SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electric Reliability Improvement Act
of 2003''.

SEC. 2. ELECTRIC RELIABILITY STANDARDS.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended
by inserting the following new section at the end thereof:

``SEC. 215. ELECTRIC RELIABILITY.

    ``(a) Definitions.--For purposes of this section--
            ``(1) The term `bulk-power system' means--
                    ``(A) facilities and control systems necessary for
                operating an interconnected electric energy
                transmission network (or any portion thereof); and
                    ``(B) electric energy from generation facilities
                needed to maintain transmission system reliability.
        The term does not include facilities used in the local
        distribution of electric energy.
            ``(2) The terms `Electric Reliability Organization' and
        `ERO' mean the organization certified by the Commission under
        subsection (c) the purpose of which is to establish and enforce
        reliability standards for the bulk-power system, subject to
        Commission review.
            ``(3) The term `reliability standard' means a requirement,
        approved by the Commission under this section, to provide for
        reliable operation of the bulk-power system. The term includes
        requirements for the operation of existing bulk-power system
        facilities and the design of planned additions or modifications
        to such facilities to the extent necessary to provide for
        reliable operation of the bulk-power system, but the term does
        not include any requirement to enlarge such facilities or to
        construct new transmission capacity or generation capacity.
            ``(4) The term `reliable operation' means operating the
        elements of the bulk-power system within equipment and electric
        system thermal, voltage, and stability limits so that
        instability, uncontrolled separation, or cascading failures of
        such system will not occur as a result of a sudden disturbance
        or unanticipated failure of system elements.
            ``(5) The term `Interconnection' means a geographic area in
        which the operation of bulk-power system components is
        synchronized such that the failure of one or more of such
        components may adversely affect the ability of the operators of
        other components within the system to maintain reliable
        operation of the facilities within their control.
            ``(6) The term `transmission organization' means a regional
        transmission organization, independent system operator,
        independent transmission provider, or other transmission
        organization finally approved by the Commission for the
        operation of transmission facilities.
            ``(7) The term `regional entity' means an entity having
        enforcement authority pursuant to subsection (e)(4).
    ``(b) Jurisdiction and Applicability.--(1) The Commission shall
have jurisdiction, within the United States, over the ERO certified by
the Commission under subsection (c), any regional entities, and all
users, owners and operators of the bulk-power system, including but not
limited to the entities described in section 201(f), for purposes of
approving reliability standards established under this section and
enforcing compliance with this section. All users, owners and operators
of the bulk-power system shall comply with reliability standards that
take effect under this section.
    ``(2) The Commission shall issue a final rule to implement the
requirements of this section not later than 180 days after the date of
enactment of this section.
    ``(c) Certification.--Following the issuance of a Commission rule
under subsection (b)(2), any person may submit an application to the
Commission for certification as the Electric Reliability Organization
(ERO). The Commission may certify one such ERO if the Commission
determines that such ERO--
            ``(1) has the ability to develop and enforce, subject to
        subsection (e)(2), reliability standards that provide for an
        adequate level of reliability of the bulk-power system; and
            ``(2) has established rules that--
                    ``(A) assure its independence of the users and
                owners and operators of the bulk-power system, while
                assuring fair stakeholder representation in the
                selection of its directors and balanced decisionmaking
                in any ERO committee or subordinate organizational
                structure;
                    ``(B) allocate equitably reasonable dues, fees, and
                other charges among end users for all activities under
                this section;
                    ``(C) provide fair and impartial procedures for
                enforcement of reliability standards through the
                imposition of penalties in accordance with subsection
                (e) (including limitations on activities, functions, or
                operations, or other appropriate sanctions);
                    ``(D) provide for reasonable notice and opportunity
                for public comment, due process, openness, and balance
                of interests in developing reliability standards and
                otherwise exercising its duties; and
                    ``(E) provide for taking, after certification,
                appropriate steps to gain recognition in Canada and
                Mexico.
    ``(d) Reliability Standards.--(1) The Electric Reliability
Organization shall file each reliability standard or modification to a
reliability standard that it proposes to be made effective under this
section with the Commission.
    ``(2) The Commission may approve, by rule or order, a proposed
reliability standard or modification to a reliability standard if it
determines that the standard is just, reasonable, not unduly
discriminatory or preferential, and in the public interest. The
Commission shall give due weight to the technical expertise of the
Electric Reliability Organization with respect to the content of a
proposed standard or modification to a reliability standard and to the
technical expertise of a regional entity organized on an
Interconnection-wide basis with respect to a reliability standard to be
applicable within that Interconnection, but shall not defer with
respect to the effect of a standard on competition. A proposed standard
or modification shall take effect upon approval by the Commission.
    ``(3) The Electric Reliability Organization shall rebuttably
presume that a proposal from a regional entity organized on an
Interconnection-wide basis for a reliability standard or modification
to a reliability standard to be applicable on an Interconnection-wide
basis is just, reasonable, and not unduly discriminatory or
preferential, and in the public interest.
    ``(4) The Commission shall remand to the Electric Reliability
Organization for further consideration a proposed reliability standard
or a modification to a reliability standard that the Commission
disapproves in whole or in part.
    ``(5) The Commission, upon its own motion or upon complaint, may
order the Electric Reliability Organization to submit to the Commission
a proposed reliability standard or a modification to a reliability
standard that addresses a specific matter if the Commission considers
such a new or modified reliability standard appropriate to carry out
this section.
    ``(6) The final rule adopted under subsection (b)(2) shall include
fair processes for the identification and timely resolution of any
conflict between a reliability standard and any function, rule, order,
tariff, rate schedule, or agreement accepted, approved, or ordered by
the Commission applicable to a transmission organization. Such
transmission organization shall continue to comply with such function,
rule, order, tariff, rate schedule or agreement accepted approved, or
ordered by the Commission until--
            ``(A) the Commission finds a conflict exists between a
        reliability standard and any such provision;
            ``(B) the Commission orders a change to such provision
        pursuant to section 206 of this part; and
            ``(C) the ordered change becomes effective under this part.
If the Commission determines that a reliability standard needs to be
changed as a result of such a conflict, it shall order the ERO to
develop and file with the Commission a modified reliability standard
under paragraph (4) or (5) of this subsection.
    ``(e) Enforcement.--(1) The ERO may impose, subject to paragraph
(2), a penalty on a user or owner or operator of the bulk-power system
for a violation of a reliability standard approved by the Commission
under subsection (d) if the ERO, after notice and an opportunity for a
hearing--
            ``(A) finds that the user or owner or operator has violated
        a reliability standard approved by the Commission under
        subsection (d); and
            ``(B) files notice and the record of the proceeding with
        the Commission.
    ``(2) A penalty imposed under paragraph (1) may take effect not
earlier than the 31st day after the electric reliability organization
files with the Commission notice of the penalty and the record of
proceedings. Such penalty shall be subject to review by the Commission,
on its own motion or upon application by the user, owner or operator
that is the subject of the penalty filed within 30 days after the date
such notice is filed with the Commission. Application to the Commission
for review, or the initiation of review by the Commission on its own
motion, shall not operate as a stay of such penalty unless the
Commission otherwise orders upon its own motion or upon application by
the user, owner or operator that is the subject of such penalty. In any
proceeding to review a penalty imposed under paragraph (1), the
Commission, after notice and opportunity for hearing (which hearing may
consist solely of the record before the electric reliability
organization and opportunity for the presentation of supporting reasons
to affirm, modify, or set aside the penalty), shall by order affirm,
set aside, reinstate, or modify the penalty, and, if appropriate,
remand to the electric reliability organization for further
proceedings. The Commission shall implement expedited procedures for
such hearings.
    ``(3) On its own motion or upon complaint, the Commission may order
compliance with a reliability standard and may impose a penalty against
a user or owner or operator of the bulk-power system, if the Commission
finds, after notice and opportunity for a hearing, that the user or
owner or operator of the bulk-power system has engaged or is about to
engage in any acts or practices that constitute or will constitute a
violation of a reliability standard.
    ``(4) The Commission shall establish regulations authorizing the
ERO to enter into an agreement to delegate authority to a regional
entity for the purpose of proposing reliability standards to the ERO
and enforcing reliability standards under paragraph (1) if--
            ``(A) the regional entity is governed by--
                    ``(i) an independent board;
                    ``(ii) a balanced stakeholder board; or
                    ``(iii) a combination independent and balanced
                stakeholder board.
            ``(B) the regional entity otherwise satisfies the
        provisions of subsection (c)(1) and (2); and
            ``(C) the agreement promotes effective and efficient
        administration of bulk-power system reliability.
The Commission may modify such delegation. The ERO and the Commission
shall rebuttably presume that a proposal for delegation to a regional
entity organized on an Interconnection-wide basis promotes effective
and efficient administration of bulk-power system reliability and
should be approved. Such regulation may provide that the Commission may
assign the ERO's authority to enforce reliability standards under
paragraph (1) directly to a regional entity consistent with the
requirements of this paragraph.
    ``(5) The Commission may take such action as is necessary or
appropriate against the ERO or a regional entity to ensure compliance
with a reliability standard or any Commission order affecting the ERO
or a regional entity.
    ``(6) Any penalty imposed under this section shall bear a
reasonable relation to the seriousness of the violation and shall take
into consideration the efforts of such user, owner, or operator to
remedy the violation in a timely manner.
    ``(f) Changes in Electricity Reliability Organization Rules.--The
Electric Reliability Organization shall file with the Commission for
approval any proposed rule or proposed rule change, accompanied by an
explanation of its basis and purpose. The Commission, upon its own
motion or complaint, may propose a change to the rules of the Electric
Reliability Organization. A proposed rule or proposed rule change shall
take effect upon a finding by the Commission, after notice and
opportunity for comment, that the change is just, reasonable, not
unduly discriminatory or preferential, is in the public interest, and
satisfies the requirements of subsection (c).
    ``(g) Reliability Reports.--The Electric Reliability Organization
shall conduct periodic assessments of the reliability and adequacy of
the bulk-power system in North America.
    ``(h) Coordination With Canada and Mexico.--The President is urged
to negotiate international agreements with the governments of Canada
and Mexico to provide for effective compliance with reliability
standards and the effectiveness of the Electric Reliability
Organization in the United States and Canada or Mexico.
    ``(i) Savings Provisions.--(1) The Electric Reliability
Organization shall have authority to develop and enforce compliance
with reliability standards for only the bulk-power system.
    ``(2) This section does not authorize the Electric Reliability
Organization or the Commission to order the construction of additional
generation or transmission capacity or to set and enforce compliance
with standards for adequacy or safety of electric facilities or
services.
    ``(3) Nothing in this section shall be construed to preempt any
authority of any State to take action to ensure the safety, adequacy,
and reliability of electric service within that State, as long as such
action is not inconsistent with any reliability standard.
    ``(4) Within 90 days of the application of the Electric Reliability
Organization or other affected party, and after notice and opportunity
for comment, the Commission shall issue a final order determining
whether a State action is inconsistent with a reliability standard,
taking into consideration any recommendation of the Electric
Reliability Organization.
    ``(5) The Commission, after consultation with the Electric
Reliability Organization and the State taking action, may stay the
effectiveness of any State action, pending the Commission's issuance of
a final order.
    ``(j) Regional Advisory Bodies.--The Commission shall establish a
regional advisory body on the petition of at least two-thirds of the
States within a region that have more than one-half of their electric
load served within the region. A regional advisory body shall be
composed or of one member from each participating State in the region,
appointed by the Governor of each State, and may include
representatives of agencies, States, and provinces outside the United
States. A regional advisory body may provide advice to the Electric
Reliability Organization, a regional entity, or the Commission
regarding the governance of an existing or proposed regional entity
within the same region, whether a standard proposed to apply within the
region is just, reasonable, not unduly discriminatory or preferential,
and in the public interest, whether fees proposed to be assessed within
the region are just, reasonable, not unduly discriminatory or
preferential, and in the public interest and any other responsibilities
requested by the Commission. The Commission may give deference to the
advice of any such regional advisory body if that body is organized on
an Interconnection-wide basis.
    ``(k) Application to Alaska and Hawaii.--The provisions of this
section do not apply to Alaska or Hawaii.''.

