[Congressional Record Volume 168, Number 123 (Monday, July 25, 2022)]
[Senate]
[Pages S3655-S3659]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5181. Mr. COTTON 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:

        Beginning on page 41, strike line 17 and all that follows 
     through line 5 on page 84, and insert the following:
       ``(ii) includes semiconductor fabrication, assembly, 
     testing, packaging, research and development, and any 
     additional process identified by the Secretary.
       ``(C) Required agreement.--
       ``(i) In general.--On or before the date on which the 
     Secretary awards Federal financial assistance to a covered 
     entity under this section, the covered entity shall enter 
     into an agreement with the Secretary specifying that, during 
     the 10-year period beginning on the date of the award, the 
     covered entity may not engage in any transaction, as defined 
     in the agreement, involving the expansion of semiconductor 
     manufacturing capacity in the People's Republic of China or 
     any other foreign country of concern.
       ``(ii) Affiliated group.--For the purpose of applying the 
     requirements in an agreement required under clause (i), a 
     covered entity shall include the covered entity receiving 
     financial assistance under this section, as well as any 
     member of the covered entity's affiliated group under section 
     1504(a) of the Internal Revenue Code of 1986, without regard 
     to section 1504(b)(3) of such Code.
       ``(D) Notification requirements.--During the applicable 
     term of the agreement of a covered entity required under 
     subparagraph (C)(i), the covered entity shall notify the 
     Secretary of any planned transactions of the covered entity 
     involving the expansion of semiconductor manufacturing 
     capacity in the People's Republic of China or any other 
     foreign country of concern.
       ``(E) Violation of agreement.--
       ``(i) Notification to covered entities.--Not later than 90 
     days after the date of receipt of a notification described in 
     subparagraph (D) from a covered entity, the Secretary, in 
     consultation with the Secretary of Defense and the Director 
     of National Intelligence, shall--

       ``(I) determine whether the transaction described in the 
     notification would be a violation of the agreement of the 
     covered entity required under subparagraph (C)(i); and
       ``(II) notify the covered entity of the Secretary's 
     decision under subclause (I).

       ``(ii) Opportunity to remedy.--Upon a notification under 
     clause (i)(II) that a planned transaction of a covered entity 
     is a violation of the agreement of the covered entity 
     required under subparagraph (C)(i), the Secretary shall--

       ``(I) immediately request from the covered entity tangible 
     proof that the planned transaction has ceased or been 
     abandoned; and
       ``(II) provide the covered entity 45 days to produce and 
     provide to the Secretary the tangible proof described in 
     subclause (I).

       ``(iii) Failure by the covered entity to cease or remedy 
     the activity.--If a covered entity fails to remedy a 
     violation as set forth under clause (ii), the Secretary shall 
     recover the full amount of the Federal financial assistance 
     provided to the covered entity under this section.
       ``(F) Submission of records.--
       ``(i) In general.--The Secretary may request from a covered 
     entity records and other necessary information to review the 
     compliance of the covered entity with the agreement required 
     under subparagraph (C)(i).
       ``(ii) Eligibility.--In order to be eligible for Federal 
     financial assistance under this section, a covered entity 
     shall agree to provide records and other necessary 
     information requested by the Secretary under clause (i).
       ``(G) Confidentiality of records.--
       ``(i) In general.--Subject to clause (ii), any information 
     derived from records or necessary information disclosed by a 
     covered entity to the Secretary under this section--

       ``(I) shall be exempt from disclosure under section 
     552(b)(3) of title 5, United States Code; and
       ``(II) shall not be made public.

       ``(ii) Exceptions.--Clause (i) shall not prevent the 
     disclosure of any of the following by the Secretary:

       ``(I) Information relevant to any administrative or 
     judicial action or proceeding.
       ``(II) Information that a covered entity has consented to 
     be disclosed to third parties.
       ``(III) Information necessary to fulfill the requirement of 
     the congressional notification under subparagraph (H).

