I
103D CONGRESS
1ST SESSION
H. R. 1686
To amend the Internal Revenue Code of 1986 to put tools in the hands
of American workers by reinstating a 10-percent investment tax credit
for property used in manufacturing, production, extraction, or related
purposes in the United States.
IN THE HOUSE OF REPRESENTATIVES
APRIL 2, 1993
Mr. TORKILDSEN (for himself, Mr. MCCANDLESS, Mr. STUMP, Mr. ZIMMER,
Mr. DOOLITTLE, Mr. INHOFE, Mr. LEVY, Mr. BLUTE, Mr. SOLOMON,
Mr. BAKER of Louisiana, Mr. FISH, Mr. TALENT, and Mr. ZELIFF) in-
troduced the following bill; which was referred to the Committee on Ways
and Means
A BILL
To amend the Internal Revenue Code of 1986 to put tools
in the hands of American workers by reinstating a 10-
percent investment tax credit for property used in manu-
facturing, production, extraction, or related purposes in
the United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Investment Tax Credit
Act of 1993’’.
SEC. 2. INVESTMENT TAX CREDIT.
(a) ALLOWANCE OF CREDIT.—Section 46 of the In-
ternal Revenue Code of 1986 (relating to amount of in-
vestment credit) is amended by striking ‘‘and’’ at the end
of paragraph (2), by striking the period at the end of para-
graph (3) and inserting ‘‘, and’’, and by adding at the
end thereof the following new paragraph:
‘‘(4) the general investment credit.’’
(b) AMOUNT OF CREDIT.—Section 48 of such Code
is amended by adding at the end thereof the following new
subsection:
‘‘(c) GENERAL INVESTMENT CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 46,
the general investment credit for any taxable year is
an amount equal to 10 percent of the qualified in-
vestment for such taxable year.
‘‘(2) QUALIFIED INVESTMENT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the qualified investment for any tax-
able year is the aggregate of—
‘‘(i) the applicable percentage of the
basis of each new qualified investment tax
credit property placed in service by the
taxpayer during such taxable year, plus
‘‘(ii) the applicable percentage of the
cost of each used qualified investment tax
credit property placed in service by the
taxpayer during such taxable year.
‘‘(B) 
APPLICABLE
PERCENTAGE.—For
purposes of subparagraph (A), the applicable
percentage for any property shall be determined
under paragraphs (2) and (7) of section 46(c)
(as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of
1990).
‘‘(C) CERTAIN
RULES
MADE
APPLICA-
BLE.—The provisions of subsections (b) and (c)
of section 48 (as in effect on the day before the
date of the enactment of the Revenue Reconcili-
ation Act of 1990) shall apply for purposes of
this paragraph.
‘‘(3) QUALIFIED
INVESTMENT
TAX
CREDIT
PROPERTY.—The term ‘qualified investment tax
credit property’ means tangible property (other than
a building, its structural components, or an air con-
ditioning or heating unit), but only if such prop-
erty—
‘‘(A) is used as an integral part of manu-
facturing, production (including agriculture), or
extraction or of furnishing transportation, com-
munications, electrical energy, gas, water, waste
disposal, or pollution control services,
‘‘(B) constitutes a research facility or re-
search equipment used in connection with any
of the activities referred to in subparagraph
(A), or
‘‘(C) constitutes a facility used in connec-
tion with any of the activities referred to in
subparagraph (A) for the bulk storage of fun-
gible commodities (including commodities in a
liquid or gaseous state).
Such term includes only property to which section
168 applies without regard to any useful life and
any other property with respect to which deprecia-
tion (or amortization in lieu of depreciation) is al-
lowable and having a useful life (determined as of
the time such property is placed in service) of 3
years or more.
‘‘(4) COORDINATION WITH OTHER CREDITS.—
This subsection shall not apply to any property to
which the energy credit or rehabilitation credit
would apply unless the taxpayer elects to waive the
application of such credits to such property.
‘‘(5) CERTAIN PROGRESS EXPENDITURE RULES
MADE APPLICABLE.—Rules similar to rules of sub-
sections (c)(4) and (d) of section 46 (as in effect on
the day before the date of the enactment of the Rev-
enue Reconciliation Act of 1990) shall apply for pur-
poses of this subsection.’’
(c) CREDIT ALLOWED AGAINST MINIMUM TAX.—
Section 38(c) of such Code is amended by redesignating
paragraph (2) as paragraph (3) and inserting after para-
graph (1) the following new paragraph:
‘‘(2) NEW INVESTMENT TAX CREDIT MAY OFF-
SET 100 PERCENT OF MINIMUM TAX.—
‘‘(A) IN GENERAL.—In the case of a C
corporation, the amount determined under
paragraph (1)(A) shall be reduced (but not
below zero) by the lesser of—
‘‘(i) the portion of the new investment
tax credit not used against the regular lim-
itation, or
‘‘(ii) 100 percent of the taxpayer’s
tentative minimum tax for the taxable
year.
‘‘(B) PORTION OF NEW INVESTMENT TAX
CREDIT NOT USED AGAINST REGULAR LIMIT.—
For purposes of subparagraph (A), the portion
of the new investment tax credit for any taxable
(1) Subparagraph (C) of section 49(a)(1) of
such Code is amended by striking ‘‘and’’ at the end
of clause (ii), by striking the period at the end of
clause (iii) and inserting ‘‘, and’’, and by adding at
the end thereof the following new clause:
‘‘(iv) the basis of any new qualified in-
vestment tax credit property and the cost
of any used qualified investment tax credit
property.’’
(2) Subparagraph (E) of section 50(a)(2) of
such Code is amended by inserting ‘‘or 48(c)(5)’’ be-
fore the period at the end thereof.
(3) Paragraph (5) of section 50(a) of such Code
is amended by adding at the end thereof the follow-
ing new subparagraph:
‘‘(D) SPECIAL RULES FOR CERTAIN PROP-
ERTY.—In the case of any qualified investment
tax credit property which is 3-year property
(within the meaning of section 168(e))—
‘‘(i) the percentage set forth in clause
(ii) of the table contained in paragraph
(1)(B) shall be 66 percent,
‘‘(ii) the percentage set forth in clause
(iii) of such table shall be 33 percent, and
‘‘(iii) clauses (iv) and (v) of such table
shall not apply.’’
(4)(A) The section heading for section 48 of
such Code is amended to read as follows:
‘‘SEC. 48. OTHER CREDITS.’’
(B) The table of sections for subpart E of part
IV of subchapter A of chapter 1 of such Code is
amended by striking the item relating to section 48
and inserting the following:
‘‘Sec. 48. Other credits.’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to periods after December 31,
1992, under rules similar to the rules of section 48(m)
of the Internal Revenue Code of 1986 (as in effect on the
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990).
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