[Congressional Record Volume 168, Number 123 (Monday, July 25, 2022)]
[Senate]
[Pages S3647-S3648]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5173. Mr. LEE submitted an amendment intended to be proposed to 
amendment SA 5135 proposed by Mr. Schumer to the bill H.R. 4346, making 
appropriations for Legislative Branch for the fiscal year ending 
September 30, 2022, and for other purposes; which was ordered to lie on 
the table; as follows:
        In division A, strike section 107 and insert the 
     following:

     SEC. 107. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED 
                   MANUFACTURING PROPERTY.

       (a) In General.--Section 168 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(n) Special Allowance for Qualified Manufacturing 
     Property.--
       ``(1) In general.--In the case of any qualified 
     manufacturing property--
       ``(A) the depreciation deduction provided by section 167(a) 
     for the taxable year in which such property is placed in 
     service shall include an allowance equal to 100 percent of 
     the adjusted basis of such property, and
       ``(B) the adjusted basis of such property shall be reduced 
     by the amount of such deduction before computing the amount 
     otherwise allowable as a depreciation deduction under this 
     chapter for such taxable year and any subsequent taxable 
     year.
       ``(2) Qualified manufacturing property.--For purposes of 
     this subsection--
       ``(A) In general.--The term `qualified manufacturing 
     property' means any property--
       ``(i) which is tangible property,
       ``(ii) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable,
       ``(iii) which is--

       ``(I) constructed, reconstructed, or erected by the 
     taxpayer, or
       ``(II) acquired by the taxpayer if the original use of such 
     property commences with the taxpayer,

       ``(iv) which is integral to the operation of the 
     manufacturing facility (as defined in section 144(a)(12)), 
     and
       ``(v) the construction of which begins before January 1, 
     2028.
       ``(B) Buildings and structural components.--

[[Page S3648]]

       ``(i) In general.--The term `qualified manufacturing 
     property' includes any building or its structural components 
     which otherwise satisfy the requirements under subparagraph 
     (A).
       ``(ii) Exception.--Subclause (I) shall not apply with 
     respect to a building or portion of a building used for 
     offices, administrative services, or other functions 
     unrelated to manufacturing.
       ``(3) Exceptions.--
       ``(A) Alternative depreciation property.--Such term shall 
     not include any property described in subsection (k)(2)(D).
       ``(B) Tax-exempt bond-financed property.--Such term shall 
     not include any property any portion of which is financed 
     with the proceeds of any obligation the interest on which is 
     exempt from tax under section 103.
       ``(C) Election out.--If a taxpayer makes an election under 
     this subparagraph with respect to any class of property for 
     any taxable year, this subsection shall not apply to all 
     property in such class placed in service during such taxable 
     year.
       ``(4) Special rules.--For purposes of this subsection, 
     rules similar to the rules of subsection (k)(2)(E) shall 
     apply.
       ``(5) Allowance against alternative minimum tax.--For 
     purposes of this subsection, rules similar to the rules of 
     subsection (k)(2)(G) shall apply.
       ``(6) Recapture.--For purposes of this subsection, rules 
     similar to the rules under section 179(d)(10) shall apply 
     with respect to any qualified manufacturing property which 
     ceases to be qualified manufacturing property.''.
       (b) Coordination With Other Bonus Depreciation 
     Provisions.--
       (1) Section 168(k)(2) of the Internal Revenue Code of 1986 
     is amended by adding at the end the following new 
     subparagraph:
       ``(I) Coordination with qualified manufacturing property.--
     The term `qualified property' shall not include any property 
     to which subsection (n) applies.''.
       (2) Section 168(l)(3) of such Code is amended by adding at 
     the end the following new subparagraph:
       ``(E) Coordination with qualified manufacturing property.--
     The term `qualified second generation biofuel plant 
     property'shall not include any property to which subsection 
     (n) applies.''.
       (3) Section 168(m)(2)(B) of such Code is amended by adding 
     at the end the following new clause:
       ``(iv) Coordination with qualified manufacturing 
     property.--The term `qualified reuse and recycling 
     property'shall not include any property to which subsection 
     (n) applies.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.
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