Summary and Impacts
Original Text
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3309 Introduced in House (IH)]

<DOC>






117th CONGRESS
  1st Session
                                H. R. 3309

To establish a manufacturing grant program, a trade preference program, 
   and certain tax incentives to encourage companies to manufacture 
 certain essential articles in countries in the Western Hemisphere and 
    to safeguard against disruptions to the supply chains for such 
                   articles, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 18, 2021

Mr. Kinzinger (for himself and Mr. Crow) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
 to the Committees on Foreign Affairs, and Energy and Commerce, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To establish a manufacturing grant program, a trade preference program, 
   and certain tax incentives to encourage companies to manufacture 
 certain essential articles in countries in the Western Hemisphere and 
    to safeguard against disruptions to the supply chains for such 
                   articles, and for other purposes.

    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 ``Manufacturing Abilities Determine 
Economies in The Americas Act'' or the ``MADE in The Americas Act''.

SEC. 2. STATEMENTS OF POLICY.

    It shall be the policy of the United States to--
            (1) diversify supply chains of covered articles in order to 
        strengthen the security and economies of the United States and 
        its allies;
            (2) maintain an active and leading role in global trade and 
        medical research for the benefit of the workforces in the 
        United States and its allies;
            (3) strengthen and increase trade between the United States 
        and other countries in the Western Hemisphere in order to--
                    (A) mitigate supply chain vulnerabilities;
                    (B) raise living standards;
                    (C) increase job opportunities; and
                    (D) mitigate the underlying causes of irregular 
                immigration between such countries;
            (4) in order to safeguard against future disruptions, 
        incentivize the relocation of facilities that manufacture 
        covered articles from countries of concern to the Western 
        Hemisphere;
            (5) prioritize and provide diplomatic and political support 
        to developing countries in the Western Hemisphere to--
                    (A) resolve any impediments to the manufacturing 
                and labor protection sectors in such countries;
                    (B) advocate for political and economic reforms in 
                such countries that will improve the regulatory and 
                investment environment;
                    (C) resolve challenges for United States investors 
                in such countries, including political instability and 
                corruption; and
                    (D) build and maintain essential public services 
                and infrastructure necessary for economic growth and 
                stability through access to debt refinancing support, 
                as appropriate;
            (6) support and promote multilateral and bilateral free 
        trade agreements with allied nations in the Western Hemisphere;
            (7) support joint ventures between companies in the United 
        States and domestically owned companies in the Western 
        Hemisphere; and
            (8) harness existing tools, such as the United States 
        Agency for International Development, the United States 
        International Development Finance Corporation, to assist 
        countries in the Western Hemisphere to develop increased 
        manufacturing capacity.

SEC. 3. UNITED STATES STRATEGY TO COUNTER THREATS TO SUPPLY CHAINS FOR 
              COVERED ARTICLES.

