I 
115TH CONGRESS 
1ST SESSION 
H. R. 340 
To amend the Internal Revenue Code of 1986 to allow a credit against 
tax for qualified manufacturing facility construction costs and to allow 
a credit against tax for qualified manufacturing facility construction 
costs. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 5, 2017 
Mr. SERRANO 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 a 
credit against tax for qualified manufacturing facility 
construction costs and to allow a credit against tax for 
qualified manufacturing facility construction costs. 
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 ‘‘Next Generation Amer-
ican Manufacturing Act of 2017’’. 
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TITLE I—CONSUMER CREDIT 
SEC. 101. CREDIT FOR RETAIL PURCHASE OF CERTAIN DO-
MESTIC PRODUCTS. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 30E. DOMESTIC MANUFACTURING CONSUMER CRED-
IT. 
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter 
for any taxable year an amount equal to the applicable 
percentage of the aggregate amount paid or incurred by 
the taxpayer for specified products during any portion 
such taxable year which is part of the eligible period. 
‘‘(b) APPLICABLE
PERCENTAGE; ELIGIBLE
PE-
RIOD.—For purposes of this section— 
‘‘(1) APPLICABLE
PERCENTAGE.—The term 
‘applicable percentage’ means, with respect to any 
specified product, the percentage (not less than 5 
percent nor more than 20 percent) under subsection 
(e)(4) with respect to such product. 
‘‘(2) ELIGIBLE PERIOD.—The term ‘eligible pe-
riod’ means, with respect to any specified product, 
the period (not less than 5 years nor more than 10 
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years) under subsection (e)(5) with respect to such 
product. 
‘‘(3) SEPARATE APPLICATION TO EACH SPECI-
FIED
PRODUCT.—Subsection (a) shall be applied 
separately with respect to each of the specified prod-
ucts designated under subsection (e). 
‘‘(c) SPECIFIED PRODUCT.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘specified prod-
uct’ means any designated domestic product— 
‘‘(A) the original use of which commences 
with the taxpayer, and 
‘‘(B) which is acquired by the taxpayer for 
use or lease, but not for resale. 
‘‘(2) DESIGNATED
DOMESTIC
PRODUCT.—The 
term ‘designated domestic product’ means any des-
ignated product which has been certified by the Sec-
retary as— 
‘‘(A) having been assembled in the United 
States, and 
‘‘(B) consisting at least 60 percent of com-
ponents assembled or otherwise arising in the 
United States. 
‘‘(3) DESIGNATED PRODUCT.—The term ‘des-
ignated product’ means the 10 products designated 
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by the Secretary, in consultation with the Commis-
sion, under subsection (e). 
‘‘(d) APPLICATION WITH OTHER CREDITS.— 
‘‘(1) BUSINESS CREDIT TREATED AS PART OF 
GENERAL BUSINESS CREDIT.—So much of the credit 
which would be allowed under subsection (a) for any 
taxable year (determined without regard to this sub-
section) that is attributable to property used by the 
taxpayer in the conduct of a trade or business shall 
be treated as a credit listed in section 38(b) for such 
taxable year (and not allowed under subsection (a)). 
‘‘(2) PERSONAL CREDIT.—For purposes of this 
title, the credit allowed under subsection (a) for any 
taxable year (determined after application of para-
graph (1)) shall be treated as a credit allowable 
under subpart A for such taxable year. 
‘‘(e) SELECTION OF DESIGNATED PRODUCTS.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Commission, shall designate 10 prod-
ucts for purposes of this section. 
‘‘(2) ELIGIBLE
PRODUCTS.—A product shall 
not be eligible for designation under this section un-
less— 
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‘‘(A) such product represents an advance-
ment in science, technology, engineering, or 
math, and 
‘‘(B) the designation of such product has 
the potential to produce substantial long-term 
job opportunities in the United States. 
‘‘(3) CRITERIA FOR DESIGNATION.—In making 
designations of products under this subsection, the 
Secretary shall take into consideration— 
‘‘(A) the number of jobs in the United 
States that the Secretary estimates will result 
(directly and indirectly) from the designation of 
such product, and 
‘‘(B) the speed with which such jobs are 
likely to be created. 
‘‘(4) DETERMINATION
OF
CREDIT
PERCENT-
AGE.—The Secretary, in consultation with the Com-
mission, shall determine the applicable percentage 
which applies for purposes of subsection (a) with re-
spect to each product designated under this sub-
section. Such percentage shall not be less than 5 
percent and shall not be more than 20 percent. Such 
percentage shall be determined on the basis of the 
incentive needed with respect to each such product 
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taking into account the market factors with respect 
to such product. 
