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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8625 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8625
To amend the Harmonized Tariff Schedule of the United States to modify
temporarily certain rates of duty for bicycle manufacturing components,
to establish an electric bicycle production tax credit, to direct the
Secretary of Transportation to establish the U.S. Bicycle and E-Bicycle
Manufacturing Initiative to make loans to support domestic investment
in the manufacturing of bicycles and electric bicycles, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 5, 2024
Mr. Blumenauer introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on Energy
and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Harmonized Tariff Schedule of the United States to modify
temporarily certain rates of duty for bicycle manufacturing components,
to establish an electric bicycle production tax credit, to direct the
Secretary of Transportation to establish the U.S. Bicycle and E-Bicycle
Manufacturing Initiative to make loans to support domestic investment
in the manufacturing of bicycles and electric bicycles, and for other
purposes.
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 ``Domestic Bicycle Production Act''.
SEC. 2. TEMPORARY DUTY SUSPENSION FOR BICYCLE MANUFACTURING COMPONENTS.
(a) In General.--Subchapter III of chapter 99 of the Harmonized
Tariff Schedule of the United States (in the section referred to as the
``HTS'') is amended by inserting the following new heading in numerical
sequence:
`` 9903.87.11 Parts of bicycles Free No change No change ''.
imported for use in
the assembly of
complete bicycles,
under the terms of
U.S. Note 31 to this
subchapter..........
(b) Definition and Applicability.--The U.S. Notes to subchapter III
of chapter 99 of the HTS are amended by adding at the end following:
``31.(a) For purposes of heading 9903.87.11, the term
`parts of bicycles' means parts, accessories, or specific
components that are--
``(i) classified in the tariff provisions described
in subdivision (f) of this note; and
``(ii) imported into the customs territory of the
United States for assembly into complete tricycles or
bicycles, including bicycles without a motor (provided
for in heading 8712.00) and bicycles with an electric
motor (provided for in subheading 8711.60.00).
``(b) For purposes of heading 9903.87.11, the term
`assembly of complete bicycles' means the fitting or joining
together of fabricated components in such a way that amounts to
the substantial transformation of components classifiable as
parts of bicycles under subdivision (a) of this note.
``(c) Any importer claiming entry of parts of bicycles
under heading 9903.87.11 must--
``(i) certify at the time of entry to the
satisfaction of U.S. Customs and Border Protection
(`CBP') that such parts will be used in the assembly of
complete bicycles under subdivision (b) of this note;
and
``(ii) provide appropriate documentation to CBP
upon the completion of final assembly of such bicycles
or at such time as CBP may otherwise establish.
``(d) Parts of bicycles for which entry is claimed under
heading 9903.87.11 shall be excluded from any additional duties
under section 301 of the Trade Act of 1974 (19 U.S.C. 2411) or
any other provision of law based on the classification of such
parts under any of chapters 1 through 97.
``(e) Notwithstanding subdivision (d) of this note, parts
of bicycles may be included in a claim for duty-free entry
under heading 9903.87.11 if such parts are properly classified
in an 8-digit tariff heading or subheading described in
subdivision (f) when such parts are entered on or after the
date on which an additional duty under section 301 of the Trade
Act of 1974 or any other provision of law is no longer
effective.
``(f) The 8-digit tariff headings and subheadings described
in this subdivision are the following:
``3923.50.00
``3926.90.96
``4011.50.00
``4013.20.00
``4908.10.00
``7315.11.00
``7326.90.25
``8501.31.40
``8501.31.50
``8501.31.60
``8507.20.80
``8507.30.80
``8507.50.00
``8507.60.00
``8512.90.40
``8543.70.45
``8714.91.20
``8714.91.30
``8714.91.50
``8714.91.90
``8714.92.10
``8714.92.50
``8714.93.28
``8714.93.35
``8714.93.70
``8714.94.30
``8714.94.90
``8714.95.00
``8714.96.10
``8714.96.50
``8714.96.90
``8714.99.10
``8714.99.50
``8714.99.60
``8714.99.80''.
