[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2571 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 2571
To amend the Internal Revenue Code of 1986 to provide a tax credit for
certain expenses of moving manufacturing equipment from China to the
United States, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
April 10, 2023
Mr. Posey introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to provide a tax credit for
certain expenses of moving manufacturing equipment from China to the
United States, 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 ``Reshoring American Manufacturing Act
of 2023'' or as the ``RAM Act of 2023''.
SEC. 2. CREDIT FOR CERTAIN EXPENSES OF MOVING MANUFACTURING EQUIPMENT
FROM CHINA TO THE UNITED STATES.
(a) In General.--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 new section:
``SEC. 45BB. MANUFACTURING RESHORING CREDIT.
``(a) In General.--For purposes of section 38, the manufacturing
reshoring credit for any taxable year is the applicable percentage of
the eligible reshoring expenses paid or incurred by the taxpayer during
such taxable year.
``(b) Limitation.--The credit determined under subsection (a) with
respect to any taxpayer for any taxable year shall not exceed
$25,000,000.
``(c) Applicable Percentage.--For purposes of this section, the
term `applicable percentage' means--
``(1) in the case of any taxable year beginning in 2023 or
2024, 100 percent,
``(2) in the case of any taxable year beginning in 2025, 80
percent, and
``(3) in the case of any taxable year beginning in 2026, 60
percent.
``(d) Eligible Reshoring Expenses.--For purposes of this section--
``(1) In general.--The term `eligible reshoring expenses'
means, with respect to any taxpayer, amounts paid or incurred
by such taxpayer for the transportation (including any import
duties, fees, or tariffs imposed with respect to such
transportation) of qualified manufacturing equipment from China
to the United States.
``(2) Qualified manufacturing equipment.--The term
`qualified manufacturing equipment' means, with respect to any
taxpayer, manufacturing equipment owned by such taxpayer
which--
``(A) before the transportation referred to in
paragraph (1) was used by such taxpayer to manufacture
tangible property in China, and
``(B) after the transportation referred to in
paragraph (1) is used by such taxpayer to manufacture
tangible property in the United States.
``(e) Recapture.--If any qualified manufacturing equipment with
respect to which a credit was allowed under this section is transported
outside the United States (after transportation to the United States as
described in subsection (d)) during the 3-year period beginning on the
date (after such transportation) on which such property is placed in
service by the taxpayer in the United States, the tax imposed under
this chapter on such taxpayer for the taxable year which includes the
date on which such property is so transported outside the United States
shall be increased by the amount of the credit determined under this
section with respect to such property.
``(f) Special Rules.--
``(1) Denial of double benefit.--Any deduction or credit
allowed under this title (other than this section) with respect
to any eligible reshoring expenses shall be reduced by the
amount of the credit determined under this section.
``(2) Aggregation rule.--For purposes of the dollar
limitation imposed under subsection (b), all members of the
same controlled group of corporations (within the meaning of
section 267(f)) and all persons under common control (within
the meaning of section 52(b) but determined by treating an
interest of more than 50 percent as a controlling interest)
shall be treated as 1 person and such dollar limitation shall
be allocated in such manner as the Secretary may provide.
``(3) Election to not have section apply.--No credit shall
be determined under subsection (a) with respect to any taxpayer
for any taxable year if such taxpayer make an election under
this paragraph (at such time and in such manner as the
Secretary may provide) to have such subsection not apply for
such taxable year.
``(g) Termination.--No credit shall be determined under this
section for any taxable year beginning after December 31, 2026.''.
(b) 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 manufacturing reshoring credit determined under
section 45BB(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45BB. Manufacturing reshoring credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act, in taxable years ending after such date.
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