Carney Introduces Made in America Act

Statement

CARNEY INTRODUCES MADE IN AMERICA ACT

Legislation creates tax cuts that encourage and support American manufacturing and jobs

This week, Congressman Christopher Carney has introduced the bipartisan "Made in America Act," (H.R. 6611) which will create tax cuts to support American companies that keep their jobs and businesses "made in America."

"We live in the greatest country in the world, and we know that America must stay competitive in the global market. We currently have one of the highest corporate tax rates in the world at 35%. We need tax cuts for jobs and businesses that are made in America. The Made in America Act cuts that tax rate to 30%, which will attract new business and keep American jobs right here at home," said Congressman Carney.

"I hear from families across northeast and central Pennsylvania that more needs to be done to prevent the ‘brain drain' in rural and small town America. That is why the Made in America Act commissions a study to determine ways to stop our younger generation from leaving our rural areas for larger cities," said Carney. A second study examines the effect of on-site healthcare units as a practice to inspire loyalty of America's hardest workers.

The Made in America Act is bipartisan--Congressman Jim Gerlach, a Republican from Pennsylvania, is an original cosponsor of the legislation.

The Made in America Act reinstates the Research & Development tax credit that expired in December 2007, and makes it permanent. This will encourage companies to keep their R&D divisions on American soil and prevent other countries from enticing our manufacturers with tax incentives. It raises the amount of refundable expenses that can be claimed under the tax credit from 12% to 20% and eliminates a complicated calculation that previously made claiming the credit difficult.

"We also need tax cuts for our businesses that keep jobs right here in America. The Made in America Act makes new equipment and other capital expenditures affordable. Currently, most capital expenditures may only be deducted as business expenses over a period of years through depreciation reductions. This legislation changes that," said Carney.

Any expenditures under a certain price cap may be claimed fully deductible for the year it was put into service. The Made in America Act allows purchasers of capital equipment to expense the entire purchase up to $250,000, instead of $125,000, and increases the phaseout threshold for total capital expenditures from $500,000 to $800,000.

"I came to Congress to be a voice for families in northeast and central Pennsylvania. One of the best ways we can do this is by creating a long-term plan that provides for jobs and for the future. The Made in America Act creates tax cuts that does just that and I look forward to working with my colleagues to get this passed in the House of Representatives," concluded Carney.

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