    (a) In General.--In accordance with Executive Order 14017 (86 Fed. 
Reg. 11849), the President shall develop and implement a strategy to 
reduce reliance on concentrated supply chains for covered articles and 
protect against any threats from countries of concern relating to 
supply chains for covered articles.
    (b) Elements.-- The strategy required by subsection (a) shall 
include the following elements:
            (1) A plan to provide sufficient access to covered articles 
        by ensuring that supply chains for such articles are not 
        concentrated in a country of concern.
            (2) A plan to use tools available to the Federal 
        Government, such as the United States Agency for International 
        Development and the United States International Development 
        Finance Corporation, to assist countries in the Western 
        Hemisphere to build capacity for manufacturing covered 
        articles.
            (3) A plan to incentivize--
                    (A) United States companies that manufacture 
                covered articles to--
                            (i) relocate manufacturing facilities, 
                        personnel, or operations related to the 
                        production of covered articles to the United 
                        States or to other countries in the Western 
                        Hemisphere;
                            (ii) to expand such facilities, personnel, 
                        or operations to increase the production of 
                        covered articles and meet increasing demand for 
                        such articles; and
                            (iii) to assist countries in developing 
                        greater manufacturing capacity; and
                    (B) companies that do not manufacture covered 
                articles to make necessary or appropriate modifications 
                to existing manufacturing facilities, personnel, or 
                operations in order to manufacture 1 or more covered 
                articles.
            (4) A plan to enter into trade agreements with countries in 
        the Western Hemisphere that--
                    (A) protect against any threats from countries of 
                concern relating to supply chains for covered articles; 
                and
                    (B) foster political and regulatory stability to 
                allow a manufacturing company interested in relocating 
                to such countries in the Western Hemisphere to make 
                long-term investment plans.
            (5) A plan to coordinate with other countries in the 
        Western Hemisphere to avoid disruptions to the continued 
        operations of supply chains for covered articles during a 
        covered emergency.
            (6) A plan to provide technical assistance to governments 
        in the Western Hemisphere to improve regulatory and investment 
        frameworks to welcome companies with intention to relocate 
        manufacturing facilities.
    (c) Submission of Strategy.--
            (1) In general.--Not later than 60 days after the date of 
        enactment of this Act, the President shall submit to Congress a 
        report containing the strategy developed under this section.
            (2) Update.--Not less than once every 4 years after the 
        date on which the strategy is submitted under paragraph (1), 
        the President shall submit to Congress an update to such 
        strategy.
            (3) Form.--The report submitted under paragraph (1), and 
        any update submitted under paragraph (2), shall be submitted in 
        unclassified form and may include a classified annex.
    (d) Definition.--For purposes of this section, the term ``country 
of concern'' means a country described in paragraph (3)(B) of section 9 
of this Act.

SEC. 4. NATIONAL MANUFACTURING SECURITY AND RESILIENCE COUNCIL.

