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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8971 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8971
To amend the Internal Revenue Code of 1986 to allow an investment
credit for certain domestic infant formula manufacturing facilities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 9, 2024
Mr. Nunn of Iowa (for himself and Ms. Houlahan) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Agriculture, 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 Internal Revenue Code of 1986 to allow an investment
credit for certain domestic infant formula manufacturing facilities.
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 ``Investing in New Families And
Newborns Through Tax Credit Act'' or the ``INFANT Tax Credit Act''.
SEC. 2. DOMESTIC INFANT FORMULA MANUFACTURING INVESTMENT CREDIT.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 48E the following new section:
``SEC. 48F. DOMESTIC INFANT FORMULA MANUFACTURING INVESTMENT CREDIT.
``(a) Establishment of Credit.--For purposes of section 46, the
domestic infant formula manufacturing investment credit for any taxable
year is an amount equal to 25 percent of the qualified investment for
such taxable year with respect to any domestic infant formula
manufacturing facility of an eligible taxpayer.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment with respect to any domestic infant
formula manufacturing facility for any taxable year is the
basis of any qualified property placed in service by the
taxpayer during such taxable year which is part of a domestic
infant formula manufacturing facility.
``(2) Qualified property.--
``(A) In general.--For purposes of this subsection,
the term `qualified property' means property--
``(i) which is tangible property,
``(ii) with respect to which depreciation
(or amortization in lieu of depreciation) is
allowable,
``(iii) which is--
``(I) constructed, reconstructed,
or erected by the taxpayer, or
``(II) acquired by the taxpayer if
the original use of such property
commences with the taxpayer, and
``(iv) which is integral to the operation
of the domestic infant formula manufacturing
facility.
``(B) Buildings and structural components.--
``(i) In general.--The term `qualified
property' includes any building or its
structural components which otherwise satisfy
the requirements under subparagraph (A).
``(ii) Exception.--Clause (i) shall not
apply with respect to a building or portion of
a building used for offices, administrative
services, or other functions unrelated to
manufacturing.
``(3) Domestic infant formula manufacturing facility.--For
purposes of this section--
``(A) In general.--The term `domestic infant
formula manufacturing facility' means a facility the
primary purpose of which is the manufacturing of
eligible infant formula.
``(B) Eligible infant formula.--The term `eligible
infant formula' means infant formula that--
``(i) may lawfully be sold in the United
States, and
``(ii) is manufactured in the United
States.
``(4) Coordination with rehabilitation credit; certain
qualified progress expenditures rules made applicable.--Rules
similar to the rules of paragraphs (3) and (4) of section
48D(b) shall apply for purposes of this section.
``(c) Eligible Taxpayer.--
``(1) In general.--For purposes of this section, the term
`eligible taxpayer' means a taxpayer--
``(A) described in section 48D(c), and
``(B) with a total global revenue for the taxable
year which does not exceed $750,000,000.
``(2) Aggregation rules.--For purposes of this paragraph,
all persons which are treated as a single employer under
subsections (a) and (b) of section 52 shall be treated as a
single taxpayer.''.
(b) Elective Payment and Transfer of Credit.--Section 6417 of such
Code is amended--
(1) in subsection (b), by adding at the end the following
new paragraph:
``(13) the domestic infant formula manufacturing investment
credit under section 48F.'', and
(2) in subsection (d)(1)--
(A) in subparagraph (E), by striking ``(C), or
(D)'' each place it appears and inserting ``(C), (D),
or (E)'',
(B) by redesignating subparagraph (E) as
subparagraph (F), and
(C) by inserting after subparagraph (D) the
following new subparagraph:
``(E) Election with respect to domestic infant
formula manufacturing investment credit.--If a taxpayer
other than an entity described in subparagraph (A)
makes an election under this subparagraph with respect
to any taxable year in which such taxpayer has, after
the date of the enactment of this subparagraph, placed
in service qualified property which is part of a
domestic infant formula manufacturing facility (as
defined in section 48F(b)(3)), such taxpayer shall be
treated as an applicable entity for purposes of this
section for such taxable year, but only with respect to
the credit described in subsection (b)(13).''.
(c) Inclusion in Investment Credit.--Section 46 of such Code is
amended in paragraph (6) by striking ``and'', in paragraph (7) by
striking the period and inserting ``, and'', and by adding at the end
the following new paragraph:
``(8) the domestic infant formula manufacturing investment
credit.''.
(d) Clerical Amendment.--The table of sections for subpart E of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 48E the following new
item:
``Sec. 48F. Domestic infant formula manufacturing investment credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to property placed in service after March 1, 2022.
SEC. 3. INFANT FORMULA PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 45BB. INFANT FORMULA PRODUCTION CREDIT.
``(a) In General.--In the case of a qualified taxpayer, for
purposes of section 38, the infant formula production credit for any
taxable year is an amount equal to the product of--
``(1) the amount in pounds of eligible infant formula
manufactured by such taxpayer and sold for use in the United
States during such taxable year, multiplied by
``(2) $1.50.
``(b) Qualified Taxpayer.--For purposes of this section, the term
`qualified taxpayer' means, with respect to a taxable year--
``(1) a taxpayer if such taxpayer's total global revenue
for the preceding taxable year does not exceed $500,000,000, or
``(2) a taxpayer to whom a credit was allowed under this
section in the preceding taxable year.
``(c) Eligible Infant Formula Defined.--For purposes of this
section, the term `eligible infant formula' has the meaning given such
term in section 48F(b)(3)(B).
``(d) Aggregation Rules.--For purposes of this section, all persons
which are treated as a single employer under subsections (a) and (b) of
section 52 shall be treated as a single taxpayer.
``(e) Coordination With Investment Credit.--Infant formula produced
at a facility with respect to which a credit was allowed under section
48F shall not be taken into account for purposes of subsection (a).''.
(b) Credit Made Transferable.--Section 6418(f)(1) of such Code (as
amended by section 2) is amended by adding at the end the following new
clause:
``(xii) The infant formula production
credit determined under section 45BB.''.
(c) Elective Payment of Credit.--Section 6417(b) of such Code (as
amended by section 2) is amended by adding at the end the following new
paragraph:
``(14) The infant formula production credit determined
under section 45BB.''.
(d) Credit Allowed as Part of General Business Credit.--Section
38(b) is amended by striking ``plus'' at the end of paragraph (40), by
striking the period at the end of paragraph (41) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(42) in the case of an eligible taxpayer (as defined in
section 48F), the infant formula production credit determined
under section 45BB(a).''.
(e) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of the Internal Revenue Code of 1986 is amended
by adding at the end the following new item:
``Sec. 45BB. Infant formula production credit.''.
(f) Effective Date.--The amendments made by this section shall
apply to formula manufactured after the date of the enactment of this
Act.
SEC. 4. REPORTS TO CONGRESS.
Not later than 1 year after the date of the enactment of this Act
and annually thereafter, the Secretary of Agriculture shall submit to
Congress a report that includes--
(1) with respect to the year preceding the report, the
number of persons that--
(A) operated a domestic infant formula
manufacturing facility (as defined in section 48F(b)(3)
of the Internal Revenue Code of 1986); and
(B) received funding under a rural development
program of the Department of Agriculture;
(2) a description of any barriers that would prevent a
person that operates such a facility from accessing such
funding and the resources the Secretary requires to address
such barriers; and
(3) an assessment of the impact that domestic infant
formula manufacturing facilities have on the communities in
which such facilities are located.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, 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 Agriculture, 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.
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