Senators Coons, Capito introduce bipartisan bill to expand Made in America
WASHINGTON – U.S. Senators Chris Coons (D-DE) and Shelley Moore Capito (R-WV) today introduced the Made in America Deduction Enhancement (MADE) Act, which will expand domestic production by providing a tax break for manufacturers that use “Made in America” component parts in their production process.
The manufacturing sector is critical to the economy, supporting nearly 40 million direct and indirect jobs in the United States, which represents over one-third of the U.S. workforce—more than any other sector. Manufacturing also has a significant multiplier effect. For every $1.00 spent in manufacturing, another $3.60 is added back into the economy. Despite this outsized role, manufacturers pay more in effective federal corporate taxes than many other sectors.
To address this challenge, the MADE Act potentially doubles the 199 domestic production tax deduction (from 9% up to 18%) for manufacturers that use more than 75% of “Made in America” component parts in their production process. The greater the percentage of “Made in America” inputs, the greater the deduction. An 18% deduction is equal to an additional 3% reduction in the corporate tax rate.
“Buying American is buying into the U.S. economy. All across this country, manufacturers, especially small manufacturers, have made the decision to buy from suppliers who sell component parts that are 100% made in America. Yet, these manufacturers pay significantly more in taxes than other industries. We should be supporting companies that make it a priority to buy American and incentivize other companies to do so. I’m proud to introduce the MADE Act with Senator Capito—bipartisan legislation that will help U.S. manufacturers compete in the global economy,” said Senator Coons.
“Manufacturers play a critical role in our economy, especially those who choose to support other American companies,” Senator Capito said. “Not only will the MADE Act help our manufacturers succeed and continue to drive economic growth, but it will also encourage other manufacturers to prioritize buying American. I’m excited to join Senator Coons in introducing this legislation, which will help manufacturers and small businesses in West Virginian and across the country.”
“A vibrant manufacturing sector is a key pillar of U.S. economic and employment strength. Senators Coons and Capito’s Made in America Deduction Enhancement (MADE) Act facilitates this by encouraging U.S. manufacturers to use more American-made inputs in their own production. We applaud Senators Coons and Capito for developing bipartisan legislation that will help grow the economy and strengthen manufacturing,” said Dr. Rob Atkinson, President of the Information Technology and Innovation Foundation.
“This is the type of forward-looking, bipartisan legislation we need to stimulate greater manufacturing R&D in this country and at the same time encourage companies to expand their operations in the U.S. Equally important, it goes a long way in providing small and mid-size manufacturers with an incentive to keep their eyes on ever-changing customer needs and expectations. And its enactment will help open new job opportunities for thousands of young technologists who want to grow with America. This is a bill that must be passed and signed into law this year to help revitalize the nation’s manufacturing sector,” said Rusty Patterson, Chairman and CEO of the National Council for Advanced Manufacturing.
The MADE Act has been endorsed by: Information Technology and Innovation Foundation (ITIF); National Council for Advanced Manufacturing (NACFAM); National Center for Defense Manufacturing and Machining (NCDMM); Association for Manufacturing Technology (AMT); Manufacturing Alliance of Communities (MAC); Delaware Manufacturing Extension Partnership (DEMEP); Reshoring Initiative; and American Society of Mechanical Engineers (ASME).
CONTACT: Sean Coit at 202-224-5042 or Sean_Coit@coons.senate.gov
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