    (a) Establishment.--There is hereby established within the 
Executive Office of the President the Manufacturing Security and 
Resilience Council (hereinafter referred to as the ``Council'').
    (b) Members.--The Council shall be composed of--
            (1) The President;
            (2) The Vice President;
            (3) The Secretary of Commerce;
            (4) The Secretary of State;
            (5) The Secretary of Defense;
            (6) The Secretary of Homeland Security;
            (7) The Secretary of Energy;
            (8) The Secretary of Health and Human Services;
            (9) The Director of National Intelligence; and
            (10) The United States Trade Representative.
    (c) Additional Members.--The President may also appoint up to ten 
additional officers of the Federal Government to serve on the Council, 
including but not limited to--
            (1) The National Security Advisor;
            (2) The Director of the National Economic Council;
            (3) The Homeland Security Advisor;
            (4) The Director of the Office of Science and Technology 
        Policy;
            (5) The Director of the Cybersecurity and Infrastructure 
        Security Agency;
            (6) The Director of the Centers for Disease Control and 
        Prevention;
            (7) The Administrator of the Federal Emergency Management 
        Agency;
            (8) The Director of the National Institute of Standards and 
        Technology; and
            (9) The Director of the Hollings Manufacturing Extension 
        Partnership.
    (d) Presiding Officers.--At meetings of the Council, the President 
shall preside or, in the absence of the President, a member of the 
Council designated by the President shall preside.
    (e) Designees.--Each member of the Council from a department or 
agency of the Federal Government may designate another officer of his 
department or agency to serve on the Council as his alternate in his 
unavoidable absence.
    (f) Functions.--The functions of the Council are to--
            (1) implement the strategy requested under section 3;
            (2) determine whether a covered article is essential to the 
        critical infrastructure of the United States or to the ability 
        of the United States to respond to a covered emergency;
            (3) establish and maintain the database described in 
        subsection (j);
            (4) establish, manage, and carry out the manufacturing 
        resilience grant program established under subsection (k);
            (5) coordinate, without assuming operational authority, the 
        use of private-sector manufacturing resources to respond to a 
        covered emergency; and
            (6) not less than once every year, inform Congress of the 
        activities of the Council in carrying out the duties and 
        functions described in paragraphs (1) through (5) of this 
        subsection.
    (g) Director.--The Council shall be headed by a civilian Director 
who shall be appointed by the President by and with the advice and 
consent of the Senate. In appointing the Director, the President shall 
choose an individual who--
            (1) is a senior executive (as such term is defined in 
        section 3132 of title 5, United States Code); and
            (2) is fit to perform the duties required by the position, 
        without regard to political affiliation.
    (h) Staff.--The Council may employ a staff who shall be appointed 
by the Director. The Director, subject to the direction of the Council, 
is authorized to appoint and fix the compensation of such personnel 
consistent with existing civil service statutes and regulations, as may 
be necessary to perform such duties as may be prescribed by the Council 
in connection with the performance of its functions. The professional 
staff for which this subsection provides shall not exceed 200 persons, 
including persons employed by, assigned to, detailed to, under contract 
to serve on, or otherwise serving or affiliated with the staff. The 
limitation in this paragraph does not apply to personnel serving 
substantially in support or administrative positions.
    (i) Authorities.--The Director of the Office may--
            (1) notwithstanding subsections (a) and (b) of section 3324 
        of title 31, United States Code, enter into and perform such 
        contracts, leases, cooperative agreements, or other 
        transactions as may be necessary to carry out the duties of the 
        Council, and on such terms as the Director determines are 
        appropriate, with--
                    (A) any agency or instrumentality of the Federal 
                Government;
                    (B) any State, territory, or possession of the 
                United States, including any political subdivision 
                thereof; and
                    (C) any person or educational institution;
            (2) pursuant to subsection (h), employ such personnel as 
        the Director determines are necessary to conduct the business 
        of the Council; and
            (3) delegate to other employees of the Office such powers 
        and authority as the Director determines may be warranted in 
        the interests of efficiency and sound administration.
    (j) Database.--
            (1) In general.--The Director shall establish and maintain 
        a database of information on covered manufacturing companies.
            (2) Requirements.--
                    (A) In general.--The database established under 
                paragraph (1) shall include information that the 
                Director determines is necessary to effectively respond 
                to covered emergencies, including information related 
                to--
                            (i) the manufacturing facilities and 
                        operations of a covered manufacturing company; 
                        and
                            (ii) the types of articles manufactured by 
                        such company.
                    (B) Information gathering.--To gather the 
                information described in subparagraph (A), the Director 
                shall--
                            (i) use existing sources of such 
                        information;
                            (ii) coordinate with the Director of the 
                        Census Bureau to gather data on covered 
                        manufacturing companies; and
                            (iii) ensure the appropriate protection for 
                        any proprietary, confidential, or sensitive 
                        information related to a covered manufacturing 
                        company.
                    (C) Requests for information during emergency.--
                During a covered emergency, the Director may request 
                specific information from covered manufacturing 
                companies that the Director determines is necessary to 
                prepare a national response to such emergency.
                    (D) Design.--The Director shall design and maintain 
                the database in a manner that allows for the direct 
                input and update of information in the database.
                    (E) Transparency.--The Director shall develop 
