US Congress House Bill 1296 (Prior Session Legislation)

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Spectrum: Bipartisan Bill
Status: Introduced on March 1 2017 - 25% progression, died in committee
Action: 2017-03-01 - Referred to the House Committee on Ways and Means.
Pending: House Ways And Means Committee
Text: Latest bill text (Introduced) [PDF]

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. 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.

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.

Rep. Patrick Tiberi [R-OH]	Rep. Richard Neal [D-MA]	Rep. James Renacci [R-OH]	Rep. John Larson [D-CT]
Rep. Erik Paulsen [R-MN]	Rep. Ron Kind [D-WI]	Rep. Joyce Beatty [D-OH]	Rep. Steve Stivers [R-OH]
Rep. Jim Jordan [R-OH]	Rep. Jason Smith [R-MO]

Date	Chamber	Action
2017-03-01	House	Referred to the House Committee on Ways and Means.
2017-03-01	House	Introduced in House

SB638 (Related) 2017-03-15 - Read twice and referred to the Committee on Finance.

Type	Source
Summary	https://www.congress.gov/bill/115th-congress/house-bill/1296/all-info
Text	https://www.congress.gov/115/bills/hr1296/BILLS-115hr1296ih.pdf