H.R. 2652 — Bring Entrepreneurial Advancements To Consumers Here In North America Act

This section establishes two tax incentives for qualified manufacturers (i.e., persons engaged in manufacturing tangible personal property) that relocate manufacturing of substantially identical property from a foreign country to the United States (or its possessions), requiring at least equivalent productive capacity in the United States. (1) Accelerated depreciation.—Qualified nonresidential real property placed in service in the United States in connection with such a relocation is treated as 20-year property under IRC §168 (from 39-year property) and is eligible for bonus depreciation under IRC §168(k). (2) Gain exclusion.—Gain from the sale or exchange of property used abroad in the relocated manufacturing is excluded from gross income under new IRC §139J. Both incentives apply to property placed in service, sales, or exchanges after the date of enactment.

This section makes permanent the 100% bonus depreciation allowance (i.e., immediate expensing of the full cost) under section 168(k) of the Internal Revenue Code for qualified property (e.g., machinery and equipment with a recovery period of 20 years or less) placed in service after September 27, 2017 (previously phasing down to 80% in 2023, 60% in 2024, 40% in 2025, 20% in 2026, and 0% thereafter). It includes conforming amendments to remove phase-down provisions and references; revises rules for specified plants to allow 100% expensing for any planted or grafted after September 27, 2017 (previously limited to those before January 1, 2027); and updates long-term contract rules under section 460 to apply to property with a recovery period of seven years or less. The amendments apply as if included in section 13201 of P.L. 115-97 (Tax Cuts and Jobs Act of 2017).