(c) Procedures.--The Commissioner of U.S. Customs and Border
Protection (herein referred to as the ``Commissioner'') is authorized
to establish appropriate procedures for the administration of this
section and the amendments in subsections (a) and (b) and may require
such information as the Commissioner considers appropriate from any
claimant for duty-free entry under heading 9903.87.11 of the HTS, as
added by subsection (a).
(d) Report.--Not later than five years after the date of the
enactment of this Act, the United States International Trade Commission
shall submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a report
describing the effects of heading 9903.87.11 of the HTS, as added by
subsection (a), and evaluating the contribution and effectiveness of
such heading to the goal of assembling 2,000,000 bicycles annually in
the United States within 5 years after such date of enactment and the
potential of the domestic market to assemble 5,000,000 bicycles
annually in the United States within 10 years after such date of
enactment.
(e) Effective Date.--The amendments made by subsections (a) and (b)
shall apply with respect to goods entered, or withdrawn from warehouse
for consumption, during the period beginning on the date of the
enactment of this Act and ending 10 years after such date of enactment.
SEC. 3. ELECTRIC BICYCLE PRODUCTION CREDIT.
(a) Electric Bicycle Production Credit.--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:
``SEC. 45BB. ELECTRIC BICYCLE PRODUCTION CREDIT.
``(a) In General.--For purposes of section 38, in the case of a
manufacturer of covered electric bicycles, the electric bicycle
production credit for the taxable year is an amount equal to the
applicable percentage of the price for which the manufacturer sells
each covered electric bicycle during such taxable year.
``(b) Applicable Percentage.--For purposes of subsection (a), the
applicable percentage shall be--
``(1) in the case of covered electric bicycles sold in
taxable years beginning after December 31, 2024, and before
January 1, 2032, 20 percent,
``(2) in the case of covered electric bicycles sold in
taxable years beginning after December 31, 2031, and before
January 1, 2033, 15 percent,
``(3) in the case of covered electric bicycles sold in
taxable years beginning after December 31, 2032, and before
January 1, 2034, 10 percent, and
``(4) in the case of covered electric bicycles sold in
taxable years beginning after December 31, 2033, and before
January 1, 2035, 5 percent.
``(c) Definitions.--For purposes of this section--
``(1) Covered electric bicycle.--The term `covered electric
bicycle' means an electric bicycle that is produced
domestically or assembled domestically.
``(2) Electric bicycle defined.--The term `electric
bicycle' has the meaning given such term in section 217(j) of
title 23, United States Code.
``(d) Regulations.--The Secretary shall prescribe such regulations
as may be necessary to carry out this section, including regulations
which establish requirements regarding what constitutes domestic
production and domestic assembly for purposes of the definition in
subsection (c)(1).
``(e) Termination.--This section shall not apply to any taxable
year beginning after December 31, 2034.''.
(b) Electric Bicycle Production Credit Transferability.--Section
6418(f)(1)(A) of the Internal Revenue Code of 1986 is amended by adding
at the end the following:
``(xii) The electric bicycle production
credit determined under section 45BB.''.
(c) Consistency With International Agreements.--The Secretary of
the Treasury shall apply section 45BB of the Internal Revenue Code of
1986, as added by this Act, in a manner consistent with the obligations
of the United States under international agreements.
(d) Conforming Amendments.--Section 38(b) of the Internal Revenue
Code of 1986 is amended--
(1) in paragraph (40), by striking ``plus'';
(2) in paragraph (41), by striking the period and inserting
``, plus''; and
(3) by adding at the end the following:
``(42) the electric bicycle production credit determined
under section 45BB.''.
(e) Clerical Amendment.--The table of sections for part IV of
subchapter A of chapter 1 of such Code is amended by inserting after
the item relating to section 45AA the following new item:
``45BB. Electric bicycle production credit.''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 4. U.S. BICYCLE AND E-BICYCLE MANUFACTURING INITIATIVE.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Transportation shall establish
a program to be known as the ``U.S. Bicycle and E-Bicycle Manufacturing
Initiative'' (hereinafter referred to as the ``Initiative'') to make
loans to businesses (other than non-profit businesses) to support
domestic investment in the manufacturing of bicycles.
