Investment for America Act

Summary: Investment for America Act - Amends the Internal Revenue Code to reinstate a ten percent investment tax credit for domestic property placed in service after December 31, 1992.  Defines domestic property as property completed in the United States and at least 60 percent of the basis of the property is attributable to value added within the United States. 
Allows a tax credit for seven percent of the aggregate amount paid for the purchase of domestic durable goods.  Limits such credit to $1,000. 
Permits a tax credit equal to qualified payments made for the purchase of an American automobile.  Defines "qualified payments" as State or local sales tax imposed on the purchase of the automobile and interest on the automobile loan. 
Prohibits a product from bearing a label which suggests that it was made in America unless:  (1) the product has been registered with the Department of Commerce; and (2) the Secretary of Commerce has determined that 60 percent of the product was manufactured in, and final assembly took place in, the United States. 
Requires the registry of American-made products with the Department of Commerce. 
Prescribes penalties for the fraudulent use of labels.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Investment for America Act''.

SEC. 2. REINSTATEMENT OF 10-PERCENT DOMESTIC 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 domestic investment credit.''
    (b) Amount of Credit.--Section 48 of such Code is amended by adding 
at the end thereof the following new subsection:
    ``(c) Domestic Investment Credit.--
            ``(1) In general.--For purposes of section 46, the domestic 
        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 domestic section 38 property 
                        placed in service by the taxpayer during such 
                        taxable year, plus
                            ``(ii) the applicable percentage of the 
                        cost of each used domestic section 38 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) Domestic section 38 property.--For purposes of this 
        subsection, the term `domestic section 38 property' means any 
        section 38 property if--
                    ``(A) the property was completed in the United 
                States, and
                    ``(B) at least 60 percent of the basis of the 
                property is attributable to value added within the 
                United States.
        For purposes of the preceding sentence, the term `United 
        States' includes the Commonwealth of Puerto Rico and the 
        possessions of the United States.
            ``(4) Section 38 property.--For purposes of this 
        subsection, the term `section 38 property' means--
                    ``(A) tangible personal property (other than an air 
                conditioning or heating unit), or
                    ``(B) other tangible property (not including a 
                building and its structural components) but only if 
                such property--
                            ``(i) is used as an integral part of 
                        manufacturing, production, or extraction or of 
                        furnishing transportation, communications, 
                        electrical energy, gas, water, or sewage 
                        disposal services, or
                            ``(ii) constitutes a research facility used 
                        in connection with any of the activities 
                        referred to in clause (i), or
                            ``(iii) constitutes a facility used in 
                        connection with any of the activities referred 
                        to in clause (i) for the bulk storage of 
                        fungible commodities (including commodities in 
                        a liquid or gaseous state), or
                    ``(C) elevators and escalators, but only if--
                            ``(i) the construction, reconstruction, or 
                        erection of the elevator or escalator is 
                        completed by the taxpayer, or
                            ``(ii) the original use of such elevator or 
                        escalator commences with the taxpayer, or
                    ``(D) single purpose agricultural or horticultural 
                structures; or
                    ``(E) a storage facility (not including a building 
                and its structural components) used in connection with 
                the distribution of petroleum or any primary product of 
                petroleum.
        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.
            ``(5) 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.
            ``(6) Certain progress expenditure rules made applicable.--
        Rules similar to rules of subsection (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) 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 domestic 
                        section 38 property and the cost of any used 
                        domestic section 38 property.''
            (2) Subparagraph (E) of section 50(a)(2) of such Code is 
        amended by inserting ``or 48(c)(6)'' 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 domestic section 38 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.''
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 1994, 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).

SEC. 3. CREDIT FOR PURCHASES OF DOMESTIC DURABLE GOODS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 22 the 
following new section:

``SEC. 23. PURCHASES OF DOMESTIC DURABLE GOODS.