‘‘(5) DETERMINATION
OF
PERIOD
DURING 
WHICH CREDIT ALLOWED.—The Secretary, in con-
sultation with the Commission, shall determine the 
eligible period which applies for purposes of sub-
section (a) with respect to each product designated 
under this subsection. Such period shall not be less 
than 5 years and shall not be more than 10 years. 
Such period shall be determined on the basis of the 
incentive needed with respect to each such product 
taking into account the market factors with respect 
to such product. 
‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) COMMISSION.—The term ‘Commission’ 
means the 21st Century American Manufacturing 
Commission established under section 102 of the 
Next Generation American Manufacturing Act of 
2017. 
‘‘(2) REDUCTION IN BASIS.—For purposes of 
this subtitle, the basis of any property for which a 
credit is allowable under subsection (a) shall be re-
duced by the amount of such credit so allowed (de-
termined without regard to subsection (d)). 
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‘‘(3) NO
DOUBLE
BENEFIT.—The amount of 
any deduction or other credit allowable under this 
chapter with respect to any property shall be re-
duced by the amount of the credit allowed under 
subsection (a) for such property (determined without 
regard to subsection (d)). 
‘‘(4) PROPERTY USED BY TAX-EXEMPT ENTI-
TY.—In the case of property whose use is described 
in paragraph (3) or (4) of section 50(b) and which 
is not subject to a lease, the person who sold such 
property to the person or entity using such property 
shall be treated as the taxpayer that placed such ve-
hicle in service, but only if such person clearly dis-
closes to such person or entity in a document the 
amount of any credit allowable under subsection (a) 
with respect to such property (determined without 
regard to subsection (d)). For purposes of subsection 
(d), property to which this paragraph applies shall 
be treated as property used by the taxpayer in the 
conduct of a trade or business. 
‘‘(5) 
PROPERTY
USED
OUTSIDE
UNITED 
STATES, ETC., NOT QUALIFIED.—No credit shall be 
allowable under subsection (a) with respect to any 
property referred to in section 50(b)(1). 
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‘‘(6) RECAPTURE.—The Secretary shall, by reg-
ulations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any property which ceases to be property eligible for 
such credit (including recapture in the case of a 
lease period of less than the economic life of the 
property). 
‘‘(7) ELECTION
TO
NOT
TAKE
CREDIT.—No 
credit shall be allowed under subsection (a) for any 
vehicle if the taxpayer elects to not have this section 
apply to such property. 
‘‘(g) TERMINATION.—This section shall not apply to 
property acquired after the date which is 10 years after 
the date of the enactment of this section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (35), by 
striking the period at the end of paragraph (36) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(37) the portion of the domestic manufac-
turing consumer credit to which section 30E(d)(1) 
applies.’’. 
(2) Section 1016(a) of such Code is amended 
by striking ‘‘and’’ at the end of paragraph (36), by 
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striking the period at the end of paragraph (37) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(38) to the extent provided in section 
30E(f)(2).’’. 
(3) Section 6501(m) of such Code is amended 
by inserting ‘‘30E(f)(7),’’ after ‘‘30D(e)(4),’’. 
(4) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 30E. Domestic manufacturing consumer credit.’’. 
(c) CBO REPORT.—The Congressional Budget Office 
shall, during the 3d, 5th, and 7th years after the effective 
date of the domestic manufacturing consumer credit (de-
scribed in subsection (d)), report to Congress on the eco-
nomic effects of such credit. Such report shall include the 
aggregate value of the domestic manufacturing consumer 
credits determined with respect to taxpayers under section 
30E of the Internal Revenue Code of 1986 and an esti-
mate of the economic activity stimulated by such credits. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property acquired after the date 
which is 1 year after the date on which the 21st Century 
American Manufacturing Commission makes its rec-
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ommendations to the Secretary of the Treasury under sec-
tion 102(b) of this Act. 
SEC. 102. ESTABLISHMENT OF 21ST CENTURY AMERICAN 
MANUFACTURING COMMISSION. 
(a) IN GENERAL.—There is established a commission 
to be known as the 21st Century American Manufacturing 
Commission. 
(b) DUTIES.—The Commission shall conduct re-
search regarding appropriate products to make eligible for 
the tax credit provided by section 30E of the Internal Rev-
enue Code of 1986 and shall make recommendations to 
the Secretary of the Treasury regarding which products 
should be designated for purposes of such section and the 
applicable percentage and eligible period which should be 
determined with respect to each such product. The com-
mission shall make such recommendations to the Sec-
retary of the Treasury not later than 6 months after the 
date of the enactment of this Act. 
(c) MEMBERSHIP.— 
(1) IN
GENERAL.—The Commission shall be 
composed of 10 members who shall be appointed by 
the Secretary of the Treasury or his designee not 
later than 30 days after the enactment of this Act. 
(2) SELECTION.—In determining who to ap-
point to the Commission, the Secretary of the Treas-
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