       ``(H) Congressional notification.--Not later than 60 days 
     after the date on which the Secretary finds a violation by a 
     covered entity of an agreement required under subparagraph 
     (C)(i), and after providing the covered entity with an 
     opportunity to provide information in response to that 
     finding, the Secretary shall provide to the appropriate 
     Committees of Congress--
       ``(i) a notification of the violation;
       ``(ii) a brief description of how the Secretary determined 
     the covered entity to be in violation; and
       ``(iii) a summary of any actions or planned actions by the 
     Secretary in response to the violation.
       ``(I) Regulations.--The Secretary may issue regulations 
     implementing this paragraph.''; and
       (6) by adding at the end the following:
       ``(d) Sense of Congress.--It is the sense of Congress that, 
     in carrying out subsection (a), the Secretary should allocate 
     funds in a manner that--
       ``(1) strengthens the security and resilience of the 
     semiconductor supply chain, including by mitigating gaps and 
     vulnerabilities;
       ``(2) provides a supply of secure semiconductors relevant 
     for national security;
       ``(3) strengthens the leadership of the United States in 
     semiconductor technology;
       ``(4) grows the economy of the United States and supports 
     job creation in the United States;
       ``(5) bolsters the semiconductor and skilled technical 
     workforces in the United States;
       ``(6) promotes the inclusion of economically disadvantaged 
     individuals and small businesses; and
       ``(7) improves the resiliency of the semiconductor supply 
     chains of critical manufacturing industries.
       ``(e) Additional Assistance for Mature Technology Nodes.--
       ``(1) In general.--The Secretary shall establish within the 
     program established under subsection (a) an additional 
     program that provides Federal financial assistance to covered 
     entities to incentivize investment in facilities and 
     equipment in the United States for the fabrication, assembly, 
     testing, or packaging of semiconductors at mature technology 
     nodes.
       ``(2) Eligibility and requirements.--In order for an entity 
     to qualify to receive Federal financial assistance under this 
     subsection, the covered entity shall agree to--
       ``(A) submit an application under subsection (a)(2)(A);
       ``(B) meet the eligibility requirements under subsection 
     (a)(2)(B);
       ``(C)(i) provide equipment or materials for the 
     fabrication, assembly, testing, or packaging of 
     semiconductors at mature technology nodes in the United 
     States; or
       ``(ii) fabricate, assemble using packaging, or test 
     semiconductors at mature technology nodes in the United 
     States;
       ``(D) commit to using any Federal financial assistance 
     received under this section to increase the production of 
     semiconductors at mature technology nodes; and
       ``(E) be subject to the considerations described in 
     subsection (a)(2)(C).
       ``(3) Procedures.--In granting Federal financial assistance 
     to covered entities under this subsection, the Secretary may 
     use the procedures established under subsection (a).
       ``(4) Considerations.--In addition to the considerations 
     described in subsection (a)(2)(C), in granting Federal 
     financial assistance under this subsection, the Secretary may 
     consider whether a covered entity produces or supplies 
     equipment or materials used in the fabrication, assembly, 
     testing, or packaging of semiconductors at mature technology 
     nodes that are necessary to support a critical manufacturing 
     industry.
       ``(5) Priority.--In awarding Federal financial assistance 
     to covered entities under this subsection, the Secretary 
     shall give priority to covered entities that support the 
     resiliency of semiconductor supply chains for critical 
     manufacturing industries in the United States.
       ``(6) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this subsection $2,000,000,000, which shall remain available 
     until expended.
       ``(f) Construction Projects.--Section 602 of the Public 
     Works and Economic Development Act of 1965 (42 U.S.C. 3212) 
     shall apply to a construction project that receives financial 
     assistance from the Secretary under this section.
       ``(g) Loans and Loan Guarantees.--
       ``(1) In general.--Subject to the requirements of 
     subsection (a) and this subsection, the Secretary may make or 
     guarantee loans to covered entities as financial assistance 
     under this section.
       ``(2) Conditions.--The Secretary may select eligible 
     projects to receive loans or loan guarantees under this 
     subsection if the Secretary determines that--
       ``(A) the covered entity--
       ``(i) has a reasonable prospect of repaying the principal 
     and interest on the loan; and
       ``(ii) has met such other criteria as may be established 
     and published by the Secretary; and
       ``(B) the amount of the loan (when combined with amounts 
     available to the loan recipient from other sources) will be 
     sufficient to carry out the project.
       ``(3) Reasonable prospect of repayment.--The Secretary 
     shall base a determination of whether there is a reasonable 
     prospect of repayment of the principal and interest on a loan 
     under paragraph (2)(A)(i) on a comprehensive evaluation of 
     whether the covered entity has a reasonable prospect of 
     repaying the principal and interest, including, as 
     applicable, an evaluation of--
       ``(A) the strength of the contractual terms of the project 
     the covered entity plans to perform (if commercially 
     reasonably available);
       ``(B) the forecast of noncontractual cash flows supported 
     by market projections from

