`eligible business' means any corporation or partnership--
``(1) which is engaged in an active trade or business,
``(2) which is headquartered in the United States,
``(3) substantially all of the management or administrative
activities of which are performed in the United States,
``(4) which has not (prior to placing into service the
manufacturing facility designated for purposes of this section)
placed in service a dedicated commercial manufacturing
facility,
``(5) with respect to which all debt obligations issued by,
and equity interests in, have a rating of B minus (or its
substantial equivalent) or higher from a credit rating agency
registered with the Securities and Exchange Commission as a
nationally recognized statistical rating organization (as
defined in section 3(a) of the Securities Exchange Act of
1934).
``(c) Qualified Facility Construction Expenditures.--For purposes
of this section--
``(1) In general.--The term `qualified facility
construction expenditures' means amounts paid or incurred by
the taxpayer--
``(A) for the construction of a facility
(designated for purposes of this section by the
taxpayer at such time and in such form and manner as
the Secretary shall prescribe) in the United States to
manufacture a qualified product (including amounts for
professional services necessary for the planning of
such construction), and
``(B) for the purchase of specialized equipment for
use at such facility and required for the manufacture
of such product.
``(2) Qualified product.--The term `qualified product'
means any product which, prior to construction of the facility
with respect to which a credit is allowed under this section,
the taxpayer has produced and sold to a bona fide purchaser,
and such purchaser has placed such product in service.
``(d) Special Rules.--For purposes of this section--
``(1) Recapture.--
``(A) In general.--If, as of the close of any
taxable year, there is a recapture event with respect
to any facility of the taxpayer with respect to which a
credit was allowed under this section, then the tax of
the taxpayer under this chapter for such taxable year
shall be increased by an amount equal to the product
of--
``(i) the applicable recapture percentage,
and
``(ii) the aggregate decrease in the
credits allowed under section 38 for all prior
taxable years which would have resulted if the
qualified facility construction expenditures of
the taxpayer described in subsection (c)(1)
with respect to such facility had been zero.
``(B) Applicable recapture percentage.--
``(i) In general.--For purposes of this
subsection, the applicable recapture percentage
shall be determined in accordance with the
following table:
``If the recapture event The applicable recapture percentage
occurs in: is:
Year 1............................................. 100
Year 2............................................. 80
Year 3............................................. 60
Year 4............................................. 40
Year 5............................................. 20
Years 6 and thereafter............................. 0.
``(ii) Years.--For purposes of clause (i),
year 1 shall begin on the first day of the
taxable year in which the facility with respect
to which a credit was allowed under this
subsection was placed in service.
``(C) Recapture event.--For purposes of this
paragraph--
``(i) In general.--A recapture event occurs
with respect to any facility if--
``(I) the taxpayer becomes
insolvent, or
``(II) the taxpayer disposes of the
facility to another person who, at this
time of the disposition, is not an
eligible business.
``(ii) Special rule for facilities not
placed in service within 5 years.--In the case
of a facility with respect to which a credit is
allowed under this section which is not placed
in service before the close of the 5th taxable
year beginning after the first taxable year for
which the credit was so allowed, a recapture
event shall be treated as having occurred with
respect to such facility in year 1.
``(2) Credit may be assigned.--The amount of qualified
facility construction expenditures with respect to a facility
which would (but for this paragraph) be taken into account
under subsection (a) for any taxable year by any person
(hereafter in this paragraph referred to as the `initial
taxpayer')--
``(A) may be taken into account by any other person
to whom such expenditures are assigned by the initial
taxpayer, and
``(B) shall not be taken into account by initial
taxpayer.
Any person to whom such expenditures are assigned under
subparagraph (A) shall be treated for purposes of this title as
the taxpayer with respect to such expenditures.
``(3) Controlled group.--All members of the same controlled
group of corporations (within the meaning of section 52(a)) and
all persons under common control (within the meaning of section
52(b)) shall be treated as 1 person for purposes of this
section.
``(4) Predecessor.--Any reference in this section to a
corporation or partnership shall include a reference to any
predecessor of such corporation or partnership.
``(5) Denial of double benefit.--For purposes of this
subtitle, if a credit is allowed under this section in
connection with any expenditure for any property, the basis of
such property shall be reduced by the amount of the credit so
allowed.''.
(b) Denial of Double Benefit.--Section 280C of such Code is amended
by inserting after subsection (h) the following new subsection:
``(i) Manufacturing Facility Expenditures.--No deduction shall be
allowed for that portion of the expenses otherwise allowable as a
deduction taken into account in determining the credit under section
45S for the taxable year which is equal to the amount of the credit
determined for such taxable year under section 45S(a).''.
(c) Credit To Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code is amended by striking ``plus'' at the end
of paragraph (35), by striking the period at the end of paragraph (36)
and inserting ``, plus'', and by inserting after paragraph (36) the
following:
``(37) manufacturing facility expenditure credit determined
under section 45S(a).''.
(d) Conforming Amendment.--Subsection (a) of section 1016 of such
Code is amended by striking ``and'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(38) to the extent provided in section 45S(d)(2).''.
(e) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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