Made in the U.S.A. Act

To amend the Internal Revenue Code of 1986 to establish the Made in the U.S.A. tax credit. 1. Short title This Act may be cited as the Made in the U.S.A. Act 2. Made in the USA tax credit (a) In general Subpart C of part IV of subchapter A of chapter 1 36D. Made in the USA tax credit (a) In general In the case of an eligible taxpayer, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to so much of 30 percent of the qualified expenditures of the taxpayer during the taxable year as does not exceed $2,500 (twice such amount in the case of a married couple filing jointly). (1) in the case of a joint return, $5,000, or (2) in the case of any other taxpayer, $2,500. (b) Eligible taxpayer For purposes of this section, the term eligible taxpayer (1) adjusted gross income does not exceed— (A) $250,000 in the case of a joint return, or (B) $125,000 in the case of any other taxpayer, and (2) capital gain net income for the taxable year does not exceed— (A) $40,000 in the case of a joint return, or (B) $20,000 in the case of any other taxpayer. (c) Qualified expenditures (1) In general For purposes of this section, the term qualified expenditures (A) may be labeled as Made in the United States in accordance with section 323.2 of title 16, Code of Federal Regulations (or any successor regulation), and (B) is not— (i) a firearm, (ii) ammunition, (iii) alcohol, (iv) tobacco, (v) a vehicle, (vi) gasoline, (vii) a luxury good, (viii) food, or (ix) non-depreciable real property. (2) Luxury good For purposes of this subsection, the term luxury good (A) an item sold to the taxpayer for an amount that exceeds $2,000, (B) a wrist or pocket watch the case of which is clad in or made of precious metal, (C) jewelry containing pearls, gems, precious and semi-precious stones, or precious metals, (D) a fur skin, (E) an item described in subparagraphs (A) through (D) of section 408(m)(2), (F) a flat screen, plasma, or LCD television or display, (G) a television with a screen exceeding 29 inches, (H) a DVD player, (I) a laptop, desktop, or tablet computer, (J) a musical instrument, or (K) a cellular phone. (3) Increase in credit for certain products (A) In general In the case of an energy star product or a climate resilience product, paragraph (1) shall be applied by substituting $1,000 $500 (B) Climate resilience product For purposes of this paragraph, the term climate resilience product (i) qualified energy efficiency improvements or residential energy property expenditures under section 25C, determined without regard to subsection (b) of such section, or (ii) qualified solar electric property expenditures, qualified solar water heating property expenditures, qualified fuel cell property expenditures, qualified small wind energy property expenditures, qualified geothermal heat pump property expenditures, or qualified battery storage technology expenditures under section 25D, determined without regard to subsection (b) of such section. (d) Inflation adjustment (1) In general In the case of any taxable year beginning after 2023, the dollar amounts in this section shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2022 calendar year 2016 (2) Rounding If any increase under paragraph (1) is not a multiple of $10, such increase shall be rounded to the nearest multiple of $10. . (b) Conforming amendments (1) Section 6211(b)(4)(A) of such Code is amended by inserting 36D, 36B, (2) Section 1324(b)(2) of such Code is amended by inserting 36D, 36B, (c) Clerical amendment The table of sections for Subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36C the following new item: Sec. 36D. Made in the USA tax credit. . (d) Outreach For fiscal year 2024 and each fiscal year thereafter, there is authorized to be appropriated to the Secretary of the Treasury $1,500,000 to educate taxpayers about the tax credit established by the amendment made by this section. (e) Effective date The amendments made by this section shall apply to expenditures made after the date of the enactment of this section.

Summary: Made in the U.S.A. Act This bill allows certain individual taxpayers whose adjusted gross income does not exceed $125,000 ($250,000 in the case of a joint return) a tax credit for 30% of their expenditures, not exceeding $2,500, for products made in the United States. An expenditure for any product may not exceed $500 and excludes firearms, ammunition, alcohol, tobacco, vehicles, gasoline, luxury goods, food, or non-depreciable real property. The expenditure limit is increased to $1,000 for Energy Star or climate resilience products.