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H.R.616 - Scaling Up Manufacturing Act of 2013
To amend the Internal Revenue Code of 1986 to allow a credit against tax for qualified manufacturing facility construction costs.
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SECTION 1. SHORT TITLE.
SEC. 2. CREDIT FOR MANUFACTURING FACILITY COSTS.
‘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.CommentsClose CommentsPermalink
‘(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,CommentsClose CommentsPermalink
‘(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).CommentsClose CommentsPermalink
‘(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), andCommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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--CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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’)--CommentsClose CommentsPermalink
‘(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.CommentsClose CommentsPermalink
‘(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.’.CommentsClose CommentsPermalink
‘(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).’.CommentsClose CommentsPermalink
(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:CommentsClose CommentsPermalink
(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:CommentsClose CommentsPermalink