RAM Act of 2023

I 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. IN THE HOUSE OF REPRESENTATIVES APRIL 10, 2023 Mr. POSEY introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide a tax credit for certain expenses of moving manufac- turing equipment from China to the United States, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Reshoring American 4 Manufacturing Act of 2023’’ or as the ‘‘RAM Act of 5 2023’’. 6 VerDate Sep 11 2014 02:56 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2571.IH H2571 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2571 IH SEC. 2. CREDIT FOR CERTAIN EXPENSES OF MOVING MAN- 1 UFACTURING EQUIPMENT FROM CHINA TO 2 THE UNITED STATES. 3 (a) IN GENERAL.—Subpart D of part IV of sub- 4 chapter A of chapter 1 of the Internal Revenue Code of 5 1986 is amended by adding at the end the following new 6 section: 7 ‘‘SEC. 45BB. MANUFACTURING RESHORING CREDIT. 8 ‘‘(a) IN GENERAL.—For purposes of section 38, the 9 manufacturing reshoring credit for any taxable year is the 10 applicable percentage of the eligible reshoring expenses 11 paid or incurred by the taxpayer during such taxable year. 12 ‘‘(b) LIMITATION.—The credit determined under sub- 13 section (a) with respect to any taxpayer for any taxable 14 year shall not exceed $25,000,000. 15 ‘‘(c) APPLICABLE PERCENTAGE.—For purposes of 16 this section, the term ‘applicable percentage’ means— 17 ‘‘(1) in the case of any taxable year beginning 18 in 2023 or 2024, 100 percent, 19 ‘‘(2) in the case of any taxable year beginning 20 in 2025, 80 percent, and 21 ‘‘(3) in the case of any taxable year beginning 22 in 2026, 60 percent. 23 ‘‘(d) ELIGIBLE RESHORING EXPENSES.—For pur- 24 poses of this section— 25 VerDate Sep 11 2014 02:56 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2571.IH H2571 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2571 IH ‘‘(1) IN GENERAL.—The term ‘eligible reshoring 1 expenses’ means, with respect to any taxpayer, 2 amounts paid or incurred by such taxpayer for the 3 transportation (including any import duties, fees, or 4 tariffs imposed with respect to such transportation) 5 of qualified manufacturing equipment from China to 6 the United States. 7 ‘‘(2) QUALIFIED MANUFACTURING EQUIP- 8 MENT.—The term ‘qualified manufacturing equip- 9 ment’ means, with respect to any taxpayer, manu- 10 facturing equipment owned by such taxpayer 11 which— 12 ‘‘(A) before the transportation referred to 13 in paragraph (1) was used by such taxpayer to 14 manufacture tangible property in China, and 15 ‘‘(B) after the transportation referred to in 16 paragraph (1) is used by such taxpayer to man- 17 ufacture tangible property in the United States. 18 ‘‘(e) RECAPTURE.—If any qualified manufacturing 19 equipment with respect to which a credit was allowed 20 under this section is transported outside the United States 21 (after transportation to the United States as described in 22 subsection (d)) during the 3-year period beginning on the 23 date (after such transportation) on which such property 24 is placed in service by the taxpayer in the United States, 25 VerDate Sep 11 2014 02:56 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2571.IH H2571 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 2571 IH the tax imposed under this chapter on such taxpayer for 1 the taxable year which includes the date on which such 2 property is so transported outside the United States shall 3 be increased by the amount of the credit determined under 4 this section with respect to such property. 5 ‘‘(f) SPECIAL RULES.— 6 ‘‘(1) DENIAL OF DOUBLE BENEFIT.—Any de- 7 duction or credit allowed under this title (other than 8 this section) with respect to any eligible reshoring 9 expenses shall be reduced by the amount of the cred- 10 it determined under this section. 11 ‘‘(2) AGGREGATION RULE.—For purposes of 12 the dollar limitation imposed under subsection (b), 13 all members of the same controlled group of corpora- 14 tions (within the meaning of section 267(f)) and all 15 persons under common control (within the meaning 16 of section 52(b) but determined by treating an inter- 17 est of more than 50 percent as a controlling inter- 18 est) shall be treated as 1 person and such dollar lim- 19 itation shall be allocated in such manner as the Sec- 20 retary may provide. 21 ‘‘(3) ELECTION TO NOT HAVE SECTION 22 APPLY.—No credit shall be determined under sub- 23 section (a) with respect to any taxpayer for any tax- 24 able year if such taxpayer make an election under 25 VerDate Sep 11 2014 02:56 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2571.IH H2571 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 2571 IH this paragraph (at such time and in such manner as 1 the Secretary may provide) to have such subsection 2 not apply for such taxable year. 3 ‘‘(g) TERMINATION.—No credit shall be determined 4 under this section for any taxable year beginning after De- 5 cember 31, 2026.’’. 6 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI- 7 NESS CREDIT.—Section 38(b) of such Code is amended 8 by striking ‘‘plus’’ at the end of paragraph (40), by strik- 9 ing the period at the end of paragraph (41) and inserting 10 ‘‘, plus’’, and by adding at the end the following new para- 11 graph: 12 ‘‘(42) the manufacturing reshoring credit deter- 13 mined under section 45BB(a).’’. 14 (c) CLERICAL AMENDMENT.—The table of sections 15 for subpart D of part IV of subchapter A of chapter 1 16 of such Code is amended by adding at the end the fol- 17 lowing new item: 18 ‘‘Sec. 45BB. Manufacturing reshoring credit.’’. (d) EFFECTIVE DATE.—The amendments made by 19 this section shall apply to amounts paid or incurred after 20 the date of the enactment of this Act, in taxable years 21 ending after such date. 22 Æ VerDate Sep 11 2014 02:56 Apr 15, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H2571.IH H2571 kjohnson on DSK79L0C42PROD with BILLS