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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8971 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 8971

   To amend the Internal Revenue Code of 1986 to allow an investment 
  credit for certain domestic infant formula manufacturing facilities.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              July 9, 2024

    Mr. Nunn of Iowa (for himself and Ms. Houlahan) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
  and in addition to the Committee on Agriculture, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
   To amend the Internal Revenue Code of 1986 to allow an investment 
  credit for certain domestic infant formula manufacturing facilities.

    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 ``Investing in New Families And 
Newborns Through Tax Credit Act'' or the ``INFANT Tax Credit Act''.

SEC. 2. DOMESTIC INFANT FORMULA MANUFACTURING INVESTMENT CREDIT.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 48E the following new section:

``SEC. 48F. DOMESTIC INFANT FORMULA MANUFACTURING INVESTMENT CREDIT.

    ``(a) Establishment of Credit.--For purposes of section 46, the 
domestic infant formula manufacturing investment credit for any taxable 
year is an amount equal to 25 percent of the qualified investment for 
such taxable year with respect to any domestic infant formula 
manufacturing facility of an eligible taxpayer.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment with respect to any domestic infant 
        formula manufacturing facility for any taxable year is the 
        basis of any qualified property placed in service by the 
        taxpayer during such taxable year which is part of a domestic 
        infant formula manufacturing facility.
            ``(2) Qualified property.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified property' means property--
                            ``(i) which is tangible property,
                            ``(ii) with respect to which depreciation 
                        (or amortization in lieu of depreciation) is 
                        allowable,
                            ``(iii) which is--
                                    ``(I) constructed, reconstructed, 
                                or erected by the taxpayer, or
                                    ``(II) acquired by the taxpayer if 
                                the original use of such property 
                                commences with the taxpayer, and
                            ``(iv) which is integral to the operation 
                        of the domestic infant formula manufacturing 
                        facility.
                    ``(B) Buildings and structural components.--
                            ``(i) In general.--The term `qualified 
                        property' includes any building or its 
                        structural components which otherwise satisfy 
                        the requirements under subparagraph (A).
                            ``(ii) Exception.--Clause (i) shall not 
                        apply with respect to a building or portion of 
                        a building used for offices, administrative 
                        services, or other functions unrelated to 
                        manufacturing.
            ``(3) Domestic infant formula manufacturing facility.--For 
        purposes of this section--
                    ``(A) In general.--The term `domestic infant 
                formula manufacturing facility' means a facility the 
                primary purpose of which is the manufacturing of 
                eligible infant formula.
                    ``(B) Eligible infant formula.--The term `eligible 
                infant formula' means infant formula that--
                            ``(i) may lawfully be sold in the United 
                        States, and
                            ``(ii) is manufactured in the United 
                        States.
            ``(4) Coordination with rehabilitation credit; certain 
        qualified progress expenditures rules made applicable.--Rules 
        similar to the rules of paragraphs (3) and (4) of section 
        48D(b) shall apply for purposes of this section.
    ``(c) Eligible Taxpayer.--
            ``(1) In general.--For purposes of this section, the term 
        `eligible taxpayer' means a taxpayer--
                    ``(A) described in section 48D(c), and
                    ``(B) with a total global revenue for the taxable 
                year which does not exceed $750,000,000.
            ``(2) Aggregation rules.--For purposes of this paragraph, 
        all persons which are treated as a single employer under 
        subsections (a) and (b) of section 52 shall be treated as a 
        single taxpayer.''.
    (b) Elective Payment and Transfer of Credit.--Section 6417 of such 
Code is amended--
            (1) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(13) the domestic infant formula manufacturing investment 
        credit under section 48F.'', and
            (2) in subsection (d)(1)--
                    (A) in subparagraph (E), by striking ``(C), or 
                (D)'' each place it appears and inserting ``(C), (D), 
                or (E)'',
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F), and
                    (C) by inserting after subparagraph (D) the 
                following new subparagraph:
                    ``(E) Election with respect to domestic infant 
                formula manufacturing investment credit.--If a taxpayer 
                other than an entity described in subparagraph (A) 
                makes an election under this subparagraph with respect 
                to any taxable year in which such taxpayer has, after 
                the date of the enactment of this subparagraph, placed 
                in service qualified property which is part of a 
                domestic infant formula manufacturing facility (as 
                defined in section 48F(b)(3)), such taxpayer shall be 
                treated as an applicable entity for purposes of this 
                section for such taxable year, but only with respect to 
                the credit described in subsection (b)(13).''.
    (c) Inclusion in Investment Credit.--Section 46 of such Code is 
amended in paragraph (6) by striking ``and'', in paragraph (7) by 
striking the period and inserting ``, and'', and by adding at the end 
the following new paragraph:
            ``(8) the domestic infant formula manufacturing investment 
        credit.''.
    (d) Clerical Amendment.--The table of sections for subpart E of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 48E the following new 
item:

``Sec. 48F. Domestic infant formula manufacturing investment credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to property placed in service after March 1, 2022.

SEC. 3. INFANT FORMULA PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 45BB. INFANT FORMULA PRODUCTION CREDIT.

    ``(a) In General.--In the case of a qualified taxpayer, for 
purposes of section 38, the infant formula production credit for any 
taxable year is an amount equal to the product of--
            ``(1) the amount in pounds of eligible infant formula 
        manufactured by such taxpayer and sold for use in the United 
        States during such taxable year, multiplied by
            ``(2) $1.50.
    ``(b) Qualified Taxpayer.--For purposes of this section, the term 
`qualified taxpayer' means, with respect to a taxable year--
            ``(1) a taxpayer if such taxpayer's total global revenue 
        for the preceding taxable year does not exceed $500,000,000, or
            ``(2) a taxpayer to whom a credit was allowed under this 
        section in the preceding taxable year.
    ``(c) Eligible Infant Formula Defined.--For purposes of this 
section, the term `eligible infant formula' has the meaning given such 
term in section 48F(b)(3)(B).
    ``(d) Aggregation Rules.--For purposes of this section, all persons 
which are treated as a single employer under subsections (a) and (b) of 
section 52 shall be treated as a single taxpayer.
    ``(e) Coordination With Investment Credit.--Infant formula produced 
at a facility with respect to which a credit was allowed under section 
48F shall not be taken into account for purposes of subsection (a).''.
    (b) Credit Made Transferable.--Section 6418(f)(1) of such Code (as 
amended by section 2) is amended by adding at the end the following new 
clause:
                            ``(xii) The infant formula production 
                        credit determined under section 45BB.''.
    (c) Elective Payment of Credit.--Section 6417(b) of such Code (as 
amended by section 2) is amended by adding at the end the following new 
paragraph:
            ``(14) The infant formula production credit determined 
        under section 45BB.''.
    (d) Credit Allowed as Part of General Business Credit.--Section 
38(b) is amended by striking ``plus'' at the end of paragraph (40), by 
striking the period at the end of paragraph (41) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(42) in the case of an eligible taxpayer (as defined in 
        section 48F), the infant formula production credit determined 
        under section 45BB(a).''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new item:

``Sec. 45BB. Infant formula production credit.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to formula manufactured after the date of the enactment of this 
Act.

SEC. 4. REPORTS TO CONGRESS.

    Not later than 1 year after the date of the enactment of this Act 
and annually thereafter, the Secretary of Agriculture shall submit to 
Congress a report that includes--
            (1) with respect to the year preceding the report, the 
        number of persons that--
                    (A) operated a domestic infant formula 
                manufacturing facility (as defined in section 48F(b)(3) 
                of the Internal Revenue Code of 1986); and
                    (B) received funding under a rural development 
                program of the Department of Agriculture;
            (2) a description of any barriers that would prevent a 
        person that operates such a facility from accessing such 
        funding and the resources the Secretary requires to address 
        such barriers; and
            (3) an assessment of the impact that domestic infant 
        formula manufacturing facilities have on the communities in 
        which such facilities are located.
                                 <all>
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