[[Page S3656]]

     reputable sources, as determined by the Secretary;
       ``(C) cash sweeps and other structure enhancements;
       ``(D) the projected financial strength of the covered 
     entity--
       ``(i) at the time of loan close; and
       ``(ii) throughout the loan term after the project is 
     completed;
       ``(E) the financial strength of the investors and strategic 
     partners of the covered entity, if applicable;
       ``(F) other financial metrics and analyses that the private 
     lending community and nationally recognized credit rating 
     agencies rely on, as determined appropriate by the Secretary; 
     and
       ``(G) such other criteria the Secretary may determine 
     relevant.
       ``(4) Rates, terms, and repayments of loans.--A loan 
     provided under this subsection--
       ``(A) shall have an interest rate that does not exceed a 
     level that the Secretary determines appropriate, taking into 
     account, as of the date on which the loan is made, the cost 
     of funds to the Department of the Treasury for obligations of 
     comparable maturity; and
       ``(B) shall have a term of not more than 25 years.
       ``(5) Additional terms.--A loan or guarantee provided under 
     this subsection may include any other terms and conditions 
     that the Secretary determines to be appropriate.
       ``(6) Responsible lender.--No loan may be guaranteed under 
     this subsection, unless the Secretary determines that--
       ``(A) the lender is responsible; and
       ``(B) adequate provision is made for servicing the loan on 
     reasonable terms and protecting the financial interest of the 
     United States.
       ``(7) Advanced budget authority.--New loans may not be 
     obligated and new loan guarantees may not be committed to 
     under this subsection, unless appropriations of budget 
     authority to cover the costs of such loans and loan 
     guarantees are made in advance in accordance with section 
     504(b) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
     661c(b)).
       ``(8) Continued oversight.--The loan agreement for a loan 
     guaranteed under this subsection shall provide that no 
     provision of the loan agreement may be amended of waived 
     without the consent of the Secretary.
       ``(h) Oversight.--Not later than 4 years after disbursement 
     of the first financial award under subsection (a), the 
     Inspector General of the Department of Commerce shall audit 
     the program under this section to assess--
       ``(1) whether the eligibility requirements for covered 
     entities receiving financial assistance under the program are 
     met;
       ``(2) whether eligible entities use the financial 
     assistance received under the program in accordance with the 
     requirements of this section;
       ``(3) whether the covered entities receiving financial 
     assistance under this program have carried out the 
     commitments made to worker and community investment under 
     subsection (a)(2)(B)(ii)(II) by the target date for 
     completion set by the Secretary under subsection (a)(5)(A);
       ``(4) whether the required agreement entered into by 
     covered entities and the Secretary under subsection 
     (a)(6)(C)(i), including the notification process, has been 
     carried out to provide covered entities sufficient guidance 
     about a violation of the required agreement; and
       ``(5) whether the Secretary has provided timely 
     Congressional notification about violations of the required 
     agreement under subsection (a)(6)(C)(i), including the 
     required information on how the Secretary reached a 
     determination of whether a covered entity was in violation 
     under subsection (a)(6)(E).
       ``(i) Prohibition on Use of Funds.--No funds made available 
     under this section may be used to construct, modify, or 
     improve a facility outside of the United States.''.
       (c) Advanced Microelectronics Research and Development.--
     Section 9906 of the William M. (Mac) Thornberry National 
     Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 
     4656) is amended--
       (1) in subsection (a)(3)(A)(ii)--
       (A) in subclause (II), by inserting ``, including for 
     technologies based on organic and inorganic materials'' after 
     ``components''; and
       (B) in subclause (V), by striking ``and supply chain 
     integrity'' and inserting ``supply chain integrity, and 
     workforce development'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) by inserting ``and grow the domestic semiconductor 
     workforce'' after ``prototyping of advanced semiconductor 
     technology''; and
       (ii) by adding at the end the following: ``The Secretary 
     may make financial assistance awards, including construction 
     awards, in support of the national semiconductor technology 
     center.''; and
       (B) in paragraph (2)--
       (i) in subparagraph (B), by inserting ``and capitalize'' 
     before ``an investment fund''; and
       (ii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) To work with the Secretary of Labor, the Director of 
     the National Science Foundation, the Secretary of Energy, the 
     private sector, institutions of higher education, and 
     workforce training entities to incentivize and expand 
     geographically diverse participation in graduate, 
     undergraduate, and community college programs relevant to 
     microelectronics, including through--
       ``(i) the development and dissemination of curricula and 
     research training experiences; and
       ``(ii) the development of workforce training programs and 
     apprenticeships in advanced microelectronic design, research, 
     fabrication, and packaging capabilities.'';
       (3) in subsection (d)--
       (A) by striking ``the Manufacturing USA institute'' and 
     inserting ``a Manufacturing USA institute''; and
       (B) by adding at the end the following: ``The Director may 
     make financial assistance awards, including construction 
     awards, in support of the National Advanced Packaging 
     Manufacturing Program.'';
       (4) in subsection (f)--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``a Manufacturing USA Institute'' and 
     inserting ``not more than 3 Manufacturing USA Institutes'';
       (ii) by striking ``is focused on semiconductor 
     manufacturing.'' and inserting ``are focused on semiconductor 
     manufacturing. The Secretary of Commerce may award financial 
     assistance to any Manufacturing USA Institute for work 
     relating to semiconductor manufacturing.''; and
       (iii) by striking ``Such institute may emphasize'' and 
     inserting ``Such institutes may emphasize''; and
       (5) by adding at the end the following:
       ``(h) Construction Projects.--Section 602 of the Public 
     Works and Economic Development Act of 1965 (42 U.S.C. 3212) 
     shall apply to a construction project that receives financial 
     assistance under this section.''.
       (d) Additional Authorities.--Division H of title XCIX of 
     the William M. (Mac) Thornberry National Defense 
     Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 9909. ADDITIONAL AUTHORITIES.

