Bring Entrepreneurial Advancements To Consumers Here In North America Act
Bill: H.R.5649 | Sponsor: Rep. Roy, Chip (R-TX)
Policy area: Taxation

Summary:
Bring Entrepreneurial Advancements To Consumers Here In North America Act
This bill provides tax incentives for relocating manufacturing facilities in the United States.
Specifically, it allows accelerated depreciation (20-year recovery period) for nonresidential real property acquired in connection with the relocation of manufacturing facilities in the United States. It also excludes from gross income, for income tax purposes, gain on the sale or exchange of such relocated facilities.
Finally, the bill allows permanent 100% expensing of manufacturing property relocated in the United States.

To amend the Internal Revenue Code of 1986 to provide incentives for 
relocating manufacturing to the United States, permanent full expensing 
            for qualified property, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bring Entrepreneurial Advancements 
To Consumers Here In North America Act''.

SEC. 2. TAX INCENTIVES FOR RELOCATING MANUFACTURING TO THE UNITED 
              STATES.

    (a) Accelerated Depreciation for Nonresidential Real Property.--
Section 168 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subsection:
    ``(n) Accelerated Depreciation for Nonresidential Real Property 
Acquired in Connection With the Relocation of Manufacturing to the 
United States.--
            ``(1) Treatment as 20-year property.--For purposes of this 
        section, qualified nonresidential real property shall be 
        treated as 20-year property.
            ``(2) Application of bonus depreciation.--For application 
        of bonus depreciation to qualified nonresidential real 
        property, see subsection (k).
            ``(3) Qualified nonresidential real property.--For purposes 
        of this subsection, the term `qualified nonresidential real 
        property' means nonresidential real property placed in service 
        in the United States by a qualified manufacturer if such 
        property is acquired by such qualified manufacturer in 
        connection with a qualified relocation of manufacturing.
            ``(4) Qualified manufacturer.--For purposes of this 
        subsection, the term `qualified manufacturer' means any person 
        engaged in the trade or business of manufacturing any tangible 
        personal property.
            ``(5) Qualified relocation of manufacturing.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `qualified relocation 
                of manufacturing' means, with respect to any qualified 
                manufacturer, the relocation of the manufacturing of 
                any tangible personal property from a foreign country 
                to the United States.
                    ``(B) Relocation of property not required.--For 
                purposes of subparagraph (A), manufacturing shall not 
                fail to be treated as relocated merely because property 
                used in such manufacturing was not relocated.
                    ``(C) Relocation of not less than equivalent 
                productive capacity required.--For purposes of 
                subparagraph (A), manufacturing shall not be treated as 
                relocated unless the property manufactured in the 
                United States is substantially identical to the 
                property previously manufactured in a foreign country 
                and the increase in the units of production of such 
                property in the United States by the qualified 
                manufacturer is not less than the reduction in the 
                units of production of such property in such foreign 
                country by such qualified manufacturer.
            ``(6) Application to possessions of the united states.--For 
        purposes of this subsection, the term `United States' includes 
        any possession of the United States.''.
    (b) Exclusion of Gain on Disposition of Property in Connection With 
Qualified Relocation of Manufacturing.--
            (1) In general.--Part III of subchapter B of chapter 1 of 
        such Code is amended by inserting after section 139H the 
        following new section:

``SEC. 139I. EXCLUSION OF GAIN ON DISPOSITION OF PROPERTY IN CONNECTION 
              WITH QUALIFIED RELOCATION OF MANUFACTURING.

    ``(a) In General.--In the case of a qualified manufacturer, gross 
income shall not include gain from the sale or exchange of qualified 
relocation disposition property.
    ``(b) Qualified Relocation Disposition Property.--For purposes of 
this section, the term `qualified relocation disposition property' 
means any property which--
            ``(1) is sold or exchanged by a qualified manufacturer in 
        connection with a qualified relocation of manufacturing, and
            ``(2) was used by such qualified manufacturer in the trade 
        or business of manufacturing any tangible personal property in 
        the foreign country from which such manufacturing is being 
        relocated.
    ``(c) Other Terms.--Terms used in this section which are also used 
in subsection (n) of section 168 shall have the same meaning when used 
in this section as when used in such subsection.''.
            (2) Clerical amendment.--The table of sections for part III 
        of subchapter B of chapter 1 of such Code is amended by 
        inserting after the item relating to section 139H the following 
        new item:

``Sec. 139I. Exclusion of gain on disposition of property in connection 
                            with qualified relocation of 
                            manufacturing.''.
    (c) Effective Dates.--
            (1) Accelerated depreciation.--The amendment made by 
        subsection (a) shall apply to property placed in service after 
        the date of the enactment of this Act.
            (2) Exclusion of gain.--The amendments made by subsection 
        (b) shall apply to sales and exchanges after the date of the 
        enactment of this Act.

SEC. 2. PERMANENT FULL EXPENSING FOR QUALIFIED PROPERTY.

    (a) In General.--Paragraph (6) of section 168(k) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(6) Applicable percentage.--For purposes of this 
        subsection, the term `applicable percentage' means, in the case 
        of property placed in service (or, in the case of a specified 
        plant described in paragraph (5), a plant which is planted or 
        grafted) after September 27, 2017, 100 percent.''.
    (b) Conforming Amendments.--
            (1) Section 168(k) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i)(V), by inserting 
                                ``and'' at the end;
                                    (II) in clause (ii), by striking 
                                ``clause (ii) of subparagraph (E), 
                                and'' and inserting ``clause (i) of 
                                subparagraph (E).''; and
                                    (III) by striking clause (iii);
                            (ii) in subparagraph (B)--
                                    (I) in clause (i)--
                                            (aa) by striking subclauses 
                                        (II) and (III); and
                                            (bb) by redesignating 
                                        subclauses (IV) through (VI) as 
                                        subclauses (II) through (IV), 
                                        respectively;
                                    (II) by striking clause (ii); and
                                    (III) by redesignating clauses 
                                (iii) and (iv) as clauses (ii) and 
                                (iii), respectively;
                            (iii) in subparagraph (C)--
                                    (I) in clause (i), by striking 
                                ``and subclauses (II) and (III) of 
                                subparagraph (B)(i)''; and
                                    (II) in clause (ii), by striking 
                                ``subparagraph (B)(iii)'' and inserting 
                                ``subparagraph (B)(ii)''; and
                            (iv) in subparagraph (E)--
                                    (I) by striking clause (i); and
                                    (II) by redesignating clauses (ii) 
                                and (iii) as clauses (i) and (ii), 
                                respectively; and
                    (B) in paragraph (5)(A), by striking ``planted 
                before January 1, 2027, or is grafted before such date 
                to a plant that has already been planted,'' and 
                inserting ``planted or grafted''.
            (2) Section 460(c)(6)(B) of such Code is amended by 
        striking ``which'' and all that follows through the period and 
        inserting ``which has a recovery period of 7 years or less.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in section 13201 of Public Law 115-97.
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