I 

118TH CONGRESS 

2D SESSION H. R. 7458 

To amend the Internal Revenue Code of 1986 to establish the Made in 

the U.S.A. tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 26, 2024 

Mr. KHANNA (for himself, Mr. GRIJALVA, and Mr. KRISHNAMOORTHI) 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 

the Made in the U.S.A. tax credit. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Made in the U.S.A. 

5 Act’’. 

6 SEC. 2. MADE IN THE USA TAX CREDIT. 

7 (a) IN GENERAL.—Subpart C of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 is amended by inserting after section 36C the fol10 lowing new section: 


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1 ‘‘SEC. 36D. MADE IN THE USA TAX CREDIT. 

2 ‘‘(a) IN GENERAL.—In the case of an eligible tax3 payer, there shall be allowed as a credit against the tax 

4 imposed by this subtitle for any taxable year an amount 

5 equal to so much of 30 percent of the qualified expendi6 tures of the taxpayer during the taxable year as does not 

7 exceed $2,500 (twice such amount in the case of a married 

8 couple filing jointly). 

9 ‘‘(1) in the case of a joint return, $5,000, or 

10 ‘‘(2) in the case of any other taxpayer, $2,500. 

11 ‘‘(b) ELIGIBLE TAXPAYER.—For purposes of this 

12 section, the term ‘eligible taxpayer’ means an individual 

13 who cannot be claimed as a dependent whose— 

14 ‘‘(1) adjusted gross income does not exceed— 

15 ‘‘(A) $250,000 in the case of a joint re16 turn, or 

17 ‘‘(B) $125,000 in the case of any other 

18 taxpayer, and 

19 ‘‘(2) capital gain net income for the taxable 

20 year does not exceed— 

21 ‘‘(A) $40,000 in the case of a joint return, 

22 or 

23 ‘‘(B) $20,000 in the case of any other tax24 payer. 

25 ‘‘(c) QUALIFIED EXPENDITURES.— 


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1 ‘‘(1) IN GENERAL.—For purposes of this sec2 tion, the term ‘qualified expenditures’ means so 

3 much of the purchase price of the price of a tangible 

4 product as does not exceed $500 if such product— 

5 ‘‘(A) may be labeled as Made in the United 

6 States in accordance with section 323.2 of title 

7 16, Code of Federal Regulations (or any suc8 cessor regulation), and 

9 ‘‘(B) is not— 

10 ‘‘(i) a firearm, 

11 ‘‘(ii) ammunition, 

12 ‘‘(iii) alcohol, 

13 ‘‘(iv) tobacco, 

14 ‘‘(v) a vehicle, 

15 ‘‘(vi) gasoline, 

16 ‘‘(vii) a luxury good, 

17 ‘‘(viii) food, or 

18 ‘‘(ix) non-depreciable real property. 

19 ‘‘(2) LUXURY GOOD.—For purposes of this sub20 section, the term ‘luxury good’ means— 

21 ‘‘(A) an item sold to the taxpayer for an 

22 amount that exceeds $2,000, 

23 ‘‘(B) a wrist or pocket watch the case of 

24 which is clad in or made of precious metal, 


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1 ‘‘(C) jewelry containing pearls, gems, pre2 cious and semi-precious stones, or precious met3 als, 

4 ‘‘(D) a fur skin, 

5 ‘‘(E) an item described in subparagraphs 

6 (A) through (D) of section 408(m)(2), 

7 ‘‘(F) a flat screen, plasma, or LCD tele8 vision or display, 

9 ‘‘(G) a television with a screen exceeding 

10 29 inches, 

11 ‘‘(H) a DVD player, 

12 ‘‘(I) a laptop, desktop, or tablet computer, 

13 ‘‘(J) a musical instrument, or 

14 ‘‘(K) a cellular phone. 

15 ‘‘(3) INCREASE IN CREDIT FOR CERTAIN PROD16 UCTS.— 

17 ‘‘(A) IN GENERAL.—In the case of an en18 ergy star product or a climate resilience prod19 uct, paragraph (1) shall be applied by sub20 stituting ‘$1,000’ for ‘$500’. 

21 ‘‘(B) CLIMATE RESILIENCE PRODUCT.— 

22 For purposes of this paragraph, the term ‘cli23 mate resilience product’ means a product with 

24 respect to which amounts paid or incurred by 


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1 the taxpayer to purchase the product would 

2 qualify as amounts paid or incurred for— 

3 ‘‘(i) qualified energy efficiency im4 provements or residential energy property 

5 expenditures under section 25C, deter6 mined without regard to subsection (b) of 

7 such section, or 

8 ‘‘(ii) qualified solar electric property 

9 expenditures, qualified solar water heating 

10 property expenditures, qualified fuel cell 

11 property expenditures, qualified small wind 

12 energy property expenditures, qualified 

13 geothermal heat pump property expendi14 tures, or qualified battery storage tech15 nology expenditures under section 25D, de16 termined without regard to subsection (b) 

17 of such section. 

18 ‘‘(d) INFLATION ADJUSTMENT.— 

19 ‘‘(1) IN GENERAL.—In the case of any taxable 

20 year beginning after 2023, the dollar amounts in 

21 this section shall be increased by an amount equal 

22 to— 

23 ‘‘(A) such dollar amount, multiplied by 

24 ‘‘(B) the cost-of-living adjustment deter25 mined under section 1(f)(3) for the calendar 


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1 year in which the taxable year begins, deter2 mined by substituting ‘calendar year 2022’ for 

3 ‘calendar year 2016’ in subparagraph (A)(ii). 

4 ‘‘(2) ROUNDING.—If any increase under para5 graph (1) is not a multiple of $10, such increase 

6 shall be rounded to the nearest multiple of $10.’’. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Section 6211(b)(4)(A) of such Code is 

9 amended by inserting ‘‘36D,’’ after ‘‘36B,’’. 

10 (2) Section 1324(b)(2) of such Code is amend11 ed by inserting ‘‘36D,’’ after ‘‘36B,’’. 

12 (c) CLERICAL AMENDMENT.—The table of sections 

13 for Subpart C of part IV of subchapter A of chapter 1 

14 of such Code is amended by inserting after the item relat15 ing to section 36C the following new item: 

‘‘Sec. 36D. Made in the USA tax credit.’’. 

16 (d) OUTREACH.—For fiscal year 2024 and each fiscal 

17 year thereafter, there is authorized to be appropriated to 

18 the Secretary of the Treasury $1,500,000 to educate tax19 payers about the tax credit established by the amendment 

20 made by this section. 

21 (e) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to expenditures made after the 

23 date of the enactment of this section. 

Æ 


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