                policies for the operation of the database that--
                            (i) require the timely and accurate input 
                        of information into the database; and
                            (ii) allow a covered manufacturing company 
                        to access any information in the database that 
                        relates to such company and correct any 
                        inaccurate information.
                    (F) Accessibility.--The Director shall ensure that 
                the information in the database is available to--
                            (i) appropriate acquisition officials of 
                        Federal agencies;
                            (ii) upon request, the Chairman and Ranking 
                        Member of each of the appropriate congressional 
                        committees; and
                            (iii) any other government officials that 
                        the Director determines are appropriate, except 
                        that the Director shall provide written notice 
                        to the appropriate congressional committees not 
                        later than 14 days after the date on which a 
                        new government official is granted access to 
                        the database.
                    (G) Covered manufacturing company defined.--In this 
                subsection, the term ``covered manufacturing company'' 
                means a company in the United States that--
                            (i) manufactures a covered article; or
                            (ii) maintains facilities that may be 
                        converted to manufacture covered articles 
                        during a covered emergency.
    (k) Manufacturing Security and Resilience Grant Program.--
            (1) Establishment.--The President shall establish a 
        manufacturing resilience grant program, to be administered by 
        the Director, to make grants to eligible manufacturing 
        companies to carry out eligible projects to--
                    (A) increase the manufacture of covered articles in 
                countries in the Western Hemisphere;
                    (B) assist the Federal Government in preparing for 
                and responding to covered emergencies; and
                    (C) reduce reliance on concentrated supply chains 
                for covered articles.
            (2) Eligible manufacturing companies.--To be eligible to 
        receive a grant under this subsection, a manufacturing company 
        shall--
                    (A) be a domestic corporation that is engaged in 
                the business of manufacturing;
                    (B) be capable of manufacturing covered articles to 
                assist the Federal Government in preparing for and 
                responding to a covered emergency, as determined by the 
                Director; and
                    (C) provide all necessary information for inclusion 
                in the database established under subsection (j), as 
                requested by the Director.
            (3) Eligible projects.--A grant recipient may use funds 
        awarded under this subsection for a project that--
                    (A) relocates manufacturing facilities, personnel, 
                or operations related to covered articles out of a 
                country of concern and into the United States or other 
                foreign country in the Western Hemisphere;
                    (B) modifies manufacturing facilities or operations 
                related to covered articles to--
                            (i) create new capabilities for such grant 
                        recipient to manufacture covered articles;
                            (ii) expand existing operations to increase 
                        the manufacture of covered articles; or
                            (iii) accommodate any manufacturing 
                        operations or personnel related to covered 
                        articles that are relocated to a country in the 
                        Western Hemisphere; or
                    (C) develops tools or processes that relate to 
                procuring, transporting, or storing covered articles.
            (4) Use of funds.--
                    (A) In general.--Grant amounts received for a 
                project under this subsection may be used for any costs 
                associated with such project, including administrative 
                costs and workforce development initiatives.
                    (B) Limitation.--Grant amounts received for a 
                project under this subsection may not be used to 
                support manufacturing facilities or operations located 
                in a country of concern.
            (5) Conditions.--As a condition on the receipt of a grant 
        under this subsection, the grant recipient shall--
                    (A) not later than 1 year after receiving a grant, 
                agree to manufacture the amount of covered articles 
                that the Director determines is reasonable, to be made 
                available for purchase by the Federal Government 
                beneficiary with respect to which such amounts were 
                provided; and
                    (B) coordinate with the Director to assist the 
                United States to prepare for and respond to a covered 
                emergency by manufacturing covered articles when 
                necessary.
            (6) Application.--To be eligible for a grant under this 
        subsection, an eligible manufacturing company shall submit to 
        the Director an application in such form, at such time, and 
        containing such information as the Director determines 
        appropriate, including--
                    (A) a description of the proposed project to be 
                carried out with grant funds;
                    (B) a description of the type of covered articles 
                that such company intends to produce in carrying out 
                such project; and
                    (C) an estimation of the total costs for such 
                project.
            (7) Selection of grant recipient.--
                    (A) Consultation required.--In awarding grants for 
                amounts allocated pursuant to subparagraphs (B) through 
                (J) of subsection (m)(2), the Director shall consult 
                with the applicable Federal Government beneficiary.
                    (B) Diversity of covered articles.--To the extent 
                practicable, the Director shall ensure that grants are 
                awarded for proposed projects that will result in the 
                production of a diverse type of covered articles.
                    (C) Priority.--In awarding a grant under this 
                subsection, the Director shall prioritize awarding 
                grants for proposed projects that--
                            (i) will operate within the United States 
                        and employ citizens of the United States; and
                            (ii) will result in the production of 
