The White House Outlines Its Manufacturing Tax Breaks

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 qualified investments.

• 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.