[Congressional Record Volume 151, Number 127 (Tuesday, October 4, 2005)]
[Senate]
[Page S10975]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM:
  S. 1816. A bill to amend the Internal Revenue Code of 1986 to allow 
the manufacturing deduction provided by the American Jobs Creation Act 
of 2004 with respect to income attributable to domestic production 
activities in Puerto Rico; to the Committee on Finance.
  Mr. SANTORUM. Mr. President, I rise today to introduce a bill to 
bring equity and fairness to the manufacturing and production 
activities in Puerto Rico. Earlier this Congress, my colleague from the 
House of Representatives, Delegate Luis Fortuno, introduced H.R. 2181 
to extend section 199 to manufacturing and production activities in 
Puerto Rico.
  In the American Jobs Creation Act of 2004, we enacted section 199 
that provides a deduction for income attributable to certain 
manufacturing activities. However, section 199 currently applies only 
to manufacturing and production activities in the U.S., and does not 
extend to Puerto Rico. This bill merely places the manufacturing and 
production activities in Puerto Rico on even footing with those 
conducted within the United States. It contains the additional 
safeguard of assuring that the extension of this deduction is only 
available where the income of the company is subject to immediate U.S. 
tax.
  I have worked with my colleague in the House as he has perfected this 
language to narrowly meet the needs of his constituents, and I am 
pleased to be able to help him move this legislation forward in the 
Senate. I urge my colleagues to support this provision and bring 
fairness to the treatment of these important and vital economic 
activities.
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