       ``(a) In General.--In carrying out the responsibilities of 
     the Department of Commerce under this division, the Secretary 
     may--
       ``(1) enter into agreements, including contracts, grants 
     and cooperative agreements, and other transactions as may be 
     necessary and on such terms as the Secretary considers 
     appropriate;
       ``(2) make advance payments under agreements and other 
     transactions authorized under paragraph (1) without regard to 
     section 3324 of title 31, United States Code;
       ``(3) require a person or other entity to make payments to 
     the Department of Commerce upon application and as a 
     condition for receiving support through an award of 
     assistance or other transaction;
       ``(4) procure temporary and intermittent services of 
     experts and consultants in accordance with section 3109 of 
     title 5, United States Code;
       ``(5) notwithstanding section 3104 of title 5, United 
     States Code, or the provisions of any other law relating to 
     the appointment, number, classification, or compensation of 
     employees, make appointments of scientific, engineering, and 
     professional personnel, and fix the basic pay of such 
     personnel at a rate to be determined by the Secretary at 
     rates not in excess of the highest total annual compensation 
     payable at the rate determined under section 104 of title 3, 
     United States Code, except that the Secretary shall appoint 
     not more than 25 personnel under this paragraph;
       ``(6) with the consent of another Federal agency, enter 
     into an agreement with that Federal agency to use, with or 
     without reimbursement, any service, equipment, personnel, or 
     facility of that Federal agency; and
       ``(7) establish such rules, regulations, and procedures as 
     the Secretary considers appropriate.
       ``(b) Requirement.--Any funds received from a payment made 
     by a person or entity pursuant to subsection (a)(3) shall be 
     credited to and merged with the account from which support to 
     the person or entity was made''.
       (e) Conforming Amendment.--The table of contents for 
     division H of title XCIX of the William M. (Mac) Thornberry 
     National Defense Authorization Act for Fiscal Year 2021 
     (Public Law 116-283) is amended by adding after the item 
     relating to section 9908 the following:

``9909. Additional authorities.''.

     SEC. 104. OPPORTUNITY AND INCLUSION.

       (a) Establishment.--Not later than 180 days after the date 
     of enactment of this Act, the Secretary of Commerce shall 
     establish activities in the Department of Commerce, within 
     the program established under section 9902 of the William M. 
     (Mac) Thornberry National Defense Authorization Act for 
     Fiscal Year 2021 (15 U.S.C. 4652), to carry out this section 
     using funds appropriated under this Act.
       (b) In General.--The Secretary of Commerce shall assign 
     personnel to lead and support the activities carried out 
     under this section, including coordination with other 
     workforce development activities of the Department of 
     Commerce or of Federal agencies, as defined in section 551 of 
     title 5, United States Code, as appropriate.
       (c) Activities.--Personnel assigned by the Secretary to 
     carry out the activities under this section shall--
       (1) assess the eligibility of a covered entity, as defined 
     in section 9901 of the William M. (Mac) Thornberry National 
     Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 
     4651), for financial assistance for a

[[Page S3657]]

