IB 
Union Calendar No. 99 
118TH CONGRESS 
1ST SESSION H. R. 3938 
[Report No. 118–127] 
To amend the Internal Revenue Code of 1986 to encourage economic growth. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 9, 2023 
Mr. SMITH of Missouri introduced the following bill; which was referred to the 
Committee on Ways and Means 
JUNE 30, 2023 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 9, 2023] 
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A BILL 
To amend the Internal Revenue Code of 1986 to encourage 
economic growth. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS, ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Build It in America Act’’. 
(b) AMENDMENT OF 1986 CODE.—Except as otherwise 
expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Inter-
nal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents, etc. 
TITLE I—INVESTMENT IN AMERICA 
Sec. 101. Deduction for research and experimental expenditures. 
Sec. 102. Extension of allowance for depreciation, amortization, or depletion in 
determining the limitation on business interest. 
Sec. 103. Extension of 100 percent bonus depreciation. 
TITLE II—SUPPLY CHAIN SECURITY 
Sec. 201. Termination of Hazardous Substance Superfund financing rate. 
Sec. 202. Election to determine foreign income taxes paid or accrued to certain 
Western Hemisphere countries without regard to certain regula-
tions. 
Sec. 203. Imposition of tax on the acquisition of United States agricultural inter-
ests by disqualified persons. 
TITLE III—REPEAL OF SPECIAL INTEREST TAX PROVISIONS 
Sec. 301. Repeal of clean electricity production credit. 
Sec. 302. Repeal of clean electricity investment credit. 
Sec. 303. Modification of clean vehicle credit. 
Sec. 304. Repeal of credit for previously-owned clean vehicles. 
Sec. 305. Repeal of credit for qualified commercial clean vehicles. 
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TITLE I—INVESTMENT IN 
AMERICA 
SEC. 101. DEDUCTION FOR RESEARCH AND EXPERIMENTAL 
EXPENDITURES. 
(a) DELAY OF AMORTIZATION OF RESEARCH AND EX-
PERIMENTAL EXPENDITURES.—Section 174 is amended by 
adding at the end the following new subsection: 
‘‘(e) SUSPENSION OF APPLICATION.—This section shall 
apply to amounts paid or incurred in taxable years begin-
ning after December 31, 2025 (and shall not apply to 
amounts paid or incurred in taxable years beginning on 
or before such date).’’. 
(b) REINSTATEMENT OF EXPENSING FOR RESEARCH 
AND EXPERIMENTAL EXPENDITURES.—Part VI of sub-
chapter B of chapter 1 is amended by inserting after section 
174 the following new section: 
‘‘SEC. 174A. TEMPORARY RULES FOR RESEARCH AND EX-
PERIMENTAL EXPENDITURES. 
‘‘(a) TREATMENT
AS EXPENSES.—Notwithstanding 
section 263, there shall be allowed as a deduction any re-
search or experimental expenditures which are paid or in-
curred by the taxpayer during the taxable year in connec-
tion with the taxpayer’s trade or business. 
‘‘(b) AMORTIZATION OF CERTAIN RESEARCH AND EX-
PERIMENTAL EXPENDITURES.— 
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‘‘(1) IN GENERAL.—At the election of the tax-
payer, made in accordance with regulations or other 
guidance provided by the Secretary, research or exper-
imental expenditures which— 
‘‘(A) are paid or incurred by the taxpayer 
in connection with his trade or business, and 
‘‘(B) would (but for subsection (a)) be 
chargeable to capital account but not chargeable 
to property of a character which is subject to the 
allowance under section 167 (relating to allow-
ance for depreciation, etc.) or section 611 (relat-
ing to allowance for depletion), 
may be treated as deferred expenses to which sub-
section (a) does not apply. In computing taxable in-
come, such deferred expenses shall be allowed as a de-
duction ratably over such period of not less than 60 
months as may be selected by the taxpayer (beginning 
with the month in which the taxpayer first realizes 
benefits from such expenditures). Such deferred ex-
penses are expenditures properly chargeable to capital 
account for purposes of section 1016(a)(1) (relating to 
adjustments to basis of property). 
‘‘(2) TIME FOR AND SCOPE OF ELECTION.—The 
election provided by paragraph (1) may be made for 
any taxable year, but only if made not later than the 
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time prescribed by law for filing the return for such 
taxable year (including extensions thereof). The meth-
od so elected, and the period selected by the taxpayer, 
shall be adhered to in computing taxable income for 
the taxable year for which the election is made and 
for all subsequent taxable years unless, with the ap-
proval of the Secretary, a change to a different meth-
od (or to a different period) is authorized with respect 
to part or all of such expenditures. The election shall 
not apply to any expenditure paid or incurred during 
any taxable year before the taxable year for which the 
taxpayer makes the election. 
‘‘(c) ELECTION TO CAPITALIZE EXPENSES.—In the 
case of a taxpayer which elects (at such time and in such 
manner as the Secretary may provide) the application of 
this subsection, subsections (a) and (b) shall not apply. 
Such election shall not apply to any expenditure paid or 
incurred during any taxable year before the taxable year 
for which the taxpayer makes the election and may be made 
with respect to part of the expenditures paid or incurred 
during any taxable year only with the approval of the Sec-
retary. 
‘‘(d) LAND AND OTHER PROPERTY.—This section shall 
not apply to any expenditure for the acquisition or im-
provement of land, or for the acquisition or improvement 
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of property to be used in connection with the research or 
experimentation and of a character which is subject to the 
allowance under section 167 (relating to allowance for de-
preciation, etc.) or section 611 (relating to allowance for 
depletion); but for purposes of this section allowances under 
section 167, and allowances under section 611, shall be con-
sidered as expenditures. 