(b) Loan Program.--
(1) Interest rate limit.--The interest rate for a loan
under the Initiative may not exceed 1 percent.
(2) Distribution limit.--A business (including businesses
that are subsidiaries of the same parent company) may not
receive more than $50,000,000 in loans under the Initiative.
(c) Loan Application.--
(1) In general.--The Secretary shall make the application
for a loan under the Initiative available not less than
annually, at a time and in such form and manner as the
Secretary considers appropriate.
(2) Expected production target submission.--To be eligible
for a loan under the Initiative, an applicant shall submit
current and 5-year expected production targets with the
application.
(3) Disclosure to the public.--The Secretary shall make
public the name of each applicant and the production targets
submitted pursuant to paragraph (2).
(d) Eligible Uses.--A recipient of a loan under the Initiative may
use loan funds to purchase capital equipment, including--
(1) material handling equipment, including forklifts and
cranes;
(2) air compressors and chillers;
(3) waste (including wastewater) handling equipment;
(4) testing equipment to test for quality standards;
(5) equipment used for recycling;
(6) heat treatment and burn off ovens;
(7) assembly and conveyor lines and related equipment;
(8) equipment used to fabricate bicycles or bicycle parts,
including steel, titanium, magnesium, aluminum, plastic, and
carbon fiber;
(9) machines used to align bicycle frames or bicycle parts;
(10) machines used to prepare bicycle frames, parts, or
materials, for coating;
(11) machines used to paint or powder coat; and
(12) any other capital equipment the Secretary considers
necessary for the domestic manufacturing of bicycles.
(e) Conditions of the Loan.--
(1) Prevailing wage.--A recipient of a loan under the
Initiative shall pay an employee who engages in activities
funded by loan funds at least the prevailing wage, in the same
manner as under section 3142(b) of title 40, United States
Code, for the life of the loan.
(2) Assembly output requirement.--If, not later than 3
years after the date on which loan funds were initially
disbursed to a recipient of a loan under the Initiative, the
recipient is unable to demonstrate to the Secretary an average
of 20,000 bicycles assembled for each $5,000,000 borrowed, or
an equivalent ratio thereof, the recipient may not receive any
additional loan under the Initiative.
(3) Repayment.--In carrying out the Initiative, the
Secretary shall require a recipient of a loan under the
Initiative to--
(A) make monthly repayments for the loan in equal
amounts beginning not later than 1 year after the date
on which loan funds were initially disbursed to the
recipient; and
(B) repay such loan in full not later than 12 years
after the date on which loan funds were initially
disbursed to the recipient.
(f) Collateral.--
(1) In general.--In carrying out the Initiative, the
Secretary shall obtain and maintain a security interest, in an
amount sufficient to cover 100 percent of the amount of the
loan under the Initiative, in the equipment purchased by the
recipient using loan funds disbursed to the recipient.
(2) Priority.--Any security interest obtained and
maintained by the Secretary pursuant to this subsection shall
be entitled to priority over the claims and rights of any party
(including any receiver, conservator, trustee, or similar party
having rights of a lien creditor) other than claims and rights
that--
(A) would be entitled to priority under otherwise
applicable law; and
(B) are held by bona fide purchasers for value or
by secured parties that are secured by perfected
security interests.
(g) Reporting Requirement.--The Secretary shall submit to Congress
an annual report detailing current and expected future domestic bicycle
production rates and the share of the global bicycle production market
for which domestic bicycle producers are responsible.
(h) Authorization of Appropriations.--There is authorized to be
appropriated for the purpose of carrying out the Initiative the
following:
(1) $80,000,000 per year for the first 3 full fiscal years
following the date of the enactment of this Act.
(2) $100,000,000 per year in full fiscal years 4 through 7
following the date of the enactment of this Act.
(3) $120,000,000 per year in full fiscal years 8 through 10
following the date of the enactment of this Act.
(i) Bicycle Defined.--In this section, the term ``bicycle''
includes an electric bicycle (as defined in section 217(j) of title 23,
United States Code).
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Innovation, Data, and Commerce.
Referred to the Subcommittee on Trade.
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