     project with respect to the requirements under subclauses 
     (II) and (III) of section 9902(a)(2)(B)(ii) of the William M. 
     (Mac) Thornberry National Defense Authorization Act for 
     Fiscal Year 2021 (15 U.S.C. 4652(a)(2)(B)(ii)(II) and (III));
       (2) ensure that each covered entity, as defined in section 
     9901 of the William M. (Mac) Thornberry National Defense 
     Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651),that 
     is awarded financial assistance under section 9902 of that 
     Act (15 U.S.C. 4652) is carrying out the commitments of the 
     covered entity to economically disadvantaged individuals as 
     described in the application of the covered entity under that 
     section by the target dates for completion established by the 
     Secretary of Commerce under subsection(a)(5)(A) of that 
     section; and
       (3) increase participation of and outreach to economically 
     disadvantaged individuals, minority-owned businesses, 
     veteran-owned businesses, and women-owned businesses, as 
     defined by the Secretary of Commerce, respectively, in the 
     geographic area of a project under section 9902 of the 
     William M. (Mac) Thornberry National Defense Authorization 
     Act for Fiscal Year 2021 (15 U.S.C. 4652) and serve as a 
     resource for those individuals, businesses, and covered 
     entities.
       (d) Staff.--The activities under this section shall be 
     staffed at the appropriate levels to carry out the functions 
     and responsibilities under this section until 95 percent of 
     the amounts of funds made available for the program 
     established under section 9902 of the William M. (Mac) 
     Thornberry National Defense Authorization Act for Fiscal Year 
     2021 (15 U.S.C. 4652) have been expended.
       (e) Report.--Beginning on the date that is 1 year after the 
     date on which the Secretary of Commerce establishes the 
     activities described in subsection (c), the Secretary of 
     Commerce shall submit to the appropriate committees of 
     Congress, as defined in section 9901(1) of the William M. 
     (Mac) Thornberry National Defense Authorization Act for 
     Fiscal Year 2021 (15 U.S.C. 4651), and make publicly 
     available on the website of the Department of Commerce an 
     annual report regarding the actions taken by the Department 
     of Commerce under this section.

     SEC. 105. ADDITIONAL GAO REPORTING REQUIREMENTS.

       (a) NDAA.--Section 9902(c) of William M. (Mac) Thornberry 
     National Defense Authorization Act for Fiscal Year 2021 (15 
     U.S.C. 4652(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B)--
       (i) in clause (i), by striking ``; and'' and inserting a 
     semicolon; and
       (ii) by adding at the end the following:
       ``(iii) the Federal Government could take specific actions 
     to address shortages in the semiconductor supply chain, 
     including--

       ``(I) demand-side incentives, including incentives related 
     to the information and communications technology supply 
     chain; and
       ``(II) additional incentives, at national and global 
     scales, to accelerate utilization of leading-edge 
     semiconductor nodes to address shortages in mature 
     semiconductor nodes; and''; and

       (B) in subparagraph (C)--
       (i) in clause (iii), by striking ``; and'' and inserting a 
     semicolon; and
       (ii) by inserting after clause (iv) the following:
       ``(v) how projects are supporting the semiconductor needs 
     of critical infrastructure industries in the United States, 
     including those industries designated by the Cybersecurity 
     and Infrastructure Security Agency as essential 
     infrastructure industries; and''; and
       (2) by inserting after paragraph (1)(C)(iv) the following:
       ``(D) drawing on data made available by the Department of 
     Labor or other sources, to the extent practicable, an 
     analysis of--
       ``(i) semiconductor industry data regarding businesses that 
     are--

       ``(I) majority owned and controlled by minority 
     individuals;
       ``(II) majority owned and controlled by women; or
       ``(III) majority owned and controlled by both women and 
     minority individuals;

       ``(ii) the number and amount of contracts and subcontracts 
     awarded by each covered entity using funds made available 
     under subsection (a) disaggregated by recipients of each such 
     contract or subcontracts that are majority owned and 
     controlled by minority individuals and majority owned and 
     controlled by women; and
       ``(iii) aggregated workforce data, including data by race 
     or ethnicity, sex, and job categories.''.
       (b) Department of Defense.--Section 9202(a)(1)(G)(ii)(I) of 
     the William M. (Mac) Thornberry National Defense 
     Authorization Act for Fiscal Year 2021 (47 U.S.C. 
     906(a)(1)(G)(ii)(I)) is amended by inserting ``(including 
     whether recipients are majority owned and controlled by 
     minority individuals and majority owned and controlled by 
     women)'' after ``to whom''.

     SEC. 106. APPROPRIATIONS FOR WIRELESS SUPPLY CHAIN 
                   INNOVATION.

