I
105TH CONGRESS
1ST SESSION
H. R. 565
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 4, 1997
Mr. TRAFICANT introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Com-
merce, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
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) ALLOWANCE OF CREDIT.—Section 46 of the In-
ternal Revenue Code of 1986 (relating to amount of in-
vestment credit) is amended by striking ‘‘and’’ at the end
of paragraph (2), by striking the period at the end of para-
graph (3) and inserting ‘‘, and’’, and by adding at the
end thereof the following new paragraph:
‘‘(4) the domestic investment credit.’’
(b) AMOUNT OF CREDIT.—Section 48 of such Code
is amended by adding at the end thereof the following new
subsection:
‘‘(c) DOMESTIC INVESTMENT CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 46,
the domestic investment credit for any taxable year
is an amount equal to 10 percent of the qualified in-
vestment for such taxable year.
‘‘(2) QUALIFIED INVESTMENT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the qualified investment for any tax-
able year is the aggregate of—
‘‘(i) the applicable percentage of the
basis of each new domestic section 38
property placed in service by the taxpayer
during such taxable year, plus
‘‘(ii) the applicable percentage of the
cost of each used domestic section 38 prop-
erty placed in service by the taxpayer dur-
ing such taxable year.
‘‘(B) 
APPLICABLE
PERCENTAGE.—For
purposes of subparagraph (A), the applicable
percentage for any property shall be determined
under paragraphs (2) and (7) of section 46(c)
(as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of
1990).
‘‘(C) CERTAIN
RULES
MADE
APPLICA-
BLE.—The provisions of subsections (b) and (c)
of section 48 (as in effect on the day before the
date of the enactment of the Revenue Reconcili-
ation Act of 1990) shall apply for purposes of
this paragraph.
‘‘(3) DOMESTIC
SECTION
PROPERTY.—For
purposes of this subsection, the term ‘domestic sec-
tion 38 property’ means any section 38 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.
For purposes of the preceding sentence, the term
‘United States’ includes the Commonwealth of Puer-
to Rico and the possessions of the United States.
‘‘(4) SECTION 38 PROPERTY.—For purposes of
this subsection, the term ‘section 38 property’
means—
‘‘(A) tangible personal property (other
than an air conditioning or heating unit), or
‘‘(B) other tangible property (not including
a building and its structural components) but
only if such property—
‘‘(i) is used as an integral part of
manufacturing, production, or extraction
or of furnishing transportation, commu-
nications, electrical energy, gas, water, or
sewage disposal services, or
‘‘(ii) constitutes a research facility
used in connection with any of the activi-
ties referred to in clause (i), or
‘‘(iii) constitutes a facility used in
connection with any of the activities re-
ferred to in clause (i) for the bulk storage
of fungible commodities (including com-
modities in a liquid or gaseous state), or
‘‘(C) elevators and escalators, but only if—
‘‘(i) the construction, reconstruction,
or erection of the elevator or escalator is
completed by the taxpayer, or
‘‘(ii) the original use of such elevator
or escalator commences with the taxpayer,
or
‘‘(D) single purpose agricultural or horti-
cultural structures; or
‘‘(E) a storage facility (not including a
building and its structural components) used in
connection with the distribution of petroleum or
any primary product of petroleum.
Such term includes only property to which section
168 applies without regard to any useful life and
any other property with respect to which deprecia-
tion (or amortization in lieu of depreciation) is al-
lowable and having a useful life (determined as of
the time such property is placed in service) of 3
years or more.
‘‘(5) COORDINATION WITH OTHER CREDITS.—
This subsection shall not apply to any property to
which the energy credit or rehabilitation credit
would apply unless the taxpayer elects to waive the
application of such credits to such property.
amended by inserting after section 23 the following new
section:
‘‘SEC. 24. 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
10 percent of the aggregate amount paid during the tax-
able 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 23 the following new item:
‘‘Sec. 24. Purchases of domestic durable goods.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1997.
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 24 (as added by section
3 of this Act) the following new section:
‘‘SEC. 24A. 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,
1997,
‘‘(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 24 the following new item:
‘‘Sec. 24A. 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 De-
cember 31, 1997.
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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