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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10494 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10494

To amend the Internal Revenue Code of 1986 to establish a tax credit to 
     incentivize the purchase of American agricultural commodities.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 18, 2024

 Mr. Kustoff (for himself, Mr. Rouzer, Mr. Alford, Mr. Carey, and Mr. 
    Costa) 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 establish a tax credit to 
     incentivize the purchase of American agricultural commodities.

    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 ``Grown in America Act of 2024''.

SEC. 2. DOMESTICALLY PRODUCED AGRICULTURE CREDIT.

    (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. DOMESTICALLY PRODUCED AGRICULTURE CREDIT.

    ``(a) In General.--For purposes of section 38, the domestically 
produced agriculture credit determined under this section for any 
taxable year is an amount equal to the lesser of--
            ``(1)(A) the product of--
            ``(B) 25 percent of the total agricultural input costs of 
        such taxpayer with respect to such taxable year, multiplied by
            ``(C) the applicable percentage of the taxpayer for the 
        taxable year, or
            ``(2) $100,000,000.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Applicable percentage.--For purposes of this section, 
        the applicable percentage for a taxpayer for any taxable year 
        is an amount (expressed as a percentage) equal to the quotient 
        of--
                    ``(A) the domestic agricultural input costs of such 
                taxpayer for such taxable year, divided by
                    ``(B) the total agricultural input costs of such 
                taxpayer for such taxable year.
            ``(2) Agricultural commodity.--
                    ``(A) In general.--The term `agricultural 
                commodity' means a commodity specified in subparagraph 
                (B) that--
                            ``(i) is marketed for human consumption, or
                            ``(ii) is used in the production or 
                        manufacture of a product marketed for human 
                        consumption.
                    ``(B) Commodities specified.--The commodities 
                described in this subparagraph are--
                            ``(i) The commodities described in 
                        subparagraphs (A), (B) excluding live animals, 
                        (C), and (E) of section 513 of the Federal 
                        Agriculture Improvement and Reform Act of 1996, 
                        and
                            ``(ii) the products of farm-raised fish (as 
                        defined in section 1501 of the Agricultural Act 
                        of 2014).
            ``(3) Domestic agricultural input costs.--The term 
        `domestic agricultural input costs' means any expenses paid or 
        incurred by the taxpayer during any taxable year to purchase 
        agricultural commodities--
                    ``(A) which are produced in the United States, and
                    ``(B) which the taxpayer uses in the course of the 
                trade or business of the taxpayer to produce products--
                            ``(i) in the United States, and
                            ``(ii) sold for human consumption without 
                        further processing
            ``(4) Foreign agricultural input costs.--The term `foreign 
        agricultural input costs' means any expenses paid or incurred 
        by the taxpayer during any taxable year to purchase 
        agricultural commodities--
                    ``(A) which are produced outside the United States, 
                and
                    ``(B) which the taxpayer uses in the course of the 
                trade or business of the taxpayer to produce products--
                            ``(i) in the United States, and
                            ``(ii) sold for human consumption without 
                        further processing
            ``(5) Total agricultural input costs.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `total agricultural input costs' means an amount 
                equal to the sum of domestic agricultural input costs 
                and foreign agricultural input costs of the taxpayer 
                for any taxable year.
                    ``(B) Exception.--The term `total agricultural 
                input costs' shall not include any expenses paid or 
                incurred by the taxpayer during the taxable year to 
                purchase any agricultural commodity identified and 
                listed by the Secretary of Agriculture under section 
                2(c) of the Grown in America Act of 2024.
    ``(c) Ineligibility for Credit.--
            ``(1) In general.--In the case of any taxpayer for which 
        the 3-year average applicable percentage for any taxable year 
        does not exceed the applicable threshold, the amount of the 
        credit allowed under subsection (a) shall be reduced to zero 
        for such taxable year.
            ``(2) Applicable threshold.--For purposes of this 
        subsection, the term `applicable threshold' means--
                    ``(A) in the case of taxable years beginning in 
                2025, 50 percent,
                    ``(B) in the case of taxable years beginning in 
                2026, 55 percent,
                    ``(C) in the case of taxable years beginning in 
                2027, 60 percent,
                    ``(D) in the case of taxable years beginning in 
                2028, 65 percent,
                    ``(E) in the case of taxable years beginning in 
                2029, 70 percent.
                    ``(F) in the case of taxable years beginning in 
                2030, 75 percent,
                    ``(G) in the case of taxable years beginning in 
                2031, 80 percent, and
                    ``(H) in the case of taxable years beginning after 
                December 31, 2031, 85 percent.
            ``(3) 3-year average applicable percentage.--For purposes 
        of this subsection, the term `3-year average applicable 
        percentage' means, with respect to a taxpayer and any taxable 
        year, the amount (expressed as a percentage) equal that is 
        equal to the quotient of--
                    ``(A) the domestic agricultural input costs of such 
