Obama pitches manufacturing plan at computer chip plant
President Obama was in Albany, NY today to tour a computer chip manufacturing facility. He used the event to call on Congress to pass a “To-Do List” for job creation. The list includes:
“Create Jobs By Investing In Affordable Clean Energy:Congress needs to help put America in control of its energy future by passing legislation that will extend the Production Tax Credit to support American jobs and manufacturing alongside an expansion of the 30 percent tax credit to investments in clean energy manufacturing (48C Advanced Energy Manufacturing Tax Credit)”
The plan also includes tax credits for companies that bring jobs back to the United States:
And reward businesses bringing jobs back to the United States: Congress should create a new general business credit against income tax equal to 20 percent of the eligible expenses paid or incurred during closing down operations abroad and bringing jobs back to the U.S. In order to qualify for this credit, companies would have to reduce or eliminate a trade or business outside the United States and start up, expand, or move the same trade or business to the United States.
Consider the same firm as above, except they are moving the facility from overseas back to the U.S. If this company were to move a manufacturing plant with 800 employees back to the United States from another country, and incurred $15 million in costs from packaging and transporting equipment, and cleaning up the old facility abroad, then under the President’s plan the company would still be able to deduct the $15 million, saving $5.25 million in taxes and on top of that wouldreceive a 20% credit on its $15 million in expenses – or a $3 million additional income tax benefit.