Electric Reliability Improvement Act of 2003 - Amends the Federal Power Act to grant the Federal Energy Regulatory Commission (FERC) jurisdiction over a FERC-certified Electric Reliability Organization (ERO), established under this Act to enforce, subject to FERC review, reliability standards for the bulk-power system.

Includes within such jurisdiction regional entities and all users, owners, and operators of the bulk-power system for purposes of approving reliability standards and enforcing compliance with this Act.

Urges the President to negotiate international agreements with the governments of Canada and Mexico to provide effective compliance with reliability standards and the effectiveness of the ERO in the United States, Canada, or Mexico.

Restricts to the bulk-power system only the ERO authority to develop and enforce compliance with reliability standards.

Declares that this Act does not authorize the ERO or FERC to order construction of additional generation or transmission capacity, or to set and enforce compliance with standards for adequacy or safety of electric facilities or services.

Directs FERC to establish a regional advisory body on the petition of at least two-thirds of the States within a region that have more than one-half of their electric load served within the region. Authorizes such body to advise the ERO, a regional entity, or FERC.

Declares this Act inapplicable to Alaska or Hawaii.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Corporate Responsibility Fee Act of
2017''.

SEC. 2. IMPOSITION OF EXCISE TAX ON CORPORATIONS WITH LOW-WAGE
              EMPLOYEES.

    (a) In General.--Subtitle D of the Internal Revenue Code of 1986 is
amended by adding after chapter 36 the following new chapter:

               ``CHAPTER 37--CORPORATE RESPONSIBILITY TAX

``Sec. 4511. Imposition of tax.

``SEC. 4511. IMPOSITION OF TAX.

    ``(a) In General.--In the case of an applicable employer who
employs a low-wage employee during the calendar year, there is imposed
a tax equal to the applicable percentage of the aggregate amount of
wages paid by the applicable employer with respect to employment of all
employees of the employer during the calendar year.
    ``(b) Applicable Employer; Low-Wage Employee.--For purposes of this
section--
            ``(1) Applicable employer.--
                    ``(A) In general.--The term `applicable employer'
                means, with respect to any calendar year, any employer
                who was required to make deposits of taxes under
                chapters 21 and 24 (or who would have been required to
                make such deposits if the rules of subparagraph (C)
                applied for such purposes) by the close of the next day
                for periods aggregating more than 180 days during the
                preceding calendar year.
                    ``(B) Exception.--Such term shall not include a
                Federal or other governmental entity or a church or
                qualified church organization (as such terms are
                defined in section 3121(w)(3)).
                    ``(C) Aggregation rules.--The rules of subsections
                (b), (c), (m), and (o) of section 414 shall apply for
                purposes of this section, except that in applying
                subsections (b) and (c) of such section, the phrase
                `more than 50 percent' shall be substituted for the
                phrase `more than 80 percent' each place it appears.
            ``(2) Low-wage employee.--
                    ``(A) In general.--The term `low-wage employee'
                means any employee who receives wages from an
                applicable employer during the calendar year in an
                amount less than 218 percent of the Federal poverty
                line (within the meaning of section 2110(c)(5) of the
                Social Security Act) for an individual. Rules similar
                to the rules of section 36B(d)(3)(B) shall apply for
                purposes of this subparagraph.
                    ``(B) Employees employed for less than entire
                year.--In the case of any employee employed by an
                applicable taxpayer for less than the entire calendar
                year, the amount described in subparagraph (A) shall be
                reduced by an amount which bears the same ratio to such
                amount as--
                            ``(i) the number of weeks during the
                        calendar year in which such individual was not
                        an employee of such applicable employer, bears
                        to
                            ``(ii) 52.
    ``(c) Applicable Percentage.--For purposes of subsection (a)--
            ``(1) In general.--
                    ``(A) Determination.--The applicable percentage
                shall be determined as follows:

