Bipartisan Measure Cuts Business Taxes for Capital Investments; Revenue is Offset by Stopping Tax Breaks for Companies Who Ship Jobs Overseas
U.S. Senator Debbie Stabenow (D-MI) and U.S. Representative Gary Peters (D-MI) today announced that the House of Representatives passed a provision they coauthored to cut business taxes to promote capital investment and job creation. The measure was passed as part of the American Jobs and Closing Tax Loopholes Act. The Stabenow-Peters "American Job Creation and Investment" provision will allow companies to utilize existing Alternative Minimum Tax (AMT) credits they must otherwise save for future years to be taken this year, providing more cash on hand to invest in new manufacturing facilities, purchase equipment, and create American jobs. The American Jobs and Closing Tax Loopholes Act is paid for in large part by ending tax breaks for companies who ship jobs overseas.
The Stabenow-Peters provision is based on bipartisan legislation introduced by Senator Stabenow in the Senate and Congressman Peters in the House. In the Senate, the amendment is cosponsored by U.S. Senators Orrin Hatch (R-UT), Charles Schumer (D-NY), Mike Crapo (R-ID), James Risch (R-ID), Olympia Snowe (R-ME), Sherrod Brown (D-OH), Mike Enzi (R-WY) and Susan Collins (R-ME). It is cosponsored by 73 Members in the House.
"In this challenging economy, our businesses need money to make new investments and hire new workers here at home," said Senator Stabenow. "Our bipartisan provision will provide them with a tax refund, so they have money to expand their operations and create jobs. I want to thank Congressman Peters for partnering with me on this provision which will help strengthen Michigan's economy."
"We need to create an environment that allows businesses to innovate and grow," said Representative Peters. "These tax credits are available only to companies who make investments here at home this year, providing a tremendous incentive to create jobs now. We need tax credits for companies creating jobs here, not shipping them overseas."
"The American Jobs and Closing Tax Loopholes Act will help free up capital for companies like Bosch to invest in energy efficiency and renewable energy technologies in the Unites States, including here in Michigan," said Peter J. Marks, chairman, president and chief executive officer, Robert Bosch LLC. "Bosch commends Senator Debbie Stabenow and Congressman Gary Peters for their leadership on behalf of Michigan businesses."
"CMS Energy commends Senator Debbie Stabenow and Michigan Congressman Gary Peters for their hard work and leadership on the American Jobs and Closing Tax Loopholes Act," said John G. Russell, president and chief executive officer, CMS Energy Corporation. "The provision authored by Senator Stabenow and Rep. Peters will help Michigan companies create jobs and make additional capital investments in Michigan. CMS Energy is one of many Michigan employers that can now use existing accrued tax credits for new investment to help revitalize our state. CMS Energy's planned investment for 2010 and 2011 is about $2 billion in Michigan on renewable energy, smart grid and other projects. This measure will provide capital that can help move these projects forward."
"Cliffs Natural Resources greatly appreciates the work of Senator Debbie Stabenow and Congressman Gary Peters in leading efforts to include the AMT domestic investment provision in this jobs bill," said Dana W. Byrne, Vice President of Public Affairs, Cliffs Natural Resources Inc. "This measure will promote important capital projects necessary to keep Cliffs' Michigan operations running safely and efficiently as they provide the vital raw materials integral to our nation's continued economic recovery. Thanks to the leadership of Senator Stabenow, Congressman Peters and their Congressional colleagues, Cliffs and other Michigan employers will now be encouraged to pursue the major projects that result in the creation and maintenance of countless family-sustaining American jobs."
"Delta Airlines congratulates U.S. Sen. Debbie Stabenow and U.S. Rep. Gary Peters of Michigan for their leadership in the passage of the American Jobs and Closing Tax Loopholes Act," Delta Airlines issued in a statement. "The provision they championed will enhance our ability to make capital investments in our aircraft fleet and facilities, which benefits our customers and employees nationwide."
"With a still fragile economy and access to capital markets remaining a challenge for many companies, Goodyear applauds Senator Debbie Stabenow and Congressman Gary Peters for their commitment and leadership on the American Jobs and Closing Tax Loopholes Act," said Curt Andersson, President of Goodyear North American Tires. "As a result of the provision they wrote, Goodyear -- with more than 30,000 jobs in the U.S. -- will be able to use some of its accrued tax credits to invest over $600 million in U.S. plants. Freeing up tax credits for additional capital investment just makes sense for the U.S. economy and U.S. jobs."
The Stabenow-Peters provision has the support of a diverse coalition of U.S. employers including Delta Airlines, General Motors, American Airlines, Associated Builders and Contractors Association, Bosch, CMS Energy, Goodyear and T-Mobile. It also has the support of the U.S. Chamber of Commerce, National Association of Manufacturers (NAM), Association for Manufacturing Technology (AMT), Association of Equipment Manufacturers (AEM) and Motor & Equipment Manufacturers Association (MEMA).
The Stabenow-Peters provision will allow companies in 2010 to use accrued business AMT credits to make investments in manufacturing facilities and equipment. The total amount of tax credits that can be utilized will be based on the percentage of new investments the company makes this year.
The legislation is expected to be considered in the Senate soon.