The White House Outlines Its Manufacturing Tax Breaks
Wednesday, January 25, 2012
Posted by: Matthew Boyle
The White House outlined the details
on new tax breaks for manufacturing that the President called for during his
State of the Union speech. The plan consists of six new tax provisions as well
as a promise to propose more detailed corporate tax reforms next month. The plan includes:
- removing tax deductions for moving
costs associated with relocating overseas. The money saved from this change
would be used to provide a 20% income tax credit for the expenses of moving
operations back to the United States.
- highlighting an already existing domestic
production incentive on manufacturers who create jobs in the United States and
double that incentive for high tech manufacturing.
- providing $6 billion in targeted
assistance to communities affected by job loss. The tax credit would support
- providing $5 billion in new clean energy
manufacturing tax credits.
- allowing 100% of investments in plants
and equipment to be expensed.
- closing a loophole that exempts profits on intangible property, such as
patent royalties, when those properties are transferred overseas.
The six proposals will be part of the
President's FY 2013 budget, which will be released in February.