Invent and Manufacture in America Act
With an eye towards incentivizing domestic manufacturing, U.S. Senators Chris Coons and Pat Roberts, along with Representatives Mike Kelly and Ron Kind, have introduced the Invent and Manufacture in America Act in both houses of Congress.The bill, if passed, would increase the R&D Tax Credit as much as 25% for those companies not only conducting research and development in the United States, but also performing significant manufacturing operations domestically. The credit enhancement would be available to ‘Qualified Domestic Manufacturers’. To qualify, a company would need to have domestic production receipts that are more than 50% of total gross receipts. For these Qualified Domestic Manufacturers, the availability of the enhanced credit would be on a graduated scale; increasing the credit bonus as the percentage of domestic manufacturing increases. For example, a company engaging in 50% to 60% of their total manufacturing domestically, they would receive a 1% bonus to their credit. Whereas a company engaging in over 90% of their total manufacturing domestically would see a 5% bonus amount to their credit.
At Tri-Merit, we will continue to monitor the progress of this bill, and all other legislation, in our continued commitment to helping ensure that you capture and benefit from the most robust and sustainable tax credit available.
For the text of the bill, see: https://www.congress.gov/bill/115th-congress/senate-bill/1293/text
For press releases from the Senators and Representatives, see: https://www.coons.senate.gove/newsroom/press-releases/senators-coons-and-roberts-introduce-bipartisan-bill-to-help-companies-design-and-manufacrure-in-america and https://kelly.house.gov/press-release/rep-kelly-introduces-bipartisan-bill-help-boost-manufacturing-america