‘‘(e) EXPLORATION
EXPENDITURES.—This section 
shall not apply to any expenditure paid or incurred for 
the purpose of ascertaining the existence, location, extent, 
or quality of any deposit of ore or other mineral (including 
oil and gas). 
‘‘(f) SOFTWARE DEVELOPMENT.—For purposes of this 
section, any amount paid or incurred in connection with 
the development of any software shall be treated as a re-
search or experimental expenditure. 
‘‘(g) ONLY REASONABLE RESEARCH EXPENDITURES 
ELIGIBLE.—This section shall apply to a research or exper-
imental expenditure only to the extent that the amount 
thereof is reasonable under the circumstances. 
‘‘(h) COORDINATION WITH RESEARCH CREDIT.— 
‘‘(1) IN GENERAL.—Section 41(d)(1)(A) shall be 
applied by substituting ‘expenses under section 174A’ 
for ‘specified research or experimental expenditures 
under section 174’. 
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‘‘(2) DENIAL OF DOUBLE BENEFIT.— 
‘‘(A) IN GENERAL.—Section 280C(c) shall 
not apply and the amount taken into account 
under this section as research or experimental 
expenditures shall be reduced by the amount of 
the credit allowable under section 41(a). 
‘‘(B) ELECTION OF REDUCED CREDIT.— 
‘‘(i) IN GENERAL.—In the case of any 
taxable year for which an election is made 
under this subparagraph— 
‘‘(I) subparagraph (A) shall not 
apply, and 
‘‘(II) the amount of the credit 
under section 41(a) shall be the 
amount determined under clause (ii). 
‘‘(ii) AMOUNT OF REDUCED CREDIT.— 
The amount of credit determined under this 
clause for any taxable year shall be the 
amount equal to the excess of— 
‘‘(I) the amount of credit deter-
mined under section 41(a) without re-
gard to this subparagraph, over 
‘‘(II) the product of the amount 
described in subclause (I), multiplied 
by the rate of tax under section 11(b). 
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‘‘(iii) ELECTION.—An election under 
this subparagraph for any taxable year 
shall be made not later than the time for fil-
ing the return of tax for such year (includ-
ing extensions), shall be made on such re-
turn, and shall be made in such manner as 
the Secretary may prescribe. Such an elec-
tion, once made, shall be irrevocable. 
‘‘(C) 
CONTROLLED
GROUPS.—Paragraph 
(3) of section 280C(b) shall apply for purposes of 
this paragraph. 
‘‘(i) COORDINATION
WITH
LONG-TERM
CONTRACT 
RULES.—For purposes of determining percentage of com-
pletion under section 460(b)(1)(A), any research or experi-
mental expenditures paid or incurred by the taxpayer in 
connection with the taxpayer’s trade or business shall be 
taken into account as a cost allocated to the contract for 
the taxable year in which so paid or incurred. 
‘‘(j) COORDINATION WITH CERTAIN OTHER PROVI-
SIONS.—A reference to the corresponding provision of this 
section shall be treated as included in any reference to sec-
tion 174 in section 56(b), 59(e), 144(a), 168(i), 170(e), 
195(c), 263(a), 263A(c), 469(c), 543(d), 864(g), 993(d), 
1016(a)(14), 1202(a), or 1298(e). 
‘‘(k) TERMINATION.— 
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‘‘(1) IN GENERAL.—This section shall not apply 
to amounts paid or incurred in taxable years begin-
ning after December 31, 2025. 
‘‘(2) CHANGE
IN
METHOD
OF
ACCOUNTING.— 
Paragraph (1) (and the corresponding application of 
section 174) shall be treated as a change in method 
of accounting for purposes of section 481 and— 
‘‘(A) such change shall be treated as initi-
ated by the taxpayer, 
‘‘(B) such change shall be treated as made 
with the consent of the Secretary, and 
‘‘(C) such change shall be applied only on 
a cut-off basis for any research or experimental 
expenditures paid or incurred in taxable years 
beginning after December 31, 2025, and no ad-
justment under section 481(a) shall be made.’’. 
(c) COORDINATION OF AMORTIZATION WITH CERTAIN 
OTHER PROVISIONS.—Section 174, as amended by sub-
section (a), is amended by redesignating subsection (e) as 
subsection (f) and by inserting after subsection (d) the fol-
lowing new subsection: 
‘‘(e) COORDINATION WITH CERTAIN OTHER PROVI-
SIONS.— 
‘‘(1) COORDINATION
WITH
ALTERNATIVE
MIN-
IMUM TAX.—Sections 56(b)(2) and 59(e)(2)(B) shall 
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‘‘(1) IN GENERAL.—The term ‘disqualified per-
son’ means— 
‘‘(A) any citizen of a country of concern 
(other than a citizen, or lawful permanent resi-
dent, of the United States and other than an in-
dividual domiciled in Taiwan possessing a valid 
identification card or number issued by the gov-
ernment of Taiwan), 
‘‘(B) any entity domiciled in a country of 
concern (other than an entity domiciled in Tai-
wan), 
‘‘(C) any country of concern and any polit-
ical subdivision, agency, or instrumentality 
thereof, and 
‘‘(D) except as provided in paragraph (3), 
any entity if persons described in subparagraph 
(A), (B), or (C) (in the aggregate) 10-percent 
control such entity. 
‘‘(2) COUNTRY OF CONCERN.—The term ‘country 
of concern’ means any country the government of 
which is engaged in a long-term pattern or serious in-
stances of conduct significantly adverse to the na-
tional security of the United States or the security 
and safety of United States persons, including the 
People’s Republic of China, the Russian Federation, 
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