------------------------------------------------------------------------
 ``In the case of an applicable employer with a low-wage  The applicable
                   employee ratio of:                     percentage is:
------------------------------------------------------------------------
25% or less.............................................             25%
Greater than 25% but not greater than 50%...............             50%
Greater than 50%, but not greater than 75%..............             75%
Greater than 75%........................................           100%.
------------------------------------------------------------------------

                    ``(B) Low-wage employee ratio.--For purposes of
                subparagraph (A), the low-wage employee ratio with
                respect to any applicable employer is the ratio
                (expressed as a percentage) of--
                            ``(i) the number of low-wage employees
                        employed by the applicable employer during the
                        calendar year, to
                            ``(ii) the total number of individuals
                        employed by the applicable employer during such
                        calendar year.
            ``(2) Health and retirement offset.--
                    ``(A) In general.--In the case of an applicable
                employer who meets the requirements of subparagraph
                (B), the applicable percentage shall be reduced (but
                not below zero) by 25 percentage points.
                    ``(B) Requirements.--An applicable employer meets
                the requirements of this subparagraph if such
                applicable employer--
                            ``(i) offers to all full-time low-wage
                        employees (and their spouse and dependents) the
                        opportunity to enroll for all months during the
                        calendar year in minimum essential coverage
                        under an eligible employer sponsored health
                        plan (as defined in section 5000A(f)(2)) for
                        which--
                                    ``(I) the plan's share of the
                                allowed costs of benefits provided
                                under the plan is not less than 60
                                percent of such costs, and
                                    ``(II) the required contribution
                                (within the meaning of section
                                5000A(e)(1)(B)) of the employee does
                                not exceed the applicable percentage of
                                the annual wages paid to the employee
                                by the applicable employer, and
                            ``(ii) meets the retirement plan
                        requirements of subsection (d) for all
                        employees who are low-wage employees.
                For purposes of clause (i)(II), the applicable
                percentage is the percentage in effect under section
                36B(c)(2)(B)(II) for the plan year.
    ``(d) Retirement Plan Requirements.--
            ``(1) In general.--The requirements of this subsection are
        met for any calendar year with respect to an employee of the
        applicable employer who is a low-wage employee if the employee
        is eligible to participate in one or more applicable eligible
        retirement plans maintained by the applicable employer (or any
        member of the group of employers treated as an applicable
        employer under subsection (b)(1)(C)) for a plan year ending
        with or within the calendar year.
            ``(2) Applicable eligible retirement plan.--For purposes of
        this subsection, the term `applicable eligible retirement plan'
        means an eligible retirement plan which, with respect to the
        plan year described in paragraph (1), is either--
                    ``(A) a defined contribution plan which requires
                the employer to make nonelective contributions of at
                least 5 percent of the compensation of the employee, or
                    ``(B) a defined benefit plan--
                            ``(i) with respect to which the accrued
                        benefit of the employee derived from employer
                        contributions, when expressed as an annual
                        retirement benefit, is not less than the
                        product of--
                                    ``(I) the lesser of 2 percent
                                multiplied by the employee's years of
                                service (determined under the rules of
                                paragraphs (4), (5), and (6) of section
                                411(a)) with the employer or 20
                                percent, multiplied by
                                    ``(II) the employee's final average
                                pay, or
                            ``(ii) which is an applicable defined
                        benefit plan (as defined in section
                        411(a)(13)(B))--
                                    ``(I) which meets the interest
                                credit requirements of section
                                411(b)(5)(B)(i) with respect to the
                                plan year, and
                                    ``(II) under which the employee
                                receives a pay credit for the plan year
                                which is not less than 5 percent of
                                compensation.
            ``(3) Definitions and special rules.--For purposes of this
        subsection--
                    ``(A) Eligible retirement plan.--The term `eligible
                retirement plan' has the meaning given such term by
                section 402(c)(8)(B), except that in the case of an
                account or annuity described in clause (i) or (ii)
                thereof, such term shall only include an account or
                annuity which is a simplified employee pension (as
                defined in section 408(k)).
                    ``(B) Final average pay.--For purposes of paragraph
                (2)(B)(i)(II), final average pay shall be determined
                using the period of consecutive years (not exceeding 5)
                during which the employee had the greatest compensation
                from the applicable employer.
                    ``(C) Alternative plan designs.--The Secretary may
                prescribe regulations for an applicable employer to
                meet the requirements of this subsection through a
                combination of defined contribution plans or defined
                benefit plans described in paragraph (1) or through a
                combination of both such types of plans.
                    ``(D) Plans must meet requirements without taking
                into account social security and similar contributions
                and benefits.--A rule similar to the rule of section
                416(e) shall apply.
                    ``(E) Certain employees may be excluded.--For
                purposes of paragraph (2)(B)(ii), an employer shall not
                be treated as failing to meet the requirements of this
                subsection with respect to employees--
                            ``(i) who have not attained the age of 21
                        before the close of a plan year,
                            ``(ii) who have less than 1 year of service
                        with the employer as of any day during the plan
                        year,
                            ``(iii) who are covered under an agreement
                        which the Secretary of Labor finds to be a
                        collective bargaining agreement if there is
                        evidence that the benefits covered under the
                        plan were the subject of good faith bargaining
                        between employee representatives and the
                        employer, or
                            ``(iv) who are described in section
                        410(b)(3)(C) (relating to nonresident aliens
                        working outside the United States).
    ``(e) Definitions and Special Rules.--For purposes of this
section--
            ``(1) Wages.--The term `wages' has the meaning given such
        term by section 3121(a) (determined without regard to any
        dollar limitation contained in such section).
            ``(2) Allocation of tax.--The Secretary shall prescribe
        such rules as necessary for the allocation of the tax imposed
        by subsection (a) among different entities treated as a single
        employer under subsection (b)(1)(C).''.
    (b) Conforming Amendment.--The table of chapters of the Internal
Revenue Code of 1986 is amended by inserting after the item relating to
chapter 36 the following new item:

             ``Chapter 37--Corporate Responsibility Tax''.

    (c) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after the date of the enactment of
this Act.

Corporate Responsibility Fee Act of 2017  This bill amends the Internal Revenue Code to impose a specified excise tax on certain employers who employ low-wage employees during the taxable year. A "low-wage" employee is an employee who receives wages from the employer that are less than 218% of the federal poverty line. The bill reduces the amount of the tax for employers who provide certain health and retirement benefits to low-wage employees. Government employers, churches, and church organizations are exempt from the tax.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Scaling Up Manufacturing Act of
2012''.

SEC. 2. CREDIT FOR MANUFACTURING FACILITY COSTS.

    (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. 45S. MANUFACTURING FACILITY EXPENDITURES.

