117th CONGRESS 1st Session |
To amend the Internal Revenue Code of 1986 to provide incentives for relocating manufacturing to the United States, permanent full expensing for qualified property, and for other purposes.
October 20, 2021
Mr. Roy (for himself, Mr. Weber of Texas, Mr. Cawthorn, Mr. Gosar, Mr. Van Drew, Mrs. Boebert, Mr. Gohmert, Mr. Steube, Mrs. Miller of Illinois, Mr. Bishop of North Carolina, Mr. Good of Virginia, Mrs. Fischbach, and Mr. Budd) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to provide incentives for relocating manufacturing to the United States, permanent full expensing for qualified property, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
This Act may be cited as the “Bring Entrepreneurial Advancements To Consumers Here In North America Act”.
SEC. 2. Tax incentives for relocating manufacturing to the United States.
(a) Accelerated depreciation for nonresidential real property.—Section 168 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
“(n) Accelerated depreciation for nonresidential real property acquired in connection with the relocation of manufacturing to the United States.—
“(1) TREATMENT AS 20-YEAR PROPERTY.—For purposes of this section, qualified nonresidential real property shall be treated as 20-year property.
“(2) APPLICATION OF BONUS DEPRECIATION.—For application of bonus depreciation to qualified nonresidential real property, see subsection (k).
“(3) QUALIFIED NONRESIDENTIAL REAL PROPERTY.—For purposes of this subsection, the term ‘qualified nonresidential real property’ means nonresidential real property placed in service in the United States by a qualified manufacturer if such property is acquired by such qualified manufacturer in connection with a qualified relocation of manufacturing.
“(4) QUALIFIED MANUFACTURER.—For purposes of this subsection, the term ‘qualified manufacturer’ means any person engaged in the trade or business of manufacturing any tangible personal property.
“(5) QUALIFIED RELOCATION OF MANUFACTURING.—For purposes of this subsection—
“(A) IN GENERAL.—The term ‘qualified relocation of manufacturing’ means, with respect to any qualified manufacturer, the relocation of the manufacturing of any tangible personal property from a foreign country to the United States.
“(B) RELOCATION OF PROPERTY NOT REQUIRED.—For purposes of subparagraph (A), manufacturing shall not fail to be treated as relocated merely because property used in such manufacturing was not relocated.
“(C) RELOCATION OF NOT LESS THAN EQUIVALENT PRODUCTIVE CAPACITY REQUIRED.—For purposes of subparagraph (A), manufacturing shall not be treated as relocated unless the property manufactured in the United States is substantially identical to the property previously manufactured in a foreign country and the increase in the units of production of such property in the United States by the qualified manufacturer is not less than the reduction in the units of production of such property in such foreign country by such qualified manufacturer.
“(6) APPLICATION TO POSSESSIONS OF THE UNITED STATES.—For purposes of this subsection, the term ‘United States’ includes any possession of the United States.”.
(b) Exclusion of gain on disposition of property in connection with qualified relocation of manufacturing.—
(1) IN GENERAL.—Part III of subchapter B of chapter 1 of such Code is amended by inserting after section 139H the following new section:
“(a) In general.—In the case of a qualified manufacturer, gross income shall not include gain from the sale or exchange of qualified relocation disposition property.
“(b) Qualified relocation disposition property.—For purposes of this section, the term ‘qualified relocation disposition property’ means any property which—
“(1) is sold or exchanged by a qualified manufacturer in connection with a qualified relocation of manufacturing, and
“(2) was used by such qualified manufacturer in the trade or business of manufacturing any tangible personal property in the foreign country from which such manufacturing is being relocated.
“(c) Other terms.—Terms used in this section which are also used in subsection (n) of section 168 shall have the same meaning when used in this section as when used in such subsection.”.
(2) CLERICAL AMENDMENT.—The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139H the following new item:
(1) ACCELERATED DEPRECIATION.—The amendment made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act.
(2) EXCLUSION OF GAIN.—The amendments made by subsection (b) shall apply to sales and exchanges after the date of the enactment of this Act.
SEC. 2. Permanent full expensing for qualified property.
(a) In general.—Paragraph (6) of section 168(k) of the Internal Revenue Code of 1986 is amended to read as follows:
“(6) APPLICABLE PERCENTAGE.—For purposes of this subsection, the term ‘applicable percentage’ means, in the case of property placed in service (or, in the case of a specified plant described in paragraph (5), a plant which is planted or grafted) after September 27, 2017, 100 percent.”.
(1) Section 168(k) of the Internal Revenue Code of 1986 is amended—
(I) in clause (i)(V), by inserting “and” at the end;
(II) in clause (ii), by striking “clause (ii) of subparagraph (E), and” and inserting “clause (i) of subparagraph (E).”; and
(III) by striking clause (iii);
(aa) by striking subclauses (II) and (III); and
(bb) by redesignating subclauses (IV) through (VI) as subclauses (II) through (IV), respectively;
(II) by striking clause (ii); and
(III) by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively;
(I) in clause (i), by striking “and subclauses (II) and (III) of subparagraph (B)(i)”; and
(II) in clause (ii), by striking “subparagraph (B)(iii)” and inserting “subparagraph (B)(ii)”; and
(I) by striking clause (i); and
(II) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and
(B) in paragraph (5)(A), by striking “planted before January 1, 2027, or is grafted before such date to a plant that has already been planted,” and inserting “planted or grafted”.
(2) Section 460(c)(6)(B) of such Code is amended by striking “which” and all that follows through the period and inserting “which has a recovery period of 7 years or less.”.
(c) Effective date.—The amendments made by this section shall take effect as if included in section 13201 of Public Law 115–97.