H.R. 9954 — Build America Fund Act

This section establishes the Manufacturing Sovereign Wealth Fund to rebuild industrial capacity (including in the 10 key technology focus areas listed in 42 U.S.C. 19107(c)), promote economic sovereignty, catalyze innovation and advanced manufacturing, create and retain high-quality jobs, ensure long-term sustainable returns, and enhance regional development. It creates a 13-member Board of Governors appointed by the President with Senate confirmation, requiring at least two members each from labor, workforce development, industry and technology, regional development, academia or science, and finance and risk management, plus one from the Armed Forces; members serve staggered six-year terms, with the Chair compensated at Executive Schedule Level I and other members at Level II; the Board oversees investments, approves strategic plans, and performs specified due diligence and reporting duties. It also places the Fund under the Inspector General Act.

This section authorizes the Fund to make equity investments, loans, and loan guarantees in strategic manufacturing, technology and innovation, supply chain security, and workforce and small- and medium-enterprise development sectors. It requires equity investments to include veto authority over offshoring, facility shutdowns, foreign sales or mergers, intellectual property transfers, and mass layoffs, and imposes 50-year prohibitions on moving or expanding operations abroad, limits proceeds to U.S. projects, requires U.S. headquarters free of foreign entities of concern, and bars joint research with such entities.

This section requires the Board of Governors to issue an annual report to Congress on the Fund’s investment portfolio performance, strategic impact outcomes, and governance and ethics disclosures. It directs annual audits by the Fund’s Inspector General and the Comptroller General, with reports to the Board and Congress. It requires a public transparency portal listing all Fund investments and outcomes, subject to a national security exception. It mandates a code of ethics and conflict-of-interest policies that prohibit revolving-door influence, including a five-year ban on certain employment, consulting, and lobbying activities after service. It requires adoption of whistleblower protections.

This section appropriates $100 billion to the Fund on the date of enactment, followed by $65 billion, $40 billion, $35 billion, $20 billion, $15 billion, $12 billion, $10 billion, $8 billion, and $5 billion in each of the next nine fiscal years. It reduces each subsequent appropriation by 20 percent upon certification that the Fund earns sufficient revenues to sustain operations. It transfers all duties from section 232 automobile tariffs, all antidumping and countervailing duties, and a 1 percent fee on covered mergers and acquisitions exceeding $1 billion to the Fund for use without further appropriation.

This section establishes a new refundable tax credit under section 36C for eligible individuals (i.e., U.S. citizens or residents who are not nonresident aliens, dependents, estates, or trusts) equal to an applicable amount. The Board of Governors of the Build America Fund determines the amount annually so that aggregate credits equal 25 percent of the average annual proceeds of the Manufacturing Sovereign Wealth Fund over the prior five fiscal years, subject to an income-based phaseout. Refunds are paid on the first Friday in October (or later if required), and a valid taxpayer identification number is required. The credit is treated as a negative tax amount for purposes of calculating deficiencies under section 6211 and is funded through appropriations under 31 U.S.C. 1324. The credit applies to taxable years beginning after September 30, 2032.

This section establishes the Industrial Sovereignty Council within the Executive Office of the President, co-chaired by the Secretaries of Commerce and the Treasury with the Director of the National Economic Council as vice-chair and representatives from the Departments of Defense, Energy, Labor, and State plus the Chair of the Board of Governors of the Fund. The Council integrates Fund manufacturing investments with U.S. economic, national security, energy, and labor strategies; develops a five-year Industrial Sovereignty Strategy identifying critical industries, workforce needs, regional hubs, and domestic content standards; reviews Fund investments for supply chain security, climate alignment, and equity goals; coordinates federal industrial policies to avoid duplication; evaluates national security risks including foreign dependencies; and publishes an annual Industrial Sovereignty Report.

This section terminates the Fund’s functions 10 years after the date of enactment, while permitting the acquisition of obligations that mature later and the continuation of activities solely for orderly liquidation. It transfers any remaining funds to the Secretary of Commerce for use in Department of Commerce programs assisting American manufacturing, including manufacturing grant programs, and applies prevailing wage requirements to construction work funded by those transfers.