I 
113TH CONGRESS 
1ST SESSION H. R. 1737 
To amend the Internal Revenue Code of 1986 to allow manufacturing busi-
nesses to establish tax-free manufacturing reinvestment accounts to assist 
them in providing for new equipment and facilities and workforce train-
ing. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 25, 2013 
Ms. DELAURO (for herself, Mr. KINZINGER of Illinois, Mr. RYAN of Ohio, Mr. 
MICHAUD, Mr. CICILLINE, Mr. LOEBSACK, Ms. DUCKWORTH, Ms. LEE 
of California, and Mr. RODNEY DAVIS of Illinois) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow manu-
facturing businesses to establish tax-free manufacturing 
reinvestment accounts to assist them in providing for 
new equipment and facilities and workforce training. 
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 ‘‘Manufacturing Rein-
vestment Account Act of 2013’’. 
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SEC. 2. MANUFACTURING REINVESTMENT ACCOUNTS. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
itemized deductions for individuals and corporations) is 
amended by inserting after section 199 the following new 
section: 
‘‘SEC. 199A. MANUFACTURING REINVESTMENT ACCOUNTS. 
‘‘(a) DEDUCTION ALLOWED.—In the case of a tax-
payer engaged in a manufacturing business, there shall 
be allowed as a deduction for the taxable year the amount 
paid in cash by the taxpayer during the taxable year to 
a manufacturing reinvestment account (hereinafter re-
ferred to as an ‘MRA’) for the taxpayer’s benefit. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The amount which a tax-
payer may pay into an MRA for the taxable year 
shall not exceed the lesser of— 
‘‘(A) the domestic manufacturing gross re-
ceipts of the taxpayer for the taxable year, or 
‘‘(B) $500,000. 
‘‘(2) CONTROLLED GROUPS.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, all persons treated as a single em-
ployer under subsection (a) or (b) of section 52 
or subsection (m) or (o) of section 414 shall be 
treated as a single manufacturer. 
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‘‘(B) INCLUSION
OF
FOREIGN
CORPORA-
TIONS.—For purposes of subparagraph (A), in 
applying subsections (a) and (b) of section 52 
to this section, section 1563 shall be applied 
without regard to subsection (b)(2)(C) thereof. 
‘‘(c) MRA.—For purposes of this section, the term 
‘MRA’ means a trust created or organized in the United 
States for the exclusive benefit of the taxpayer, but only 
if the written governing instrument creating the trust 
meets the following requirements: 
‘‘(1) No contribution will be accepted for any 
taxable year unless it is in cash. 
‘‘(2) Contributions will not be accepted for any 
taxable year in excess of the amount allowed as a 
deduction under subsection (a) for such year. 
‘‘(3) The trustee is an eligible institution. 
‘‘(4) No part of the trust assets will be invested 
in life insurance contracts. 
‘‘(5) No part of the trust assets will be invested 
in any collectible (as defined in section 408(m)). 
‘‘(6) The assets of the trust will not be commin-
gled with other property except in a common trust 
fund or common investment fund. 
‘‘(d) TAX TREATMENT OF ACCOUNTS.— 
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‘‘(1) IN GENERAL.—An MRA is exempt from 
taxation under this subtitle unless the account has 
ceased to be an MRA. Notwithstanding the pre-
ceding sentence, an MRA is subject to the taxes im-
posed by section 511 (relating to imposition of tax 
on unrelated business income of charitable, etc. or-
ganizations). 
‘‘(2) ACCOUNT TERMINATIONS.—Rules similar 
to the rules of paragraphs (2) and (4) of section 
408(e) shall apply to MRAs, and any amount treat-
ed as distributed under such rules shall be treated 
as not used to pay qualified reinvestment expenses. 
‘‘(e) TREATMENT OF DISTRIBUTIONS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (3) and (4), there shall be includible in the 
gross income of the taxpayer for any taxable year— 
‘‘(A) any amount distributed from an MRA 
of the taxpayer during such taxable year, and 
‘‘(B) any deemed distribution under— 
‘‘(i) subsection (g)(1) (relating to de-
posits not distributed within 7 years), 
‘‘(ii) subsection (g)(2) (relating to ces-
sation in manufacturing business), and 
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