    ``(a) General Rule.--For purposes of section 38, in the case of an
eligible business, the manufacturing facility expenditure credit for
any taxable year is an amount equal to 25 percent of the qualified
facility construction expenditures of the taxpayer for the taxable
year.
    ``(b) Eligible Business.--For purposes of this section--
            ``(1) In general.--The term `eligible business' means any
        corporation or partnership--
                    ``(A) which is engaged in an active trade or
                business,
                    ``(B) which is headquartered in the United States,
                    ``(C) substantially all of the management or
                administrative activities of which are performed in the
                United States,
                    ``(D) which has not (prior to placing into service
                the manufacturing facility designated for purposes of
                this section) placed in service a manufacturing
                facility,
                    ``(E) which is a start-up company, and
                    ``(F) with respect to which all debt obligations
                issued by, and equity interests in, have a rating of B
                minus (or its substantial equivalent) or higher from a
                credit rating agency registered with the Securities and
                Exchange Commission as a nationally recognized
                statistical rating organization (as defined in section
                3(a) of the Securities Exchange Act of 1934).
            ``(2) Start-up company.--The term `start-up company' means
        any corporation or partnership--
                    ``(A) which first has both gross receipts and
                qualified research expenses (as defined in section
                41(b)) in a taxable year beginning after December 31,
                2012, or
                    ``(B) which has both gross receipts and qualified
                research expenses (as so defined) in fewer than 3
                taxable years beginning after December 31, 2012, and
                before January 1, 2018.
    ``(c) Qualified Facility Construction Expenditures.--For purposes
of this section--
            ``(1) In general.--The term `qualified facility
        construction expenditures' means amounts paid or incurred by
        the taxpayer--
                    ``(A) for the construction of a facility
                (designated for purposes of this section by the
                taxpayer at such time and in such form and manner as
                the Secretary shall prescribe) in the United States to
                manufacture a qualified product (including amounts for
                professional services necessary for the planning of
                such construction), and
                    ``(B) for the purchase of specialized equipment for
                use at such facility and required for the manufacture
                of such product.
            ``(2) Qualified product.--The term `qualified product'
        means any product which, prior to construction of the facility
        with respect to which a credit is allowed under this section,
        the taxpayer has produced and sold to a bona fide purchaser,
        and such purchaser has placed such product in service.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Recapture.--
                    ``(A) In general.--If, as of the close of any
                taxable year, there is a recapture event with respect
                to any facility of the taxpayer with respect to which a
                credit was allowed under this section, then the tax of
                the taxpayer under this chapter for such taxable year
                shall be increased by an amount equal to the product
                of--
                            ``(i) the applicable recapture percentage,
                        and
                            ``(ii) the aggregate decrease in the
                        credits allowed under section 38 for all prior
                        taxable years which would have resulted if the
                        qualified facility construction expenditures of
                        the taxpayer described in subsection (c)(1)
                        with respect to such facility had been zero.
                    ``(B) Applicable recapture percentage.--
                            ``(i) In general.--For purposes of this
                        subsection, the applicable recapture percentage
                        shall be determined in accordance with the
                        following table:

``If the recapture event            The applicable recapture percentage
  occurs in:                                                        is:
        Year 1.............................................        100
        Year 2.............................................         80
        Year 3.............................................         60
        Year 4.............................................         40
        Year 5.............................................         20
        Years 6 and thereafter.............................          0.
                            ``(ii) Years.--For purposes of clause (i),
                        year 1 shall begin on the first day of the
                        taxable year in which the facility with respect
                        to which a credit was allowed under this
                        subsection was placed in service.
                    ``(C) Recapture event.--For purposes of this
                paragraph--
                            ``(i) In general.--A recapture event occurs
                        with respect to any facility if--
                                    ``(I) the taxpayer becomes
                                insolvent, or
                                    ``(II) the taxpayer disposes of the
                                facility to another person who, at this
                                time of the disposition, is not an
                                eligible business.
                            ``(ii) Special rule for facilities not
                        placed in service within 5 years.--In the case
                        of a facility with respect to which a credit is
                        allowed under this section which is not placed
                        in service before the close of the 5th taxable
                        year beginning after the first taxable year for
                        which the credit was so allowed, a recapture
                        event shall be treated as having occurred with
                        respect to such facility in year 1.
            ``(2) Credit may be assigned.--The amount of qualified
        facility construction expenditures with respect to a facility
        which would (but for this paragraph) be taken into account
        under subsection (a) for any taxable year by any person
        (hereafter in this paragraph referred to as the `initial
        taxpayer')--
                    ``(A) may be taken into account by any other person
                to whom such expenditures are assigned by the initial
                taxpayer, and
                    ``(B) shall not be taken into account by initial
                taxpayer.
        Any person to whom such expenditures are assigned under
        subparagraph (A) shall be treated for purposes of this title as
        the taxpayer with respect to such expenditures.
            ``(3) Controlled group.--All members of the same controlled
        group of corporations (within the meaning of section 52(a)) and
        all persons under common control (within the meaning of section
        52(b)) shall be treated as 1 person for purposes of this
        section.
            ``(4) Predecessor.--Any reference in this section to a
        corporation or partnership shall include a reference to any
        predecessor of such corporation or partnership.
            ``(5) Denial of double benefit.--For purposes of this
        subtitle, if a credit is allowed under this section in
        connection with any expenditure for any property, the basis of
        such property shall be reduced by the amount of the credit so
        allowed.''.
    (b) Denial of Double Benefit.--Section 280C of such Code is amended
by inserting after subsection (h) the following new subsection:
    ``(i) Manufacturing Facility Expenditures.--No deduction shall be
allowed for that portion of the expenses otherwise allowable as a
deduction taken into account in determining the credit under section
45S for the taxable year which is equal to the amount of the credit
determined for such taxable year under section 45S(a).''.
    (c) Credit To Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code is amended by striking ``plus'' at the end
of paragraph (35), by striking the period at the end of paragraph (36)
and inserting ``, plus'', and by inserting after paragraph (36) the
following:
            ``(37) manufacturing facility expenditure credit determined
        under section 45S(a).''.
    (d) Conforming Amendment.--Subsection (a) of section 1016 of such
Code is amended by striking ``and'' at the end of paragraph (36), by
striking the period at the end of paragraph (37) and inserting ``,
and'', and by adding at the end the following new paragraph:
            ``(38) to the extent provided in section 45S(d)(2).''.
    (e) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after the date of the enactment of
this Act.

Scaling Up Manufacturing Act of 2012 - Amends the Internal Revenue Code to allow certain start-up companies that are headquartered in the United States a tax credit for up to 25% of their costs for the construction of a manufacturing facility and for the purchase of specialized equipment for use at such facility.

Defines a "start-up company" as any corporation or partnership that: (1) first has both gross receipts and qualified research expenses in a taxable year beginning after December 31, 2012, or (2) has both gross receipts and qualified research expenses in fewer than three taxable years beginning after December 31, 2012, and before January 1, 2018.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Money Laundering Prevention Act of
1999''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress makes the following findings:
            (1) Money laundering is a serious problem: between
        $100,000,000,000 and $300,000,000,000 in United States currency
        is ``laundered'' each year and the total dollar amount involved
        in international money laundering likely exceeds
        $500,000,000,000.
            (2) Money laundering is critical to the survival of the
        illicit drug trade, which has annual worldwide revenues of more
        than $400,000,000,000, more than 8 percent of the total value
        of international trade.
            (3) United States financial institutions are a critical
        link in our efforts to combat money laundering.
            (4) Highly secretive and loosely regulated private banking
        services that cater to wealthy clients are particularly
        vulnerable to use by drug traffickers for money laundering
        purposes, and it is estimated that private banking services
        have banking assets ranging from $200,000,000,000 to
        $300,000,000,000.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To ensure that United States financial institutions
        make combating money laundering the highest of priorities.
            (2) To close the existing gaps in law that allow money
        laundering to flourish in the private banking system.
            (3) To designate foreign high-intensity money laundering
        areas for the purpose of targeting areas of concentrated money
        laundering activities.
            (4) To require the Board of Governors of the Federal
        Reserve System to take into account money laundering activities
        in the consideration of applications under section 3 of the
        Bank Holding Company Act of 1956.

