American Jobs Investment Act of 1992

American Jobs Investment Act of 1992 - Amends the Internal Revenue Code to allow a tax credit after December 31, 1991, and before January 1, 1997, for qualified investment in American-made property. Describes such property as that completed in the United States and at least 70 percent of the basis of which is attributable to value added within the United States.

Increases such tax credit for investment in such property where the labor was performed by union employees.

 
HR 5616 IH
102d CONGRESS
2d Session
 H. R. 5616
To amend the Internal Revenue Code of 1986 to provide an investment tax
credit for increases in investments in American-made equipment, with an
additional credit for equipment made by union labor.
IN THE HOUSE OF REPRESENTATIVES
July 9, 1992
Mr. STOKES introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to provide an investment tax
credit for increases in investments in American-made equipment, with an
additional credit for equipment made by union labor.
  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 `American Jobs Investment Act of 1992'.
SEC. 2. TEMPORARY INVESTMENT TAX CREDIT FOR AMERICAN-MADE PROPERTY.
  (a) IN GENERAL- Subpart E of part IV of subchapter A of chapter 1 of the
  Internal Revenue Code of 1986 (relating to rules for computing credit
  for investment in certain depreciable property), as amended by subsection
  (b)(2), is amended by adding at the end the following new section:
`SEC. 50. TEMPORARY INVESTMENT CREDIT FOR AMERICAN-MADE PROPERTY.
  `(a) IN GENERAL- With respect to periods after December 31, 1991, and
  before January 1, 1997--
  `(1) section 49 shall not apply, and
  `(2) the regular percentage for purposes of this subpart shall be 10
  percent of the excess (if any) of--
  `(A) the lesser of--
  `(i) the net qualified investment in qualified section 38 property for
  such taxable year, or
  `(ii) the qualified investment in American-made property for such taxable
  year, over
  `(B) the base amount.
  `(b) AMERICAN-MADE PROPERTY; QUALIFIED SECTION 38 PROPERTY- For purposes
  of this section--
  `(1) AMERICAN-MADE PROPERTY- The term `American-made property' means
  qualified section 38 property--
  `(A) which was completed in the United States, and
  `(B) at least 70 percent of the basis of which is attributable to value
  added within the United States.
  `(2) QUALIFIED SECTION 38 PROPERTY- The term `qualified section 38 property'
  means section 38 property determined--
  `(A) without regard to--
  `(i) subparagraphs (D), (E), (F), and (G) of section 48(a)(1), and
  `(ii) clauses (vi), (x), and (xi) of section 48(a)(2)(B), and
  `(B) as if clause (ii) of section 48(a)(2)(B) read as follows:
  ` `(ii) rolling stock of a domestic railroad corporation providing
  transportation subject to subchapter I of chapter 105 of chapter 49 which
  is used within and without the United States but only if the rolling stock
  is not leased to one or more foreign persons for periods aggregating more
  than 12 months in any 24-month period.'
  `(3) UNITED STATES- The term `United States' includes the Commonwealth of
  Puerto Rico and the possessions of the United States.
  `(c) NET QUALIFIED INVESTMENT; BASE AMOUNT- For purposes of subsection (a)--
  `(1) NET QUALIFIED INVESTMENT- The net qualified investment in qualified
  section 38 property for the taxable year is the excess (if any) of--
  `(A) the aggregate qualified investment in qualified section 38 property
  for such taxable year, over
  `(B) the aggregate fair market value of qualified section 38 property
  which is disposed of, or otherwise ceases to be such property, during the
  taxable year.
  `(2) BASE AMOUNT- The term `base amount' means, for any taxable year, the
  average of the net qualified investment in qualified section 38 property
  for the 3 preceding taxable years.
  `(d) HIGHER CREDIT FOR UNION-MADE PROPERTY- Subsection (a)(2) shall be
  applied by substituting `15 percent' for `10 percent' to the extent of
  so much of the excess described in subsection (a)(2) as does not exceed
  the qualified investment in American-made property for the taxable year
  substantially all of the labor associated with which was performed by
  employees covered by a collective bargaining agreement with their employers.'
  (b) CONFORMING AMENDMENTS-
  (1) The table of sections for such subpart E is amended by adding at the
  end the following new item:
`Sec. 50. Restoration of investment credit for American-made property.'
  (2) Section 11813 of the Revenue Reconciliation Act of 1990 (Public Law
  101-508) is hereby repealed, and the Internal Revenue Code of 1986 shall
  be applied and administered as if such section (and the amendments made
  by such section) had never been enacted.
  (c) EFFECTIVE DATE- The amendments made by this section shall apply to
  periods after December 31, 1991, under rules similar to the rules of
  section 48(m) of the Internal Revenue Code of 1986, as restored by this Act.