This is a common sense fix to a regulatory overreach that is needed to create good-paying American jobs in my own district and across the country.
Congressman Pat Tiberi (R-OH) and Congressman Richard E. Neal (D-MA) introduced legislation that clarifies the appropriate application of the Section 199 domestic manufacturing deduction (DMD) to contract manufacturing. Under current Treasury Department regulations, the DMD is unevenly applied to U.S. companies who utilize contract manufacturing arrangements, which is contrary to Congress’s original intent to incentivize American manufacturing. Tiberi and Neal’s legislation would level the playing field for non-vertically integrated manufacturers who employ U.S. workers so that they can spur needed investment and create jobs.
“As we work to rewrite our tax code in the Ways and Means Committee, a key priority is to ensure that we support our manufacturers’ ability to invest and make products here at home,” said Rep. Tiberi. “This bill clarifies Congressional intent and levels the playing field for manufacturers, no matter how their domestic supply chain is structured. This is a common sense fix to a regulatory overreach that is needed to create good-paying American jobs in my own district and across the country.”
“Investing in our nation’s manufacturers helps provide good-paying jobs for hardworking Americans and supports local communities across the country,” said Rep. Neal. “Working with my colleague, Congressman Tiberi, on the Ways and Means Committee, we put together a bill that would help provide manufacturers a fair and level playing field so we can create even more products right here at home in America.”
Read H.R. 1296