‘‘(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 3(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 Treasury 
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shall consider a geographically diverse group of indi-
viduals with experience in the areas of— 
(A) managing manufacturing companies, 
including businesses with fewer than 100 em-
ployees, 
(B) conducting manufacturing-related re-
search and development, 
(C) commercialization of scientific innova-
tion, 
(D) managing supply chain providers, 
(E) finance, and 
(F) analyzing manufacturing policy and 
economic competitiveness. 
(3) POLITICAL AFFILIATION.—Not more than 5 
members may be of the same political party. 
(4) TERMS.—Each member shall be appointed 
for the life of the Commission. 
(5) VACANCIES.—A vacancy in the Commission 
shall be filled in the manner in which the original 
appointment was made. 
(6) PAY OF MEMBERS.— 
(A) IN GENERAL.—Members shall each be 
entitled to receive the daily equivalent of the 
maximum annual rate of basic pay for grade 
GS–11 of the General Schedule for each day 
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(including travel time) during which they are 
engaged in the actual performance of duties 
vested in the Commission. 
(B) TRAVEL
EXPENSES.—Each member 
shall receive travel expenses, including per diem 
in lieu of subsistence, in accordance with appli-
cable provisions under subchapter I of chapter 
57 of title 5, United States Code. 
(7) PREVENTION OF CONFLICTS OF INTEREST 
AND NEPOTISM.— 
(A) AGREEMENT.—The Secretary of the 
Treasury shall not appoint any individual to be 
a member of the Commission unless such indi-
vidual has first signed an agreement with the 
Secretary to prevent conflicts of interest and 
nepotism. Such agreement shall include a re-
quirement that the individual comply with the 
provisions of subparagraph (B) and shall in-
clude such penalties for failure to so comply as 
the Secretary determines appropriate. 
(B) REQUIREMENTS.—A member of the 
Commission shall not, during the 5-year period 
beginning on the effective date of the domestic 
manufacturing consumer credit (described in 
section 2(d)), hold, directly or indirectly, any 
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interest in any person associated with any des-
ignated product, any component of any des-
ignated product, or any equipment to manufac-
ture any such product or component. An inter-
est held in any fund held by such member shall 
be taken into account under the preceding sen-
tence unless such fund is a broad-based index 
fund. Any interest held by such member prior 
to the beginning of such 5-year period which is 
not (consistent with the requirements of this 
subparagraph) permitted to be held during such 
period, shall be disposed of prior to such period. 
(d) CHAIRPERSON.—The Chairperson of the Com-
mission shall be designated by the Secretary of the Treas-
ury (or his designee) at the time of appointment. 
(e) STAFF.—Any staff of the Commission shall be ap-
pointed subject to the provisions of title 5, United States 
Code, governing appointments in the competitive service, 
and shall be paid in accordance with the provisions of 
chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates. 
(f) TERMINATION.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Commission shall terminate 30 days 
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after making recommendations to the Secretary of 
the Treasury described in subsection (b). 
(2) EXTENSION.—At the request of the Sec-
retary of the Treasury or his designee, the Commis-
sion shall continue in existence for such period at 
the Secretary may request but not later than 1 year 
after making such recommendations. 
TITLE II—MANUFACTURER 
CREDIT 
SEC. 201. CREDIT FOR MANUFACTURING FACILITY COSTS. 
(a) IN GENERAL.—Subpart D 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. 45S. MANUFACTURING FACILITY EXPENDITURES. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of an eligible business, the manufacturing facil-
ity expenditure credit for any taxable year is an amount 
equal to 25 percent of the qualified facility construction 
expenditures of the taxpayer for the taxable year. 
‘‘(b) ELIGIBLE BUSINESS.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘eligible business’ 
means any corporation or partnership— 
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‘‘(A) which is engaged in an active trade or 
business, 
‘‘(B) which is headquartered in the United 
States, 
‘‘(C) substantially all of the management 
or administrative activities of which are per-
formed in the United States, 
‘‘(D) which has not (prior to placing into 
service the manufacturing facility designated 
for purposes of this section) placed in service a 
manufacturing facility, 
‘‘(E) which is a start-up company, and 
‘‘(F) with respect to which all debt obliga-
tions issued by, and equity interests in, have a 
rating of B minus (or its substantial equivalent) 
or higher from a credit rating agency registered 
with the Securities and Exchange Commission 
as a nationally recognized statistical rating or-
ganization (as defined in section 3(a) of the Se-
curities Exchange Act of 1934). 
‘‘(2) START-UP COMPANY.—The term ‘start-up 
company’ means any corporation or partnership— 
‘‘(A) which first has both gross receipts 
and qualified research expenses (as defined in 
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section 41(b) in a taxable year beginning after 
December 31, 2012, or 
‘‘(B) which both gross receipts and quali-
fied research expenses (as so defined) in fewer 
than 3 taxable year beginning after December 
31, 2012, and before January 1, 2018. 
‘‘(c) QUALIFIED FACILITY CONSTRUCTION EXPENDI-
TURES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified facility 
construction expenditures’ means amounts paid or 
incurred by the taxpayer— 
‘‘(A) for the construction of a facility (des-
ignated for purposes of this section by the tax-
payer at such time and in such form and man-
ner as the Secretary shall prescribe) in the 
United States to manufacture a qualified prod-
uct (including amounts for professional services 
necessary for the planning of such construc-
tion), and 
‘‘(B) for the purchase of specialized equip-
ment for use at such facility and required for 
the manufacture of such product. 