                taxpayer for the 3-year period ending on the last day 
                of such taxable year, divided by
                    ``(B) the total agricultural input costs of such 
                taxpayer for such 3-year period.
    ``(d) Cooperative Organizations.--
            ``(1) Apportionment of credit.--In the case of an eligible 
        cooperative organization described in paragraph (4), any 
        portion of the credit determined under subsection (a) for the 
        taxable year may, at the election of the organization, be 
        apportioned among patrons eligible to share in patronage 
        dividends on the basis of the quantity or value of business 
        done with or for such patrons for the taxable year.
            ``(2) Form and effect of election.--An election under 
        subparagraph (A) for any taxable year shall be made on a timely 
        filed return for such year.
            ``(3) Election irrevocable.--An election under subparagraph 
        (A) shall be irrevocable for the taxable year.
            ``(4) Treatment of organizations and patrons.--
                    ``(A) Organizations.--The amount of the credit not 
                apportioned to patrons pursuant to paragraph (1) shall 
                be included in the amount determined under subsection 
                (a) for the taxable year of the eligible cooperative 
                organization.
                    ``(B) Patrons.--The amount of the credit 
                apportioned to patrons pursuant to paragraph (1) shall 
                be included in the amount determined under subsection 
                (a) for the first taxable year of each patron ending on 
                or after the last day of the payment period (as defined 
                in section 1382(d)) for the taxable year of the 
                eligible cooperative organization or, if earlier, for 
                the taxable year of each patron ending on or after the 
                date on which the patron receives notice from such 
                cooperative of the apportionment.
            ``(5) Special rule.--If the amount of the credit of an 
        eligible cooperative organization determined under subsection 
        (a) for a taxable year is less than the amount of such credit 
        shown on the return of the cooperative organization for such 
        year, an amount equal to the excess of--
                    ``(A) such reduction, over
                    ``(B) the amount not apportioned to such patrons 
                under subparagraph (A) for the taxable year,
        shall be treated as an increase in tax imposed by this chapter 
        on such organization. Such increase shall not be treated as a 
        tax imposed by this chapter for purposes of determining the 
        amount of any credit under this chapter.
            ``(6) Eligible cooperative organization.--For purposes of 
        this subsection, the term `eligible cooperative organization' 
        has the meaning given to the term `specified agricultural or 
        horticultural cooperative' in section 199A(g)(4).
    ``(e) Aggregation Rule.--All persons which are treated as a single 
employer under subsections (a) and (b) of section 52 shall be treated 
as a single taxpayer for purposes of this section.
    ``(f) Regulations.--The Secretary may prescribe such regulations 
and other guidance as may be necessary or appropriate to carry out this 
section.''.
    (b) Credit Allowed as Part of General Business Credit.--
            (1) In general.--Section 38(b) of such Code is amended by 
        striking ``plus'' at the end of paragraph (32), by striking the 
        period at the end of paragraph (33) and inserting ``, plus'', 
        and by adding at the end the following new paragraph:
            ``(34) the domestically produced agriculture credit 
        determined under section 45U(a).''.
            (2) Limitations.--Section 38(c) of such Code is amended by 
        adding at the end the following new paragraph:
            ``(7) Special rules for domestically produced agriculture 
        credit.--In the case of the portion of the credit determined 
        under subsection (a) which is attributable to the domestically 
        produced agriculture credit determined under section 45BB--
                    ``(A) this section and section 39 shall be applied 
                separately with respect to such credit,
                    ``(B) in applying paragraph (1) to such credit--
                            ``(i) for purposes of subparagraph (A) 
                        thereof, the tentative minimum tax shall be 
                        treated as being zero,
                            ``(ii) for purposes of subparagraph (B) 
                        thereof, such subparagraph shall be applied--
                                    ``(I) by substituting `50 percent' 
                                for `25 percent', and
                                    ``(II) by substituting `$0' for 
                                `$25,000', and
                            ``(iii) the limitation under paragraph (1) 
                        (as modified by clause (ii)) shall be reduced 
                        by the credit allowed under subsection (a) for 
                        the taxable year (other than the domestically 
                        produced agriculture credit), and
                    ``(C) with respect to the application of section 
                39, subsection (a) of such section shall be applied--
                            ``(i) in paragraphs (1)(B) and (2)(B) 
                        thereof, by substituting `10 taxable years' for 
                        `20 taxable years' each place it appears, and
                            ``(ii) in paragraph (2)(A), by substituting 
                        `11 taxable years' for `21 taxable years'.''.
    (c) Domestically Unavailable Agricultural Commodities.--For 
purposes of section 45BB of such Code, the Secretary of Agriculture 
shall establish and maintain a list that identifies, with respect to 
each calendar year beginning after the date of enactment of this Act, 
the agricultural commodities (as defined in subsection (b)(2) of such 
section) that cannot feasibly be produced, grown, or raised 
domestically during such calendar year.
    (d) 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. Domestically produced agriculture credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.
                                 <all>
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