For purposes of section 46, the advanced manufacturing investment credit for any taxable year is an amount equal to 25 percent of the qualified investment for such taxable year with respect to any advanced manufacturing facility of an eligible taxpayer.
(1) In general
For purposes of subsection (a), the qualified investment with respect to any advanced manufacturing facility for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of an advanced manufacturing facility.
(2) Qualified property
(A) In general
For purposes of this subsection, the term “qualified property” means property—
(i) which is tangible property,
(ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable,
(iii) which is—
which is—
(I) constructed, reconstructed, or erected by the taxpayer, or
(II) acquired by the taxpayer if the original use of such property commences with the taxpayer, and
(iv) which is integral to the operation of the advanced manufacturing facility.
(B) Buildings and structural components
(i) In general
The term “qualified property” includes any building or its structural components which otherwise satisfy the requirements under subparagraph (A).
(ii) Exception
Clause (i) shall not apply with respect to a building or portion of a building used for offices, administrative services, or other functions unrelated to manufacturing.
(3) Advanced manufacturing facility
For purposes of this section, the term “advanced manufacturing facility” means a facility for which the primary purpose is the manufacturing of semiconductors or semiconductor manufacturing equipment.
(4) Coordination with rehabilitation credit
The qualified investment with respect to any advanced manufacturing facility for any taxable year shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in ).
(5) Certain progress expenditure rules made applicable
Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).
(1) is not a foreign entity of concern (as defined in
(2) has not made an applicable transaction (as defined in ) during the taxable year.
(1) In general
Except as otherwise provided in paragraph (2)(A), in the case of a taxpayer making an election (at such time and in such manner as the Secretary may provide) under this subsection with respect to the credit determined under subsection (a) with respect to such taxpayer, such taxpayer shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year with respect to which such credit was determined) equal to the amount of such credit.
(2) Special rules
For purposes of this subsection—
(A) Application to partnerships and s corporations
(i) In general
(I) the Secretary shall make a payment to such partnership or S corporation equal to the amount of such credit,
(II) paragraph (3) shall be applied with respect to such credit before determining any partner’s distributive share, or shareholder’s pro rata share, of such credit,
(III) any amount with respect to which the election in paragraph (1) is made shall be treated as tax exempt income for purposes of sections 705 and 1366, and
(IV) a partner’s distributive share of such tax exempt income shall be based on such partner’s distributive share of the otherwise applicable credit for each taxable year.
(ii) Coordination with application at partner or shareholder level
In the case of any property held directly by a partnership or S corporation, no election by any partner or shareholder shall be allowed under paragraph (1) with respect to any credit determined under subsection (a) with respect to such property.
(B) Elections
Any election under paragraph (1) shall be made not later than the due date (including extensions of time) for the return of tax for the taxable year for which the election is made, but in no event earlier than 270 days after the date of the enactment of this section. Any such election, once made, shall be irrevocable. Except as otherwise provided in this subparagraph, any election under paragraph (1) shall apply with respect to any credit for the taxable year for which the election is made.
(C) Timing
The payment described in paragraph (1) shall be treated as made on the later of the due date (determined without regard to extensions) of the return of tax for the taxable year or the date on which such return is filed.
(D) Treatment of payments to partnerships and s corporations
For purposes of
(E) Additional information
As a condition of, and prior to, any amount being treated as a payment which is made by the taxpayer under paragraph (1) or any payment being made pursuant to subparagraph (A), the Secretary may require such information or registration as the Secretary deems necessary or appropriate for purposes of preventing duplication, fraud, improper payments, or excessive payments under this section.
(F) Excessive payment
(i) In general
(I) the amount of such excessive payment, plus
(II) an amount equal to 20 percent of such excessive payment.
(ii) Reasonable cause
Clause (i)(II) shall not apply if the taxpayer demonstrates to the satisfaction of the Secretary that the excessive payment resulted from reasonable cause.
(iii) Excessive payment defined
(I) the amount treated as a payment which is made by the taxpayer under paragraph (1), or the amount of the payment made pursuant to subparagraph (A), with respect to such property for such taxable year, over
(II) the amount of the credit which, without application of this subsection, would be otherwise allowable (determined without regard to ) under subsection (a) with respect to such property for such taxable year.
(3) Denial of double benefit
In the case of a taxpayer making an election under this subsection with respect to the credit determined under subsection (a), such credit shall be reduced to zero and shall, for any other purposes under this title, be deemed to have been allowed to the taxpayer for such taxable year.
(4) Mirror code possessions
In the case of any possession of the United States with a mirror code tax system (as defined in ), this subsection shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this subsection be so treated.
(5) Basis reduction and recapture
Rules similar to the rules of subsections (a) and (c) of section 50 shall apply with respect to—
(A) any amount treated as a payment which is made by the taxpayer under paragraph (1), and
(B) any payment made pursuant to paragraph (2)(A).
(6) Regulations
The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including—
(A) regulations or other guidance providing rules for determining a partner’s distributive share of the tax exempt income described in paragraph (2)(A)(i)(III), and
(B) guidance to ensure that the amount of the payment or deemed payment made under this subsection is commensurate with the amount of the credit that would be otherwise allowable (determined without regard to ).
The credit allowed under this section shall not apply to property the construction of which begins after