Title: Opportunities in the Americas Act
Policy area: International Affairs

Summary:
Opportunities in the Americas Act
This bill provides assistance to eligible companies relocating manufacturing from China to a qualifying Latin American or Caribbean country, generally a country in the region that has a free trade agreement with the United States and is not a foreign adversary.
For example, the U.S. International Development Finance Corporation must use at least 10 percent of its funding for each fiscal year to provide assistance, such as financing eligible costs for moving and workforce development, to businesses relocating manufacturing from China to a qualifying Latin American or Caribbean country, subject to various conditions and requirements.
The bill also provides tax benefits related to certain property acquired and placed in service in connection with such a relocation of manufacturing.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7935 Introduced in House (IH)]

<DOC>






117th CONGRESS
  2d Session
                                H. R. 7935

To reinforce commercial relationships with Latin American and Caribbean 
       allies and expand critical supply chains in the Americas.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 3, 2022

Mr. Espaillat (for himself and Mrs. Cherfilus-McCormick) introduced the 
following bill; which was referred to the Committee on Foreign Affairs, 
and in addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To reinforce commercial relationships with Latin American and Caribbean 
       allies and expand critical supply chains in the Americas.

    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 ``Opportunities in the Americas Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Our neighbors in the Western Hemisphere play a vital 
        role in ensuring regional peace, security, and democracy.
            (2) According to the United States Trade Representative, in 
        2020 the United States exported $11.1 billion worth of goods to 
        Caribbean Basin Initiative countries and imported $5.1 billion.
            (3) According to the United States Census Bureau, in 2021 
        the United States exported $174.62 billion worth of goods to 
        Central and South America and imported $120.99 billion.
            (4) The economic viability of the Western Hemisphere brings 
        essential strength and stability to the region.
            (5) There is significant opportunity to improve regional 
        investment in manufacturing, co-production and nearshoring 
        arrangements, and the free flow of goods and services in the 
        Western Hemisphere.
            (6) Closer economic integration among the Americas through 
        free trade agreements encourages further economic and 
        commercial ties in the region.
            (7) The United States should exercise its influence to 
        encourage private sector investment, free markets, and economic 
        cooperation in the region.
            (8) Countries in the Western Hemisphere should combat 
        corruption, strengthen their judicial systems, reduce 
        bureaucratic red tape, streamline permitting, and embrace free 
        markets in order to encourage more private sector investment.
            (9) The Western Hemisphere has a supply chain that is 
        overly dependent on the People's Republic of China.
            (10) The United States free trade agreements and preference 
        programs in the Western Hemisphere, including the Dominican 
        Republic-Central America Free Trade Agreement and the Caribbean 
        Basin Trade Partnership Act, are key economic drivers in the 
        region and represent a crucial alternative co-production and 
        trading bloc to the People's Republic of China.
            (11) Ensuring that critical supply chains for key products, 
        including textiles and apparel, lithium batteries, and 
        pharmaceuticals, are located both in the United States and 
        other countries in the Western Hemisphere is a national 
        security priority for the United States.
            (12) The United States should enact policies that 
        incentivize manufacturers to relocate to the Western 
        Hemisphere, and United States companies to expand operations in 
        the region through nearshoring and co-production arrangements.
            (13) Increased investment incentives, co-production, and 
        trade between the United States and Latin America and the 
        Caribbean will foster joint economic and commercial growth, 
        increase investment opportunities, and contribute to job 
        creation.

SEC. 3. ASSISTANCE PROVIDED BY THE UNITED STATES INTERNATIONAL 
              DEVELOPMENT FINANCE CORPORATION.