       (a) Direct Appropriations.--In addition to amounts 
     otherwise available for such purposes, there is appropriated 
     to the Public Wireless Supply Chain Innovation Fund 
     established under section 9202(a)(1) of the William M. (Mac) 
     Thornberry National Defense Authorization Act for Fiscal Year 
     2021 (15 U.S.C. 4652(a)(1)), out of amounts in the Treasury 
     not otherwise appropriated--
       (1) $150,000,000 for fiscal year 2022, to remain available 
     until September 30, 2031; and
       (2) $1,350,000,000 for fiscal year 2023, to remain 
     available until September 30, 2032.
       (b) Use of Funds, Administration, and Oversight.--Of the 
     amounts made available under subsection (a)--
       (1) not more than 5 percent of the amounts allocated 
     pursuant to subsection (c) in a given fiscal year may be used 
     by the Assistant Secretary of Commerce for Communications and 
     Information to administer the programs funded from the Public 
     Wireless Supply Chain Innovation Fund; and
       (2) not less than $2,000,000 per fiscal year shall be 
     transferred to the Office of Inspector General of the 
     Department of Commerce for oversight related to activities 
     conducted using amounts provided under this section.
       (c) Allocation Authority.--
       (1) Submission of cost estimates.--The President shall 
     submit to Congress detailed account, program, and project 
     allocations of the amount recommended for allocation in a 
     fiscal year from amounts made available under subsection 
     (a)--
       (A) for fiscal years 2022 and 2023, not later than 60 days 
     after the date of enactment of this Act; and
       (B) for each subsequent fiscal year through 2032, as part 
     of the annual budget submission of the President under 
     section 1105(a) of title 31, United States Code.
       (2) Alternate allocation.--
       (A) In general.--The Committees on Appropriations of the 
     House of Representatives and the Senate may provide for 
     alternate allocation of amounts recommended for allocation in 
     a given fiscal year from amounts made available under 
     subsection (a), including by account, program, and project.
       (B) Allocation by president.--
       (i) No alternate allocations.--If Congress has not enacted 
     legislation establishing alternate allocations, including by 
     account, program, and project, by the date on which the Act 
     making full-year appropriations for the Departments of 
     Commerce and Justice, Science, and Related Agencies for the 
     applicable fiscal year is enacted into law, only then shall 
     amounts recommended for allocation for that fiscal year from 
     amounts made available under subsection (a) be allocated by 
     the President or apportioned or allotted by account, program, 
     and project pursuant to title 31, United States Code.
       (ii) Insufficient alternate allocation.--If Congress enacts 
     legislation establishing alternate allocations, including by 
     account, program, and project, for amounts recommended for 
     allocation in a given fiscal year from amounts made available 
     under subsection (a) that are less than the full amount 
     recommended for allocation for that fiscal year, the 
     difference between the amount recommended for allocation and 
     the alternate allocation shall be allocated by the President 
     and apportioned and allotted by account, program, and project 
     pursuant to title 31, United States Code.
       (d) Sequestration.--Section 255(g)(1)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
     905(g)(1)(A)) is amended by inserting after ``Postal Service 
     Fund (18-4020-0-3-372).'' the following:
       ``Public Wireless Supply Chain Innovation Fund.''.
       (e) Budgetary Effects.--
       (1) Statutory paygo scorecards.--The budgetary effects of 
     this section shall not be entered on either PAYGO scorecard 
     maintained pursuant to section 4(d) of the Statutory Pay-As-
     You-Go Act of 2010.
       (2) Senate paygo scorecards.--The budgetary effects of this 
     section shall not be entered on any PAYGO scorecard 
     maintained for purposes of section 4106 of H. Con. Res. 71 
     (115th Congress).
       (3) Classification of budgetary effects.--Notwithstanding 
     Rule 3 of the Budget Scorekeeping Guidelines set forth in the 
     joint explanatory statement of the committee of conference 
     accompanying Conference Report 105-217 and section 250(c)(8) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, the budgetary effects of this section shall not be 
     estimated--
       (A) for purposes of section 251 of such Act;
       (B) for purposes of an allocation to the Committee on 
     Appropriations pursuant to section 302(a) of the 
     Congressional Budget Act of 1974; and
       (C) for purposes of paragraph (4)(C) of section 3 of the 
     Statutory Pay-As-You-Go Act of 2010 as being included in an 
     appropriation Act.

     SEC. 107. ADVANCED MANUFACTURING INVESTMENT CREDIT.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     inserting after section 48C the following new section:

     ``SEC. 48D. ADVANCED MANUFACTURING INVESTMENT CREDIT.

       ``(a) Establishment of Credit.--For purposes of section 46, 
     the advanced manufacturing investment credit for any taxable 
     year is an amount equal to 25 percent of the qualified 
     investment for such taxable year with respect to any advanced 
     manufacturing facility of an eligible taxpayer.
       ``(b) Qualified Investment.--
       ``(1) In general.--For purposes of subsection (a), the 
     qualified investment with respect to any advanced 
     manufacturing facility for any taxable year is the basis of 
     any qualified property placed in service by the taxpayer 
     during such taxable year which is part of an advanced 
     manufacturing facility.
       ``(2) Qualified property.--
       ``(A) In general.--For purposes of this subsection, the 
     term `qualified property' means property--

[[Page S3658]]

