[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7458 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 7458

To amend the Internal Revenue Code of 1986 to establish the Made in the 
                           U.S.A. tax credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 26, 2024

    Mr. Khanna (for himself, Mr. Grijalva, and Mr. Krishnamoorthi) 
 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 establish the Made in the 
                           U.S.A. tax credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Made in the U.S.A. Act''.

SEC. 2. MADE IN THE USA TAX CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36C the following new section:

``SEC. 36D. MADE IN THE USA TAX CREDIT.

    ``(a) In General.--In the case of an eligible taxpayer, there shall 
be allowed as a credit against the tax imposed by this subtitle for any 
taxable year an amount equal to so much of 30 percent of the qualified 
expenditures of the taxpayer during the taxable year as does not exceed 
$2,500 (twice such amount in the case of a married couple filing 
jointly).
            ``(1) in the case of a joint return, $5,000, or
            ``(2) in the case of any other taxpayer, $2,500.
    ``(b) Eligible Taxpayer.--For purposes of this section, the term 
`eligible taxpayer' means an individual who cannot be claimed as a 
dependent whose--
            ``(1) adjusted gross income does not exceed--
                    ``(A) $250,000 in the case of a joint return, or
                    ``(B) $125,000 in the case of any other taxpayer, 
                and
            ``(2) capital gain net income for the taxable year does not 
        exceed--
                    ``(A) $40,000 in the case of a joint return, or
                    ``(B) $20,000 in the case of any other taxpayer.
    ``(c) Qualified Expenditures.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified expenditures' means so much of the purchase price of 
        the price of a tangible product as does not exceed $500 if such 
        product--
                    ``(A) may be labeled as Made in the United States 
                in accordance with section 323.2 of title 16, Code of 
                Federal Regulations (or any successor regulation), and
                    ``(B) is not--
                            ``(i) a firearm,
                            ``(ii) ammunition,
                            ``(iii) alcohol,
                            ``(iv) tobacco,
                            ``(v) a vehicle,
                            ``(vi) gasoline,
                            ``(vii) a luxury good,
                            ``(viii) food, or
                            ``(ix) non-depreciable real property.
            ``(2) Luxury good.--For purposes of this subsection, the 
        term `luxury good' means--
                    ``(A) an item sold to the taxpayer for an amount 
                that exceeds $2,000,
                    ``(B) a wrist or pocket watch the case of which is 
                clad in or made of precious metal,
                    ``(C) jewelry containing pearls, gems, precious and 
                semi-precious stones, or precious metals,
                    ``(D) a fur skin,
                    ``(E) an item described in subparagraphs (A) 
                through (D) of section 408(m)(2),
                    ``(F) a flat screen, plasma, or LCD television or 
                display,
                    ``(G) a television with a screen exceeding 29 
                inches,
                    ``(H) a DVD player,
                    ``(I) a laptop, desktop, or tablet computer,
                    ``(J) a musical instrument, or
                    ``(K) a cellular phone.
            ``(3) Increase in credit for certain products.--
                    ``(A) In general.--In the case of an energy star 
                product or a climate resilience product, paragraph (1) 
                shall be applied by substituting `$1,000' for `$500'.
                    ``(B) Climate resilience product.--For purposes of 
                this paragraph, the term `climate resilience product' 
                means a product with respect to which amounts paid or 
                incurred by the taxpayer to purchase the product would 
                qualify as amounts paid or incurred for--
                            ``(i) qualified energy efficiency 
                        improvements or residential energy property 
                        expenditures under section 25C, determined 
                        without regard to subsection (b) of such 
                        section, or
                            ``(ii) qualified solar electric property 
                        expenditures, qualified solar water heating 
                        property expenditures, qualified fuel cell 
                        property expenditures, qualified small wind 
                        energy property expenditures, qualified 
                        geothermal heat pump property expenditures, or 
                        qualified battery storage technology 
                        expenditures under section 25D, determined 
                        without regard to subsection (b) of such 
                        section.
    ``(d) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2023, the dollar amounts in this section shall 
        be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2022' for `calendar year 2016' in 
                subparagraph (A)(ii).
            ``(2) Rounding.--If any increase under paragraph (1) is not 
        a multiple of $10, such increase shall be rounded to the 
        nearest multiple of $10.''.
    (b) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of such Code is amended by 
        inserting ``36D,'' after ``36B,''.
            (2) Section 1324(b)(2) of such Code is amended by inserting 
        ``36D,'' after ``36B,''.
    (c) Clerical Amendment.--The table of sections for Subpart C of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 36C the following new 
item:

``Sec. 36D. Made in the USA tax credit.''.
    (d) Outreach.--For fiscal year 2024 and each fiscal year 
thereafter, there is authorized to be appropriated to the Secretary of 
the Treasury $1,500,000 to educate taxpayers about the tax credit 
established by the amendment made by this section.
    (e) Effective Date.--The amendments made by this section shall 
apply to expenditures made after the date of the enactment of this 
section.
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