Sec. 10. Temporary increased expensing for relocating manufacturing from the People’s Republic of China to a Latin American or Caribbean country
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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 by a qualified manufacturer after the date of the enactment of this Act, and before January 1, 2037— such property shall be treated as qualified property (within the meaning of such section), the applicable percentage otherwise determined under section 168(k)(6) of such Code with respect to such property shall be 75 percent, and paragraph
(8)of such section shall not apply. For purposes of this section— 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— placed in service in a Latin American or Caribbean country by a qualified manufacturer, and is acquired by such qualified manufacturer in connection with a qualified relocation of manufacturing. 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 Latin American or Caribbean country. For purposes of subparagraph (A), manufacturing shall not fail to be treated as relocated merely because property used in such manufacturing was not relocated. For purposes of subparagraph (A), manufacturing shall not be treated as relocated unless the property manufactured in a 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 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. For purposes of this section, the term qualified manufacturer means any person— which is engaged in the trade or business of manufacturing any tangible personal property, with respect to which the Secretary of the Treasury (or the Secretary’s delegate) has made the determination described in section 5(a)(1), and which has entered into a binding agreement with such Secretary (or such delegate) to meet the requirements of section 5(a)(2) which is enforceable under terms similar to the terms of section 5(b).