# Build It in America Act: Plain Language Summary

This bill is designed to encourage American businesses to invest in research, development, and manufacturing within the United States by changing how they can deduct certain business expenses from their taxes. Essentially, it's trying to make it more attractive for companies to spend money on innovation and building things domestically by giving them tax breaks.

The bill has three main parts. First, it creates temporary tax benefits for research and development spending. Starting in 2022, companies can immediately deduct research expenses instead of having to spread those costs out over many years. This means a company developing new software, testing products, or conducting experiments can write off those costs faster, reducing their tax bill sooner. However, this benefit only lasts until the end of 2025, after which the old rules come back. The bill also extends something called "bonus depreciation," which lets companies write off the full cost of new equipment and machinery in the year they buy it, rather than gradually over time.

The second part focuses on supply chain security and agriculture. It eliminates a tax on certain chemicals used in manufacturing, makes it easier for companies to claim tax credits for doing business with Western Hemisphere countries, and creates a new tax on foreign entities buying American farmland. The third part removes several tax credits related to clean energy and electric vehicles—including credits for solar panels, wind turbines, and electric vehicle purchases—which means these technologies would become more expensive for consumers and businesses without these subsidies.

Overall, this bill represents a shift in tax policy that favors traditional manufacturing and research investment while reducing support for clean energy initiatives. The changes are temporary for research expenses but permanent for the energy credit repeals, meaning the long-term impact depends on whether Congress extends these provisions before they expire.

Build It in America Act

Smith, Jason

Build It in America Act This bill provides for tax incentives to encourage investment in the United States. The bill permits the expensing of research and experimental expenditures (including software development costs) through 2025. It extends (1) the allowance for depreciation, amortization, or depletion in determining the limitation on business interest; and (2) the 100% bonus depreciation allowance. The bill terminates the hazardous substance Superfund financing rate. It allows a taxpayer election to disregard specified regulations when determining if any tax is an income, war profits, or excess profits tax. The bill imposes a 60% excise tax on buyers of U.S. farmland by citizens of a country of concern (e.g., a state supporter of terrorism) or by a private business entity that is 10% or more owned by a citizen or business entity domiciled in a country of concern. The bill repeals the clean electricity production tax credit, the clean electricity investment tax credit, the tax credit for previously owned clean vehicles, and the tax credit for qualified commercial clean vehicles. It modifies provisions of the clean vehicle tax credit, including those relating to the base amount and battery capacity.