I

103D CONGRESS

1ST SESSION H. R. 1072

To amend the Internal Revenue Code of 1986 to reinstate a 10-percent

domestic investment tax credit, to provide a credit for the purchase

of domestic durable goods, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 23, 1993

Mr. TRAFICANT introduced the following bill; which was referred jointly to the

Committees on Ways and Means and Energy and Commerce

A BILL

To amend the Internal Revenue Code of 1986 to reinstate

a 10-percent domestic investment tax credit, to provide

a credit for the purchase of domestic durable goods,

and for other purposes.

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 ‘‘Investment for Amer5 ica Act’’.
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1 SEC. 2. REINSTATEMENT OF 10-PERCENT DOMESTIC IN2 VESTMENT TAX CREDIT.

3 (a) IN GENERAL.—Subpart E of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of

5 1986 (relating to rules for computing credit for investment

6 in certain depreciable property), as amended by subsection

7 (b)(2), is amended by adding at the end the following new

8 section:

9 ‘‘SEC. 50. 10-PERCENT DOMESTIC INVESTMENT CREDIT.

10 ‘‘(a) IN GENERAL.—With respect to any domestic

11 property placed in service after December 31, 1992—

12 ‘‘(1) section 49 shall not apply, and

13 ‘‘(2) the regular percentage for purposes of this

14 subpart shall be 10 percent.

15 ‘‘(b) DOMESTIC PROPERTY.—For purposes of this

16 section—

17 ‘‘(1) IN GENERAL.—The term ‘domestic prop18 erty’ means property if

19 ‘‘(A) the property was completed in the

20 United States, and

21 ‘‘(B) at least 60 percent of the basis of the

22 property is attributable to value added within

23 the United States.

24 ‘‘(2) UNITED STATES.—The term ‘United

25 States’ includes the Commonwealth of Puerto Rico

26 and the possessions of the United States.’’
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1 (b) CONFORMING AMENDMENTS.—

2 (1) The table of sections for such subpart E is

3 amended by adding at the end the following new

4 item:

‘‘Sec. 50. 10-percent domestic investment credit.’’

5 (2) Section 11813 of the Revenue Reconcili6 ation Act of 1990 (Pub. L. 101–508) is hereby re7 pealed, and the Internal Revenue Code of 1986 shall

8 be applied and administered as if such section (and

9 the amendments made by such section) had never

10 been enacted.

11 SEC. 3. CREDIT FOR PURCHASES OF DOMESTIC DURABLE

12 GOODS.

13 (a) IN GENERAL.—Subpart A of part IV of sub14 chapter A of chapter 1 of the Internal Revenue Code of

15 1986 (relating to nonrefundable personal credits) is

16 amended by inserting after section 22 the following new

17 section:

18 ‘‘SEC. 23. PURCHASES OF DOMESTIC DURABLE GOODS.

19 ‘‘(a) GENERAL RULE.—In the case of an individual,

20 there shall be allowed as a credit against the tax imposed

21 by this chapter for the taxable year an amount equal to

22 7 percent of the aggregate amount paid during the taxable

23 year for the purchase of domestic durable goods.

24 ‘‘(b) DOMESTIC DURABLE GOODS.—For purposes of

25 this section—
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1 ‘‘(1) IN GENERAL.—The term ‘domestic durable

2 good’ means any durable good if—

3 ‘‘(A) the property was completed in the

4 United States, and

5 ‘‘(B) at least 60 percent of the basis of the

6 property is attributable to value added within

7 the United States.

8 ‘‘(2) UNITED STATES.—The term ‘United

9 States’ includes the Commonwealth of Puerto Rico

10 and the possessions of the United States.

11 ‘‘(c) LIMITATION.—The amount of the credit allowed

12 under subsection (a) for any taxable year shall not exceed

13 $1,000.’’

14 (b) CONFORMING AMENDMENT.—The table of sec15 tions for such subpart A is amended by inserting after

16 the item relating to section 22 the following new item:

‘‘Sec. 23. Purchases of domestic durable goods.’’

