[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7458 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 7458
To amend the Internal Revenue Code of 1986 to establish the Made in the
U.S.A. tax credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2024
Mr. Khanna (for himself, Mr. Grijalva, and Mr. Krishnamoorthi)
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 establish the Made in the
U.S.A. tax credit.
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 ``Made in the U.S.A. Act''.
SEC. 2. MADE IN THE USA TAX CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36C the following new section:
``SEC. 36D. MADE IN THE USA TAX CREDIT.
``(a) In General.--In the case of an eligible taxpayer, there shall
be allowed as a credit against the tax imposed by this subtitle for any
taxable year an amount equal to so much of 30 percent of the qualified
expenditures of the taxpayer during the taxable year as does not exceed
$2,500 (twice such amount in the case of a married couple filing
jointly).
``(1) in the case of a joint return, $5,000, or
``(2) in the case of any other taxpayer, $2,500.
``(b) Eligible Taxpayer.--For purposes of this section, the term
`eligible taxpayer' means an individual who cannot be claimed as a
dependent whose--
``(1) adjusted gross income does not exceed--
``(A) $250,000 in the case of a joint return, or
``(B) $125,000 in the case of any other taxpayer,
and
``(2) capital gain net income for the taxable year does not
exceed--
``(A) $40,000 in the case of a joint return, or
``(B) $20,000 in the case of any other taxpayer.
``(c) Qualified Expenditures.--
``(1) In general.--For purposes of this section, the term
`qualified expenditures' means so much of the purchase price of
the price of a tangible product as does not exceed $500 if such
product--
``(A) may be labeled as Made in the United States
in accordance with section 323.2 of title 16, Code of
Federal Regulations (or any successor regulation), and
``(B) is not--
``(i) a firearm,
``(ii) ammunition,
``(iii) alcohol,
``(iv) tobacco,
``(v) a vehicle,
``(vi) gasoline,
``(vii) a luxury good,
``(viii) food, or
``(ix) non-depreciable real property.
``(2) Luxury good.--For purposes of this subsection, the
term `luxury good' means--
``(A) an item sold to the taxpayer for an amount
that exceeds $2,000,
``(B) a wrist or pocket watch the case of which is
clad in or made of precious metal,
``(C) jewelry containing pearls, gems, precious and
semi-precious stones, or precious metals,
``(D) a fur skin,
``(E) an item described in subparagraphs (A)
through (D) of section 408(m)(2),
``(F) a flat screen, plasma, or LCD television or
display,
``(G) a television with a screen exceeding 29
inches,
``(H) a DVD player,
``(I) a laptop, desktop, or tablet computer,
``(J) a musical instrument, or
``(K) a cellular phone.
``(3) Increase in credit for certain products.--
``(A) In general.--In the case of an energy star
product or a climate resilience product, paragraph (1)
shall be applied by substituting `$1,000' for `$500'.
``(B) Climate resilience product.--For purposes of
this paragraph, the term `climate resilience product'
means a product with respect to which amounts paid or
incurred by the taxpayer to purchase the product would
qualify as amounts paid or incurred for--
``(i) qualified energy efficiency
improvements or residential energy property
expenditures under section 25C, determined
without regard to subsection (b) of such
section, or
``(ii) qualified solar electric property
expenditures, qualified solar water heating
property expenditures, qualified fuel cell
property expenditures, qualified small wind
energy property expenditures, qualified
geothermal heat pump property expenditures, or
qualified battery storage technology
expenditures under section 25D, determined
without regard to subsection (b) of such
section.
``(d) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2023, the dollar amounts in this section shall
be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2022' for `calendar year 2016' in
subparagraph (A)(ii).
``(2) Rounding.--If any increase under paragraph (1) is not
a multiple of $10, such increase shall be rounded to the
nearest multiple of $10.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of such Code is amended by
inserting ``36D,'' after ``36B,''.
(2) Section 1324(b)(2) of such Code is amended by inserting
``36D,'' after ``36B,''.
(c) Clerical Amendment.--The table of sections for Subpart C of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 36C the following new
item:
``Sec. 36D. Made in the USA tax credit.''.
(d) Outreach.--For fiscal year 2024 and each fiscal year
thereafter, there is authorized to be appropriated to the Secretary of
the Treasury $1,500,000 to educate taxpayers about the tax credit
established by the amendment made by this section.
(e) Effective Date.--The amendments made by this section shall
apply to expenditures made after the date of the enactment of this
section.
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