the equivalent county divisions (as defined 
by the Bureau of the Census for purposes 
of defining poverty areas) shall be used for 
purposes of determining median annual 
household income. 
‘‘(c) MANUFACTURING PROPERTY.—For purposes of 
this section— 
‘‘(1) MANUFACTURING PROPERTY.— 
‘‘(A) IN GENERAL.—The term ‘manufac-
turing property’ means tangible property used 
in the United States in the trade or business of 
manufacturing tangible personal property. 
‘‘(B) MANUFACTURING
OF
RESIDENTIAL 
REAL PROPERTY NOT INCLUDED.—Such term 
does not include property used to manufacture 
residential real property, including such prop-
erty used on a transient basis. 
‘‘(2) EXISTING MANUFACTURING PROPERTY.— 
The term ‘existing manufacturing property’ means 
any property which was a manufacturing facility, or 
a part of a manufacturing facility, at any time dur-
ing the period beginning 5 years before the date of 
the enactment of this section and ending on the day 
before its purchase by the taxpayer. 
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‘‘(3) FORMER
MANUFACTURING
PROPERTY.— 
The term ‘former manufacturing property’ means 
any property (other than an existing manufacturing 
property) which was a manufacturing facility, or a 
part of a manufacturing facility, at any time before 
the period described in paragraph (2). 
‘‘(4) FUTURE
MANUFACTURING
PROPERTY.— 
The term ‘future manufacturing property’ means 
any existing or former manufacturing property on 
which there are no permanent vertical structures. 
‘‘(5) MANUFACTURING REAL PROPERTY.—The 
term ‘manufacturing real property’ means manufac-
turing property which is land or section 1250 prop-
erty (as defined in section 1250(c)). 
‘‘(6) MANUFACTURING
TANGIBLE
PERSONAL 
PROPERTY.—The term ‘manufacturing tangible per-
sonal property’ means manufacturing property which 
is tangible property other than manufacturing real 
property. 
‘‘(d) CREDIT NOT ALLOWABLE FOR CERTAIN RELO-
CATIONS OF MANUFACTURING FACILITIES.—This section 
shall not apply to property acquired as part of a relocation 
of a manufacturing facility unless the new location— 
‘‘(1) is in a different State than the prior loca-
tion, or 
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‘‘(2) is more than 100 miles from the prior lo-
cation. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) CREDIT NOT ALLOWABLE IF REMEDIATION 
DEDUCTION CLAIMED.—This section shall not apply 
to any property located on a site with respect to 
which the taxpayer (or a related party) is allowed a 
deduction under section 198 (relating to expensing 
of environmental remediation costs). 
‘‘(2) BASIS
ADJUSTMENT.—For purposes of 
this subtitle, if a credit is allowed under this section 
for an expenditure related to property, the basis of 
such property shall be reduced by the amount of 
such credit. 
‘‘(3) CONTROLLED GROUPS.—For purposes of 
this section, all persons treated as a single employer 
under subsection (a) or (b) of section 52 or sub-
section (m) or (o) of section 414 shall be treated as 
a single taxpayer.’’. 
(b) INCLUSION AS PART OF INVESTMENT CREDIT.— 
Section 46 of such Code is amended by striking ‘‘and’’ 
at the end of paragraph (5), by striking the period at the 
end of paragraph (6) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(7) the manufacturing recovery credit.’’. 
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(c) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C) of such Code is amend-
ed— 
(A) by striking ‘‘and’’ at the end of clause 
(v), 
(B) by striking the period at the end of 
clause (vi) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
clause: 
‘‘(vii) the basis of any property which 
is manufacturing property under section 
48E.’’. 
(2) 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 sec-
tion 48D the following new item: 
‘‘Sec. 48E. Acquisition of manufacturing property.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act in taxable years end-
ing after such date. 
SEC. 3. INCENTIVES FOR HIRING MANUFACTURING RECOV-
ERY EMPLOYEES. 
(a) IN GENERAL.—Paragraph (1) of section 51(d) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘or’’ at the end of subparagraph (H), by striking the pe-
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riod at the end of subparagraph (I) and inserting ‘‘, or’’, 
and by adding at the end the following new subparagraph: 
‘‘(J) a manufacturing recovery employee.’’. 
(b) MANUFACTURING RECOVERY EMPLOYEE.—Sub-
section (d) of section 51 of such Code is amended by re-
designating paragraphs (11) through (14) as paragraphs 
(12) through (15), respectively, and by inserting after 
paragraph (10) the following new paragraph: 
‘‘(11) 
MANUFACTURING
RECOVERY
EM-
PLOYEE.— 
‘‘(A) IN GENERAL.—The term ‘manufac-
turing recovery employee’ means any individual 
who is certified by the designated local agency 
as having a hiring date which is after the date 
of the enactment of the Manufacturing Eco-
nomic Recovery Act of 2015 and before the 
close of the 3-year period beginning on the date 
that the employer first operated the manufac-
turing facility at which the individual is em-
ployed. 
‘‘(B) INCREASED CREDIT FOR HIRING UN-
EMPLOYED.—In the case of a manufacturing 
recovery employee who is certified by the des-
ignated local agency as having received unem-
ployment compensation under State or Federal 
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law for not less than 4 weeks during the 3-year 
period ending on the hiring date, subsection (a) 
shall be applied by substituting ‘50 percent’ for 
‘40 percent’. 
‘‘(C) NO CREDIT FOR LESS THAN FULL- 
TIME EMPLOYMENT.—An individual shall not be 
treated as a manufacturing recovery employee 
for any week during which— 
‘‘(i) the individual is employed by the 
employer for less than 35 hours at a man-
ufacturing facility of the employer, or 
‘‘(ii) the individual performs less than 
90 percent of individual’s services for the 
employer at the manufacturing facility. 
‘‘(D) MANUFACTURING FACILITY MUST BE 
IN UNITED STATES.—No credit shall be allow-
able by reason of this paragraph unless the 
manufacturing facility is located in the United 
States.’’. 
(c) PERMANENT CREDIT FOR MANUFACTURING RE-
COVERY EMPLOYEES.—Paragraph (4) of section 51(c) of 
such Code (relating to termination) is amended by adding 
at the end the following: 
‘‘The preceding sentence shall not apply to any man-
ufacturing recovery employee.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to individuals who first begin work 
for the employer after the date of the enactment of this 
Act. 
Æ 
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