17 (c) EFFECTIVE DATE.—The amendments made by

18 this section shall apply to taxable years beginning after

19 December 31, 1992.

20 SEC. 4. CREDIT FOR CERTAIN COSTS INCURRED IN PUR21 CHASING AN AMERICAN-MADE PASSENGER

22 VEHICLE.

23 (a) IN GENERAL.—Subpart A of part IV of sub24 chapter A of chapter 1 of the Internal Revenue Code of

25 1986 (relating to nonrefundable personal credits) is
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1 amended by inserting after section 23 (as added by section

2 3 of this Act) the following new section:

3 ‘‘SEC. 24. CERTAIN COSTS INCURRED IN PURCHASING AN

4 AMERICAN-MADE PASSENGER VEHICLE.

5 ‘‘(a) IN GENERAL.—In the case of an individual,

6 there shall be allowed as a credit against the tax imposed

7 by this chapter for the taxable year an amount equal to

8 the qualified payments made by the taxpayer during such

9 year.

10 ‘‘(b) QUALIFIED PAYMENTS.—For purposes of this

11 section, the term ‘qualified payments’ means any payment

12 of—

13 ‘‘(1) any State or local sales tax imposed on the

14 purchase by the taxpayer of any qualified auto15 mobile, and

16 ‘‘(2) any interest on any loan which is secured

17 by a qualified automobile and which was incurred by

18 the taxpayer to purchase such automobile.

19 ‘‘(c) QUALIFIED AUTOMOBILE.—For purposes of this

20 section, the term ‘qualified automobile’ means any auto21 mobile (as defined in section 4064(b))—

22 ‘‘(1) which is purchased after December 31,

23 1992,

24 ‘‘(2) which is domestically produced,
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1 ‘‘(3) the original use of which begins with the

2 taxpayer, and

3 ‘‘(4) substantially all of the use of which is for

4 personal, nonbusiness purposes.

5 For purposes of the preceding sentence, an automobile is

6 domestically produced if more than 60 percent of the auto7 mobile is produced in the United States and its final as8 sembly occurs in the United States.

9 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction

10 or credit shall be allowed under any other provision of this

11 title for any payment for which a credit is allowable under

12 this section.’’

13 (b) CLERICAL AMENDMENT.—The table of sections

14 for such subpart A is amended by inserting after the item

15 relating to section 23 the following new item:

‘‘Sec. 24. Certain costs incurred in purchasing an American-made

passenger vehicle.’’

16 (c) EFFECTIVE DATE.—The amendments made by

17 this section shall apply to taxable years ending after the

18 date of the enactment of this Act.

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

20 PRODUCTS.

21 (a) REQUIREMENTS FOR USE OF LABELS.—No prod22 uct may bear a label which states or suggests that the

23 product was made in America unless—
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1 (1) the product has been registered with the

2 Department of Commerce under subsection (b); and

3 (2) the Secretary of Commerce has determined

4 that—

5 (A) 60 percent of the product was manu6 factured in the United States; and

7 (B) final assembly of the product took

8 place in the United States.

9 (b) REGISTRY OF AMERICAN-MADE PRODUCTS.—

10 Not later than 12 months after the Secretary has promul11 gated regulations regarding the registration of products

12 with the Department of Commerce under this section, a

13 person shall register with the Department of Commerce

14 any product on which there is or will be affixed a label

15 which states or suggests that the product was made in

16 America.

17 (c) PENALTIES FOR FRAUDULENT USE OF LA18 BELS.—

19 (1) CIVIL FINE.—Any person who, with an in20 tent to defraud or mislead, places on a product a

21 label which states or suggests that the product was

22 ‘‘made in America’’ in violation of this section may

23 be assessed a civil penalty by the Secretary of not

24 more than $100,000. The Secretary may issue an

25 order assessing such civil penalty only after notice
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1 and an opportunity for an agency hearing on the

2 record. The validity of such order may not be re3 viewed in an action to collect such civil penalty.

4 (2) INJUNCTIVE RELIEF.—The Secretary may

5 bring an action to enjoin the violation of, or to com6 pel compliance with, this section, whenever the Sec7 retary believes that such a violation has occurred or

8 is about to occur.

9 (d) REGULATIONS.—Not later than 12 months after

10 the date of the enactment of this Act, the Secretary shall

11 promulgate regulations establishing procedures under

12 which a person shall register a product under this section.

13 (e) DEFINITIONS.—For purposes of this section:

14 (1) LABEL.—The term ‘‘label’’ means any writ15 ten, printed, or graphic matter on, or attached to,

16 a product or any of its containers or wrappers.

17 (2) SECRETARY.—The term ‘‘Secretary’’ means

18 the Secretary of Commerce.

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