                        covered articles that relate to the strategic 
                        needs of the Federal Government in preparing 
                        for and responding to covered emergencies.
            (8) Grant amount.--
                    (A) In general.--The Federal share of the total 
                cost of a project receiving a grant under this 
                subsection, as estimated under paragraph (6)(C), shall 
                be 75 percent.
                    (B) Limitation.--An eligible manufacturing company 
                may not receive more than a total of $500,000,000 in 
                grant funds in 1 fiscal year.
                    (C) Total amounts to support federal government 
                beneficiaries.--
                            (i) Minimum total amount.--Of the amounts 
                        allocated for grants pursuant to subparagraphs 
                        (B) through (J) of subsection (m)(2), the total 
                        amount of funds awarded for the support of a 
                        single Federal Government beneficiary shall be 
                        not less than $500,000,000.
                            (ii) Maximum total amount.--Of the amounts 
                        allocated for grants pursuant to subsection 
                        (m)(2)(A), the total amount of funds provided 
                        for the support of a single Federal Government 
                        beneficiary may not exceed $2,000,000,000.
            (9) Definition.--In this subsection, the term ``Federal 
        Government beneficiary'' means the following:
                    (A) The Department of Agriculture.
                    (B) The Department of Defense.
                    (C) The Department of Energy.
                    (D) The Department of Health and Human Services.
                    (E) The Department of Homeland Security.
                    (F) The Department of the Interior.
                    (G) The Department of the Treasury.
                    (H) The Environmental Protection Agency.
    (l) Advisory Board.--
            (1) Establishment.--There is established an Manufacturing 
        Security and Resilience Advisory Board (hereinafter referred to 
        as the ``Advisory Board'').
            (2) Members.--The President shall appoint twenty members to 
        the Advisory Board, each having demonstrated expertise relating 
        to, or experience operating in, the manufacturing industry and 
        with supply chain management, and consisting of--
                    (A) eight representatives from United States 
                manufacturing companies;
                    (B) four representatives from academic 
                institutions;
                    (C) four representatives from labor organizations; 
                and
                    (D) four representatives from non-profit 
                organizations.
            (3) Chair.--The Chair of the Advisory Board shall be 
        appointed by the President from its membership.
            (4) Meetings.--The Advisory Board shall meet not less than 
        four times each year at the call of the Chair.
            (5) Functions.--The functions of the Advisory Board are 
        to--
                    (A) review the general policies and operations of 
                the Council and advise the Council with respect to such 
                policies and operations;
                    (B) collaborate with the Hollings Manufacturing 
                Extension Partnership, established pursuant to section 
                25 of the National Institute of Standards and 
                Technology Act (15 U.S.C. 278k), and the Manufacturing 
                USA Program, established pursuant to section 34 of such 
                Act (15 U.S.C. 278s), to assist Federal, State, and 
                local governments in identifying industrial resources 
                and opportunities to prepare for and respond to covered 
                emergencies;
                    (C) commission and conduct research to identify and 
                analyze how to improve the ability of the United States 
                manufacturing sector to assist Federal, State, and 
                local governments in responding to covered emergencies; 
                and
                    (D) identify best practices for federal, State, and 
                local governments and the United States Manufacturing 
                sector to effectively and efficiently respond to 
                covered emergencies;
    (m) Funding.--
            (1) Manufacturing security and resilience council.--To 
        operate the Manufacturing Security and Resilience Council 
        established by this section, there is authorized to be 
        appropriated $50,000,000 for each of fiscal years 2021 through 
        2031, to remain available until expended.
            (2) Manufacturing security and resilience grant program.--
        For grants awarded under subsection (k), there is authorized to 
        be appropriated $24,950,000,000 for each of fiscal years 2021 
        through 2031, to remain available until expended. Of the funds 
        made available under the preceding sentence, the Director shall 
        allocate for each fiscal year--
                    (A) 32 percent for grants proposed to support any 
                of the Federal Government beneficiaries for the 
                strategic needs of the Federal Government;
                    (B) 4 percent for grants proposed to support the 
                Office of Cybersecurity and Communications within the 
                Department of Homeland Security;
                    (C) 28 percent for grants proposed to support--
                            (i) the Office of Infrastructure Protection 
                        within the Department of Homeland Security;
                            (ii) the Transportation Security 
                        Administration;
                            (iii) the United States Coast Guard; and
                            (iv) the Federal Protective Service;
                    (D) 4 percent for grants proposed to support the 
                Department of Agriculture;
                    (E) 12 percent for grants proposed to support the 
                Department of Defense;
                    (F) 8 percent for grants proposed to support the 
                Department of Energy;
                    (G) 6 percent for grants proposed to support the 
                Department of Health and Human Services;
                    (H) 4 percent for grants proposed to support the 
                Environmental Protection Agency;
                    (I) 1 percent for grants proposed to support the 
                Department of the Treasury; and
                    (J) 1 percent for grants proposed to support the 
                Department of the Interior.
    (n) Definitions.--In this section:
            (1) Director.--The term ``Director'' means the Director of 
        the National Manufacturing Security and Resilience Council 
        established by this section.
            (2) Council.--The term ``Council'' means the National 
        Manufacturing Security and Resilience Council established by 
        this section.

