Sec. 7. American security product tax credit
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Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: For purposes of section 38, the American security product tax credit for any taxable year is an amount equal to— 30 percent of the qualified costs of American security products manufactured in the United States, or 15 percent of the qualified costs of American security products manufactured in a Western Hemisphere country. The aggregate credit determined under subsection
(a)for any taxable year with respect to any taxpayer shall not exceed the excess (if any) of the taxpayer’s net income tax over the greater of— the tentative minimum tax for the taxable year, or 25 percent of so much of the taxpayer's net regular tax liability as exceeds $25,000. In this section: The term American security product means— a covered article as such term is defined in section 9 of the MADE in The Americas Act , and at least 50 percent of the value of which shall be derived from components manufactured in the United States. The term qualified costs means costs incurred in the production of an American security product. The term United States shall include the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. . Section 280C of such Code is amended by adding at the end the following new subsection: No deduction shall be allowed for that portion of expenses otherwise allowable as a deduction taken into account in determining the credit under section 45U for the taxable year. . Section 38(b) of such Code is amended by striking plus at the end of paragraph (32), by striking the period at the end of paragraph
(33)and inserting , plus , and by adding at the end the following new paragraph: the American security product tax credit determined under section 45U. . The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: 45U. American security product tax credit. . The amendments made by this section shall apply to expenses made or incurred beginning on the first day of the first full calendar quarter after the date of enactment of this section.