    (a) Use of Funds.--
            (1) In general.--Notwithstanding any other provision of 
        law, the DFC shall use not less than 10 percent of the amounts 
        made available under any provision of law to the DFC for each 
        fiscal year beginning after the date of the enactment of this 
        Act to finance the qualified moving costs and necessary 
        workforce development costs and the qualified costs of 
        expanding business of, and reduce the interest rate on any loan 
        to be provided by the DFC to the interest rate described in 
        paragraph (4) to, any qualified corporation that is eligible 
        for, or a recipient of, assistance from the DFC, to the extent 
        of qualifying applications for assistance under this section.
            (2) Coordination.--The DFC shall carry out this section in 
        coordination with--
                    (A) relevant Federal agencies, including the United 
                States Trade and Development Agency, the Export-Import 
                Bank of the United States, the United States Army Corps 
                of Engineers, and the United States Agency for 
                International Development;
                    (B) relevant international financial institutions, 
                including the World Bank and the Inter-American 
                Development Bank;
                    (C) relevant nongovernmental organizations; and
                    (D) relevant governments of Latin American and 
                Caribbean countries.
            (3) Availability of unused amounts.--If the DFC does not 
        use the entire amount described in paragraph (1) for a fiscal 
        year as described in such paragraph, such amount shall, to the 
        maximum extent practicable, be made available to the DFC for 
        the next fiscal year, in addition to other available funds, to 
        carry out this section or other DFC programs for qualified 
        Latin American or Caribbean countries.
            (4) Interest rate described.--The interest rate described 
        in this paragraph is--
                    (A) the Federal funds rate; or
                    (B) the interest rate that is determined by 
                reducing by not less than \1/2\ of 1 percent and not 
                more than 1 percent (but to not less than zero percent) 
                the interest rate on the loan to be provided by the DFC 
                to the qualified corporation,
        whichever is the lesser.
    (b) No Negative Effects on Employment in the United States.--The 
DFC shall not provide assistance under this section unless the 
Secretary of Commerce has determined that the provision of the 
assistance would not result in a negative effect on employment in the 
United States.
    (c) Disposition of Unused Assistance.--A corporation to which 
financing is made under this section shall remit to the DFC any portion 
of the assistance that is not expended within 4 years after the date 
the financing is made.
    (d) Conditions on Provision of Loans.--The DFC--
            (1) may provide loans under this section to a corporation 
        only if the loans are commercially viable, as determined by the 
        DFC; and
            (2) shall determine an appropriate amount of time for 
        repayment of loans under this section to a corporation.
    (e) Conditions on Receipt of Assistance.--
            (1) In general.--The DFC may not provide assistance under 
        this section to a corporation unless--
                    (A) the DFC determines that the corporation will 
                create jobs in the qualified Latin American or 
                Caribbean country to which it moves operations or 
                expands business in numbers determined by the DFC to be 
                commensurate with the assistance provided;
                    (B) the DFC determines that the corporation will 
                expand its business operations in the Western 
                Hemisphere if it already does business in a qualified 
                Latin American or Caribbean country;
                    (C) the corporation makes a binding commitment to 
                the DFC that, on and after the date the assistance is 
                provided--
                            (i) neither the corporation nor any owner 
                        of the corporation will have an ownership 
                        relationship with the Government of the 
                        People's Republic of China or the Chinese 
                        Communist Party, the Government of the Russian 
                        Federation, or any other foreign adversary;
                            (ii) neither the corporation nor any owner 
                        of the corporation will have a significant 
                        contractual or supplier relationship with the 
                        People's Republic of China; and
                            (iii) the corporation--
                                    (I) will not have its headquarters 
                                in the People's Republic of China, the 
                                Russian Federation, or any other 
                                foreign adversary; and
                                    (II) will not have a majority of 
                                its operations in the People's Republic 
                                of China and a majority of its revenue 
                                will not be generated in the People's 
                                Republic of China;
                    (D) the corporation, when receiving funding in 
                relation to qualified moving costs--
                            (i) makes a binding commitment to the DFC 
                        that it will submit to the DFC a report 
                        specifying the progress it is making to move 
                        its operations from the People's Republic of 
                        China to the qualified Latin American or 
                        Caribbean country; and
                            (ii) makes a binding commitment to the DFC 
                        that it will move all assets of the corporation 
                        with respect to which the assistance is 
                        provided to a qualified Latin American or 
                        Caribbean country; and
                    (E) the corporation will retain all assets of the 
                corporation with respect to which the assistance is 
                provided in a qualified Latin American or Caribbean 
                country after the date described in subparagraph (C) or 
                the last day of the extension described in subparagraph 
                (E), as the case may be.
            (2) Compliance determinations.--
                    (A) In general.--The DFC, in coordination with the 
                Department of State and the United States Trade 
                Representative, shall make all determinations regarding 
                compliance with the provisions of paragraph (1).
                    (B) Non-compliance actions.--If the DFC has reduced 
                the interest rate on any loan provided by the DFC to a 
                qualified corporation to the interest rate described in 
                subsection (a)(4) and the corporation is subsequently 
                determined by the agency not to be in compliance with 
                the provisions of subsection (a), the DFC shall adjust 
                the interest rate on such loan or any other loan to be 
                provided by the DFC to the corporation to the 
                prevailing market interest rate.
    (f) Plan.--Not later than 180 days after the date of the enactment 
of this Act, the DFC shall develop and submit to the Committee on 
Foreign Affairs of the House of Representatives and the Committee on 
Foreign Relations of the Senate a plan to streamline the provision of 
assistance under this section, including to expedite the approval 
process for the provision of such assistance.
    (g) Progress Reports.--Not later than one year after the date of 
the enactment of this Act, and annually thereafter for 15 years, the 
DFC shall submit to the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Foreign Relations of the Senate a 
report on progress made in providing assistance under this section.
    (h) Sunset.--This section shall have no force or effect on or after 
the date that is 15 years after the date of the enactment of this Act.

