[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8625 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 8625

To amend the Harmonized Tariff Schedule of the United States to modify 
temporarily certain rates of duty for bicycle manufacturing components, 
 to establish an electric bicycle production tax credit, to direct the 
Secretary of Transportation to establish the U.S. Bicycle and E-Bicycle 
 Manufacturing Initiative to make loans to support domestic investment 
 in the manufacturing of bicycles and electric bicycles, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 5, 2024

Mr. Blumenauer introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Energy 
    and Commerce, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Harmonized Tariff Schedule of the United States to modify 
temporarily certain rates of duty for bicycle manufacturing components, 
 to establish an electric bicycle production tax credit, to direct the 
Secretary of Transportation to establish the U.S. Bicycle and E-Bicycle 
 Manufacturing Initiative to make loans to support domestic investment 
 in the manufacturing of bicycles and electric bicycles, and for other 
                               purposes.

    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 ``Domestic Bicycle Production Act''.

SEC. 2. TEMPORARY DUTY SUSPENSION FOR BICYCLE MANUFACTURING COMPONENTS.

    (a) In General.--Subchapter III of chapter 99 of the Harmonized 
Tariff Schedule of the United States (in the section referred to as the 
``HTS'') is amended by inserting the following new heading in numerical 
sequence:


``        9903.87.11         Parts of bicycles      Free            No change           No change           ''.
                              imported for use in
                              the assembly of
                              complete bicycles,
                              under the terms of
                              U.S. Note 31 to this
                              subchapter..........

    (b) Definition and Applicability.--The U.S. Notes to subchapter III 
of chapter 99 of the HTS are amended by adding at the end following:
            ``31.(a) For purposes of heading 9903.87.11, the term 
        `parts of bicycles' means parts, accessories, or specific 
        components that are--
                    ``(i) classified in the tariff provisions described 
                in subdivision (f) of this note; and
                    ``(ii) imported into the customs territory of the 
                United States for assembly into complete tricycles or 
                bicycles, including bicycles without a motor (provided 
                for in heading 8712.00) and bicycles with an electric 
                motor (provided for in subheading 8711.60.00).
            ``(b) For purposes of heading 9903.87.11, the term 
        `assembly of complete bicycles' means the fitting or joining 
        together of fabricated components in such a way that amounts to 
        the substantial transformation of components classifiable as 
        parts of bicycles under subdivision (a) of this note.
            ``(c) Any importer claiming entry of parts of bicycles 
        under heading 9903.87.11 must--
                    ``(i) certify at the time of entry to the 
                satisfaction of U.S. Customs and Border Protection 
                (`CBP') that such parts will be used in the assembly of 
                complete bicycles under subdivision (b) of this note; 
                and
                    ``(ii) provide appropriate documentation to CBP 
                upon the completion of final assembly of such bicycles 
                or at such time as CBP may otherwise establish.
            ``(d) Parts of bicycles for which entry is claimed under 
        heading 9903.87.11 shall be excluded from any additional duties 
        under section 301 of the Trade Act of 1974 (19 U.S.C. 2411) or 
        any other provision of law based on the classification of such 
        parts under any of chapters 1 through 97.
            ``(e) Notwithstanding subdivision (d) of this note, parts 
        of bicycles may be included in a claim for duty-free entry 
        under heading 9903.87.11 if such parts are properly classified 
        in an 8-digit tariff heading or subheading described in 
        subdivision (f) when such parts are entered on or after the 
        date on which an additional duty under section 301 of the Trade 
        Act of 1974 or any other provision of law is no longer 
        effective.
            ``(f) The 8-digit tariff headings and subheadings described 
        in this subdivision are the following:
                    ``3923.50.00
                    ``3926.90.96
                    ``4011.50.00
                    ``4013.20.00
                    ``4908.10.00
                    ``7315.11.00
                    ``7326.90.25
                    ``8501.31.40
                    ``8501.31.50
                    ``8501.31.60
                    ``8507.20.80
                    ``8507.30.80
                    ``8507.50.00
                    ``8507.60.00
                    ``8512.90.40
                    ``8543.70.45
                    ``8714.91.20
                    ``8714.91.30
                    ``8714.91.50
                    ``8714.91.90
                    ``8714.92.10
                    ``8714.92.50
                    ``8714.93.28
                    ``8714.93.35
                    ``8714.93.70
                    ``8714.94.30
                    ``8714.94.90
                    ``8714.95.00
                    ``8714.96.10
                    ``8714.96.50
                    ``8714.96.90
                    ``8714.99.10
                    ``8714.99.50
                    ``8714.99.60
                    ``8714.99.80''.
    (c) Procedures.--The Commissioner of U.S. Customs and Border 
Protection (herein referred to as the ``Commissioner'') is authorized 
to establish appropriate procedures for the administration of this 
section and the amendments in subsections (a) and (b) and may require 
such information as the Commissioner considers appropriate from any 
claimant for duty-free entry under heading 9903.87.11 of the HTS, as 
added by subsection (a).
    (d) Report.--Not later than five years after the date of the 
enactment of this Act, the United States International Trade Commission 
shall submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a report 
describing the effects of heading 9903.87.11 of the HTS, as added by 
subsection (a), and evaluating the contribution and effectiveness of 
such heading to the goal of assembling 2,000,000 bicycles annually in 
the United States within 5 years after such date of enactment and the 
potential of the domestic market to assemble 5,000,000 bicycles 
annually in the United States within 10 years after such date of 
enactment.
    (e) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to goods entered, or withdrawn from warehouse 
for consumption, during the period beginning on the date of the 
enactment of this Act and ending 10 years after such date of enactment.

