text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Market Based Manufacturing 
  Incentives Act of 2011''.
  
  SEC. 2. CREDIT FOR RETAIL PURCHASE OF CERTAIN DOMESTIC PRODUCTS.
  
      (a) In General.--Subpart B 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. 30E. DOMESTIC MANUFACTURING CONSUMER CREDIT.
  
      ``(a) Allowance of Credit.--There shall be allowed as a credit 
  against the tax imposed by this chapter for any taxable year an amount 
  equal to the applicable percentage of the aggregate amount paid or 
  incurred by the taxpayer for specified products during any portion such 
  taxable year which is part of the eligible period.
      ``(b) Applicable Percentage; Eligible Period.--For purposes of this 
  section--
              ``(1) Applicable percentage.--The term `applicable 
          percentage' means, with respect to any specified product, the 
          percentage (not less than 5 percent nor more than 20 percent) 
          determined by the Commission under subsection (e)(4) with 
          respect to such product.
              ``(2) Eligible period.--The term `eligible period' means, 
          with respect to any specified product, the period (not less 
          than 5 years nor more than 10 years) determined by the 
          Commission under subsection (e)(5) with respect to such 
          product.
              ``(3) Separate application to each specified product.--
          Subsection (a) shall be applied separately with respect to each 
          of the specified products designated under subsection (e).
      ``(c) Specified Product.--For purposes of this section--
              ``(1) In general.--The term `specified product' means any 
          designated domestic product--
                      ``(A) the original use of which commences with the 
                  taxpayer, and
                      ``(B) which is acquired by the taxpayer for use or 
                  lease, but not for resale.
              ``(2) Designated domestic product.--The term `designated 
          domestic product' means any designated product which has been 
          certified by the Secretary as--
                      ``(A) having been assembled in the United States, 
                  and
                      ``(B) consisting at least 60 percent of components 
                  assembled or otherwise arising in the United States.
              ``(3) Designated product.--The term `designated product' 
          means the 10 products designated by the Secretary, in 
          consultation with the Commission, under subsection (e).
      ``(d) Application With Other Credits.--
              ``(1) Business credit treated as part of general business 
          credit.--So much of the credit which would be allowed under 
          subsection (a) for any taxable year (determined without regard 
          to this subsection) that is attributable to property used by 
          the taxpayer in the conduct of a trade or business shall be 
          treated as a credit listed in section 38(b) for such taxable 
          year (and not allowed under subsection (a)).
              ``(2) Personal credit.--For purposes of this title, the 
          credit allowed under subsection (a) for any taxable year 
          (determined after application of paragraph (1)) shall be 
          treated as a credit allowable under subpart A for such taxable 
          year.
      ``(e) Selection of Designated Products.--
              ``(1) In general.--The Secretary, in consultation with the 
          Commission, shall designate 10 products for purposes of this 
          section.
              ``(2) Eligible products.--A product shall not be eligible 
          for designation under this section unless--
                      ``(A) such product represents a technological 
                  innovation, and
                      ``(B) the designation of such product has the 
                  potential to produce substantial long-term job 
                  opportunities in the United States.
              ``(3) Criteria for designation.--In making designations of 
          products under this subsection, the Secretary shall take into 
          consideration--
                      ``(A) the number of jobs in the United States that 
                  the Secretary estimates will result (directly and 
                  indirectly) from the designation of such product, and
                      ``(B) the speed with which such jobs are likely to 
                  be created.
              ``(4) Determination of credit percentage.--The Secretary, 