       ``(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, and

       ``(iv) which is integral to the operation of the advanced 
     manufacturing facility.
       ``(B) Buildings and structural components.--
       ``(i) In general.--The term `qualified property' includes 
     any building or its structural components which otherwise 
     satisfy the requirements under subparagraph (A).
       ``(ii) Exception.--Clause (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) Advanced manufacturing facility.--For purposes of 
     this section, the term `advanced manufacturing facility' 
     means a facility for which the primary purpose is the 
     manufacturing of semiconductors or semiconductor 
     manufacturing equipment.
       ``(4) Coordination with rehabilitation credit.--The 
     qualified investment with respect to any advanced 
     manufacturing facility for any taxable year shall not include 
     that portion of the basis of any property which is 
     attributable to qualified rehabilitation expenditures (as 
     defined in section 47(c)(2)).
       ``(5) Certain progress expenditure rules made applicable.--
     Rules similar to the rules of subsections (c)(4) and (d) of 
     section 46 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of subsection (a).
       ``(c) Eligible Taxpayer.--For purposes of this section, the 
     term `eligible taxpayer' means any taxpayer which--
       ``(1) is not a foreign entity of concern (as defined in 
     section 9901(6) of the William M. (Mac) Thornberry National 
     Defense Authorization Act for Fiscal Year 2021), and
       ``(2) has not made an applicable transaction (as defined in 
     section 50(a)) during the taxable year.
       ``(d) Elective Payment.--
       ``(1) In general.--Except as otherwise provided in 
     paragraph (2)(A), in the case of a taxpayer making an 
     election (at such time and in such manner as the Secretary 
     may provide) under this subsection with respect to the credit 
     determined under subsection (a) with respect to such 
     taxpayer, such taxpayer shall be treated as making a payment 
     against the tax imposed by subtitle A (for the taxable year 
     with respect to which such credit was determined) equal to 
     the amount of such credit.
       ``(2) Special rules.--For purposes of this subsection--
       ``(A) Application to partnerships and s corporations.--
       ``(i) In general.--In the case of the credit determined 
     under subsection (a) with respect to any property held 
     directly by a partnership or S corporation, any election 
     under paragraph (1) shall be made by such partnership or S 
     corporation. If such partnership or S corporation makes an 
     election under such paragraph (in such manner as the 
     Secretary may provide) with respect to such credit--

       ``(I) the Secretary shall make a payment to such 
     partnership or S corporation equal to the amount of such 
     credit,
       ``(II) paragraph (3) shall be applied with respect to such 
     credit before determining any partner's distributive share, 
     or shareholder's pro rata share, of such credit,
       ``(III) any amount with respect to which the election in 
     paragraph (1) is made shall be treated as tax exempt income 
     for purposes of sections 705 and 1366, and
       ``(IV) a partner's distributive share of such tax exempt 
     income shall be based on such partner's distributive share of 
     the otherwise applicable credit for each taxable year.

       ``(ii) Coordination with application at partner or 
     shareholder level.--In the case of any property held directly 
     by a partnership or S corporation, no election by any partner 
     or shareholder shall be allowed under paragraph (1) with 
     respect to any credit determined under subsection (a) with 
     respect to such property.
       ``(B) Elections.--Any election under paragraph (1) shall be 
     made not later than the due date (including extensions of 
     time) for the return of tax for the taxable year for which 
     the election is made, but in no event earlier than 270 days 
     after the date of the enactment of this section. Any such 
     election, once made, shall be irrevocable. Except as 
     otherwise provided in this subparagraph, any election under 
     paragraph (1) shall apply with respect to any credit for the 
     taxable year for which the election is made.
       ``(C) Timing.--The payment described in paragraph (1) shall 
     be treated as made on the later of the due date (determined 
     without regard to extensions) of the return of tax for the 
     taxable year or the date on which such return is filed.
       ``(D) Treatment of payments to partnerships and s 
     corporations.--For purposes of section 1324 of title 31, 
     United States Code, the payments under subparagraph (A)(i)(I) 
     shall be treated in the same manner as a refund due from a 
     credit provision referred to in subsection (b)(2) of such 
     section.
       ``(E) Additional information.--As a condition of, and prior 
     to, any amount being treated as a payment which is made by 
     the taxpayer under paragraph (1) or any payment being made 
     pursuant to subparagraph (A), the Secretary may require such 
     information or registration as the Secretary deems necessary 
     or appropriate for purposes of preventing duplication, fraud, 
     improper payments, or excessive payments under this section.
       ``(F) Excessive payment.--
       ``(i) In general.--In the case of any amount treated as a 
     payment which is made by the taxpayer under paragraph (1), or 
     any payment made pursuant to subparagraph (A), which the 
     Secretary determines constitutes an excessive payment, the 
     tax imposed on such taxpayer by chapter 1 for the taxable 
     year in which such determination is made shall be increased 
     by an amount equal to the sum of--

       ``(I) the amount of such excessive payment, plus
       ``(II) an amount equal to 20 percent of such excessive 
     payment.

