[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Page S4322]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 5343. Mr. LEE submitted an amendment intended to be proposed to
amendment SA 5194 proposed by Mr. Schumer to the bill H.R. 5376, to
provide for reconciliation pursuant to title II of S. Con. Res. 14;
which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ____. 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.--
``(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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