‘‘(2) QUALIFIED PRODUCT.—The term ‘quali-
fied product’ means any product which, prior to con-
struction of the facility with respect to which a cred-
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it is allowed under this section, the taxpayer has 
produced and sold to a bona fide purchaser, and 
such purchaser has placed such product in service. 
‘‘(d) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) RECAPTURE.— 
‘‘(A) IN GENERAL.—If, as of the close of 
any taxable year, there is a recapture event 
with respect to any facility of the taxpayer with 
respect to which a credit was allowed under this 
section, then the tax of the taxpayer under this 
chapter for such taxable year shall be increased 
by an amount equal to the product of— 
‘‘(i) the applicable recapture percent-
age, and 
‘‘(ii) the aggregate decrease in the 
credits allowed under section 38 for all 
prior taxable years which would have re-
sulted if the qualified facility construction 
expenditures of the taxpayer described in 
subsection (c)(1) with respect to such facil-
ity had been zero. 
‘‘(B) APPLICABLE RECAPTURE PERCENT-
AGE.— 
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‘‘(i) IN
GENERAL.—For purposes of 
this subsection, the applicable recapture 
percentage shall be determined in accord-
ance with the following table: 
‘‘If the recapture event 
occurs in: 
The applicable recapture 
percentage is: 
Year 1 ..........................................................................................
100
Year 2 ..........................................................................................
Year 3 ..........................................................................................
Year 4 ..........................................................................................
Year 5 ..........................................................................................
Years 6 and thereafter .................................................................
0. 
‘‘(ii) YEARS.—For purposes of clause 
(i), year 1 shall begin on the first day of 
the taxable year in which the facility with 
respect to which a credit was allowed 
under this subsection was placed in service. 
‘‘(C) RECAPTURE
EVENT.—For purposes 
of this paragraph— 
‘‘(i) IN GENERAL.—A recapture event 
occurs with respect to any facility if— 
‘‘(I) the taxpayer becomes insol-
vent, or 
‘‘(II) the taxpayer disposes of the 
facility to another person who, at this 
time of the disposition, is not an eligi-
ble business. 
‘‘(ii) SPECIAL RULE FOR FACILITIES 
NOT
PLACED
IN
SERVICE
WITHIN
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YEARS.—In the case of a facility with re-
spect to which a credit is allowed under 
this section which is not placed in service 
before the close of the 5th taxable year be-
ginning after the first taxable year for 
which the credit was so allowed, a recap-
ture event shall be treated as having oc-
curred with respect to such facility in year 
1. 
‘‘(2) CREDIT MAY BE ASSIGNED.—The amount 
of qualified facility construction expenditures with 
respect to a facility which would (but for this para-
graph) be taken into account under subsection (a) 
for any taxable year by any person (hereafter in this 
paragraph referred to as the ‘initial taxpayer’)— 
‘‘(A) may be taken into account by any 
other person to whom such expenditures are as-
signed by the initial taxpayer, and 
‘‘(B) shall not be taken to account by ini-
tial taxpayer. 
Any person to whom such expenditures are assigned 
under subparagraph (A) shall be treated for pur-
poses of this title as the taxpayer with respect to 
such expenditures. 
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‘‘(3) CONTROLLED GROUP.—All members of the 
same controlled group of corporations (within the 
meaning of section 52(a)) and all persons under 
common control (within the meaning of section 
52(b)) shall be treated as 1 person for purposes of 
this section. 
‘‘(4) PREDECESSOR.—Any reference in this sec-
tion to a corporation or partnership shall include a 
reference to any predecessor of such corporation or 
partnership. 
‘‘(5) DENIAL OF DOUBLE BENEFIT.—For pur-
poses of this subtitle, if a credit is allowed under 
this section in connection with any expenditure for 
any property, the basis of such property shall be re-
duced by the amount of the credit so allowed.’’. 
(b) DENIAL OF DOUBLE BENEFIT.—Section 280C of 
such Code is amended by inserting after subsection (h) 
the following new subsection: 
‘‘(i) MANUFACTURING FACILITY EXPENDITURES.— 
No deduction shall be allowed for that portion of the ex-
penses otherwise allowable as a deduction taken into ac-
count in determining the credit under section 45S for the 
taxable year which is equal to the amount of the credit 
determined for such taxable year under section 45S(a).’’. 
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(c) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of the such Code, as amended by 
this Act, is amended by striking ‘‘plus’’ at the end of para-
graph (36), by striking the period at the end of paragraph 
(37) and inserting ‘‘, plus’’, and by inserting after para-
graph (37) the following: 
‘‘(38) manufacturing facility expenditure credit 
determined under section 45S(a).’’. 
(d) CONFORMING AMENDMENT.—Section 1016(a) of 
such Code, as amended by this Act, is amended by striking 
‘‘and’’ at the end of paragraph (37), by striking the period 
at the end of paragraph (38) and inserting ‘‘, and’’, and 
by adding at the end the following new paragraph: 
‘‘(39) to the extent provided in section 
45S(d)(2).’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
Æ 
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