SEC. 4. EXPENSES PAID FOR WITH TARIFFS COLLECTED FROM THE PEOPLE'S 
              REPUBLIC OF CHINA.

    (a) Establishment of Trust Fund.--There is established in the 
Treasury of the United States a trust fund consisting of such amounts 
as are appropriated to such trust fund under subsection (b).
    (b) Appropriations to Trust Fund.--There are hereby appropriated to 
such trust fund amounts equivalent to the tariffs collected by the 
United States on goods manufactured in the People's Republic of China.
    (c) Appropriations From Trust Fund.--There are hereby appropriated 
from such trust fund to the General Fund of the Treasury amounts 
equivalent to the reduction in revenue to such General Fund by reason 
assistance provided by the DFC under section 3.
    (d) Timing of Transfers, etc.--Rules similar to the rules of 
section 9601 of the Internal Revenue Code of 1986 shall apply with 
respect to appropriations to and from such trust fund under subsections 
(b) and (c).

SEC. 5. INITIATIVES FOR TECHNICAL ASSISTANCE FOR GRID IMPROVEMENT AND 
              ENERGY EFFICIENCY.

    The DFC, in consultation with the Secretary of Energy and the heads 
of other relevant Federal departments and agencies and in cooperation 
with the governments and regional authorities of qualified Latin 
American and Caribbean countries, shall support initiatives, including 
new initiatives and initiatives in existence as of the date of the 
enactment of this Act, as appropriate, to provide technical assistance 
and expertise on electrical grid and energy efficiency improvements in 
such countries in which qualified corporations relocate or expand 
business pursuant to section 3 for the following purposes:
            (1) Expanding and improving the reliability, flexibility, 
        and resilience of the electrical grid to maintain business 
        operations in a relocated area.
            (2) Developing microgrids or distributed energy resources 
        in areas in which connection to the larger electrical grid is 
        challenging.
            (3) Increasing the optimal integration of renewable energy 
        into the electrical grid.
            (4) Enhancing the interconnectivity of electrical grids.
            (5) Boosting the energy storage capacity of the electrical 
        grid.
            (6) Developing standards for clean energy technologies, 
        smart buildings, and data centers.
            (7) Increasing deployment of smart meters and other energy 
        efficiency technology.
            (8) Increasing the energy efficiency of buildings, 
        appliances, and the industrial sector.
            (9) Improving pollution controls.