SEC. 5. WESTERN HEMISPHERE TRADE PREFERENCE PROGRAM.

    (a) Authority To Provide Duty-Free Treatment.--Notwithstanding any 
other provision of law and subject to subsection (b), the President is 
authorized to provide duty-free treatment for any eligible article from 
any beneficiary Western Hemisphere country in accordance with the 
provisions of this section.
    (b) Designation of Beneficiary Western Hemisphere Countries.--
            (1) Authority to designate.--The President is authorized to 
        designate Western Hemisphere countries described in paragraph 
        (8)(B) of section 9 of this Act as beneficiary Western 
        Hemisphere countries for purposes of this section.
            (2) Countries ineligible for designation.--The President 
        may not designate a Western Hemisphere country as a beneficiary 
        Western Hemisphere country under this section if such country--
                    (A) does not have a democratically elected 
                government or a market economy;
                    (B) has nationalized, expropriated, or otherwise 
                seized ownership or control of property owned by a 
                United States citizen or by a corporation, partnership, 
                or association that is 50 percent or more beneficially 
                owned by United States citizens;
                    (C) affords preferential treatment to the products 
                of a developed country, other than the United States, 
                which has, or is likely to have, a significant adverse 
                effect on United States commerce, unless--
                            (i) the President receives satisfactory 
                        assurances that such preferential treatment 
                        will be eliminated or that action will be taken 
                        to assure that there will be no such 
                        significant adverse effect; and
                            (ii) the President reports such assurances 
                        to Congress;
                    (D) is not a signatory to a treaty, convention, 
                protocol, or other agreement regarding the extradition 
                of United States citizens; or
                    (E) does not afford and enforce in law and practice 
                internationally recognized worker rights for workers in 
                the country.
    (c) Eligible Articles.--
            (1) In general.--Subject to paragraphs (2) and (3), the 
        duty-free treatment provided under this section shall apply to 
        any article--
                    (A) that is the growth, product, or manufacture of 
                a beneficiary Western Hemisphere country; and
                    (B) that is needed to support the critical 
                infrastructure of the United States.
            (2) Rules of origin.--The duty-free treatment provided 
        under this section shall apply to any eligible article that is 
        the growth, product, or manufacture of a beneficiary Western 
        Hemisphere country if--
                    (A) such article is imported directly from such 
                country into the customs territory of the United 
                States; and
                    (B) the sum of--
                            (i) the cost or value of the materials 
                        produced in the beneficiary Western Hemisphere 
                        country or any two or more such countries that 
                        are members of the same association of 
                        countries, plus
                            (ii) the direct costs of processing 
                        operations performed in such beneficiary 
                        Western Hemisphere country or such member 
                        countries,
                is not less than 35 percent of the appraised value of 
                such article at the time it is entered.
            (3) Ineligible articles.--An article may not be treated as 
        the growth, product, or manufacture of a beneficiary Western 
        Hemisphere country by virtue of having merely undergone--
                    (A) simple combining or packaging operations; or
                    (B) mere dilution with water or another substance 
                that does not materially alter the characteristics of 
                the article.
    (d) Definitions.--In this section, the terms ``entered'' and 
``internationally recognized worker rights'' have the meanings given 
such terms in section 507 of the Trade Act of 1974 (19 U.S.C. 2467).
    (e) Termination.--No duty-free treatment provided under this 
section shall remain in effect after September 30, 2030.

