To amend the Internal Revenue Code of 1986 to provide appropriate rules for the application of the deduction for income attributable to domestic production activities with respect to certain contract manufacturing or production arrangements.

Summary

This bill amends the Internal Revenue Code to specify rules for applying the deduction for income from domestic production activities to contract manufacturing or production arrangements. In a contract manufacturing or production arrangement, a person contracts with one or more unrelated persons for the manufacture, production, growth, or extraction of an item of qualifying production property (tangible personal property, computer software, and sound recordings) or film. The qualifying production property must be manufactured, produced, grown, or extracted in whole or significant part within the United States. In an arrangement in which any person makes a substantial contribution through the activities of its employees within the United States to the manufacture, production, growth, or extraction of qualifying production property: (1) the person shall be treated as engaging in the activity, and (2) the domestic production gross receipts of the person shall include the gross receipts received under the arrangement for the activities. The Internal Revenue Service must prescribe regulations that include specified factors for determining a substantial contribution. A person with an economic risk of loss of more than 50% of the direct material costs necessary to the manufacture, production, growth, or extraction of the qualifying production is deemed to make a substantial contribution. The parties to an arrangement may agree in writing to: (1) make only one person eligible for the deduction, or (2) apply the rules retroactively to tax years in which only one person claimed the deduction.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 1 March 2017

   Introduced

   Referred to the House Committee on Ways and Means.

   Source: IntroReferral

2. 1 March 2017

   Introduced

   Introduced in House

   Source: IntroReferral

3. 1 March 2017

   Introduced

   Introduced in House

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

• Introduced in House · 1 March 2017 · Official file

Documents

3 official files

• Introduced in House (text)

  Introduced in House · EN · 1 March 2017

  ViewDownloadOpen at official source

• Introduced in House (PDF)

  Introduced in House · EN · 1 March 2017

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 1 March 2017

  Open at official source

Sponsors

• PATRICK TIBERI · R · Sponsor
• Richard Neal · D · Sponsor
• James Renacci · R · Sponsor
• John Larson · D · Sponsor
• Erik Paulsen · R · Sponsor
• RON KIND · D · Sponsor
• Rep. Beatty, Joyce [D-OH-3] · D · Sponsor
• Steve Stivers · R · Cosponsor
• Jim Jordan · R · Cosponsor
• Rep. Smith, Jason [R-MO-8] · R · Cosponsor
• · hswm00 · Standing

Related records

• related to ← Promoting More American Manufacturing Jobs Act
• related to ← To amend the Internal Revenue Code of 1986 to provide appropriate rules for the application of the deduction for income attributable to domestic production activities with respect to certain contract manufacturing or production arrangements.