SEC. 3. REPORT ON PRIVATE BANKING ACTIVITIES.

    (a) In General.--Before the end of the 1-year period beginning on
the date of the enactment of this Act, the Secretary of the Treasury,
in consultation with the Federal banking agencies (as defined in
section 3(z) of the Federal Deposit Insurance Act) shall submit a
report on private banking activities in the United States to the
Committee on Banking and Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate.
    (b) Contents of Report.--The report required under subsection (a)
shall include information on the following:
            (1) The nature and extent of private banking activities in
        the United States.
            (2) Regulatory efforts to monitor private banking
        activities and ensure that such activities are conducted in
        compliance with subchapter II of chapter 53 of title 31, United
        States Code, and section 21 of the Federal Deposit Insurance
        Act.
            (3) The policies and procedures of depository institutions
        that are designed to ensure compliance by such institutions
        with the requirements of subchapter II of chapter 53 of title
        31, United States Code, and section 21 of the Federal Deposit
        Insurance Act.
    (c) Private Banking Activities Defined.--For purposes of this
section, the term ``private banking activities'' includes, with respect
to a financial institution, personalized services, such as money
management, financial advice, and investment services, that are
provided to individuals with a high net worth and are not provided
generally to all clients of the financial institution.

SEC. 4. REQUIRE THAT ANTI-MONEY LAUNDERING PROGRAMS PROHIBIT MONEY
              LAUNDERING THROUGH CONCENTRATION ACCOUNTS AT FINANCIAL
              INSTITUTIONS BY REQUIRING THE AVAILABILITY OF CERTAIN
              ACCOUNT INFORMATION.

    Section 5318(h) of title 31, United States Code, is amended by
adding at the end the following new paragraph:
            ``(3) Availability of certain account information.--The
        Secretary of the Treasury shall prescribe regulations under
        this subsection which require financial institutions to
        maintain all accounts in such a way as to ensure that--
                    ``(A) the name of the account holder and the number
                of the account are associated with all account activity
                of the account holder; and
                    ``(B) all such information is available for
                purposes of account supervision and law enforcement.''

SEC. 5. DESIGNATION OF FOREIGN HIGH-INTENSITY MONEY LAUNDERING AREAS.

    (a) In General.--Subchapter III of chapter 53 of title 31, United
States Code (as added by the Money Laundering and Financial Crimes
Strategy Act of 1998) is amended by adding at the end the following new
part:

 ``Part 3--International Money Laundering and Related Financial Crimes

``Sec. 5361. Designation of foreign high-intensity money laundering
              areas
    ``(a) In General.--The Secretary, in consultation with the Federal
banking agencies, shall develop criteria for identifying areas outside
the United States in which money laundering activities are
concentrated.
    ``(b) Designation.--The Secretary shall designate as a high-
intensity money laundering area any foreign country in which there is
an area identified, in accordance with the criteria developed pursuant
to subsection (a), as an area in which money laundering activities are
concentrated.
    ``(c) Notice and Warning.--Upon the designation, under subsection
(b), of a country as a high-intensity money laundering area, the
Secretary shall provide--
            ``(1) a written notice to each insured depository
        institution (as defined in section 3 of the Federal Deposit
        Insurance Act), and each depository institution holding company
        (as defined in such section 3) that controls an insured
        depository institution, of the identity of the country
        designated; and
            ``(2) a written warning that there is a concentration of
        money laundering activity in such country.''.
    (b) Clerical Amendment.--The table of subchapters for chapter 53 of
title 31, United States Code, is amended by adding at the end the
following item:

 ``Part 3--International Money Laundering and Related Financial Crimes

``5361. Designation of foreign high-intensity money laundering
                            areas.''.

SEC. 6. DOUBLE THE CRIMINAL PENALTIES FOR VIOLATIONS INVOLVING HIGH-
              INTENSITY MONEY LAUNDERING AREAS.

    (a) In General.--Section 5322 of title 31, United States Code, is
amended by adding at the end the following new subsection:
    ``(d) Doubled Penalty.--The court may double the sentence of fine
or imprisonment, or both, that could otherwise be imposed on any person
for a violation described in subsection (a) or (b) if the person
commits the violation with respect to a transaction involving a person
in, a relationship maintained for a person in, or a transport of a
monetary instrument involving a foreign country, knowing that a
designation of the foreign country as a high-intensity money laundering
area under section 5361 was in effect at the time of the violation.''.
    (b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to any violation committed on or after the date of
the enactment of this Act.

SEC. 7. AMENDMENT TO SECTION 3 OF THE BANK HOLDING COMPANY ACT OF 1956.

    (a) In General.--Section 3(c) of the Bank Holding Company Act of
1956 (12 U.S.C. 1842(c)) is amended by adding at the end the following
new paragraph:
            ``(6) Money laundering.--In every case--
                    ``(A) the Board shall take into consideration the
                effectiveness of the company or companies in combating
                and preventing money laundering activities, including
                in overseas branches;
                    ``(B) the Board shall not consider any application
                under this section involving any company which is the
                subject of any--
                            ``(i) pending Federal investigation of
                        possible money laundering or other related
                        financial crimes; or
                            ``(ii) pending Federal prosecution for
                        money laundering or other related financial
                        crimes,
                until such investigation or prosecution is completed
                and a finding is made, except that this subparagraph
                shall not apply if the period for such completion and
                the making of findings exceeds 3 years; and
                    ``(C) the Board shall disapprove any application
                under this section involving any company which has been
                found criminally or civilly liable for money laundering
                or any related financial crime during the 5-year period
                preceding the consideration of such application by the
                Board.''.
    (b) Scope of Application.--The amendment made by subsection (a)
shall apply with respect to any application submitted to the Board of
Governors of the Federal Reserve System under section 3 of the Bank
Holding Company Act of 1956 after December 31, 1997, which has not been
approved by the Board before the date of the enactment of this Act.

Money Laundering Prevention Act of 1999 - Directs the Secretary of the Treasury to submit a report to specified congressional committees on private banking activities in the United States.
(Sec. 4) Amends Federal banking law to direct the Secretary to prescribe regulations which require financial institutions to maintain all accounts in such a way as to ensure that: (1) the the name of the account holder and the number of the account are associated with all account activity of such holder; and (2) all such information is available for purposes of account supervision and law enforcement.
(Sec. 5) Directs the Secretary to develop criteria for identifying areas outside the United States in which money laundering activities are concentrated, designate such areas as high-intensity money laundering areas, provide a written notice to each insured depository institution and each depository institution holding company that controls an insured depository institution of the identity of the country designated, and provide a written warning that there is a concentration of money laundering activity in such country.
(Sec. 6) Authorizes the court to double the sentence of fine, imprisonment, or both, that could be otherwise imposed if the person commits the violation with respect to a transaction involving a person in, a relationship maintained for a person in, or a transport of a monetary instrument involving a foreign country, knowing that a designation of the foreign country as a high-intensity money laundering area was in effect at the time of the violation.
(Sec. 7) Amends the Bank Holding Company Act of 1956 to direct that the Board of Governors of the Federal Reserve System: (1) take into consideration the effectiveness of the company in combating and preventing money laundering activities, including in overseas branches; (2) not consider any application (regarding acquisition of bank shares or assets) involving any company which is the subject of any pending Federal investigation of possible money laundering or other related financial crimes, or pending Federal prosecution for such crimes, until such investigation or prosecution is completed and a finding is made, with an exception; and (3) disapprove any such application involving a company which has been found criminally or civilly liable for such a crime during the five-year period preceding consideration of such application by the Board.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Super-Efficient Appliance Incentives
and Market Transformation Act of 2007''.

