Infant Formula Made in America Act of 2024
This bill allows a 30% investment tax credit for infant formula that is lawfully sold and manufactured in the United States. It also allows a domestic production tax credit for such infant formula.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4005 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4005
To amend the Internal Revenue Code of 1986 to allow an investment
credit for certain domestic infant formula manufacturing projects and
to allow a domestic production credit for certain infant formula.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 20, 2024
Mr. Casey (for himself and Mr. Heinrich) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow an investment
credit for certain domestic infant formula manufacturing projects and
to allow a domestic production credit for certain infant formula.
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 ``Infant Formula Made in America Act
of 2024''.
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) In General.--For purposes of section 46, in the case of an
eligible taxpayer, the domestic infant formula manufacturing credit for
any taxable year is an amount equal to 30 percent of the qualified
investment for such taxable year.
``(b) Qualified Investment.--
``(1) In general.--For purposes of this section, 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 project.
``(2) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(3) 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 credit.
``(c) Definitions.--For purposes of this section--
``(1) Eligible taxpayer.--
``(A) In general.--For purposes of this section,
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 (d)(1)(A) does
not exceed $750,000,000.
``(B) 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.
``(2) Qualifying infant formula manufacturing project.--The
term `qualifying infant formula manufacturing project' means a
project, any portion of the qualified investment of which is
certified by the Secretary under subsection (d) as eligible for
a credit under this section, which re-equips, expands, or
establishes a facility for the manufacture of eligible infant
formula.
``(3) Eligible property.--The term `eligible property'
means any property--
``(A) which is necessary for the manufacture of
eligible infant formula,
``(B) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not
including a building or its structural
components), but only if such property is used
as an integral part of a facility described in
paragraph (2), and
``(C) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable.
``(4) Eligible infant formula.--The term `eligible infant
formula' means infant formula that--
``(A) may lawfully be sold in the United States,
and
``(B) is manufactured in the United States.
``(d) Certification.--
``(1) In general.--
``(A) Establishment.--Not later than 180 days after
the date of the enactment of this section, 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 projects.
``(B) Application period.--Each applicant for
certification under this paragraph shall submit an
application--
``(i) certifying that not less than 50
percent of the eligible infant formula
manufactured using the eligible property to
which such application relates during the 1-
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 States, and
``(ii) containing such information as the
Secretary shall require.
``(C) Time to meet criteria for certification.--
Each applicant for certification shall have 1 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 met.
``(D) Period of issuance.--An applicant which
receives a certification shall have 3 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 period, then the
certification shall no longer be valid.
``(2) Limitations.--
``(A) Project amount.--The amount of credit that
may be allocated under paragraph (1) shall not exceed
$150,000,000.
``(B) Aggregate amount.--The total amount of
credits that may be allocated under paragraph (1) shall
not exceed $750,000,000.
``(C) Sunset.--The Secretary may not allocate any
credit dollar amount with respect to any project that
commences construction after the date that is 10 years
after the date of the enactment of this section.
``(3) Review and redistribution.--
``(A) Review.--Not later than 4 years after the
date of enactment of this section, the Secretary shall
review the credits allocated under this section as of
such date.
``(B) Redistribution.--The Secretary may reallocate
credits awarded under this section if the Secretary
determines that--
``(i) there is an insufficient quantity of
qualifying applications for certification
pending at the time of the review, or
``(ii) any certification made pursuant to
paragraph (1) has been revoked pursuant to
paragraph (1)(B) because the project subject to
the certification has been delayed as a result
of third party opposition or litigation to the
proposed project.
``(C) Reallocation.--If the Secretary determines
that credits under this section are available for
reallocation pursuant to the requirements set forth in
subparagraph (B), the Secretary is authorized to
conduct an additional program for applications for
certification.
``(4) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection, publicly disclose
the identity of the applicant and the amount of the credit with
respect to such applicant.
``(e) Recapture.--
``(1) In general.--If during the recapture period there is
a recapture event, then the tax imposed by this chapter for the
taxable year in which such recapture period ends shall be
increased by the sum of--
``(A) the aggregate decrease in the credits allowed
to the taxpayer under section 38 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 project, plus
``(B) interest at the underpayment rate established
under section 6621 on the amount determined under
subparagraph (A) for each prior taxable year for the
period beginning on the due date for filing the return
for the prior taxable year involved.
``(2) Recapture event.--For purposes of this subsection,
the term `recapture event' means--
``(A) a failure by the taxpayer to meet the
requirements of the certification made by the taxpayer
under subsection (d)(1)(A)(i), or
``(B) 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 project.
``(3) Recapture period.--For purposes of this subsection,
the term `recapture period' means the 1-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 service.
``(4) No deduction for interest.--No deduction shall be
allowed under this chapter for interest described in paragraph
(1)(B).
``(5) Special rules.--
``(A) Tax benefit rule.--The tax for the taxable
year shall be increased under paragraph (1) only with
respect to credits allowed by reason of this section
which were used to reduce tax liability. In the case of
credits not so used to reduce tax liability, the
carryforwards and carrybacks under section 39 shall be
appropriately adjusted.
``(B) 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 55.
``(f) 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 (as defined in section 47(c)(2)).
``(g) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section, including regulations providing for the
appropriate conversion of quantities of liquid concentrate eligible
infant formula to pounds of dry eligible formula.''.
(b) 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.''.
(c) Credit Made Transferable.--Section 6418(f)(1) of such Code is
amended by adding at the end the following new clause:
``(xii) The domestic infant formula
manufacturing investment credit determined
under section 48F.''.
(d) Elective Payment of Credit.--Section 6417(b) of such Code is
amended by adding at the end the following new paragraph:
``(13) The domestic infant formula manufacturing investment
credit determined under section 48F.''.
(e) Certain Nonrecourse Financing Excluded From Credit Base.--
Section 49(a)(1)(C) of such Code is amended by striking ``and'' at the
end of clause (vii), by striking the period at the end of clause (viii)
and inserting ``, and'', and by adding at the end the following new
clause:
``(ix) the basis of any eligible property
(as defined in section 48F(c)(3)) which is part
of a qualifying infant formula manufacturing
project under section 48F.''.
(f) 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.''.
(g) 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 Act.
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 (determined consistent with
regulations issued under section 48F(g) with respect to liquid
concentrate) of eligible infant formula manufactured by such
taxpayer and sold for use in the United States during such
taxable year, multiplied by
``(2) $2.
``(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 $750,000,000, 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.
``(d) Limitations.--
``(1) Maximum amount of formula.--For purposes of
determining the amount of the credit under subsection (a), the
amount of eligible infant formula determined under subsection
(a) with respect to any taxable year shall not exceed
18,000,000 pounds.
``(2) 5-year limitation.--No credit shall be allowed under
subsection (a) to a taxpayer for a taxable year unless--
``(A) no credit has been allowed to such taxpayer
in any prior taxable year, or
``(B) such taxable year occurs during the 5 taxable
year period beginning on the first day of the first
taxable year for which a credit was allowed under
subsection (a) to such taxpayer.
``(e) 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.
``(f) 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:
``(xiii) 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) of such Code 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) 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.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line