Investment Tax Credit Act of 1993

Summary: Investment Tax Credit Act of 1993 - Amends the Internal Revenue Code to reinstate the ten-percent investment tax credit for property used as an integral part of manufacturing, production, or extraction or of furnishing transportation, communications, electrical energy, gas, water, waste disposal, or pollution control services. Allows such tax to offset 100 percent of a C corporation's minimum tax.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Investment Tax Credit Act of 1993''.

SEC. 2. INVESTMENT TAX CREDIT.

    (a) Allowance of Credit.--Section 46 of the Internal Revenue Code 
of 1986 (relating to amount of investment credit) is amended by 
striking ``and'' at the end of paragraph (2), by striking the period at 
the end of paragraph (3) and inserting ``, and'', and by adding at the 
end thereof the following new paragraph:
            ``(4) the general investment credit.''
    (b) Amount of Credit.--Section 48 of such Code is amended by adding 
at the end thereof the following new subsection:
    ``(c) General Investment Credit.--
            ``(1) In general.--For purposes of section 46, the general 
        investment credit for any taxable year is an amount equal to 10 
        percent of the qualified investment for such taxable year.
            ``(2) Qualified investment.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the qualified investment for any taxable year is the 
                aggregate of--
                            ``(i) the applicable percentage of the 
                        basis of each new qualified investment tax 
                        credit property placed in service by the 
                        taxpayer during such taxable year, plus
                            ``(ii) the applicable percentage of the 
                        cost of each used qualified investment tax 
                        credit property placed in service by the 
                        taxpayer during such taxable year.
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage for any 
                property shall be determined under paragraphs (2) and 
                (7) of section 46(c) (as in effect on the day before 
                the date of the enactment of the Revenue Reconciliation 
                Act of 1990).
                    ``(C) Certain rules made applicable.--The 
                provisions of subsections (b) and (c) of section 48 (as 
                in effect on the day before the date of the enactment 
                of the Revenue Reconciliation Act of 1990) shall apply 
                for purposes of this paragraph.
            ``(3) Qualified investment tax credit property.--The term 
        `qualified investment tax credit property' means tangible 
        property (other than a building, its structural components, or 
        an air conditioning or heating unit), but only if such 
        property--
                    ``(A) is used as an integral part of manufacturing, 
                production (including agriculture), or extraction or of 
                furnishing transportation, communications, electrical 
                energy, gas, water, waste disposal, or pollution 
                control services,
                    ``(B) constitutes a research facility or research 
                equipment used in connection with any of the activities 
                referred to in subparagraph (A), or
                    ``(C) constitutes a facility used in connection 
                with any of the activities referred to in subparagraph 
                (A) for the bulk storage of fungible commodities 
                (including commodities in a liquid or gaseous state).
        Such term includes only property to which section 168 applies 
        without regard to any useful life and any other property with 
        respect to which depreciation (or amortization in lieu of 
        depreciation) is allowable and having a useful life (determined 
        as of the time such property is placed in service) of 3 years 
        or more.
            ``(4) Coordination with other credits.--This subsection 
        shall not apply to any property to which the energy credit or 
        rehabilitation credit would apply unless the taxpayer elects to 
        waive the application of such credits to such property.
            ``(5) Certain progress expenditure rules made applicable.--
        Rules similar to rules of subsections (c)(4) and (d) of section 
        46 (as in effect on the day before the date of the enactment of 
        the Revenue Reconciliation Act of 1990) shall apply for 
        purposes of this subsection.''
    (c) Credit Allowed Against Minimum Tax.--Section 38(c) of such Code 
is amended by redesignating paragraph (2) as paragraph (3) and 
inserting after paragraph (1) the following new paragraph:
            ``(2) New investment tax credit may offset 100 percent of 
        minimum tax.--
                    ``(A) In general.--In the case of a C corporation, 
                the amount determined under paragraph (1)(A) shall be 
                reduced (but not below zero) by the lesser of--
                            ``(i) the portion of the new investment tax 
                        credit not used against the regular limitation, 
                        or
                            ``(ii) 100 percent of the taxpayer's 
                        tentative minimum tax for the taxable year.
                    ``(B) Portion of new investment tax credit not used 
                against regular limit.--For purposes of subparagraph 
                (A), the portion of the new investment tax credit for 
                any taxable year not used against the regular 
                limitation is the excess (if any) of--
                            ``(i) the portion of the credit under 
                        subsection (a) which is attributable to the 
                        application of the general investment credit 
                        under section 48(c), over
                            ``(ii) the limitation of paragraph (1) 
                        (determined without regard to this paragraph) 
                        reduced by the portion of the credit under 
                        subsection (a) which is not so attributable.
                    ``(C) Limitation.--In no event shall this paragraph 
                permit the allowance of a credit which would result in 
                a net chapter 1 tax less than an amount equal to 10 
                percent of the amount determined under section 
                55(b)(1)(A) without regard to the alternative tax net 
                operating loss deduction. For purposes of the preceding 
                sentence, the term `net chapter 1 tax' means the sum of 
                the regular tax liability for the taxable year and the 
                tax imposed by section 55 for the taxable year, reduced 
                by the sum of the credits allowable under this part for 
                the taxable year (other than under section 34).''
    (d) Technical Amendments.--
            (1) Subparagraph (C) of section 49(a)(1) of such Code is 
        amended by striking ``and'' at the end of clause (ii), by 
        striking the period at the end of clause (iii) and inserting 
        ``, and'', and by adding at the end thereof the following new 
        clause:
                            ``(iv) the basis of any new qualified 
                        investment tax credit property and the cost of 
                        any used qualified investment tax credit 
                        property.''
            (2) Subparagraph (E) of section 50(a)(2) of such Code is 
        amended by inserting ``or 48(c)(5)'' before the period at the 
        end thereof.
            (3) Paragraph (5) of section 50(a) of such Code is amended 
        by adding at the end thereof the following new subparagraph:
                    ``(D) Special rules for certain property.--In the 
                case of any qualified investment tax credit property 
                which is 3-year property (within the meaning of section 
                168(e))--
                            ``(i) the percentage set forth in clause 
                        (ii) of the table contained in paragraph (1)(B) 
                        shall be 66 percent,
                            ``(ii) the percentage set forth in clause 
                        (iii) of such table shall be 33 percent, and
                            ``(iii) clauses (iv) and (v) of such table 
                        shall not apply.''
            (4)(A) The section heading for section 48 of such Code is 
        amended to read as follows:

``SEC. 48. OTHER CREDITS.''

            (B) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the item relating to section 48 and inserting the following:

                              ``Sec. 48. Other credits.''
    (e) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 1992, under rules similar to the 
rules of section 48(m) of the Internal Revenue Code of 1986 (as in 
effect on the day before the date of the enactment of the Revenue 
Reconciliation Act of 1990).