SEC. 2. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR
              APPLIANCES PRODUCED AFTER 2007.

    (a) In General.--Subsection (b) of section 45M of the Internal
Revenue Code of 1986 (relating to applicable amount) is amended to read
as follows:
    ``(b) Applicable Amount.--For purposes of subsection (a)--
            ``(1) Dishwashers.--The applicable amount is--
                    ``(A) $45 in the case of a dishwasher which is
                manufactured in calendar year 2008 or 2009 and which
                uses no more than 324 kilowatt hours per year and 5.8
                gallons per cycle, and
                    ``(B) $75 in the case of a dishwasher which is
                manufactured in calendar year 2008, 2009, or 2010 and
                which uses no more than 307 kilowatt hours per year and
                5.0 gallons per cycle (5.5 gallons per cycle for
                dishwashers designed for greater than 12 place
                settings).
            ``(2) Clothes washers.--The applicable amount is--
                    ``(A) $75 in the case of a residential top-loading
                clothes washer manufactured in calendar year 2008 which
                meets or exceeds a 1.72 modified energy factor and does
                not exceed a 8.0 water consumption factor,
                    ``(B) $125 in the case of a residential top-loading
                clothes washer manufactured in calendar year 2008 or
                2009 which meets or exceeds a 1.8 modified energy
                factor and does not exceed a 7.5 water consumption
                factor,
                    ``(C) $150 in the case of a residential or
                commercial clothes washer manufactured in calendar year
                2008, 2009 or 2010 which meets or exceeds 2.0 modified
                energy factor and does not exceed a 6.0 water
                consumption factor, and
                    ``(D) $250 in the case of a residential or
                commercial clothes washer manufactured in calendar year
                2008, 2009, or 2010 which meets or exceeds 2.2 modified
                energy factor and does not exceed a 4.5 water
                consumption factor.
            ``(3) Refrigerators.--The applicable amount is--
                    ``(A) $50 in the case of a refrigerator which is
                manufactured in calendar year 2008, and consumes at
                least 20 percent but not more than 22.9 percent less
                kilowatt hours per year than the 2001 energy
                conservation standards,
                    ``(B) $75 in the case of a refrigerator which is
                manufactured in calendar year 2008 or 2009, and
                consumes at least 23 percent but no more than 24.9
                percent less kilowatt hours per year than the 2001
                energy conservation standards,
                    ``(C) $100 in the case of a refrigerator which is
                manufactured in calendar year 2008, 2009 or 2010, and
                consumes at least 25 percent but not more than 29.9
                percent less kilowatt hours per year than the 2001
                energy conservation standards, and
                    ``(D) $200 in the case of a refrigerator
                manufactured in calendar year 2008, 2009 or 2010 and
                which consumes at least 30 percent less energy than the
                2001 energy conservation standards.
            ``(4) Dehumidifiers.--The applicable amount is--
                    ``(A) $15 in the case of a dehumidifier
                manufactured in calendar year 2008 that has a capacity
                less than or equal to 45 pints per day and is 7.5
                percent more efficient than the applicable Department
                of Energy energy conservation standard effective
                October 2012, and
                    ``(B) $25 in the case of a dehumidifier
                manufactured in calendar year 2008 that has a capacity
                greater than 45 pints per day and is 7.5 percent more
                efficient than the applicable Department of Energy
                energy conservation standard effective October 2012.''.
    (b) Eligible Production.--
            (1) Similar treatment for all appliances.--Subsection (c)
        of section 45M of such Code (relating to eligible production)
        is amended--
                    (A) by striking paragraph (2),
                    (B) by striking ``(1) In general'' and all that
                follows through ``the eligible'' and inserting ``The
                eligible'', and
                    (C) by moving the text of such subsection in line
                with the subsection heading and redesignating
                subparagraphs (A) and (B) as paragraphs (1) and (2),
                respectively.
            (2) Modification of base period.--Paragraph (2) of section
        45M(c) of such Code, as amended by paragraph (1) of this
        section, is amended by striking ``3-calendar year'' and
        inserting ``2-calendar year''.
    (c) Types of Energy Efficient Appliances.--Subsection (d) of
section 45M of such Code (defining types of energy efficient
appliances) is amended to read as follows:
    ``(d) Types of Energy Efficient Appliance.--For purposes of this
section, the types of energy efficient appliances are--
            ``(1) dishwashers described in subsection (b)(1),
            ``(2) clothes washers described in subsection (b)(2),
            ``(3) refrigerators described in subsection (b)(3), and
            ``(4) dehumidifiers described in subsection (b)(4).''.
    (d) Aggregate Credit Amount Allowed.--
            (1) Increase in limit.--Paragraph (1) of section 45M(e) of
        such Code (relating to aggregate credit amount allowed) is
        amended to read as follows:
            ``(1) Aggregate credit amount allowed.--The aggregate
        amount of credit allowed under subsection (a) with respect to a
        taxpayer for any taxable year shall not exceed $100,000,000
        reduced by the amount of the credit allowed under subsection
        (a) to the taxpayer (or any predecessor) for all prior taxable
        years beginning after December 31, 2007.''.
            (2) Exception for certain refrigerator and clothes
        washers.--Paragraph (2) of section 45M(e) of such Code is
        amended to read as follows:
            ``(2) Amount allowed for certain refrigerators and clothes
        washers.--Refrigerators described in subsection (b)(3)(D) and
        clothes washers described in subsection (b)(2)(D) shall not be
        taken into account under paragraph (1).''.
    (e) Qualified Energy Efficient Appliances.--
            (1) In general.--Paragraph (1) of section 45M(f) of such
        Code (defining qualified energy efficient appliance) is amended
        to read as follows:
            ``(1) Qualified energy efficient appliance.--The term
        `qualified energy efficient appliance' means--
                    ``(A) any dishwasher described in subsection
                (b)(1),
                    ``(B) any clothes washer described in subsection
                (b)(2),
                    ``(C) any refrigerator described in subsection
                (b)(3), and
                    ``(D) any dehumidifier described in subsection
                (b)(4).''.
            (2) Clothes washer.--Section 45M(f)(3) of such Code
        (defining clothes washer) is amended by inserting
        ``commercial'' before ``residential'' the second place it
        appears.
            (3) Top-loading clothes washer.--Subsection (f) of section
        45M of such Code (relating to definitions) is amended by
        redesignating paragraphs (4), (5), (6), and (7) as paragraphs
        (5), (6), (7), and (8), respectively, and by inserting after
        paragraph (3) the following new paragraph:
            ``(4) Top-loading clothes washer.--The term ``top-loading
        clothes washer'' means a clothes washer which has the clothes
        container compartment access located on the top of the machine
        and which operates on a vertical axis.''.
            (4) Dehumidifier.--Subsection (f) of section 45M of such
        Code, as amended by paragraph (3), is amended by redesignating
        paragraphs (6), (7), and (8) as paragraphs (7), (8) and (9),
        respectively, and by inserting after paragraph (5) the
        following new paragraph:
            ``(6) Dehumidifier.--The term `dehumidifier' means a self-
        contained, electrically operated, and mechanically refrigerated
        encased assembly consisting of--
                    ``(A) a refrigerated surface that condenses
                moisture from the atmosphere,
                    ``(B) a refrigerating system, including an electric
                motor,
                    ``(C) an air-circulating fan, and
                    ``(D) means for collecting or disposing of
                condensate.''.
            (5) Replacement of energy factor.--Section 45M(f)(7) of
        such Code, as amended by paragraph (4), is amended to read as
        follows:
            ``(7) Modified energy factor.--The term `modified energy
        factor' means the modified energy factor established by the
        Department of Energy for compliance with the Federal energy
        conservation standard.''.
            (6) Gallons per cycle; water consumption factor.--Section
        45M(f) of such Code (relating to definitions) is amended by
        adding at the end the following:
            ``(10) Gallons per cycle.--The term `gallons per cycle'
        means, with respect to a dishwasher, the amount of water,
        expressed in gallons, required to complete a normal cycle of a
        dishwasher.
            ``(11) Water consumption factor.--The term `water
        consumption factor' means, with respect to a clothes washer,
        the quotient of the total weighted per-cycle water consumption
        divided by the cubic foot (or liter) capacity of the clothes
        washer.''.
    (f) Effective Date.--The amendments made by this section shall
apply to appliances produced after December 31, 2007.

