Stabenow Amendment to Create Jobs, Passes Senate
Encourages Struggling Manufacturers to Invest in the Economy
U.S. Senator Debbie Stabenow (D-MI) today announced Senate passage of her amendment to encourage American manufacturers to invest in the economy, thereby creating jobs here at home. The amendment allows manufacturers to utilize built up tax credits to stimulate the economy, invest in capital, and create new jobs. Cosponsored by Senator George Voinovich (R-OH), the amendment is part of the Foreclosure Prevention Act of 2008, expected to be voted on early next week.
Stabenow's amendment comes on the heels of today's Department of Labor report announcing the single largest monthly job loss in five years, including 48,000 in the manufacturing sector alone. The last twelve months have resulted in the loss of 300,000 manufacturing jobs.
"Across our state and across our country, middle-class families are struggling," said Stabenow. "Today's Department of Labor report that 80,000 jobs were lost nationally last month only serves to underscore what we have known in Michigan for some time. My amendment is a critical step in reversing these trends, stimulating the economy, and creating quality, good-paying middle-class jobs here at home."
The Economic Stimulus Act of 2008, which became law earlier this year, included an accelerated bonus depreciation provision to give companies a strong incentive to increase investment and stimulate the economy. Unfortunately this provision left out the companies most affected by the economic downturn, those that are not currently profitable.
The Stabenow amendment allows those companies hurting the most to utilize already accumulated tax credits to make critical investments in their businesses and workforce. Specifically, manufacturers may elect to utilize accumulated alternative minimum tax credits and research and development tax credits to make investments that would qualify for bonus depreciation, if manufacturers were profitable.