       ``(ii) Reasonable cause.--Clause (i)(II) shall not apply if 
     the taxpayer demonstrates to the satisfaction of the 
     Secretary that the excessive payment resulted from reasonable 
     cause.
       ``(iii) Excessive payment defined.--For purposes of this 
     subparagraph, the term `excessive payment' means, with 
     respect to property for which an election is made under this 
     subsection for any taxable year, an amount equal to the 
     excess of--

       ``(I) the amount treated as a payment which is made by the 
     taxpayer under paragraph (1), or the amount of the payment 
     made pursuant to subparagraph (A), with respect to such 
     property for such taxable year, over
       ``(II) the amount of the credit which, without application 
     of this subsection, would be otherwise allowable (determined 
     without regard to section 38(c)) under subsection (a) with 
     respect to such property for such taxable year.

       ``(3) Denial of double benefit.--In the case of a taxpayer 
     making an election under this subsection with respect to the 
     credit determined under subsection (a), such credit shall be 
     reduced to zero and shall, for any other purposes under this 
     title, be deemed to have been allowed to the taxpayer for 
     such taxable year.
       ``(4) Mirror code possessions.--In the case of any 
     possession of the United States with a mirror code tax system 
     (as defined in section 24(k)), this subsection shall not be 
     treated as part of the income tax laws of the United States 
     for purposes of determining the income tax law of such 
     possession unless such possession elects to have this 
     subsection be so treated.
       ``(5) Basis reduction and recapture.--Rules similar to the 
     rules of subsections (a) and (c) of section 50 shall apply 
     with respect to--
       ``(A) any amount treated as a payment which is made by the 
     taxpayer under paragraph (1), and
       ``(B) any payment made pursuant to paragraph (2)(A).
       ``(6) Regulations.--The Secretary shall issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this subsection, 
     including--
       ``(A) regulations or other guidance providing rules for 
     determining a partner's distributive share of the tax exempt 
     income described in paragraph (2)(A)(i)(III), and
       ``(B) guidance to ensure that the amount of the payment or 
     deemed payment made under this subsection is commensurate 
     with the amount of the credit that would be otherwise 
     allowable (determined without regard to section 38(c)).
       ``(e) Termination of Credit.--The credit allowed under this 
     section shall not apply to property the construction of which 
     begins after December 31, 2026.''.
       (b) Recapture in Connection With Certain Expansions.--
       (1) In general.--Section 50(a) of the Internal Revenue Code 
     of 1986 is amended redesignating paragraphs (3) through (5) 
     as paragraphs (4) through (6), respectively, and by inserting 
     after paragraph (2) the following new paragraph:
       ``(3) Certain expansions in connection with advanced 
     manufacturing facilities.--
       ``(A) In general.--If there is a an applicable transaction 
     by an applicable taxpayer before the close of the 10-year 
     period beginning on the date such taxpayer placed in service 
     investment credit property which is eligible for the advanced 
     manufacturing investment credit under section 48D(a), then 
     the tax under this chapter for the taxable year in which such 
     transaction occurs shall be increased by 100 percent of the 
     aggregate decrease in the credits allowed under section 38 
     for all prior taxable years which would have resulted solely 
     from reducing to zero any credit determined under section 46 
     which is attributable to the advanced manufacturing 
     investment credit under section 48D(a) with respect to such 
     property.
       ``(B) Exception.--Subparagraph (A) shall not apply if the 
     applicable taxpayer demonstrates to the satisfaction of the 
     Secretary that the applicable transaction has been ceased or 
     abandoned within 45 days of a determination and notice by the 
     Secretary.
       ``(C) Regulations and guidance.--The Secretary shall issue 
     such regulations or other guidance as the Secretary 
     determines necessary or appropriate to carry out the purposes 
     of this paragraph, including regulations or other guidance 
     which provide for requirements for recordkeeping or 
     information reporting for purposes of administering the 
     requirements of this paragraph.''.

[[Page S3659]]

       (2) Applicable transaction; applicable taxpayer.--Section 
     50(a)(6) of the Internal Revenue Code of 1986, as 
     redesignated by paragraph (1), is amended adding at the end 
     the following new subparagraphs:
       ``(D) Applicable transaction.--For purposes of this 
     subsection, the term `applicable transaction' means, with 
     respect to any applicable taxpayer, any transaction (as 
     determined by the Secretary, in coordination with the 
     Secretary of Commerce and the Secretary of Defense) involving 
     the expansion of semiconductor manufacturing capacity of such 
     applicable taxpayer in the People's Republic of China or a 
     foreign country of concern (as defined in section 9901(7) of 
     the William M. (Mac) Thornberry National Defense 
     Authorization Act for Fiscal Year 2021).
                                 ______