H.R. 6182 (112th): American Advanced Energy Manufacturing Jobs Act of 2012

112th Congress, 2011–2013. Text as of Jul 25, 2012 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

2d Session

H. R. 6182

IN THE HOUSE OF REPRESENTATIVES

July 25, 2012

(for himself, Mr. Levin, Mr. Rangel, Mr. Stark, Mr. McDermott, Mr. Lewis of Georgia, Mr. Neal, Mr. Becerra, Mr. Doggett, Mr. Larson of Connecticut, Mr. Blumenauer, Mr. Kind, Mr. Pascrell, Ms. Berkley, and Mr. Crowley) 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 extend and expand the credit for qualifying advanced energy projects, and for other purposes.

1.

Short title

This Act may be cited as the American Advanced Energy Manufacturing Jobs Act of 2012.

2.

Extension and expansion of the qualifying advanced energy project credit

(a)

Certain projects eligible for credit without limitation

(1)

In general

Subsection (a) of section 48C of the Internal Revenue Code of 1986 is amended by striking an amount equal to and all that follows and inserting

an amount equal to the sum of—

(1)

30 percent of the basis of the statutory advanced energy property placed in service by the taxpayer during such taxable year, plus

(2)

30 percent of the qualified investment for such taxable year which respect to any qualifying advanced energy project of the taxpayer.

.

(2)

Statutory advanced energy property

Subsection (c) of section 48C of such Code is amended by adding at the end the following new paragraph:

(3)

Statutory advanced energy property

(A)

In general

The term statutory advanced energy property means any eligible property used exclusively to manufacture or fabricate—

(i)

equipment which uses solar energy to generate electricity,

(ii)

fuel cell power plants (as defined in section 48(c)(1)(C)), or

(iii)

systems for the electro-chemical storage of electricity (other than lead-acid batteries) for use—

(I)

in electric or hybrid-electric motor vehicles, or

(II)

in connection with electric grids.

(B)

Termination

Such term shall not include any property for any period after December 31, 2016.

.

(3)

Denial of double benefit

Subsection (e) of section 48C of such Code is amended by adding at the end the following: Statutory advanced energy property shall not be taken into account in determining the qualified investment in any qualifying advanced energy project..

(b)

Extension and modification of the qualifying advanced energy project program

(1)

Additional limitation amount to be competitively allocated by Secretary

Subparagraph (B) of section 48C(d)(1) of such Code is amended to read as follows:

(B)

Limitation

The total amount of qualified investments which may be designated under such program shall not exceed the amount which will result in the total amount of credits allowed under such program being equal to the sum of the following amounts:

(i)

2009 limitation amount

$2,300,000,000.

(ii)

2012 limitation amount

$3,000,000,000.

.

(2)

Manufacturing of property used to produce composite utility poles

Clause (i) of section 48C(c)(1)(A) of such Code is amended by striking or at the end of subclause (VI), by redesignating subclause (VII) as subclause (VIII), and by inserting after subclause (VI) the following new subclause:

(VII)

utility poles or supports made from composite materials which are comprised of at least 15 percent recycled materials and are fully recyclable,

.

(3)

Preference in selection criteria for manufacturing

Paragraph (3) of section 48C(d) of such Code is amended by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , and, and by adding at the end the following new subparagraph:

(C)

shall give the lowest priority to projects which merely assemble components.

.

(c)

Conforming amendments

(1)

Paragraph (3) of section 48C(b) of such Code is amended to read as follows:

(3)

Limitation

The amount which is treated as a qualified investment for all taxable years with respect to any qualifying advanced manufacturing project shall not exceed the amount designated by the Secretary under subsection (d).

.

(2)

Subparagraph (A) of section 48C(c)(2) of such Code is amended by inserting in the case of a qualifying advanced energy project, before which is necessary.

(3)

Subparagraph (A) of section 48C(d)(2) of such Code is amended—

(A)

by striking during the 2-year period and inserting

during the—

(i)

in the case of an allocation from the limitation described in paragraph (1)(B)(i), the 2-year period

,

(B)

by striking the period at the end and inserting , or, and

(C)

by adding at the end the following new clause:

(ii)

in the case of an allocation from the limitation described in paragraph (1)(B)(ii), the 1-year period beginning on the date of the enactment of this clause.

.

(4)

Paragraph (4) of section 48C(d) of such Code is amended—

(A)

by striking all that precedes subparagraph (A) and inserting the following:

(4)

Periodic review and redistribution

At such times as the Secretary determines appropriate—

, and

(B)

by striking Not later than 4 years after the date of the enactment of this section, the in subparagraph (A) and inserting The.

(5)

Clause (v) of section 49(a)(1)(C) of such Code is amended by inserting which is statutory advanced energy property (as defined in section 48C(c)(3)) or after the basis of any property.

(d)

Effective date

The amendments made by this section shall apply to periods after the date of the enactment of this Act, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

3.

Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers

(a)

In general

Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:

(n)

Special rules relating to major integrated oil companies which are dual capacity taxpayers

(1)

General rule

Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (as defined in section 167(h)(5)(B)) to a foreign country or possession of the United States for any period shall not be considered a tax—

(A)

if, for such period, the foreign country or possession does not impose a generally applicable income tax, or

(B)

to the extent such amount exceeds the amount (determined in accordance with regulations) which—

(i)

is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or

(ii)

would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.

Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).
(2)

Dual capacity taxpayer

For purposes of this subsection, the term dual capacity taxpayer means, with respect to any foreign country or possession of the United States, a person who—

(A)

is subject to a levy of such country or possession, and

(B)

receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.

(3)

Generally applicable income tax

For purposes of this subsection—

(A)

In general

The term generally applicable income tax means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.

(B)

Exceptions

Such term shall not include a tax unless it has substantial application, by its terms and in practice, to—

(i)

persons who are not dual capacity taxpayers, and

(ii)

persons who are citizens or residents of the foreign country or possession.

.

(b)

Effective Date

(1)

In general

The amendments made by this section shall apply to taxes paid or accrued in taxable years ending after the date of the enactment of this Act.

(2)

Contrary treaty obligations upheld

The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States.

4.

Limitation on deduction for intangible drilling and development costs of major integrated oil companies

(a)

In general

Section 263(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: This subsection shall not apply to amounts paid or incurred by a taxpayer in any taxable year in which such taxpayer is a major integrated oil company (as defined in section 167(h)(5)(B))..

(b)

Effective date

The amendment made by this section shall apply to amounts paid or incurred in taxable years ending after the date of the enactment of this Act.