          in consultation with the Commission, shall determine the 
          applicable percentage which applies for purposes of subsection 
          (a) with respect to each product designated under this 
          subsection. Such percentage shall not be less than 5 percent 
          and shall not be more than 20 percent. Such percentage shall be 
          determined on the basis of the incentive needed with respect to 
          each such product taking into account the market factors with 
          respect to such product.
              ``(5) Determination of period during which credit 
          allowed.--The Secretary, in consultation with the Commission, 
          shall determine the eligible period which applies for purposes 
          of subsection (a) with respect to each product designated under 
          this subsection. Such period shall not be less than 5 years and 
          shall not be more than 10 years. Such period shall be 
          determined on the basis of the incentive needed with respect to 
          each such product taking into account the market factors with 
          respect to such product.
      ``(f) Other Definitions and Special Rules.--For purposes of this 
  section--
              ``(1) Commission.--The term `Commission' means the 21st 
          Century American Manufacturing Commission established under 
          section 3 of the Market Based Manufacturing Incentives Act of 
          2011.
              ``(2) Reduction in basis.--For purposes of this subtitle, 
          the basis of any property for which a credit is allowable under 
          subsection (a) shall be reduced by the amount of such credit so 
          allowed (determined without regard to subsection (d)).
              ``(3) No double benefit.--The amount of any deduction or 
          other credit allowable under this chapter with respect to any 
          property shall be reduced by the amount of the credit allowed 
          under subsection (a) for such property (determined without 
          regard to subsection (d)).
              ``(4) Property used by tax-exempt entity.--In the case of 
          property whose use is described in paragraph (3) or (4) of 
          section 50(b) and which is not subject to a lease, the person 
          who sold such property to the person or entity using such 
          property shall be treated as the taxpayer that placed such 
          vehicle in service, but only if such person clearly discloses 
          to such person or entity in a document the amount of any credit 
          allowable under subsection (a) with respect to such property 
          (determined without regard to subsection (d)). For purposes of 
          subsection (d), property to which this paragraph applies shall 
          be treated as property used by the taxpayer in the conduct of a 
          trade or business.
              ``(5) Property used outside united states, etc., not 
          qualified.--No credit shall be allowable under subsection (a) 
          with respect to any property referred to in section 50(b)(1).
              ``(6) Recapture.--The Secretary shall, by regulations, 
          provide for recapturing the benefit of any credit allowable 
          under subsection (a) with respect to any property which ceases 
          to be property eligible for such credit (including recapture in 
          the case of a lease period of less than the economic life of 
          the property).
              ``(7) Election to not take credit.--No credit shall be 
          allowed under subsection (a) for any vehicle if the taxpayer 
          elects to not have this section apply to such property.
      ``(g) Termination.--This section shall not apply to property 
  acquired after the date which is 10 years after the date of the 
  enactment of this section.''.
      (b) Conforming Amendments.--
              (1) Section 38(b) 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 
          adding at the end the following new paragraph:
              ``(37) the portion of the domestic manufacturing consumer 
          credit to which section 30E(d)(1) applies.''.
              (2) Section 1016(a) 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 30E(f)(2).''.
              (3) Section 6501(m) of such Code is amended by inserting 
          ``30E(f)(7),'' after ``30D(e)(4),''.
              (4) The table of sections for subpart B of part IV of 
          subchapter A of chapter 1 of such Code is amended by adding at 
          the end the following new item:
  