Super-Efficient Appliance Incentives and Market Transformation Act of 2007 - Amends the Internal Revenue Code to modify the applicable amount of the tax credit for energy efficient appliances (i.e., dishwashers, clothes washers, refrigerators, and dehumidifiers which restrict water and energy consumption) produced after 2007.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Drought Relief Act of
1998''.

SEC. 2. LOAN RATES FOR MARKETING ASSISTANCE LOANS FOR CERTAIN CROPS.

    (a) Wheat.--Subsection (a) of section 132 of the Agricultural
Market Transition Act (7 U.S.C. 7232) is amended by striking paragraph
(1) and inserting the following new paragraph:
            ``(1) Loan rate.--Subject to paragraph (2), the loan rate
        for a marketing assistance loan under section 131 for wheat
        shall be equal to not less than 85 percent of the simple
        average price received by producers of wheat, as determined by
        the Secretary, during the marketing years for the immediately
        preceding 5 crops of wheat, excluding the year in which the
        average price was the highest and the year in which the average
        price was the lowest in the period.''.
    (b) Feed Grains.--Subsection (b) of such section is amended by
striking paragraph (1) and inserting the following new paragraph:
            ``(1) Loan rate for corn.--Subject to paragraph (2), the
        loan rate for a marketing assistance loan under section 131 for
        corn shall be equal to not less than 85 percent of the simple
        average price received by producers of corn, as determined by
        the Secretary, during the marketing years for the immediately
        preceding 5 crops of corn, excluding the year in which the
        average price was the highest and the year in which the average
        price was the lowest in the period.''.
    (c) Upland Cotton.--Subsection (c)(2) of such section is amended by
striking ``or more than $0.5192 per pound''.
    (d) Extra Long Staple Cotton.--Subsection (d) of such section is
amended to read as follows:
    ``(d) Extra Long Staple Cotton.--The loan rate for a marketing
assistance loan under section 131 for extra long staple cotton shall be
equal to not less than 85 percent of the simple average price received
by producers of extra long staple cotton, as determined by the
Secretary, during 3 years of the 5-year period ending July 31 of the
year preceding the year in which the crop is planted, excluding the
year in which the average price was the highest and the year in which
the average price was the lowest in the period.''.
    (e) Oilseeds.--Subsection (f) of such section is amended--
            (1) in paragraph (1)(B), by striking ``or more than
        $5.26''; and
            (2) in paragraph (2)(B), by striking ``or more than
        $0.093''.

SEC. 3. COST-SHARE ASSISTANCE FOR AGRICULTURAL PRODUCERS PERFORMING
              CERTAIN DROUGHT ALLEVIATION PROJECTS.

    (a) Definitions.--In this section:
            (1) Designated disaster area.--The term ``designated
        disaster area'' means an area that is covered by a Presidential
        declaration of major disaster issued under section 401 of the
        Robert T. Stafford Disaster Relief and Emergency Assistance Act
        (42 U.S.C. 5170) or determined to be a disaster area by the
        Secretary of Agriculture under subpart A of part 1945 of title
        7, Code of Federal Regulations, if the basis for the
        Presidential declaration or Secretarial determination is at
        least in part the result of drought conditions in the area.
            (2) Eligible land.--The term ``eligible land'' means
        agricultural land, including cropland, rangeland, pasture, and
        other land on which crops or livestock are produced, or land
        used to support the production of crops or livestock.
            (3) Livestock.--The term ``livestock'' means dairy cattle,
        beef cattle, laying hens, broilers, turkeys, swine, sheep, and
        such other animals as determined by the Secretary.
            (4) Producer.--The term ``producer'' means a person who is
        engaged in livestock or agricultural production (as defined by
        the Secretary).
    (b) Authority To Provide Assistance.--During the 1999 through 2002
fiscal years, the Secretary of Agriculture may provide technical
assistance and cost-share payments to a producer who undertakes on
eligible lands in a designated disaster area a project intended to
alleviate or otherwise respond to the effects of drought on crop or
livestock production. A producer may apply for cost-share payments
under this section before undertaking an eligible project, during the
course of the project, or within one year after completing the project.
A project may be completed after the expiration of the designation of
an area as a designated disaster area.
    (c) Eligible Projects.--The projects for which assistance may be
provided under this section include--
            (1) the installation of water wells to be used primarily
        for crop irrigation or livestock watering;
            (2) the dredging of ponds or other small bodies of water on
        eligible lands; and
            (3) the extension of public water supply lines to serve
        eligible lands.
    (d) Offer Selection Process.--The Secretary of Agriculture shall,
to the maximum extent practicable, establish a process for selecting
applications for financial assistance if there are numerous
applications for assistance for eligible projects that would provide
substantially the same level of benefits. The process shall be based
on--
            (1) a reasonable estimate of the projected cost of the
        proposals and other factors identified by the Secretary for
        determining which applications will result in the least cost to
        the program authorized by this section; and
            (2) such other factors determined by the Secretary that
        maximize benefits in designated disaster areas per dollar
        expended.
    (e) Concurrence of Owner.--If the producer making an offer to
receive assistance is a tenant using the eligible land, for the offer
to be acceptable, the producer shall obtain the concurrence of the
owner of the eligible land with respect to the offer.
    (f) Amount of Cost-Share Payments.--The Federal share of cost-share
payments to a producer proposing to implement one or more eligible
project shall be not more than 75 percent of the projected cost of the
project, as determined by the Secretary of Agriculture, taking into
consideration any payment received by the producer from a State or
local government. A producer may not receive cost-share payments under
this section for a project if the producer receives cost-share payments
or other benefits for the same project under another provision of law.
    (g) Technical Assistance.--The receipt of technical assistance
under this section shall not affect the eligibility of the producer to
receive technical assistance under other authorities of law available
to the Secretary of Agriculture.
    (h) Retroactive Effect.--This section shall apply to eligible
projects commenced in designated disaster areas on or after January 1,
1998.

SEC. 4. AUTHORITY TO PROVIDE EMERGENCY LOANS BASED ON ESTIMATED LOSSES.

    Subtitle C of the Consolidated Farm and Rural Development Act (7
U.S.C. 1961-1970) is amended by inserting after section 327 the
following:
    ``Sec. 328. In this subtitle, the terms `actual loss' and `actual
production loss' mean actual loss or (if greater) the estimated loss as
determined by the relevant county committee.''.

SEC. 5. BORROWER ELECTION TO DEFER INTEREST PAYMENTS ON EMERGENCY
              LOANS.

    Section 324 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1964) is amended by adding at the end the following:
    ``(f) A borrower of a loan made under this subtitle may elect to
defer the payment of any or all interest on the loan until the end of
the period for which the loan is made.''.