SEC. 6. TEMPORARY INCREASED EXPENSING FOR RELOCATING MANUFACTURING TO 
              THE WESTERN HEMISPHERE.

    (a) In General.--For purposes of section 168(k) of the Internal 
Revenue Code of 1986, in the case of any qualified United States 
manufacturing property which is placed in service after December 31, 
2020, and before January 1, 2026--
            (1) such property shall be treated as qualified property 
        (within the meaning of such section);
            (2) the applicable percentage otherwise determined under 
        section 168(k)(6) of such Code with respect to such property 
        shall be--
                    (A) if placed in the United States, 100 percent; 
                and
                    (B) if placed within a country in the Western 
                Hemisphere, 60 percent; and
            (3) paragraph (8) of such section shall not apply.
    (b) Definition.--In this section the term ``qualified United States 
manufacturing property'' means a domestic corporation that is engaged 
in the business of manufacturing covered articles with property outside 
the Western Hemisphere that places in service tangible property within 
the Western Hemisphere.
    (c) Termination.--This section shall not apply to any property 
placed in service after December 31, 2025.

SEC. 7. AMERICAN SECURITY PRODUCT TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45U. AMERICAN SECURITY PRODUCT TAX CREDIT.

    ``(a) In General.--For purposes of section 38, the American 
security product tax credit for any taxable year is an amount equal 
to--
            ``(1) 30 percent of the qualified costs of American 
        security products manufactured in the United States, or
            ``(2) 15 percent of the qualified costs of American 
        security products manufactured in a Western Hemisphere country.
    ``(b) Maximum Credit.--The aggregate credit determined under 
subsection (a) for any taxable year with respect to any taxpayer shall 
not exceed the excess (if any) of the taxpayer's net income tax over 
the greater of--
            ``(1) the tentative minimum tax for the taxable year, or
            ``(2) 25 percent of so much of the taxpayer's net regular 
        tax liability as exceeds $25,000.
    ``(c) Definitions.--In this section:
            ``(1) American security product.--The term `American 
        security product' means--
                    ``(A) a covered article as such term is defined in 
                section 9 of the MADE in The Americas Act, and
                    ``(B) at least 50 percent of the value of which 
                shall be derived from components manufactured in the 
                United States.
            ``(2) Qualified costs.--The term `qualified costs' means 
        costs incurred in the production of an American security 
        product.
            ``(3) United states.--The term `United States' shall 
        include the Commonwealth of Puerto Rico and the Commonwealth of 
        the Northern Mariana Islands.''.
    (b) Denial of Double Benefit.--Section 280C of such Code is amended 
by adding at the end the following new subsection:
    ``(i) Credit for American Security Products.--No deduction shall be 
allowed for that portion of expenses otherwise allowable as a deduction 
taken into account in determining the credit under section 45U for the 
taxable year.''.
    (c) Credit Made Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (32), 
by striking the period at the end of paragraph (33) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(34) the American security product tax credit determined 
        under section 45U.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``45U. American security product tax credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to expenses made or incurred beginning on the first day of the 
first full calendar quarter after the date of enactment of this 
section.

SEC. 8. LIMITATION.

