posey.house.gov

Posey, Bill

Washington, July 14, 2020 -

While the COVID-19 crisis has shown how overly dependent we have become on China and other nations for vital supplies and consumer goods, Congressman Bill Posey (R-Rockledge) has proposed legislation to assist American companies that want to bring manufacturing facilities back to the United States. Yesterday, Posey introduced H.R. 7594, the Reshoring American Manufacturing Act of 2020 (RAM ACT) to assist U.S. companies that re-shore their manufacturing equipment from China back to the United States. 

“Over the last three years, we have made great progress in rebuilding America’s manufacturing capability adding 500,000 good paying manufacturing jobs,” said Congressman Posey. “This legislation will build on that success by further breaking our dependence on China, restoring American manufacturing jobs, and rebuilding American industries and supply chains that are vital to our national security by bringing them home.”

Specifically, the RAM Act will provide tax credits to U.S. companies to bring manufacturing equipment back to the United States from China. Some companies face hurdles like high costs associated with transporting manufacturing equipment back to the United States. The RAM Act also requires companies to put the equipment into production in the U.S. There is also a “claw back” provision to prevent companies from moving this same equipment back out of the U.S. should they take advantage of the tax credit.