H.R. 2652

115 HR 2652 IH: Bring Entrepreneurial Advancements To Consumers Here In North America Act
 U.S. House of Representatives
 2025-04-03
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 I  119th CONGRESS  1st Session  H. R. 2652  IN THE HOUSE OF REPRESENTATIVES   April 3, 2025   Mr. Roy  (for himself and  Mr. Moore of Alabama ) 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 incentives for relocating manufacturing to the United States, permanent full expensing for qualified property, and for other purposes.
1.
Short title
This Act may be cited as the   Bring Entrepreneurial Advancements To Consumers Here In North America Act  .
2.
Tax incentives for relocating manufacturing to the United States
(a)
Accelerated depreciation for nonresidential real property
 Section 168  of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
(n)
Accelerated depreciation for nonresidential real property acquired in connection with the relocation of manufacturing to the United States
(1)
Treatment as 20-year property
For purposes of this section, qualified nonresidential real property shall be treated as 20-year property.
(2)
Application of bonus depreciation
For application of bonus depreciation to qualified nonresidential real property, see subsection (k).
(3)
Qualified nonresidential real property
For purposes of this subsection, the term  qualified nonresidential real property  means nonresidential real property placed in service in the United States by a qualified manufacturer if such property is acquired by such qualified manufacturer in connection with a qualified relocation of manufacturing.
(4)
Qualified manufacturer
For purposes of this subsection, the term  qualified manufacturer  means any person engaged in the trade or business of manufacturing any tangible personal property.
(5)
Qualified relocation of manufacturing
For purposes of this subsection—
(A)
In general
The term  qualified relocation of manufacturing  means, with respect to any qualified manufacturer, the relocation of the manufacturing of any tangible personal property from a foreign country to the United States.
(B)
Relocation of property not required
For purposes of subparagraph (A), manufacturing shall not fail to be treated as relocated merely because property used in such manufacturing was not relocated.
(C)
Relocation of not less than equivalent productive capacity required
For purposes of subparagraph (A), manufacturing shall not be treated as relocated unless the property manufactured in the United States is substantially identical to the property previously manufactured in a foreign country and the increase in the units of production of such property in the United States by the qualified manufacturer is not less than the reduction in the units of production of such property in such foreign country by such qualified manufacturer.
(6)
Application to possessions of the United States
For purposes of this subsection, the term  United States  includes any possession of the United States.
 .
(b)
Exclusion of gain on disposition of property in connection with qualified relocation of manufacturing
(1)
In general
Part III of subchapter B of chapter 1 of such Code is amended by inserting after section 139I the following new section:
139J.
Exclusion of gain on disposition of property in connection with qualified relocation of manufacturing
(a)
In general
In the case of a qualified manufacturer, gross income shall not include gain from the sale or exchange of qualified relocation disposition property.
(b)
Qualified relocation disposition property
For purposes of this section, the term  qualified relocation disposition property  means any property which—
(1)
is sold or exchanged by a qualified manufacturer in connection with a qualified relocation of manufacturing, and
(2)
was used by such qualified manufacturer in the trade or business of manufacturing any tangible personal property in the foreign country from which such manufacturing is being relocated.
(c)
Other terms
Terms used in this section which are also used in subsection (n) of section 168 shall have the same meaning when used in this section as when used in such subsection.
 .
(2)
Clerical amendment
The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item:
Sec. 139J. Exclusion of gain on disposition of property in connection with qualified relocation of manufacturing.
  .
(c)
Effective dates
(1)
Accelerated depreciation
The amendment made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act.
(2)
Exclusion of gain
The amendments made by subsection (b) shall apply to sales and exchanges after the date of the enactment of this Act.
3.
Permanent full expensing for qualified property
(a)
In general
Paragraph (6) of  section 168(k)  of the Internal Revenue Code of 1986 is amended to read as follows:
(6)
Applicable percentage
For purposes of this subsection, the term  applicable percentage  means, in the case of property placed in service (or, in the case of a specified plant described in paragraph (5), a plant which is planted or grafted) after September 27, 2017, 100 percent.
 .
(b)
Conforming amendments
(1)
 Section 168(k)  of the Internal Revenue Code of 1986 is amended—
(A)
in paragraph (2)—
(i)
in subparagraph (A)—
(I)
in clause (i)(V), by inserting  and  at the end;
(II)
in clause (ii), by striking  clause (ii) of subparagraph (E), and  and inserting  clause (i) of subparagraph (E). ; and
(III)
by striking clause (iii);
(ii)
in subparagraph (B)—
(I)
in clause (i)—
(aa)
by striking subclauses (II) and (III); and
(bb)
by redesignating subclauses (IV) through (VI) as subclauses (II) through (IV), respectively;
(II)
by striking clause (ii); and
(III)
by redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively;
(iii)
in subparagraph (C)—
(I)
in clause (i), by striking  and subclauses (II) and (III) of subparagraph (B)(i) ; and
(II)
in clause (ii), by striking  subparagraph (B)(iii)  and inserting  subparagraph (B)(ii) ; and
(iv)
in subparagraph (E)—
(I)
by striking clause (i); and
(II)
by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and
(B)
in paragraph (5)(A), by striking  planted before January 1, 2027, or is grafted before such date to a plant that has already been planted,  and inserting  planted or grafted .
(2)
Section 460(c)(6)(B) of such Code is amended by striking  which  and all that follows through the period and inserting  which has a recovery period of 7 years or less. .
(c)
Effective date
The amendments made by this section shall take effect as if included in section 13201 of  Public Law 115–97 .