    None of the funds made available to carry out this Act or the 
amendments made by this Act may be used to support a state-owned 
enterprise of a country of concern.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Energy and Commerce, the 
                Committee on Foreign Affairs, and the Committee on Ways 
                and Means of the House of Representatives; and
                    (B) the Committee on Commerce, Science, and 
                Transportation, the Committee on Foreign Relations, and 
                the Committee on Finance of the Senate.
            (2) Concentrated.--The term ``concentrated'' means--
                    (A) a supply chain for a covered article--
                            (i) that is under any form of control or 
                        influence by a country of concern;
                            (ii) that is subject to undue manipulation 
                        by a country of concern; or
                            (iii) for which 30 percent of the 
                        production of such covered article occurs in a 
                        single foreign country that is located outside 
                        of the Western Hemisphere; or
                    (B) a covered article for which more than 50 
                percent of the supply of such article in the United 
                States is imported from a foreign country that is 
                located outside of the Western Hemisphere.
            (3) Country of concern.--The term ``country of concern'' 
        means a country--
                    (A) in which a concentrated supply chain for a 
                covered article is located;
                    (B) that poses a significant national security 
                threat to the United States;
                    (C) that does not have a democratically elected 
                government or a market economy; or
                    (D) that commits crimes against humanity or 
                genocide.
            (4) Covered article.--The term ``covered article'' means 
        any material (including minerals, metals, and advanced 
        processed materials), commodity, product, service, process, or 
        manufacturing equipment that--
                    (A) the Director of the National Manufacturing 
                Security and Resiliency Council determines is 
                essential--
                            (i) to the critical infrastructure of the 
                        United States; or
                            (ii) to the ability of the United States to 
                        respond to a covered emergency;
                    (B) is included in the Strategic National Stockpile 
                pursuant to section 319F-2 of the Public Health Service 
                Act (42 U.S.C. 247d-6b);
                    (C) the Secretary of Health and Human Services 
                determines is essential to the National Health Security 
                Strategy described in section 2802 of the Public Health 
                Service Act (42 U.S.C. 300hh-1); or
                    (D) is a critical component, critical technology 
                item, or material as defined in section 702 of the 
                Defense Production Act of 1950 (50 U.S.C. 4552).
            (5) Covered emergency.--The term ``covered emergency'' 
        means--
                    (A) a public health emergency declared by the 
                Secretary of Health and Human Services pursuant to 
                section 319 of the Public Health Service Act (42 U.S.C. 
                247d);
                    (B) an event for which the President declares a 
                major disaster or an emergency under section 401 or 
                501, respectively, of the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 5170 and 
                5191); or
                    (C) a national emergency declared by the President 
                under the National Emergencies Act (50 U.S.C. 1601 et 
                seq.).
            (6) Critical infrastructure.--The term ``critical 
        infrastructure'' has the meaning given the term in section 
        1016(e) of the USA PATRIOT Act (42 U.S.C. 5195c(e)).
            (7) Manufacturing facilities.--The term ``manufacturing 
        facilities'' has the meaning given the term ``facilities'' in 
        section 702 of the Defense Production Act of 1950 (50 U.S.C. 
        4552).
            (8) Western hemisphere.--The term ``Western Hemisphere'' 
        means a country--
                    (A) that has a democratically elected government 
                and a market economy; and
                    (B) that is one of the following countries:
                            (i) Anguilla.
                            (ii) Antigua and Barbuda.
                            (iii) Argentina.
                            (iv) Aruba.
                            (v) The Bahamas.
                            (vi) Barbados.
                            (vii) Belize.
                            (viii) Bermuda.
                            (ix) Bolivia.
                            (x) Brazil.
                            (xi) The British Virgin Islands.
                            (xii) Canada.
                            (xiii) Chile.
                            (xiv) Colombia.
                            (xv) Costa Rica.
                            (xvi) Dominica.
                            (xvii) Dominican Republic.
                            (xviii) Ecuador.
                            (xix) El Salvador.
                            (xx) Grenada.
                            (xxi) Guatemala.
                            (xxii) Guyana.
                            (xxiii) Haiti.
                            (xxiv) Honduras.
                            (xxv) Jamaica.
                            (xxvi) Mexico.
                            (xxvii) Montserrat.
                            (xxviii) Netherlands Antilles.
                            (xxix) Nicaragua.
                            (xxx) Panama.
                            (xxxi) Paraguay.
                            (xxxii) Peru.
                            (xxxiii) Saint Kitts and Nevis.
                            (xxxiv) Saint Lucia.
                            (xxxv) Saint Vincent and the Grenadines.
                            (xxxvi) Suriname.
                            (xxxvii) Trinidad and Tobago.
                            (xxxviii) Turks and Caicos Islands.
                            (xxxix) Uruguay.
                            (xl) The sovereign government recognized by 
                        the United States in Venezuela.
                                 <all>

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