    ``(a) General Rule.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to 7 percent of the aggregate amount paid 
during the taxable year for the purchase of domestic durable goods.
    ``(b) Domestic Durable Goods.--For purposes of this section--
            ``(1) In general.--The term `domestic durable good' means 
        any durable good if--
                    ``(A) the property was completed in the United 
                States, and
                    ``(B) at least 60 percent of the basis of the 
                property is attributable to value added within the 
                United States.
            ``(2) United states.--The term `United States' includes the 
        Commonwealth of Puerto Rico and the possessions of the United 
        States.
    ``(c) Limitation.--The amount of the credit allowed under 
subsection (a) for any taxable year shall not exceed $1,000.''
    (b) Conforming Amendment.--The table of sections for such subpart A 
is amended by inserting after the item relating to section 22 the 
following new item:

                              ``Sec. 23. Purchases of domestic durable 
                                        goods.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

SEC. 4. CREDIT FOR CERTAIN COSTS INCURRED IN PURCHASING AN AMERICAN-
              MADE PASSENGER VEHICLE.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 23 (as added by 
section 3 of this Act) the following new section:

``SEC. 24. CERTAIN COSTS INCURRED IN PURCHASING AN AMERICAN-MADE 
              PASSENGER VEHICLE.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the qualified payments made by the 
taxpayer during such year.
    ``(b) Qualified Payments.--For purposes of this section, the term 
`qualified payments' means any payment of--
            ``(1) any State or local sales tax imposed on the purchase 
        by the taxpayer of any qualified automobile, and
            ``(2) any interest on any loan which is secured by a 
        qualified automobile and which was incurred by the taxpayer to 
        purchase such automobile.
    ``(c) Qualified Automobile.--For purposes of this section, the term 
`qualified automobile' means any automobile (as defined in section 
4064(b))--
            ``(1) which is purchased after December 31, 1994,
            ``(2) which is domestically produced,
            ``(3) the original use of which begins with the taxpayer, 
        and
            ``(4) substantially all of the use of which is for 
        personal, nonbusiness purposes.
For purposes of the preceding sentence, an automobile is domestically 
produced if more than 60 percent of the automobile is produced in the 
United States and its final assembly occurs in the United States.
    ``(d) Denial of Double Benefit.--No deduction or credit shall be 
allowed under any other provision of this title for any payment for 
which a credit is allowable under this section.''
    (b) Clerical Amendment.--The table of sections for such subpart A 
is amended by inserting after the item relating to section 23 the 
following new item:

                              ``Sec. 24. Certain costs incurred in 
                                        purchasing an American-made 
                                        passenger vehicle.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 1994.

SEC. 5. PLACEMENT OF MADE IN AMERICA LABELS ON PRODUCTS.

    (a) Requirements for Use of Labels.--No product may bear a label 
which states or suggests that the product was made in America unless--
            (1) the product has been registered with the Department of 
        Commerce under subsection (b); and
            (2) the Secretary of Commerce has determined that--
                    (A) 60 percent of the product was manufactured in 
                the United States; and
                    (B) final assembly of the product took place in the 
                United States.
    (b) Registry of American-Made Products.--Not later than 12 months 
after the Secretary has promulgated regulations regarding the 
registration of products with the Department of Commerce under this 
section, a person shall register with the Department of Commerce any 
product on which there is or will be affixed a label which states or 
suggests that the product was made in America.
    (c) Penalties for Fraudulent Use of Labels.--
            (1) Civil fine.--Any person who, with an intent to defraud 
        or mislead, places on a product a label which states or 
        suggests that the product was ``made in America'' in violation 
        of this section may be assessed a civil penalty by the 
        Secretary of not more than $100,000. The Secretary may issue an 
        order assessing such civil penalty only after notice and an 
        opportunity for an agency hearing on the record. The validity 
        of such order may not be reviewed in an action to collect such 
        civil penalty.
            (2) Injunctive relief.--The Secretary may bring an action 
        to enjoin the violation of, or to compel compliance with, this 
        section, whenever the Secretary believes that such a violation 
        has occurred or is about to occur.
    (d) Regulations.--Not later than 12 months after the date of the 
enactment of this Act, the Secretary shall promulgate regulations 
establishing procedures under which a person shall register a product 
under this section.
    (e) Definitions.--For purposes of this section:
            (1) Label.--The term ``label'' means any written, printed, 
        or graphic matter on, or attached to, a product or any of its 
        containers or wrappers.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.