Sec. 111110. Increased gross receipts threshold for small manufacturing businesses
302 words·~1 min read·
/bill/119/hr/1/rh/section-111110A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 448(c) is amended by redesignating paragraph
(4)as paragraph
(5)and by inserting after paragraph
(3)the following new paragraph: In the case of a manufacturing taxpayer, paragraph
(1)shall be applied by substituting $80,000,000 for $25,000,000 . . Section 448(c)(5) (as so redesignated) is amended by striking the dollar amount in paragraph
(1)shall be increased and inserting the dollar amounts in paragraphs
(1)and
(4)shall each be increased . Section 448(d) is amended by redesignating paragraph
(8)as paragraph
(9)and by inserting after paragraph
(7)the following new paragraph: The term manufacturing taxpayer means a corporation or partnership substantially all the gross receipts of which during the 3-taxable-year period described in subsection (c)(1) are derived from the lease, rental, license, sale, exchange, or other disposition of qualified products. For purposes of subparagraph (A), the term qualified product means a product that is both— tangible personal property which is not a food or beverage prepared in the same building as a retail establishment in which substantially similar property is sold to the public, and produced or manufactured by the taxpayer in a manner which results in a substantial transformation (within the meaning of section 168(n)(2)(D)) of the property comprising the product. Solely for purposes of determining whether a taxpayer is a manufacturing taxpayer under subparagraph (A)— gross receipts shall be determined under the rules of paragraphs
(2)and
(3)of subsection (c), and for purposes of subsection (c)(2), in applying section 52(b), the term trade or business shall include any activity treated as a trade or business under paragraph
(5)or
(6)of section 469(c) (determined without regard to the phrase To the extent provided in regulations in such paragraph (6)). . The amendments made by this section shall apply to taxable years beginning after December 31, 2025.