To provide for a manufacturer's jobs credit, and for other purposes.

1. 1

   Change 1: Adds SEC. __. MANUFACTURER'S JOBS CREDIT on page 139, between lines 13 and 14

   Adds a sectionPrinted page

   Inserted: SEC. __. MANUFACTURER'S JOBS CREDIT.

   Inserted: (a) In General.--Subpart D of part IV of subchapter A of chapter 1 (relating to business-related credits), as amended by this Act, is amended by adding at the end the following:

   Inserted: "SEC. 45S. MANUFACTURER'S JOBS CREDIT.

   Inserted: "(a) General Rule.--For purposes of section 38, in the case of an eligible taxpayer, the manufacturer's jobs credit determined under this section is an amount equal to the lesser of the following:

   Inserted: "(1) The excess of the W-2 wages paid by the taxpayer during the taxable year over the W-2 wages paid by the taxpayer during the preceding taxable year.

   Inserted: "(2) The W-2 wages paid by the taxpayer during the taxable year to any employee who is an eligible TAA recipient (as defined in section 35(c)(2)) for any month during such taxable year.

   Inserted: "(3) 22.4 percent of the W-2 wages paid by the taxpayer during the taxable year.

   Inserted: "(b) Limitation.--The amount of credit determined under subsection (a) shall be reduced by an amount which bears the same ratio to the amount of the credit (determined without regard to this subsection) as--

   Inserted: "(1) the excess of the W-2 wages paid by the taxpayer to employees outside the United States during the taxable year over such wages paid during the most recent taxable year ending before the date of the enactment of this section, bears to

   Inserted: "(2) the excess of the W-2 wages paid by the taxpayer to employees within the United States during the taxable year over such wages paid during such most recent taxable year.

   Inserted: "(c) Eligible Taxpayer.--For purposes of this section, the term 'eligible taxpayer' means any taxpayer--

   Inserted: "(1) which has domestic production gross receipts for the taxable year and the preceding taxable year, and

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   Inserted: "(2) which is not treated at any time during the taxable year as an inverted domestic corporation under section 7874.

   Inserted: "(d) Definitions.--For purposes of this section, W-2 wages and domestic production gross receipts shall be determined in the same manner as under section 199.

   Inserted: "(e) Certain Rules Made Applicable.--For purposes of this section, rules similar to the rules of section 52 shall apply.

   Inserted: "(f) Termination.--This section shall not apply to any taxable year beginning after December 31, 2005.".

   Inserted: (b) Credit To Be Part of General Business Credit.--Section 38(b) (relating to current year business credit), as amended by this Act, is amended by striking "plus" at the end of paragraph (29), by striking the period at the end of paragraph (30) and inserting ", plus", and by adding at the end the following:

   Inserted: "(31) the manufacturer's jobs credit determined under section 45S.".

   Inserted: (c) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is amended by adding at the end the following:

   Inserted: "Sec. 45S. Manufacturer's jobs credit.".

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2003.

   Original wording

   On page 139, between lines 13 and 14, insert the following:

2. 2

   Change 2: Replaces “December 31, 2004,” with “the date of the enactment of this Act”

   ReplacesPage 335, line 8Printed page

   [struck: December 31, 2004,][inserted: the date of the enactment of this Act]

   Original wording

   On page 335, line 8, strike “December 31, 2004,” and insert “the date of the enactment of this Act”.

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