S.Amdt. 2873

SA 2873. Mr. THOMAS submitted an amendment intended to be proposed by him to the bill S. 1637, to amend the Internal Revenue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI benefit in a manner that preserves jobs and production activities in the United States, to reform and simplify the international taxation rules of the United States, and for other purposes; which was ordered to lie on the table; as follows:

On page 179, after line 25, add the following:

SEC. __. DEFINITION OF MANUFACTURING FACILITY FOR SMALL ISSUE BONDS.

(a) In General.--Section 144(a)(12) (relating to termination dates) is amended by striking subparagraph (C) and inserting the following new subparagraphs:

“(C) Manufacturing facility.--For purposes of this paragraph, the term ‘manufacturing facility' means any facility which is used in--

“(i) the manufacture of tangible personal property (including processing which results in a change in the condition of such property),

“(ii) the manufacture or development of any software product or process if--

“(I) it takes more than 6 months to manufacture or develop such product,

“(II) the manufacture or development could not with due diligence be reasonably expected to occur in less than 6 months, and

“(III) the software product or process comprises programs, routines, and attendant documentation developed and maintained for use in computer and telecommunications technology, or

“(iii) the manufacture or development of any biobased product or bioenergy if--

“(I) it takes more than 6 months to manufacture or develop, and

“(II) the manufacture or development could not with due diligence be reasonably expected to occur in less than 6 months.

“(D) Related facilities.--For purposes of subparagraph (C), the term ‘manufacturing facility' includes a facility which is directly and functionally related to a manufacturing facility (determined without regard to subparagraph (C)) if--

“(i) such facility, including an office facility and a research and development facility, is located on the same site as the manufacturing facility, and

“(ii) not more than 40 percent of the net proceeds of the issue are used to provide such facility.

“(E) Other definitions.--For purposes of subparagraph (C)(iii)--

“(i) Biobased product.--The term ‘biobased product' means a commercial or industrial product (other than food or feed) which utilizes biological products or renewable domestic agricultural (plant, animal, and marine) or forestry materials.

“(ii) Bioenergy.--The term ‘bioenergy' means biomass used in the production of energy, including liquid, solid, or gaseous fuels, electricity, and heat.”.

(b) Effective Date.--The amendment made by this section shall apply to obligations issued after the date of the enactment of this Act.