This week, U.S. Rep. Bill Posey, R-Fla. has introduced a proposal to help American companies reshore their manufacturing equipment from China back to the U.S.
Posey introduced the “Reshoring American Manufacturing Act” (RAM ACT) on Monday, insisting the “COVID-19 crisis has shown how overly dependent we have become on China and other nations for vital supplies and consumer goods.”
On Tuesday, Posey offered some of the reasons behind his bill.
“Over the last three years, we have made great progress in rebuilding America’s manufacturing capability adding 500,000 good paying manufacturing jobs,” said 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.”
The bill will offer tax credits to Americans companies, encouraging them to move manufacturing equipment out of 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,” Posey’s office noted.
Posey’s bill was sent to the U.S. House Ways and Means Committee on Monday. So far, there is no companion measure over in the U.S. Senate.