SEC. 3. ELECTRIC BICYCLE PRODUCTION CREDIT.

    (a) Electric Bicycle Production Credit.--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:

``SEC. 45BB. ELECTRIC BICYCLE PRODUCTION CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of a 
manufacturer of covered electric bicycles, the electric bicycle 
production credit for the taxable year is an amount equal to the 
applicable percentage of the price for which the manufacturer sells 
each covered electric bicycle during such taxable year.
    ``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage shall be--
            ``(1) in the case of covered electric bicycles sold in 
        taxable years beginning after December 31, 2024, and before 
        January 1, 2032, 20 percent,
            ``(2) in the case of covered electric bicycles sold in 
        taxable years beginning after December 31, 2031, and before 
        January 1, 2033, 15 percent,
            ``(3) in the case of covered electric bicycles sold in 
        taxable years beginning after December 31, 2032, and before 
        January 1, 2034, 10 percent, and
            ``(4) in the case of covered electric bicycles sold in 
        taxable years beginning after December 31, 2033, and before 
        January 1, 2035, 5 percent.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Covered electric bicycle.--The term `covered electric 
        bicycle' means an electric bicycle that is produced 
        domestically or assembled domestically.
            ``(2) Electric bicycle defined.--The term `electric 
        bicycle' has the meaning given such term in section 217(j) of 
        title 23, United States Code.
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out this section, including regulations 
which establish requirements regarding what constitutes domestic 
production and domestic assembly for purposes of the definition in 
subsection (c)(1).
    ``(e) Termination.--This section shall not apply to any taxable 
year beginning after December 31, 2034.''.
    (b) Electric Bicycle Production Credit Transferability.--Section 
6418(f)(1)(A) of the Internal Revenue Code of 1986 is amended by adding 
at the end the following:
                            ``(xii) The electric bicycle production 
                        credit determined under section 45BB.''.
    (c) Consistency With International Agreements.--The Secretary of 
the Treasury shall apply section 45BB of the Internal Revenue Code of 
1986, as added by this Act, in a manner consistent with the obligations 
of the United States under international agreements.
    (d) Conforming Amendments.--Section 38(b) of the Internal Revenue 
Code of 1986 is amended--
            (1) in paragraph (40), by striking ``plus'';
            (2) in paragraph (41), by striking the period and inserting 
        ``, plus''; and
            (3) by adding at the end the following:
            ``(42) the electric bicycle production credit determined 
        under section 45BB.''.
    (e) Clerical Amendment.--The table of sections for part IV of 
subchapter A of chapter 1 of such Code is amended by inserting after 
the item relating to section 45AA the following new item:

``45BB. Electric bicycle production credit.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 4. U.S. BICYCLE AND E-BICYCLE MANUFACTURING INITIATIVE.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Transportation shall establish 
a program to be known as the ``U.S. Bicycle and E-Bicycle Manufacturing 
Initiative'' (hereinafter referred to as the ``Initiative'') to make 
loans to businesses (other than non-profit businesses) to support 
domestic investment in the manufacturing of bicycles.
    (b) Loan Program.--
            (1) Interest rate limit.--The interest rate for a loan 
        under the Initiative may not exceed 1 percent.
            (2) Distribution limit.--A business (including businesses 
        that are subsidiaries of the same parent company) may not 
        receive more than $50,000,000 in loans under the Initiative.
    (c) Loan Application.--
            (1) In general.--The Secretary shall make the application 
        for a loan under the Initiative available not less than 
        annually, at a time and in such form and manner as the 
        Secretary considers appropriate.
            (2) Expected production target submission.--To be eligible 
        for a loan under the Initiative, an applicant shall submit 
        current and 5-year expected production targets with the 
        application.
            (3) Disclosure to the public.--The Secretary shall make 
        public the name of each applicant and the production targets 
        submitted pursuant to paragraph (2).
    (d) Eligible Uses.--A recipient of a loan under the Initiative may 
use loan funds to purchase capital equipment, including--
            (1) material handling equipment, including forklifts and 
        cranes;
            (2) air compressors and chillers;
            (3) waste (including wastewater) handling equipment;
            (4) testing equipment to test for quality standards;
            (5) equipment used for recycling;
            (6) heat treatment and burn off ovens;
            (7) assembly and conveyor lines and related equipment;
            (8) equipment used to fabricate bicycles or bicycle parts, 
        including steel, titanium, magnesium, aluminum, plastic, and 
        carbon fiber;
            (9) machines used to align bicycle frames or bicycle parts;
            (10) machines used to prepare bicycle frames, parts, or 
        materials, for coating;
            (11) machines used to paint or powder coat; and
            (12) any other capital equipment the Secretary considers 
        necessary for the domestic manufacturing of bicycles.
    (e) Conditions of the Loan.--
            (1) Prevailing wage.--A recipient of a loan under the 
        Initiative shall pay an employee who engages in activities 
        funded by loan funds at least the prevailing wage, in the same 
        manner as under section 3142(b) of title 40, United States 
        Code, for the life of the loan.
            (2) Assembly output requirement.--If, not later than 3 
        years after the date on which loan funds were initially 
        disbursed to a recipient of a loan under the Initiative, the 
        recipient is unable to demonstrate to the Secretary an average 
        of 20,000 bicycles assembled for each $5,000,000 borrowed, or 
        an equivalent ratio thereof, the recipient may not receive any 
        additional loan under the Initiative.
            (3) Repayment.--In carrying out the Initiative, the 
        Secretary shall require a recipient of a loan under the 
        Initiative to--
                    (A) make monthly repayments for the loan in equal 
                amounts beginning not later than 1 year after the date 
                on which loan funds were initially disbursed to the 
                recipient; and
                    (B) repay such loan in full not later than 12 years 
                after the date on which loan funds were initially 
                disbursed to the recipient.
    (f) Collateral.--
            (1) In general.--In carrying out the Initiative, the 
        Secretary shall obtain and maintain a security interest, in an 
        amount sufficient to cover 100 percent of the amount of the 
        loan under the Initiative, in the equipment purchased by the 
        recipient using loan funds disbursed to the recipient.
            (2) Priority.--Any security interest obtained and 
        maintained by the Secretary pursuant to this subsection shall 
        be entitled to priority over the claims and rights of any party 
        (including any receiver, conservator, trustee, or similar party 
        having rights of a lien creditor) other than claims and rights 
        that--
                    (A) would be entitled to priority under otherwise 
                applicable law; and
                    (B) are held by bona fide purchasers for value or 
                by secured parties that are secured by perfected 
                security interests.
    (g) Reporting Requirement.--The Secretary shall submit to Congress 
an annual report detailing current and expected future domestic bicycle 
production rates and the share of the global bicycle production market 
for which domestic bicycle producers are responsible.
    (h) Authorization of Appropriations.--There is authorized to be 
appropriated for the purpose of carrying out the Initiative the 
following:
            (1) $80,000,000 per year for the first 3 full fiscal years 
        following the date of the enactment of this Act.
            (2) $100,000,000 per year in full fiscal years 4 through 7 
        following the date of the enactment of this Act.
            (3) $120,000,000 per year in full fiscal years 8 through 10 
        following the date of the enactment of this Act.
    (i) Bicycle Defined.--In this section, the term ``bicycle'' 
includes an electric bicycle (as defined in section 217(j) of title 23, 
United States Code).
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