  ``Sec. 30E. Domestic manufacturing consumer credit.''.
      (c) GAO Report.--The Government Accountability Office shall, during 
  the 3d, 5th, and 7th years after the effective date of the domestic 
  manufacturing consumer credit (described in subsection (d)), report to 
  Congress on the economic effects of such credit. Such report shall 
  include the aggregate value of the domestic manufacturing consumer 
  credits determined with respect to taxpayers under section 30E of the 
  Internal Revenue Code of 1986 and an estimate of the economic activity 
  stimulated by such credits.
      (d) Effective Date.--The amendments made by this section shall 
  apply to property acquired after the date which is 1 year after the 
  date on which the 21st Century American Manufacturing Commission makes 
  its recommendations to the Secretary of the Treasury under section 3(b) 
  of this Act.
  
  SEC. 3. ESTABLISHMENT OF 21ST CENTURY AMERICAN MANUFACTURING 
                COMMISSION.
  
      (a) In General.--There is established a commission to be known as 
  the 21st Century American Manufacturing Commission.
      (b) Duties.--The Commission shall conduct research regarding 
  appropriate products to make eligible for the tax credit provided by 
  section 30E of the Internal Revenue Code of 1986 and shall make 
  recommendations to the Secretary of the Treasury regarding which 
  products should be designated for purposes of such section and the 
  applicable percentage and eligible period which should be determined 
  with respect to each such product. The commission shall make such 
  recommendations to the Secretary of the Treasury not later than 6 
  months after the date of the enactment of this Act.
      (c) Membership.--
              (1) In general.--The Commission shall be composed of 10 
          members who shall be appointed by the Secretary of the Treasury 
          or his designee not later than 30 days after the enactment of 
          this Act.
              (2) Political affiliation.--Not more than 5 members may be 
          of the same political party.
              (3) Terms.--Each member shall be appointed for the life of 
          the Commission.
              (4) Vacancies.--A vacancy in the Commission shall be filled 
          in the manner in which the original appointment was made.
              (5) Pay of members.--
                      (A) In general.--Members shall each be entitled to 
                  receive the daily equivalent of the maximum annual rate 
                  of basic pay for grade GS-11 of the General Schedule 
                  for each day (including travel time) during which they 
                  are engaged in the actual performance of duties vested 
                  in the Commission.
                      (B) Travel expenses.--Each member shall receive 
                  travel expenses, including per diem in lieu of 
                  subsistence, in accordance with applicable provisions 
                  under subchapter I of chapter 57 of title 5, United 
                  States Code.
              (6) Prevention of conflict of interest.--
                      (A) Agreement.--The Secretary of the Treasury shall 
                  not appoint any individual to be a member of the 
                  Commission unless such individual has first sign an 
                  agreement with the Secretary to prevent conflicts of 
                  interest. Such agreement shall include a requirement 
                  that the individual comply with the provisions of 
                  subparagraph (B) and shall include such penalties for 
                  failure to so comply as the Secretary determines 
                  appropriate.
                      (B) Requirements.--A member of the Commission shall 
                  not, during the 5-year period beginning on the 
                  effective date of the domestic manufacturing consumer 
                  credit (described in section 2(d)), hold, directly or 
                  indirectly, any interest in any person associated with 
                  any designated product, any component of any designated 
                  product, or any equipment to manufacture any such 
                  product or component. An interest held in any fund held 
                  by such member shall be taken into account under the 
                  preceding sentence unless such fund is a broad-based 
                  index fund. Any interest held by such member prior to 
                  the beginning of such 5-year period which is not 
                  (consistent with the requirements of this subparagraph) 
                  permitted to be held during such period, shall be 
                  disposed of prior to such period.
      (d) Chairperson.--The Chairperson of the Commission shall be 
  designated by the Secretary of the Treasury (or his designee) at the 
  time of appointment.
      (e) Staff.--Any staff of the Commission shall be appointed subject 
  to the provisions of title 5, United States Code, governing 
  appointments in the competitive service, and shall be paid in 
  accordance with the provisions of chapter 51 and subchapter III of 
  chapter 53 of that title relating to classification and General 
  Schedule pay rates.
      (f) Termination.--
              (1) In general.--Except as provided in paragraph (2), the 
          Commission shall terminate 30 days after making recommendations 
          to the Secretary of the Treasury described in subsection (b).
              (2) Extension.--At the request of the Secretary of the 
          Treasury or his designee, the Commission shall continue in 
          existence for such period at the Secretary may request but not 
          later than 1 year after making such recommendations.
target: Market Based Manufacturing Incentives Act of 2011 - Amends the Internal Revenue Code to allow a tax credit for the purchase (during a specified period of between 5 and 10 years based on the incentive needed with respect to each product) of new products certified as assembled in the United States and consisting of at least 60% of components assembled or otherwise arising in the United States.
  
  Establishes the 21st Century American Manufacturing Commission to conduct research to designate products eligible for the tax credit allowed by this Act.
feat_title: To amend the Internal Revenue Code of 1986 to provide market-based manufacturing incentives, and for other purposes.