SEC. 6. TEMPORARY INCREASED EXPENSING FOR RELOCATING MANUFACTURING FROM 
              THE PEOPLE'S REPUBLIC OF CHINA TO A QUALIFIED LATIN 
              AMERICAN OR CARIBBEAN COUNTRY.

    (a) In General.--For purposes of section 168(k) of the Internal 
Revenue Code of 1986, in the case of any qualified relocated 
manufacturing property which is placed in service after the date of the 
enactment of this Act, and before January 1, 2030--
            (1) such property shall be treated as qualified property 
        (within the meaning of such section),
            (2) the applicable percentage otherwise determined under 
        section 168(k)(6) of such Code with respect to such property 
        shall be 75 percent, and
            (3) paragraph (8) of such section shall not apply.
    (b) Qualified Relocated Manufacturing Property.--For purposes of 
this section--
            (1) In general.--The term ``qualified relocated 
        manufacturing property'' means qualified property (within the 
        meaning of section 168(k) of such Code) or nonresidential real 
        property (as defined in section 168(e)(2)(B) of such Code) 
        which is--
                    (A) placed in service in a qualified Latin American 
                or Caribbean country by a qualified manufacturer, and
                    (B) is acquired by such qualified manufacturer in 
                connection with a qualified relocation of 
                manufacturing.
            (2) Qualified relocation of manufacturing.--
                    (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 the People's 
                Republic of China to a qualified Latin American or 
                Caribbean country.
                    (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 a 
                qualified Latin American or Caribbean country is 
                substantially identical to the property previously 
                manufactured in the People's Republic of China and the 
                increase in the units of production of such property in 
                a qualified Latin American or Caribbean country by the 
                qualified manufacturer is not less than the reduction 
                in the units of production of such property by such 
                qualified manufacturer in the People's Republic of 
                China.
            (3) Qualified manufacturer.--The term ``qualified 
        manufacturer'' means any person engaged in the trade or 
        business of manufacturing any tangible personal property.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) DFC.--The term ``DFC'' means the United States 
        International Development Finance Corporation.
            (2) Federal funds rate.--The term ``Federal funds rate'' 
        means the discount window primary credit interest rate most 
        recently published on the Federal Reserve Statistical Release 
        on selected interest rates (daily or weekly), commonly referred 
        to as the H.15 release.
            (3) Foreign adversary.--The term ``foreign adversary'' 
        means a foreign government engaged in a long-term pattern or 
        serious instances of conduct significantly adverse to the 
        national security of the United States or security and safety 
        of United States persons.
            (4) Qualified corporation.--The term ``qualified 
        corporation''--
                    (A) means a corporation that is not incorporated in 
                a country the government of which is a foreign 
                adversary; and
                    (B) does not include a state-owned enterprise.
            (5) Qualified latin american or caribbean country.--The 
        term ``qualified Latin American or Caribbean country'' means a 
        Latin American or Caribbean country--
                    (A) that is a party to a free trade agreement of 
                preference program with the United States; and
                    (B) the government of which is not a foreign 
                adversary.
            (6) Qualified costs of expanding business.--The term 
        ``qualified costs of expanding business'' means--
                    (A) the costs of increased operating expenditures, 
                including capital investments, workforce development, 
                and such other expenses, as determined or limited by 
                the DFC; and
                    (B) the costs of increased overhead, as determined 
                or limited by the DFC.
            (7) Qualified moving costs.--The term ``qualified moving 
        costs'' means--
                    (A) the costs of moving inventory, equipment, and 
                supplies from the People's Republic of China to a 
                qualified Latin American or Caribbean country; and
                    (B) the costs of workforce development and 
                construction of facilities.
                                 <all>