Sec. 213. Tax credit for qualifying re-shoring and near-shoring expenses
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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 qualifying re-shoring and near-shoring expense credit for any taxable year is an amount equal to the sum of— 50 percent of the qualified re-shoring project expenses of the taxpayer, and 35 percent of the qualified near-shoring project expenses of the taxpayer. For purposes of this section— The term qualifying re-shoring project expenses means any eligible expenses which are— made pursuant to a qualified re-shoring project, and certified by the Secretary under subsection
(c)as eligible for the credit under this section. The term qualifying re-shoring project means a project under which 2/3 or more of the operations of a trade or business of the taxpayer is moved from the People's Republic of China to the United States. The term qualifying near-shoring project expenses means any eligible expenses which are— made pursuant to a qualified near-shoring project, and certified by the Secretary under subsection
(c)as eligible for the credit under this section. For purposes of this subpart, the term qualifying near-shoring project means a project under which 2/3 or more of the operations of a trade or business of the taxpayer is moved from the People's Republic of China to an Americas partner country. The term eligible expenses means any expenses paid or incurred in connection with moving the operations of the trade or businesses. For purposes of this section, the term Americas partner country has the meaning given such term under section 2 of the Americas Act . Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the United States Trade Representative, shall establish a qualifying re-shoring and near-shoring project program to consider and award certifications for eligible expenses among taxpayers with qualifying re-shoring projects and qualifying near-shoring projects. The total amount of credits that may be allocated under the program shall not exceed $5,000,000,000. It is the sense of Congress that the limitation under clause
(i)should be increased after the date on which the Secretary notifies the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives that 80 percent of such limitation has been allocated. Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require. Each applicant for certification shall have 5 years from the date of acceptance by the Secretary of the application to pay or incur the eligible expenses certified under the program. In determining which qualifying re-shoring projects and qualifying near-shoring projects to certify under this section, the Secretary— shall take into consideration— projects which create strategic supply chains, products, or entities (as identified under section 254(b) of the Americas Act ) within the United States, projects which create strategic supply chains, products, or entities (as so identified) within an Americas partner country, and projects which create other industries within the United States or a Americas partner country, shall take into consideration which projects— will provide the greatest domestic job creation (both direct and indirect), will create capital investment, and will increase manufacturing. The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant. If there is an applicable transaction before the close of the 10-year period beginning with the first day of the taxable year for which a credit is allowed under this section, then the tax under this chapter for the taxable year in which such transaction occurs shall be increased by the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero any credit determined under subsection (a). Paragraph
(1)shall not apply if the applicable taxpayer demonstrates to the satisfaction of the Secretary that the applicable transaction has been ceased or abandoned within 45 days of a determination and notice by the Secretary. The term applicable transaction means, any significant transaction (as determined by the Secretary, in coordination with the Secretary of Commerce and the Secretary of Defense) involving the material expansion in the People's Republic of China of the operations of the same or similar a trade or business with respect to which the qualifying re-shoring project or qualifying near-shoring project relates. The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate to carry out the purposes of this paragraph, including regulations or other guidance which provide for requirements for recordkeeping or information reporting for purposes of administering the requirements of this paragraph. In the case of the amount of the credit determined under this section, no deduction or credit shall be allowed for such amount under any other provision of this chapter. For purposes of this subtitle, if a credit is allowed under this section with respect to any property, the basis of such property shall be reduced by the amount of the credit so allowed. The Secretary shall prescribe regulations necessary to carry out the purposes of this section. . Subsection
(b)of section 38 of the Internal Revenue Code of 1986 is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph
(41)and inserting , plus , and by adding at the end the following new paragraph: the qualifying re-shoring and near-shoring expense credit determined under section 45BB(a). . 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: Sec. 45BB. Qualifying re-shoring and near-shoring expenses. . The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.