Emergency Drought Relief Act of 1998 - Amends the Agricultural Market Transition Act to eliminate marketing assistance loan rate caps for wheat, corn and feed grains, upland and extra long staple cotton, and oilseeds.
Authorizes the Secretary of Agriculture to (temporarily) provide cost-share assistance for crop and livestock producers performing certain drought alleviation projects. Makes such assistance available retroactively to eligible projects begun as of January 1, 1998.
Amends the Consolidated Farm and Rural Development Act to authorize:  (1) emergency loans based upon estimated losses; and (2) emergency loan interest deferral.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Competitiveness Tax Credit Act''.

SEC. 2. TEMPORARY INVESTMENT CREDIT FOR NEW MANUFACTURING AND OTHER
              PRODUCTIVE EQUIPMENT.

    (a) Allowance of Credit.--Section 46 of the Internal Revenue Code
of 1986 (relating to amount of investment credit) is amended by
striking ``and'' at the end of paragraph (2), by striking the period at
the end of paragraph (3) and inserting ``, and'', and by adding at the
end the following new paragraph:
            ``(4) the manufacturing and other productive equipment
        credit.''
    (b) Amount of Credit.--Section 48 of such Code is amended by adding
at the end the following new subsection:
    ``(c) Manufacturing and Other Productive Equipment Credit.--
            ``(1) In general.--For purposes of section 46, the
        manufacturing and other productive equipment credit for any
        taxable year is an amount equal to the sum of--
                    ``(A) the domestic equipment credit, and
                    ``(B) the nondomestic equipment credit.
            ``(2) Amount of domestic and nondomestic equipment
        credits.--For purposes of this subsection--
                    ``(A) Domestic equipment credit.--
                            ``(i) In general.--The domestic equipment
                        credit for any taxable year is 10 percent of
                        the amount equal to the product of--
                                    ``(I) the domestic equipment ratio,
                                and
                                    ``(II) the qualified increase
                                amount.
                            ``(ii) Domestic equipment ratio.--The
                        domestic equipment ratio for any taxable year
                        is a fraction in which--
                                    ``(I) the numerator is the
                                aggregate bases of the qualified
                                manufacturing and other productive
                                equipment properties placed in service
                                during such taxable year which are of
                                domestic origin, and
                                    ``(II) the denominator is the
                                aggregate bases of all qualified
                                manufacturing and other productive
                                equipment properties placed in service
                                during such taxable year.
                    ``(B) Nondomestic equipment credit.--
                            ``(i) In general.--The nondomestic
                        equipment credit for any taxable year is 7
                        percent of the amount equal to the product of--
                                    ``(I) the nondomestic equipment
                                ratio, and
                                    ``(II) the qualified increase
                                amount.
                            ``(ii) Nondomestic equipment ratio.--The
                        nondomestic equipment ratio for any taxable
                        year is a fraction in which--
                                    ``(I) the numerator is the
                                aggregate bases of the qualified
                                manufacturing and other productive
                                equipment properties placed in service
                                during such taxable year which are not
                                of domestic origin, and
                                    ``(II) the denominator is the
                                aggregate bases of all qualified
                                manufacturing and other productuve
                                equipment properties placed in service
                                during such taxable year.
                    ``(C) Determination of domestic origin.--
                            ``(i) In general.--Property shall be
                        treated as being of domestic origin only if--
                                    ``(I) the property was completed in
                                the United States, and
                                    ``(II) at least 50 percent of the
                                basis of the property is attributable
                                to value added within the United
                                States.
                            ``(ii) United states.--The term `United
                        States' includes the Commonwealth of Puerto
                        Rico and the possessions of the United States.
            ``(3) Qualified manufacturing and other productive
        equipment property.--For purposes of this subsection--
                    ``(A) In general.--The term `qualified
                manufacturing and other productive equipment property'
                means any property--
                            ``(i) which is used as an integral part of
                        the manufacture or production of tangible
                        personal property and increases the efficiency
                        of the manufacturing or production process;
                            ``(ii) which is tangible property to which
                        section 168 applies, other than 3-year property
                        (within the meaning of section 168(e)),
                            ``(iii) which is section 1245 property (as
                        defined in section 1245(a)(3)), and
                            ``(iv)(I) the construction, reconstruction,
                        or erection of which is completed by the
                        taxpayer, or
                            ``(II) which is acquired by the taxpayer,
                        if the original use of such property commences
                        with the taxpayer.
                    ``(B) Special rule for computer software.--In the
                case of any computer software--
                            ``(i) which is used to control or monitor a
                        manufacturing or production process,
                            ``(ii) which increases the efficiency of
                        the manufacturing or production process, and
                            ``(iii) with respect to which depreciation
                        (or amortization in lieu of depreciation) is
                        allowable,
                such software shall be treated as qualified
                manufacturing and other productive equipment property.
            ``(4) Qualified increase amount.--For purposes of this
        subsection--
                    ``(A) In general.--The term `qualified increase
                amount' means the excess (if any) of--
                            ``(i) the aggregate bases of qualified
                        manufacturing and other productive equipment
                        properties placed in service during the taxable
                        year, over
                            ``(ii) the base amount.
                    ``(B) Base amount.--The term `base amount' means
                the product of--
                            ``(i) the fixed-base percentage, and
                            ``(ii) the average annual gross receipts of
                        the taxpayer for the 4 taxable years preceding
                        the taxable year for which the credit is being
                        determined (in this subsection referred to as
                        the `credit year').
                    ``(C) Minimum base amount.--In no event shall the
                base amount be less than 50 percent of the amount
                determined under subparagraph (A)(i).
                    ``(D) Fixed-base percentage.--
                            ``(i) In general.--The fixed-base
                        percentage is the percentage which the
                        aggregate amounts described in subparagraph
                        (A)(i) for taxable years beginning after
                        December 31, 1987, and before January 1, 1993,
                        is of the aggregate gross receipts of the
                        taxpayer for such taxable years.
                            ``(ii) Rounding.--The percentages
                        determined under clause (i) shall be rounded to
                        the nearest \1/100\ of 1 percent.
                    ``(E) Other rules.--Rules similar to the rules of
                paragraphs (4) and (5) of section 41(c) shall apply for
                purposes of this paragraph.
            ``(5) Coordination with other credits.--This subsection
        shall not apply to any property to which the energy credit or
        rehabilitation credit would apply unless the taxpayer elects to
        waive the application of such credits to such property.
            ``(6) Certain progress expenditure rules made applicable.--
        Rules similar to 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 this subsection.
            ``(7) Termination date.--This subsection shall not apply to
        any property placed in service after the expiration of the 2-
        year period beginning on the date of the enactment of this
        Act.''
    (c) Technical Amendments.--
            (1) Clause (ii) of section 49(a)(1)(C) of such Code is
        amended by inserting ``or qualified manufacturing and other
        productive equipment property'' after ``energy property''.
            (2) Subparagraph (E) of section 50(a)(2) of such Code is
        amended by inserting ``or 48(c)(6)'' before the period at the
        end.
            (3)(A) The section heading for section 48 of such Code is
        amended to read as follows:

``SEC. 48. OTHER CREDITS.''

            (B) The table of sections for subpart E of part IV of
        subchapter A of chapter 1 of such Code is amended by striking
        the item relating to section 48 and inserting the following:

``Sec. 48. Other credits.''
    (d) Effective Date.--The amendments made by this section shall
apply to--
            (1) property acquired by the taxpayer after the date of the
        enactment of this Act, and
            (2) property the construction, reconstruction, or erection
        of which is completed by the taxpayer after the date of the
        enactment of this Act, but only to the extent of the basis
        thereof attributable to construction, reconstruction, or
        erection after such date.

Competitiveness Tax Credit Act - Amends the Internal Revenue Code to allow an investment tax credit for manufacturing and other productive equipment based upon a determination of the domestic origin of such property.
Makes such credit applicable for the two-year period beginning on the date of enactment of this Act.