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.
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 for Amer-
ica Act’’.
SEC. 2. REINSTATEMENT OF 10-PERCENT DOMESTIC IN-
VESTMENT TAX CREDIT.
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to rules for computing credit for investment
in certain depreciable property), as amended by subsection
(b)(2), is amended by adding at the end the following new
section:
‘‘SEC. 50. 10-PERCENT DOMESTIC INVESTMENT CREDIT.
‘‘(a) IN GENERAL.—With respect to any domestic
property placed in service after December 31, 1992—
‘‘(1) section 49 shall not apply, and
‘‘(2) the regular percentage for purposes of this
subpart shall be 10 percent.
‘‘(b) DOMESTIC PROPERTY.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘domestic prop-
erty’ means property if
‘‘(A) the property was completed in the
United States, and
‘‘(B) at least 60 percent of the basis of the
property is attributable to value added within
the United States.
‘‘(2) UNITED
STATES.—The term ‘United
States’ includes the Commonwealth of Puerto Rico
and the possessions of the United States.’’
(b) CONFORMING AMENDMENTS.—
(1) The table of sections for such subpart E is
amended by adding at the end the following new
item:
‘‘Sec. 50. 10-percent domestic investment credit.’’
(2) Section 11813 of the Revenue Reconcili-
ation Act of 1990 (Pub. L. 101–508) is hereby re-
pealed, and the Internal Revenue Code of 1986 shall
be applied and administered as if such section (and
the amendments made by such section) had never
been enacted.
SEC. 3. CREDIT FOR PURCHASES OF DOMESTIC DURABLE
GOODS.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 22 the following new
section:
‘‘SEC. 23. PURCHASES OF DOMESTIC DURABLE GOODS.
‘‘(a) GENERAL RULE.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to
7 percent of the aggregate amount paid during the taxable
year for the purchase of domestic durable goods.
‘‘(b) DOMESTIC DURABLE GOODS.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘domestic durable
good’ means any durable good if—
‘‘(A) the property was completed in the
United States, and
‘‘(B) at least 60 percent of the basis of the
property is attributable to value added within
the United States.
‘‘(2) UNITED
STATES.—The term ‘United
States’ includes the Commonwealth of Puerto Rico
and the possessions of the United States.
‘‘(c) LIMITATION.—The amount of the credit allowed
under subsection (a) for any taxable year shall not exceed
$1,000.’’
(b) CONFORMING AMENDMENT.—The table of sec-
tions for such subpart A is amended by inserting after
the item relating to section 22 the following new item:
‘‘Sec. 23. Purchases of domestic durable goods.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1992.
SEC. 4. CREDIT FOR CERTAIN COSTS INCURRED IN PUR-
CHASING AN AMERICAN-MADE PASSENGER
VEHICLE.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 23 (as added by section
3 of this Act) the following new section:
‘‘SEC. 24. CERTAIN COSTS INCURRED IN PURCHASING AN
AMERICAN-MADE PASSENGER VEHICLE.
‘‘(a) IN GENERAL.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to
the qualified payments made by the taxpayer during such
year.
‘‘(b) QUALIFIED PAYMENTS.—For purposes of this
section, the term ‘qualified payments’ means any payment
of—
‘‘(1) any State or local sales tax imposed on the
purchase by the taxpayer of any qualified auto-
mobile, and
‘‘(2) any interest on any loan which is secured
by a qualified automobile and which was incurred by
the taxpayer to purchase such automobile.
‘‘(c) QUALIFIED AUTOMOBILE.—For purposes of this
section, the term ‘qualified automobile’ means any auto-
mobile (as defined in section 4064(b))—
‘‘(1) which is purchased after December 31,
1992,
‘‘(2) which is domestically produced,
‘‘(3) the original use of which begins with the
taxpayer, and
‘‘(4) substantially all of the use of which is for
personal, nonbusiness purposes.
For purposes of the preceding sentence, an automobile is
domestically produced if more than 60 percent of the auto-
mobile is produced in the United States and its final as-
sembly occurs in the United States.
‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction
or credit shall be allowed under any other provision of this
title for any payment for which a credit is allowable under
this section.’’
(b) CLERICAL AMENDMENT.—The table of sections
for such subpart A is amended by inserting after the item
relating to section 23 the following new item:
‘‘Sec. 24. Certain costs incurred in purchasing an American-made
passenger vehicle.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
SEC. 5. PLACEMENT OF MADE IN AMERICA LABELS ON
PRODUCTS.
(a) REQUIREMENTS FOR USE OF LABELS.—No prod-
uct may bear a label which states or suggests that the
product was made in America unless—
(1) the product has been registered with the
Department of Commerce under subsection (b); and
(2) the Secretary of Commerce has determined
that—
(A) 60 percent of the product was manu-
factured in the United States; and
(B) final assembly of the product took
place in the United States.
(b) REGISTRY
OF AMERICAN-MADE PRODUCTS.—
Not later than 12 months after the Secretary has promul-
gated regulations regarding the registration of products
with the Department of Commerce under this section, a
person shall register with the Department of Commerce
any product on which there is or will be affixed a label
which states or suggests that the product was made in
America.
(c) PENALTIES
FOR FRAUDULENT USE
OF LA-
BELS.—
(1) CIVIL FINE.—Any person who, with an in-
tent to defraud or mislead, places on a product a
label which states or suggests that the product was
‘‘made in America’’ in violation of this section may
be assessed a civil penalty by the Secretary of not
more than $100,000. The Secretary may issue an
order assessing such civil penalty only after notice
and an opportunity for an agency hearing on the
record. The validity of such order may not be re-
viewed in an action to collect such civil penalty.
(2) INJUNCTIVE RELIEF.—The Secretary may
bring an action to enjoin the violation of, or to com-
pel compliance with, this section, whenever the Sec-
retary believes that such a violation has occurred or
is about to occur.
(d) REGULATIONS.—Not later than 12 months after
the date of the enactment of this Act, the Secretary shall
promulgate regulations establishing procedures under
which a person shall register a product under this section.
(e) DEFINITIONS.—For purposes of this section:
(1) LABEL.—The term ‘‘label’’ means any writ-
ten, printed, or graphic matter on, or attached to,
a product or any of its containers or wrappers.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Commerce.
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